USDA provides $253 million in emergency loan funds for NE Colorado farmers

Bloggers Note: "Emergency" situation not due to natural disaster.

BY ROBERT MOORE • RobertMoore@coloradoan.com • May 9, 2009

TheU.S. Department of Agriculture is providing $253 million in emergency loan funding to help about 2,500 Northeastern Colorado farm families whose livelihoods have been jeopardized by the collapse of the Greeley-based New Frontier Bank, congressional officials announced today.

The USDA loan fund fills part of an estimated $700 million shortfall in farm capital caused by the failure of New Frontier, which was the dominant agriculture-focused bank in the region, said Ben Marter, a spokesman for Rep. Betsy Markey, D-Fort Collins.

Agriculture Secretary Tom Vilsack ordered the transfer of unused agricultural loan money to two funds for use by Northeastern Colorado farmers -- $110 million for direct operating loan funds and $143 million for unsubsidized guaranteed operating loan funds. He announced his decision in a letter today to Markey and Sens. Mark Udall and Michael Bennet.


“This announcement comes at a critical time for farmers and ranchers in Northern Colorado,” Markey said. “This move will help ensure that both loan programs are available to qualified farmers who urgently need the funds for spring plantings, farmhands and cow feed."


Bennet said the additional funding could mean the difference between success and failure for many farmers who had relied on New Frontier.


“The Farm Service Agency’s credit programs can help farmers stay in business, provide for their families and make it through these uncertain economic times. The funds transfer is a step in the right direction and we will continue to provide as much support as we can to help our farmers,” he said.


Udall echoed the importance of the money: "This assistance is going to be a real lifeline for farmers to help them get through tough economic times that have been made even tougher because of low commodity prices."


In a joint statement, Markey, Udall and Bennet said approximately 1,900 family farmers will be helped with direct operating loan assistance and 620 family farmers with guaranteed operating loan funds.


Details on how farmers can access the funds will be provided when Vilsack visits Brush on Monday, Marter said. The agriculture secretary will be joined by Markey, Bennet and Gov. Bill Ritter.


The meeting will be from 9:30 to 11 a.m. at the Morgan County Fairgrounds 4-H building in Brush


Click on title above to go to article http://www.coloradoan.com/article/20090509/UPDATES01/90509010

Related:

Then cut & paste the link below into your web-browser to read about the GAOs' Report about the USDAs misappropriation of millions of your tax paying dollars;

http://www.thepetitionsite.com/1/usda-misappropriates-49-m-to-wealthy-farmers

and what are the PTB going to do about it? Close your eyes. What do you see. Thats right. Nothin.