TYLER, TX (EAST TEXAS NEWS) – East Texas farmers who suffered losses during the tumultuous 2021 weather year now have a chance to recover some of those losses through a government loan program.
From a February snowstorm to heavy spring rains and the scorching heat of summer, farmers faced a barrage of weather that drastically reduced their yields.
“We had a No. 1 disaster declaration for freezing and snow. Then we had a second disaster declaration due to excessive spring rains. Then we had a disaster declaration for drought and extreme heat,” said Roel Garza, head of agricultural lending at the USDA’s Farm Service Agency.
Twenty-three Texas counties are covered by USDA loan programs to offset the effects of drought, among other weather-related factors.
“The loans are intended to help recover losses from natural disasters. The emergency loan has a cap of $500,000. It is intended to bring a producer back to where that operation stood before the disaster,” Garza said.
Emergency loans can be used to meet a range of recovery needs, including replacing equipment or livestock, reorganizing farming operations, or refinancing certain debts.
“The loan would be for producers who have suffered at least 30 percent of their crop or livestock losses. The fact that a disaster declaration has been issued does not mean everyone in the county is eligible,” Garza said.
The Farm Service Agencies will review loans based on the extent of losses, available collateral, and the borrower’s ability to repay.
Producers can apply for the loan through the USDA’s website.
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