Loans

East Texas farmers may seek relief from USDA loan program

East Texas farmers may seek relief from USDA loan program
Written by Publishing Team

TYLER, Texas (KLTV) – East Texas farmers who suffered losses during the turbulent weather of 2021 have the opportunity to recoup some of their losses through a state loan program.

From a February snowstorm to torrential spring rains to scorching summer heat, farmers have been hit by a barrage of weather that has dramatically reduced their yields.

“We had the number one disaster declaration for freezing and snow. Then we got a second disaster declaration for heavy rain in the spring. Roel Garza, head of farm loan at the USDA Farm Services Agency, said,”

Twenty-three Texas counties are under the umbrella of USDA loans to offset the effects of drought, among other weather factors.

The loans are intended to compensate for losses caused by natural disasters. The emergency loan has a limit of $500,000. “It’s supposed to get the product back to where that process was before the disaster,” Garza said.

Contingency loans can be used to meet various recovery needs including replacing equipment or livestock, reorganizing agricultural operations or refinancing certain debts.

The loan will be for those producers who have suffered 30 percent of their crops or livestock. “Just because a disaster declaration has been made, it doesn’t mean that everyone in the county will be eligible,” Garza said.

Farm service agencies will review loans based on the extent of losses, available security and ability to repay.

Producers can apply for the loan through the USDA website.

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