The AgCenter currently offers the services of economists and farm management specialists at four Farm Analysis & Resource Management sites across the state in order to help struggling farmers.
Bad weather from Hurricane Lili, Tropical Storm Isidore and excessive October rains pounded the state of Louisiana and ruined many crops.
The poor harvest weather, low crop prices and debts incurred from previous farming loans have caused many Louisiana farmers to be in jeopardy of going out of business.
AgCenter specialists will review farm plans and help producers develop financial plans that will bring them the most profit. They also will offer advice about what farmers should do next.
Farmers were hit with an estimated $510 million worth of agriculture losses statewide. In fact, 44 parishes reported damage from the weather.
According to LSU AgCenter economist Kurt Guidry, sugarcane farmers were hit the hardest. They took an estimated $323 million in losses, which is about half of their profits.
“The reason the sugarcane farmers were affected more is 90 percent of their harvest was still in the fields when the storms came,” said Guidry.
Farmers seeking aid should bring their most current financial statements, Farm Service Agency farm acreage, yields and payment history and any other information relevant to their situation, according to LSU AgCenter economist Gerald Giesler.
Guidry said these services are available all year, but the sites are set up during the spring because that is when farmers need help the most.
Many farmers need an operating loan every year in order to plant their crops by March and April. After they harvest their crops, they can pay back their loans and get another one for the next year.
Many farmers’ primary concern is paying bills in order to obtain an operating loan to continue maintaining their business. If they cannot show positive cash flow, they cannot obtain a loan, which puts them out of business.
And that is the advice some farmers will receive at these FARM sites, if it is the best decision for them.
The Federal Farm Service Agency also offers help by providing low-interest emergency loans. According to Guidry, these loans are strictly for farmers in designated disaster areas. They must be able to show a minimum 30 percent loss to be eligible for these loans.
In early December, FSA State Executive Director Willie Cooper advised farmers to apply early for these loans because the processing of applications will be slowed because of the high demand for emergency loans.
The state has incurred an estimated $1.79 billion in agricultural losses in the last five years. According to Guidry, this has caused the prices of most crops to be reduced. But this will have little or no effect on consumer prices because Louisiana is just one state out of many that produces agricultural products. Farmers may contact any site they wish to schedule an appointment.