AGRI-BUSINESS NEWS AND NOTES - Honey loans are available

Marketing assistance loans and loan deficiency payments for 2006 crop year honey are available until March 31. The national loan rate for honey is $0.60 per pound. Market prices currently exceed the loan rate; so LDPs are not available right now.
Norwalk Reflector Staff
Jul 24, 2010

Marketing assistance loans and loan deficiency payments for 2006 crop year honey are available until March 31.

The national loan rate for honey is $0.60 per pound. Market prices currently exceed the loan rate; so LDPs are not available right now.

To be eligible for a loan, the producer must have produced honey in the United States during the calendar year for which the loan is requested, and extracted the honey on or before Dec. 31 of the applicable crop year; have continuous beneficial interest in the honey through date of repayment of the loan; and been responsible for the financial risk of keeping the honey. P

roducers are responsible for maintaining the quality of farm-stored honey during the term of the loan. The honey must be produced in the United States by an eligible producer, from an approved floral source, and stored in approved containers. The containers must be marked with the producer's name, type of honey, number of container and net weight.

Pre-loan inspections are required before the loans can be disbursed. Honey used as collateral may not be disposed of without approval of the county office staff.

Here are some agri-business notes from the Huron and Erie County Farm Service Agency:

Conservation systems required All participants in USDA programs are required to have a conservation system in place or actively applying for an conservation system on all the highly-erodible land (HEL) that they operate.

Several areas where problems can arise with complying with a conservation system are; renting new cropland, purchasing new land, breaking out additional cropland, planting different crops such as soybeans and changing or removing existing conservation practices. It is very important that you contact the FSA office before doing any of the above.

Also, it is very important that you contact our office before modifying tiling, draining, dredging, filling, or leveling any wetland or drainage ditch. Failure to obtain advance approval for any of these situations can result in loss of all federal payments and eligibility.

Youth project loans The Farm Service Agency makes loans to rural youths to establish and operate income-producing projects in connection with 4-H clubs, FFA and other youth organizations. Projects must be planned and operated with the help of the organization advisor, produce sufficient income to repay the loan and provide the youth with practical business and educational experience. The maximum loan amount is $5,000. Eligibility requirements include:

Be a citizen of the United States (which includes Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands) or a legal resident alien;

Be 10 to 20 years of age;

Live in the open country or in a town of less than 10,000 people;

Be unable to get a loan from other sources;

Conduct a modest income-producing project in a supervised program of work as outlined above; and demonstrate capability of planning, managing and operating the project under guidance and assistance from a project advisor. The project supervisor must recommend the project and the loan, along with providing adequate supervision.

Farm storage facility loans Low interest rate loans for storage facilities are available for producers to build or remodel farm storage facilities for a variety of commodities, including wheat, soybeans and corn. The seven-year Farm Storage Facility Loans are available for the purchase and installation of eligible storage facilities, permanently affixed drying or handling equipment, or remodeling existing facilities.

Diana Strouse is the county executive director for the Huron and Erie County Farm Service Agency. For more information, call the agency at (419) 668-4113.