FSA announces YMC a candidate for relief
Farmers who experienced building damage during a July 31 storm could soon be getting relief.
The U.S. Department of Agriculture Farm Service Agency announced Wednesday Yellow Medicine County was designated a contiguous county with two counties that received significant damage during the storm.
The designation allows farmers who had buildings damaged by the July 31 to apply for an emergency loan.
Kevin Hagan, farm loan manager for the FSA in Lyon and Yellow Medicine County, said Yellow Medicine County is included in the loan program because it is connected to Chippewa and Lac qui Parle counties.
Hagan said the loan program does not cover crop damages as a result of the storm.
"This particular designation has to do with losses caused by severe thunderstorms, damaging winds, large hail and heavy rain at the end of July," said Hagan. "This is a physical loss. If someone has damage to buildings - this would apply."
Rodney De Graaf, farm loan manager for FSA, said in a news release eligibility for the loan will be based on the severe physical losses in building damage.
Big Stone, Kandiyohi, Renville and Swift were also named contiguous counties in the loan program, the news release said.
Hagan said eligible farmers can receive a loan at a 3.75 percent interest rate.
"The amount of loan the FSA can assist with will depend on the evaluation of what they lost," Hagen said. "We do take into account any insurance proceeds received. We would not loan the same money that insurance has already replaced."
Hagan said damaged property would need to be identified as essential to the farm operation and would not cover out-dated buildings.
"We would have to assess the building and make sure it was an essential building," said Hagan. "We have had cases of people coming in asking for help to replace an 80-year-old chicken coop and that would not be considered an essential building and might not be eligible."
Hagan said if a farmer believes they are eligible for the loan they can contact their local FSA office.
"Their first stop would be to contact our office in Lyon County or if they're in Yellow Medicine County, we hold offices hours in Clarkfield every Thursday morning," said Hagan.
Hagan said as of Thursday morning, no farmers had applied for the emergency loan. He said that could change in the coming days.
"Thus far we haven't had any contacts in relation to this one," said Hagan. "Part of that comes down to getting the word out."
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rona45
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10-03-08 12:38 AM
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I bet if the program was under Fannie Mae or Freddie Mac that 80 year old chicken coop would be covered.
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