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Farmers with bad crops can apply for fed loans

By Associated Press,  News Headlines From 1st
December 18, 2001
 
Farmers who suffered drought damage to crops this year will be able to apply for low-interest emergency loans through the federal Farm Service Agency.

The U.S. Department of Agriculture this week designated all of Michigan, except Keweenaw County, a disaster area due to heavy crop losses.That means crop yields were down at least 30 percent in one or more commodity in each of the 72 counties.

Soybeans were hard-hit in the Jackson region, with many farmers reporting half the normal yields.

Michigan Department of Agriculture Director Dan Wyant said some areas received less than an inch of rain from mid-June to mid-August, coupled with some hot days.

Eligible farmers can get loans for up to 80 percent of their losses.

Michigan farmers who don't meet federal qualifications might be able to get state loans for such things as equipment leases, repairs, feed and crop insurance.

State Rep. Mickey Mortimer, R-Horton, said this week the House Appropriations Committee approved House Bill 4009, which would allow the state treasurer to loan up to $210 million to farmers.

Farmers would have three years to receive the no-interest loan, and repayment would begin in the fourth year, he said.

A vote before the full House is pending.