State Treasurer offers low-interest loans to Illinois farmers

Monday, August 08, 2005 - Posted 12:52:20 PM by Office of Sen. Dan Rutherford

SPRINGFIELD , IL – Local farmers who have been hurt by the summer’s severe drought conditions can now apply for low-interest loans through the Treasurer’s new Emergency Drought Relief Program, said to State Senator Dan Rutherford (R-Pontiac).

 

Senator Rutherford said that the Treasurer’s office has pledged approximately $100 million in low-interest loans that local farmers can access through their local financial institutions. The loans will be available in the 101 Illinois counties declared disaster areas by U.S. Agriculture Secretary Mike Johanns.

 

“Because of the summer’s severe drought conditions many Illinois farmers are reporting huge crop losses,” said Rutherford . “These low-interest emergency loans are a way for the state to assist Illinois farmers and help them rebuild their lives.”

 

Farm service agency assessments indicate that 117,000 Illinois farmers have seen production losses this year. Of that number, 74,000 farmers estimated that the drought had destroyed 30% or more of the crops, and 16% of the farmers said they’ve lost this year’s crop entirely.

Senator Rutherford said that farmers have 90 days to apply for the low-interest loans. The loan program will offer rates opening at 4.64 percent, and the rates will change on a monthly basis. During the six month term of the loan, the borrower only has to make interest payments to the bank, with the principal coming due at the end of the term.

Anyone interested in applying for a loan through the Emergency Drought Relief Program should contact their local financial institution for more information, or call the Treasurer’s Office at 217-782-2072.