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Vilsack announces streamlined diaster designation, programs
WASHINGTON, D.C. -- Agriculture Secretary Tom Vilsack announced a package of program improvements that will deliver faster and more flexible assistance to farmers and ranchers devastated by natural disasters, according to a July 11 U.S. Department of Agriculture (USDA) press release. Vilsack announced three significant improvements to decades-old USDA programs and processes related to Secretarial disaster designations:
•A final rule that simplifies the process for Secretarial disaster designations and will result in a 40 percent reduction in processing time for most counties affected by disasters;
•A reduced interest rate for emergency loans that effectively lowers the current rate from 3.75 percent to 2.25 percent;
•A payment reduction on Conservation Reserve Program (CRP) lands qualified for emergency haying and grazing in 2012, from 25 to 10 percent.
A natural disaster designation makes all qualified farm operators in the designated areas eligible for low-interest emergency loans.
The final rule for Secretarial disaster designations is amended as follows:
•Nearly automatically qualifies a disaster county once it is categorized by the U.S. Drought Monitor as a severe drought for eight consecutive weeks during the growing season. Effective July 12, 1,016 primary counties in 26 states will be designated as natural disaster areas, making all qualified farm operators in the designated areas eligible for low-interest emergency loans from USDA’s Farm Service Agency, provided eligibility requirements are met.
• Streamlines the USDA Secretarial designation process, which is expected to provide better service to farmers and ranchers by reducing by approximately 40 percent the amount of time required for designating a disaster area.
•Removes the requirement that a request for a disaster designation be initiated by a state governor or Indian tribal council, increasing the likelihood that counties will be covered.
•The same criteria currently being used for triggering a disaster designation will apply: A county must either show a 30 percent production loss of at least one crop countywide, or a decision must be made by surveying producers to determine that other lending institutions are not able to provide emergency financing.
USDA’s low-interest emergency loans have helped producers recover from losses due to drought, flooding, and other natural disasters for decades. While the current emergency loan interest rate was set in 1993 at 3.75 percent, commercial farm loan and other Farm Service Agency farm loan interest rates have since been reduced without a corresponding reduction in the emergency loan rate. By reducing the interest rates to 2.25 percent, emergency loans immediately come into line with other rates in the marketplace and provide a much-needed resource for producers hoping to recover from production and physical losses associated with natural disasters.
As part of ongoing efforts to provide greater flexibility in service to American agriculture, the USDA also announced that the annual rental payment by producers on Conservation Reserve Program acres used for emergency haying or grazing will be reduced to 10 percent in 2012, instead of 25 percent, in response to the seriousness of the drought gripping large portions of the United States.
The USDA encourages all farmers and ranchers to contact their crop insurance companies and local USDA Farm Service Agency Service Centers, as applicable, to report damages to crops or livestock loss. In addition, USDA reminds livestock producers to keep thorough records of losses, including additional expenses for such things as food purchased due to lost supplies. More information about federal crop insurance may be found at www.rma.usda.gov.
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