Texas farmers are eligible for federal disaster loans following the U.S. Department of Agriculture’s designation of over 200 Texas counties as disaster areas. The declaration follows on the heels of a major drought that has gripped the Lone Star State for the past several months, devastating crop production and causing many farmers to worry about the future of their farms and ranches. The drought, which began in January, has also led to a number of other natural disasters, including several devastating wildfires. Altogether, the drought has caused a roughly 30 percent loss in agricultural crops.
In a statement he made prior to the declaration, Secretary of Agriculture Tom Vilsack reiterated the government’s commitment to struggling Texas farmers. “Many producers have lost their crops due to the devastation caused by the drought and wildfires,” he said, “I want these farmers and ranchers to know that we will support them through the recovery process and help them once again become productive suppliers of food, fiber and fuel that keep America prospering.”
The emergency declaration opens up emergency loans to farmers who can demonstrate meaningful losses as a result of the disaster. Farmers who have sustained at least 30 percent losses to their crops are eligible to receive up to $500,000 in 3.75 percent interest loans. USDA officials are predicting that the losses will be severe, and could exceed the $4 billion record set in 2006. Given the widespread nature of the drought (about 91 percent of the state is experiencing extreme or severe drought), every county in Texas will be eligible for disaster loans.
To learn more about Texas farm loans and agricultural financing opportunities, contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting .
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Written by: Justin Ellison / Farm Plus Staff Writer