MONROE - Green and Lafayette counties are among 76 additional counties in six states designated as primary natural disaster areas due to damage and losses caused by drought and excessive heat.
U.S. Department of Agriculture Secretary Tom Vilsack made the announcement Wednesday, July 25.
During the 2012 crop year, the USDA has designated 1,369 counties across 31 states as disaster areas - 1,234 due to drought - making all qualified farm operators in the areas eligible for low-interest emergency loans.
The additional counties are in Indiana, Illinois, Kansas, Michigan, Nebraska and Wisconsin. Wisconsin counties are: Adams, Columbia, Crawford, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Kenosha, Lafayette, Marquette, Milwaukee, Ozaukee, Racine, Richland, Rock, Sauk, Walworth, Washington, and Waukesha.
Typically, emergency farm loans are set at 2.25 percent interest for seven years, according to Frank Goff, a farm loan specialist temporarily assigned to Green County Farm Services Administration (FSA) office in Monroe.
The problem with loans, however, is that farmers will have to pay them back. The loan program is not a grant, Goff said.
Goff explained that federal emergency loan amounts are usually calculated in the fall, after the harvest is completed and reported. How much crop was lost in the disaster is determined by comparing the harvest to a previous normal three-year period. The calculated cost of this year's loss will be based on the crop's average price in 2011, and crop insurance payments are deducted to arrive at the loan amount a farmer qualifies for.
The disaster designation "may potentially open up a service program for existing loan customers, also," Goff added. In those instances, when a farmer already has a FSA loan prior to a disaster occurring, an annual loan payment might be set-aside, but not forgiven, and interest would continue to accrue.
High feed costs
State Rep. Howard Marklein, R-Spring Green, said feed costs are tearing up dairy producers.
"I just talked with two producers who say they will spend from $100,000 to $300,000 for feed costs this year," Marklein said. "That's at $1,000 a head.
"Another farmer, who no longer milks but has got some hay, said he feels terrible asking for market value price," he added. "Instead of setting the price, the farmer is baling up the hay and telling farmers to come in and make an offer or bid on it."
Green County's University of Wisconsin-Extension ag agent Mark Mayer said hay prices are variable, depending upon the type of hay, but go for up to $300 per ton. A large, round bale normally weighs between 700 to 1,000 pounds, again depending upon the type of forage it contains.
Emergency hay sales are starting at noon Friday, July 27 at Francois Oil gas station in Monticello. B&M Auctions has scheduled monthly sales every fourth Friday through October, when regular hay sales take over every Friday.
"I wonder where they'll get their hay from," Mayer said. "It'll be interesting to see if there are more buyers or sellers."
Marklein warned of food prices going up in the repercussion of the drought, but he noted in particular that the demand for many products will drop, as farmers halt buying equipment and vehicles. (See related story on Page A3.)
"It's unfortunate a farmer can have the latest technology and the best management practices and still go broke," he said. "There's not that many opportunities in our state. Farming is the heart of the state and a huge part of our economy and that affects Main Street."
Other help
- Wisconsin Department of Agriculture, Trade and Consumer Protection Secretary Ben Brancel has called on the state Department of Transportation to authorize issuing Agricultural Emergency Permits to allow transporting heavier loads of hay bales along most state and local roadways. Through June 30, 2013, the DOT's Division of Motor Vehicles Motor Carrier Services Section will issue free permits authorizing transporting these loads during daylight hours along non-posted state and local roadways under certain conditions. Permit applicants should contact the DOT's Oversize/Overweight Permits Unit at (608) 266-7320.
- The Wisconsin DNR is also opening, for a limited time, selected acres of state land for haying and grazing. (See sidebar.)
- Farmers in the state who have hay or other forage they can provide to farmers running short due to the drought can share that information on the UWEX's Farmer to Farmer Hay, Forage and Corn List and the Farmer to Farmer Pasture Rental websites.
- For farmers with access to irrigation equipment, the Wisconsin DNR will help with a fast review of emergency crop irrigation from lakes and rivers. The cost for irrigation permits, as much as $300, has now been waived, according to Marklein.
