September 16, 2020
Farm Credit Services of America has submitted more than 2,700 crop insurance claims on behalf of customer-owners and activated its disaster assistance financing program to help Iowa’s agricultural producers in the wake of the Aug. 10 derecho.
“In response to one of the worst natural disasters Iowa has ever seen, we’ve mobilized our resources to provide the most comprehensive Disaster Assistance Program in our cooperative’s history,” said Jim Knuth, senior vice president for FCSAmerica’s lending and insurance teams in Iowa.
FCSAmerica’s Disaster Assistance Program offers flexible, specially priced loan options to current customers operating in counties that have been declared disaster areas by federal or state authorities. Customers in other areas who are impacted by extreme weather-related adversities are eligible for disaster assistance on a case-by-case determination.
Designed to help producers move forward, the program addresses both immediate cash-flow and longer-term working capital needs. It also provides specialized loans for the replacement of infrastructure or breeding livestock. “The program allows us to customize a recovery solution for each customer based on their unique needs,” Knuth said.
Nearly 6,000 agricultural operations in the derecho disaster area have a lending relationship with FCSAmerica. The company’s financial officers are working one-on-one with those affected to help them develop plans for recovery.
Iowa’s agriculture industry suffered an estimated $3.8 billion in damage from derecho’s hurricane-force winds on Aug. 10, 2020. FCSAmerica’s crop insurance agents were in contact with impacted customers in the immediate aftermath of the storm and continue to answer questions about claims as producers get into the fields for harvest and learn more about the extent of damage.
“For those impacted by the derecho, the focus on profitability at the start of the growing season has shifted to recovering some of their losses. Inevitably, there will be financial gaps,” said Tim Koch, chief credit officer for FCSAmerica. “That is why FCSAmerica has a Disaster Assistance Program for events like the derecho. The program puts our financial strength to work for our customers and gives them the resources they need to rebuild for the 2021 growing season and beyond.”
In addition to activating its Disaster Assistance Program, FCSAmerica has donated $100,000 to derecho relief efforts. The following four non-profit organizations have each received a share of the contribution: Hawkeye Area Community Action Program, Inc., American Red Cross Iowa Region, Iowa Food Bank and United Way of Eastern Central Iowa.
Source: Farm Credit Services of America, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.
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