Hollister
– The San Benito County Water District acquired $3 million from
the State of California this week to loan to local growers looking
to improve water efficiency on their farms.
Hollister – The San Benito County Water District acquired $3 million from the State of California this week to loan to local growers looking to improve water efficiency on their farms.
“This is going to help out the real farmers in the community,” said Ken Perry, who serves on the county water board.
The water district is borrowing the money from the state. It will, in turn, offer loans to growers at an interest rate of 2.3 percent – an especially good deal, considering that loans for these types of agricultural projects can have interest rates of 6 or 7 percent.
“I just got finished doing the same sort of work, and I wish I’d been able to get loans like this,” Perry said.
The loans will be available to farmers planning to purchase new, water-efficient irrigation equipment such as drip or micro-sprinkler systems. Not only will growers be benefiting from low-interest rates, but the equipment, once in place, will save water costs in the future as well.
“You’re saving money and you’re saving a lot of labor costs, too,” Perry said. “And you’re conserving water and being responsible.”
Perry said the district had been working to get these funds for the better part of the last four years. The district has 15 years to repay its loan, but will be setting up five-year payment plans with local growers so the money can be loaned out again and again to the benefit of as many farmers as possible.
Because the funding was so recently acquired, the District does not have an estimate of how many farmers will participate. But officials estimate that nearly $10 million worth of equipment will be purchased with one $3 million loan.
“Any time you can get more accessible water or a cheaper price, it’s beneficial to the ag business,” County Supervisor Reb Monaco said, who represents District 4 and many of the county’s farmers. “Because agriculture is all about the bottom line.”
These installation projects can cost growers $1,000 or more per acre, but in order to participate in the district’s loan program the cost must be at least $750 for acre, and the project all together must not exceed a cost of $250,000 or fall bellow $5,000.
“It’s encouraging that we’re supporting our growers,” Monaco said. “Because they work hard and it’s really a tough business, even in the good times.”
Those interested in applying for one of the special loans can call the water district at 637-8218.
Danielle Smith covers education for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected].
