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August 23, 2001

Ag Dept. requests disaster protection

- Farmers could receive low-interest loans to help offset losses; corn, hay, fruit trees hurt by drought
By BILL ECHLIN
Record-Eagle staff writer

      TRAVERSE CITY - Federal Agriculture Department officials are asking that five counties in northwestern Michigan be designated a disaster area because of crop losses and damage to fruit trees due to drought.
      If USDA officials at the state and federal level agree to the designation, and Gov. John Engler officially requests it, the result would give farmers access to seven-year loans with 3.75 percent interest rates. The loans could be used for anything associated with farm operations, including paying off bills or debts, replacing damaged fruit trees or offsetting the costs of putting in next year's field crops, said James Monroe, farm loan manager with the USDA's Farm Service Agency in Traverse City.
      The disaster designation would cover Antrim, Kalkaska, Leelanau, Grand Traverse and Otsego counties.
      On Wednesday USDA officials, county extension agents, farmers, growers and others met to assess the impact of this summer's dry weather. The corn crop in the area was hit especially hard, they said.
      "If you drive up into Leelanau County, you'll see a lot of corn fields that are stunted, with not a ear of corn on them," Monroe said. "Also, while we had an excellent spring and first cutting of hay, the second cutting was non-existent and that means farmers will have a shortage of feed for livestock. They will have to replace that."
      Monroe said growers in the area are reporting their fruit trees are showing a lot of stress from lack of moisture. Young trees are especially vulnerable but older stressed trees could be hurt too, especially if next winter is a hard one.
      "It's too early to say what the total losses are but we're just getting started on the disaster-designation process, so we'll be able to process loans over the winter," Monroe said.
      While some farmers and growers have crop insurance, he said, it rarely covers all of a crop or tree loss. And many other farmers cannot afford insurance.
      Fruit crop losses earned the designation last year. Monroe said there had only been one year in the 1990s that was declared an agricultural disaster, but that nearly every year in the 1980s was.
      "It all just depends on the weather and there's little anyone can do about it, which is why we have programs like this to help farmers through the bad times," he said.
      Similar groups of agricultural officials and farmers are meeting elsewhere in the region and state. The state USDA office will combine the reports and send recommendations to Washington, D.C.
      Bill Echlin is the reporter for business and tourism. He can be reached at (231) 933-1493, or at bechlin@record-eagle.com