San Benito County farmers and ranchers will be eligible for
low-interest emergency loans from the U.S. Department of
Agriculture as a result of a drought that swept through the area
last year.
Hollister – San Benito County farmers and ranchers will be eligible for low-interest emergency loans from the U.S. Department of Agriculture as a result of a drought that swept through the area last year.
Farmers and cattle ranchers who suffered loses and cannot obtain a loan from another lender, will be able to submit an application to the Farm Service Agency until Sept. 19 of this year. The rate of the loan is 3.75 percent, a few points lower than found at most banks and credit unions, according to LaVon Treasure, a farm loan manager for the agency.
Ranchers would also need to show they suffered at least 30 percent of losses as a direct result of the drought and have the ability to repay the loan in the next couple of years, Treasure said.
Joe Morris, owner of T.O. Cattle Company, said his production was cut by 20 to 30 percent as a result of the drought last year. Rains came early in 2004, but by March, the sun was scorching the earth, he said. As a result, grasses produced seeds much earlier than normal because of the drought, essentially removing a significant amount of nutrients from the food most livestock graze on.
“The cattle filled up on coarse grass, but because there were little nutritional content did not gain as much weight,” said Morris.
Morris, who has owned his company for 14 years, had not heard about the USDA’s program and said he would have to learn more about it before deciding whether to apply for a loan.
The drought was more likely to affect cattle ranchers than vegetable farmers because the latter have the option of irrigating their fields, while ranchers like Morris rely on the rains to nourish grass in their fields.
Others said the federal assistance was pointless since the drought had passed.
“We’re in a new year, so it’s actually a bit moot,” said Mitt French, who runs Quien Sabe Ranch and whose family has ranched locally for several generations.
The Farm Service Agency is the financial arm of the USDA and offers operating and emergency loans to farmers. They expect about a dozen people from San Benito County will apply for the federal assistance, said Jeannine Leyva, acting county executive director for the Farm Service Agency in Hollister.
“It really does impact ranchers when rains shut off early in the season,” said Leyva. “The cattle don’t gain as much weight and ranchers are forced to sell them early because they don’t have the pasture to sustain them.” Leaner cattle mean lower prices, which translates into lower profit for the rancher, she said.
Karina Ioffee covers education and agriculture for the Free Lance. Reach her at (831)637-5566 ext. 335 or ki*****@fr***********.com
