By LEANN LITTLE
Farm World Intern-Tennessee

KNOXVILLE, Tenn. — Following Tennessee’s devastating April freeze Gov. Phil Bredesen filed for federal farm assistance in all 95 counties.

On June 18 his request was approved, making Tennessee farmers eligible for aid. A disaster designation from the USDA will allow access to low-interest, emergency loans through the USDA’s Farm Service Agency.

“I’m pleased that USDA has granted this request and recognizes that many of our farmers are struggling to recover from the devastating effects of the spring freeze,” Bredesen said. “We want to make sure that everyone who wants to stay in the business of farming has the chance to do so with the assistance of this designation.”

Winter wheat harvest in the state was expected to decline 50 percent from last year according to an early estimate. Such damage would result in a more than $22 million loss for farmers in Tennessee. Fruit and nursery crops have also taken a hard fall with losses ranging from 50-90 percent in some areas of the state.

Low interest emergency loans are not an outlet that most of the state’s farmers consider, according to Todd Trew of the Hamilton County FSA office.

“Last year when low interest emergency loans were available, no farmers in our area applied,” he said.

Trew seems to think the loans will receive the same response this year as well.

In order to qualify for the emergency lending program, applicants must have been denied by another lending organization yet still have an acceptable credit history.

In most cases, all assets must be listed as collateral for loan approval. This is a great risk that causes many to reconsider their decision to apply.

Jimmy McCulley of Sparta believes that most Tennessee farmers will be more likely to apply for other programs through Farm Service Agency when they become available.

Last year, he experienced a large loss in his strawberry crop and was only compensated a small percentage through insurance.
He plans to apply for the Crop Disaster program when it becomes available to help him recover from that loss. The Crop Disaster, Livestock Compensation, Livestock Indemnity, Dairy Disaster Assistance and Emergency Conservation Programs cover losses that occurred Jan. 1, 2005 to Feb. 28, 2007. Such programs give direct assistance to qualified agriculturalists. However, this will not cover damages on Tennessee crops caused by the unseasonably harsh April weather. Another designation would have to be given before these programs would cover that time period.

Until that step is taken only low-interest, emergency loans will be
available.

This farm news was published in the June 27, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.