South Carolina Farmers are Eligible for USDA Emergency Loans
Todd D. Davis, Extension Ag. Economist

Producers in South Carolina are eligible for the USDA emergency loan assistance program which offers low interest rate loans to producers who experienced production losses in the 2001 crop year. The objective of the emergency loan program is to help producers that cannot obtain commercial credit rebuild their business to the point where they can return to the commercial credit market. Emergency loans can be used to cover production expenses, restructure the farm business, pay for family living expenses, or they can be used to refinance the farm business.

To be eligible for an emergency loan, producers must gave experience a production loss of at least 30 percent in any farm enterprise during 2001, prove that they cannot obtain credit from another source, and must have collateral to secure the loan. Producers can borrow up to 80 percent of the value of the production loss with a maximum loan of $500,000. The emergency loan interest rate is set at 3.75 percent. The term of the loan depends on the purpose of the loan, loan security, and the repayment ability of the borrower.

Part of the emergency loan assistance program is to help producers imporve their farm financial management skills. Producers must keep farm financial records, develop a farm business management plan to guide their farming business, and develop a plan to repay the loan. Clemson Extension has cooperated close with FSA in providing managerial training for USDA borrowers.

Producers have until October 1, 2002 to apply for an emergency loan. Producers can obtain more information and apply for a loan at their county FSA offices.