Applications for emergency farm loans for losses caused by damages and losses caused by drought on January 1, 2006 and continuing are being accepted at the Farm Service Agency (FSA) office located in Seguin, Texas, Raecene A. Randall, Farm Loan Manager said today.

Live Oak and McMullen were named as primary counties in Texas recently by the Secretary of Agriculture eligible for loans to cover part of actual production losses resulting from the drought. Atascosa, Bee, Duval, Frio, Jim Wells, Karnes, LaSalle, San Patricio and Webb were also named as contiguous counties.

Raecene Randall said farmers may be eligible for loans of up to 100% of their actual losses or the operating loan needed to continue the agricultural business, whichever is less. For farmers unable to obtain credit from private commercial lenders, the interest rate is 3.75 percent.

"As a general rule, a farmer must have suffered at least a 30 percent loss of production to be eligible for an FSA emergency loan", Randall said. Farmers participating in the Federal Crop Insurance program will have to consider proceeds from those programs in determining their loss.

"Applications for loans under this emergency designation will be accepted until March 27, 2007, for production and physical losses, but farmers should apply as soon as possible. Delays in applying could create backlogs in processing, with possible delays into the new farming season", Randall said.

FSA is a credit agency of the U.S. Department of Agriculture. It is authorized to provide disaster emergency loans to recognized farmers who work at and rely on farming for a substantial part of their living. Eligibility is extended to individual farmers who meet U.S. citizenship requirements and to farming partnerships, corporations, or cooperatives in which U.S. citizenship requirements are met by individuals holding a majority interest.

The FSA office in Seguin is open from 8:00 am to 4:30 pm, Monday through Friday. You may also pick up an application and turn it in at your local service center in the county you live.