New disaster areas declared

[kcjenkins]

Federal agriculture authorities have declared disaster areas in parts of Alabama, Arkansas, Louisiana, Mississippi and Tennessee due to crop losses from a combination of severe spring and fall flooding and summer drought.

Agriculture Secretary Tom Vilsack said the declaration will “provide help to hundreds of farmers who suffered significant production losses to a wide variety of crops.”

The declaration qualifies many farmers in the designated areas for low interest emergency loans from the U.S. Department of Agriculture’s Farm Service Agency.

The primary disaster areas are in 79 Mississippi counties and contiguous counties and parishes in the other states.

Among Mississippi's five largest crops - soybeans, corn, cotton, rice and sweet potatoes - losses total more than $459.4 million, Mississippi State University's Agricultural Extension Service estimates show.

The disaster declaration gives farmers up to eight months to apply for low-interest loans. They also can apply for the Supplemental Revenue Assistance Program, or SURE.

If approved for SURE, farmers could receive grant payments to help make up for revenue losses not covered by crop insurance. In order to apply for SURE, farmers must have crop insurance.

In case you have not bookmarked it yet, here's the link to the FEMA site.

http://www.fema.gov/news/disasters.fema

[jainen]

>>Federal agriculture authorities have declared disaster areas<<

Don't click that link until you've had your morning coffee. It's a cold list of the destruction of so many people's families. For tax purposes, does it count as a presidential disaster declaration if it comes from "agriculture authorities"?

[kcjenkins]

No, the declaration by FDA just qualifies farmers in the designated areas for low interest emergency loans from the U.S. Department of Agriculture’s Farm Service Agency. Has to be a FEMA declaration for a tax break. Although some states might allow a tax break on an FDA declaration? But preparers need to know about this in order to be able to answer questions from clients.