Montpelier, Vt. – Governor Jim Douglas today announced that the United States Department of Agriculture Farm Service Agency (FSA) has designated eight Vermont counties eligible for low interest “emergency physical loss loans” due to damage caused by heavy snow, high winds and blizzard conditions that occurred on February 14, 2007. The counties are: Addison, Caledonia, Chittenden, Franklin, Lamoille, Orleans, Rutland and Washington.

Five additional Vermont counties were named as contiguous disaster areas and farmers in those counties are also eligible for FSA emergency physical loss loan assistance under section 321(a) of the Consolidated Farm and Rural Development Act. Those counties are: Bennington, Essex, Grand Isle, Orange and Windsor.

“Losses, particular the loss of livestock and collapse of barns, associated with the Valentines Day blizzard pose very serious challenges for some of our farmers,” Governor Douglas said. “Following our meeting in Washington, U.S. Agriculture Secretary Mike Johanns responded quickly to these needs and Vermont appreciates his assistance and acknowledgement of the challenges facing our farmers.”

The dairy industry is a source of major economic income for the state. Gross sales of cheese, ice cream, yogurt and milk equal $1.2 billion a year. Dairy product manufacturing in Vermont employs over 1700 people with over $70 million in gross wages to Vermonters.

According to FSA, the low interest funds 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.

Vermont Secretary of Agriculture Roger Allbee said, “It’s been a challenging year for our farmers already. This assistance is critical for them.”

Both Governor Douglas and Secretary Allbee said loans are not the long-term answer to the challenges facing Vermont's farmers. "We need federal aid and reform of the antiquated federal dairy pricing system so our farmers are getting a consitent and fair price for their products," the Governor said, noting that federal action is "essential to the long-term success of Vermont's agricultural economy." Governor Douglas said he discussed these issues with Secretary Johanns during a trip to Washington, DC earlier this month.

Emergency loans may be made available to any applicant with a qualifying physical loss in the counties named. Applications will be accepted through October 29, 2007.

Interested farmers should contact their local USDA Service Center or Dale Thompson, Farm Service Agency, 356 Mountain View Drive, Colchester, VT 05446 at 802-658-2803 ext. 253 for further information on eligibility requirements and application procedures.

ABOUT FSA FSA is an agency of the United States Department of Agriculture. The FSA’s mission is to ensure the well being of American agriculture, the environment and the public through efficient and equitable administration of farm commodity programs, farm ownership, emergency loans, conservation and environmental programs and disaster relief.