U.S. Department of Agriculture Secretary Tom Vilsack made the announcement Wednesday, July 25.
During the 2012 crop year, the USDA has designated 1,369 counties across 31 states as disaster areas - 1,234 due to drought - making all qualified farm operators in the areas eligible for low-interest emergency loans.
The additional counties are in Indiana, Illinois, Kansas, Michigan, Nebraska and Wisconsin. Wisconsin counties are: Adams, Columbia, Crawford, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Kenosha, Lafayette, Marquette, Milwaukee, Ozaukee, Racine, Richland, Rock, Sauk, Walworth, Washington, and Waukesha.
Typically, emergency farm loans are set at 2.25 percent interest for seven years, according to Frank Goff, a farm loan specialist temporarily assigned to Green County Farm Services Administration (FSA) office in Monroe.
The problem with loans, however, is that farmers will have to pay them back. The loan program is not a grant, Goff said.
Goff explained that federal emergency loan amounts are usually calculated in the fall, after the harvest is completed and reported. How much crop was lost in the disaster is determined by comparing the harvest to a previous normal three-year period. The calculated cost of this year's loss will be based on the crop's average price in 2011, and crop insurance payments are deducted to arrive at the loan amount a farmer qualifies for.
The disaster designation "may potentially open up a service program for existing loan customers, also," Goff added. In those instances, when a farmer already has a FSA loan prior to a disaster occurring, an annual loan payment might be set-aside, but not forgiven, and interest would continue to accrue.
High feed costs
State Rep. Howard Marklein, R-Spring Green, said feed costs are tearing up dairy producers.
"I just talked with two producers who say they will spend from $100,000 to $300,000 for feed costs this year," Marklein said. "That's at $1,000 a head.
"Another farmer, who no longer milks but has got some hay, said he feels terrible asking for market value price," he added. "Instead of setting the price, the farmer is baling up the hay and telling farmers to come in and make an offer or bid on it."
Green County's University of Wisconsin-Extension ag agent Mark Mayer said hay prices are variable, depending upon the type of hay, but go for up to $300 per ton. A large, round bale normally weighs between 700 to 1,000 pounds, again depending upon the type of forage it contains.
Emergency hay sales are starting at noon Friday, July 27 at Francois Oil gas station in Monticello. B&M Auctions has scheduled monthly sales every fourth Friday through October, when regular hay sales take over every Friday.
"I wonder where they'll get their hay from," Mayer said. "It'll be interesting to see if there are more buyers or sellers."
Marklein warned of food prices going up in the repercussion of the drought, but he noted in particular that the demand for many products will drop, as farmers halt buying equipment and vehicles. (See related story on Page A3.)
"It's unfortunate a farmer can have the latest technology and the best management practices and still go broke," he said. "There's not that many opportunities in our state. Farming is the heart of the state and a huge part of our economy and that affects Main Street."
Other help
- Wisconsin Department of Agriculture, Trade and Consumer Protection Secretary Ben Brancel has called on the state Department of Transportation to authorize issuing Agricultural Emergency Permits to allow transporting heavier loads of hay bales along most state and local roadways. Through June 30, 2013, the DOT's Division of Motor Vehicles Motor Carrier Services Section will issue free permits authorizing transporting these loads during daylight hours along non-posted state and local roadways under certain conditions. Permit applicants should contact the DOT's Oversize/Overweight Permits Unit at (608) 266-7320.
- The Wisconsin DNR is also opening, for a limited time, selected acres of state land for haying and grazing. (See sidebar.)
- Farmers in the state who have hay or other forage they can provide to farmers running short due to the drought can share that information on the UWEX's Farmer to Farmer Hay, Forage and Corn List and the Farmer to Farmer Pasture Rental websites.
- For farmers with access to irrigation equipment, the Wisconsin DNR will help with a fast review of emergency crop irrigation from lakes and rivers. The cost for irrigation permits, as much as $300, has now been waived, according to Marklein.