FRANKFORT, Ky. — In a year filled with one agricultural catastrophe after another, Kentucky farmers received word last week that all 120 counties had been declared a disaster area by the USDA.

The weather is the culprit that created disaster conditions, first with an Easter freeze that robbed many produce growers and wheat producers of a productive season then a record summer drought that, in some cases, annihilated everything from hay to tobacco. Some corn and soybean growers were reduced to cutting their crops for livestock feed.

The request for the disaster assistance came in August from Gov. Ernie Fletcher who praised the declaration news.

“I am extremely pleased Acting Agriculture Secretary Chuck Conner made USDA emergency assistance available to help aid our farmers across the Commonwealth,” said Fletcher. “Kentucky experienced the third driest May through August in 113 years, with lower than normal rainfall and temperatures higher than normal in the past several months which led to this state of disaster. This assistance will help lessen the impact felt by our Kentucky farmers.”

Along with the disaster request, Fletcher also contacted the Kentucky Congressional Delegation informing them of the situation and asking them to place emphasis on the need for assistance.

Sen. Mitch McConnell (R-Ky.), who is also the Senate Republican Leader, sent a letter to then-USDA Secretary Mike Johanns in support of Kentucky’s request for disaster designation.

“Agriculture is a vital part of the Commonwealth’s economy, and this disaster declaration will provide much needed assistance to our agriculture producers during these difficult times,” said McConnell. “Our farmers will now be able to apply for low-interest emergency loans to help them pay their essential farm and living expenses.”

With this year’s farm bill still awaiting passage by the Senate, efforts are being made to include disaster assistance in the bill for farms in drought stricken areas.

The Governor’s Office of Agricultural Policy (GOAP) has chimed in with help as well approving minor changes to the County Model Programs making them more “drought friendly” to producers across the state.

“I directed my Office of Agricultural Policy (GOAP) to continue diligently working with the Kentucky Department of Agriculture, the University of Kentucky College of Agriculture, and Kentucky State University to advise producers regarding alternative practices, to provide financial assistance and to explore other opportunities for farmers,” said Fletcher. “This is a crucial time for Kentucky agriculture and the joint efforts of these groups will be important in helping farmers progress through this difficult time.”

Members of the Kentucky Agricultural Development Board (KADB), which oversees half of Kentucky’s tobacco settlement funds, met last week and were in consensus that the most important action for farmers right now is to ensure the education of producers on the best practices for livestock and crops during this period of extreme drought. A program to assist in the promotion of county educational programs designed to assist all producers during the drought was adopted at the meeting.

“Gov. Fletcher encouraged us to explore every option to assist Kentucky producers,” said Keith L. Rogers, Executive Director of the Governor’s Office of Agricultural Policy. “These steps will provide important assistance while remaining within the intent of the Kentucky Agricultural Development Fund.”

Who can get assistance According to the USDA’s Farm Service Agency (FSA) which will administer federal emergency loans (EM), at a rate of 3.75 percent, assistance is available to producers who meet the following criteria: own or operate land located in a county declared by the President as a disaster area or designated by the Secretary of Agriculture as a disaster area; are established family farm operators and have sufficient farming or ranching experience; are citizens or permanent residents of the United States; have suffered at least a 30-percent loss in crop production or a physical loss to livestock, livestock products, real estate, or chattel property; have an acceptable credit history; are unable to receive credit from commercial sources; can provide collateral to secure the loan; and have repayment ability.

Emergency loans may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses, reorganize the farming operation, and refinance certain debts.

In a statement regarding criteria the FSA said, “many farmers have an excellent relationship with their normal lender, while still having suffered a sizable loss of income due to the drought and/or Spring freeze. These farmers may need the FSA Emergency loan’s interest rate and terms in order to alleviate the financial demands placed on them due to, in some cases, a drastic drop in net farm income … FSA can offer terms that are unavailable at many private lenders.”

The statement went on to say that farmers can borrow up to 100 percent of actual production or physical losses, to a maximum amount of $500,000.

Loans for crop, livestock, and non-real estate losses are normally repaid within 1-7 years; depending on the loan purpose, repayment ability, and collateral available as loan security. In special circumstances, terms of up to 20 years may be authorized.

Loans for physical losses to real estate are normally repaid within 30 years. In certain circumstances, repayment may be made over a maximum of 40 years.

Mitch Whittle, Kentucky’s FSA farm loan chief, said for some producers, this was the worst year he could remember but the agency was here to help.

“We haven’t had any applications yet but I think we will and we’ll be able to help farmers,” he said.

“This year is quite possibly, especially for livestock producers, the worst drought we’ve ever had. We realize there have been some farms really financially strapped over this.”

Whittle also said that the actual loan applications will be taken at one of 18 farm loan team offices around the state. Those locations include: Columbia, Glasgow, Hardinsburg, Hopkinsville, Owensboro, Flemingsburg, Mayfield, Cynthiana, New Castle, Stanford, Russellville, Mt. Sterling, West Liberty, Somerset, Shelbyville, Bowling Green, Springfield and Monticello. Whittle said to contact one of these offices or one of the 90 FSA offices located throughout the state for assistance.

Agriculture Commissioner Richie Farmer said the loans should carry farmers through to a better time.

“This year’s weather has created a tremendous hardship for thousands of Kentucky farmers,” Farmer said. “I’ve heard from many farmers who tell me they’ve lost crop income or had to sell cattle because they can’t feed them. The emergency loans will help our farmers get through the winter and hopefully to better days ahead.”

Further information on the emergency loan program is available from the local USDA Service Center or on the FSA website at www.fsa.usda.gov