Governor Douglas, Legislative and Agriculture Leaders Announce Support for Farmers

Press Release

Governor Douglas, Legislative and Agriculture Leaders Announce Support for Farmers

VEDA loans will help struggling farmers with seed and fertilizer costs

Governor Jim Douglas announced today that up to $6 million dollars in lower-rate operating loans will be made available through VEDA for farmers struggling during the economic downturn.

The loans, provided through State Fiscal Stabilization Funds in the Recovery Act, will provide working capital to farmers as they enter the busy planting season in the midst of a national credit squeeze. Volatile energy and commodity prices have caused further concern for the agricultural community in recent months.

The Governor, joined by legislative leaders, praised the collaborative work of VEDA leadership and members of the House and Senate agricultural committees.

"Farms and farm suppliers are a vital part of Vermont's economy and heritage," the Governor said, "I'm pleased that we were able to make these funds available so that we can continue to preserve our working landscape."

"This money will help with better collaboration between farmers and agricultural lending institutions, especially farmers who can save thousands with this program by consolidating their high interest loans," said Paul Remillard, interim director of the Farm Service Agency. "This is a critical time for farmers and getting this money out quickly will make a big difference for those who need support to get their crops in now."

These funds are part of the $17.1 million in discretionary funds provided through the American Recovery and Reinvestment Act of 2009 State Fiscal Stabilization Funds.

"While agriculture was not part of the focus in the federal recovery bill, I wanted to be sure that we found a way to invest in our farmers during this difficult time," the Governor continued. "The VEDA Agricultural Loan program has a track record of success when it comes to providing farmers with support during tough economic times. That is why I am so pleased we were all able to come together to make support possible. I want to extend a special thanks to all the farmers and suppliers that joined us here today."

"These are difficult times for Vermont's farms, families, businesses and the state itself and we must work together to ensure we all weather the storm and emerge as a stronger, more vibrant state in the future," said Speaker Smith. "This investment in Vermont farmers does just that."

"Vermont's dairy farmers are facing the most difficult economic challenges in recent memory," said Senator Shumlin. "Without strong farms our state is at risk of losing the qualities that make Vermont what it is. We must do everything in our power to give our farmers the help they need in the hope that fair milk prices are not far away."

Loans will be available at subsidized rates and used for farm operating needs such as feed, seed, fuel and fertilizer. Additionally, these loans will be eligible to be used to consolidate existing open accounts that farmers may already have for various types of operational inputs.

Governor Douglas first announced this effort as part of his comprehensive SmartVermont economic grown plan to invest all $17.1 million in immediate and direct economic support for existing Vermont businesses and companies looking to grow and expand in the Green Mountain State.

The Governor's SmartVermont plan will leverage nearly $160 million in seed capital, working capital, investments in tourism and travel promotion for the summer months and support for high tech incubation.

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