Fruit disaster relief on the way

Michigan Farm Bureau published this release today:

Gov. Rick Snyder today signed a bill that will make low-interest loans available to Michigan's disaster-stricken fruit growers, handlers and processors. Now only legislative approval of a $15 million appropriation remains to enable aid for those crippled by unprecedented conditions that have the state's fruit sector suffering historic losses.

"Today's bill signing showcases the strong partnership between our growers and processors, private lenders and the State of Michigan to provide a much-needed economic lifeline to support our specialty crop industry through this unprecedented loss from extreme weather conditions," said Keith Creagh, Michigan Department of Agriculture and Rural Development Director. "This new program is a hand up, not a handout. These privately administered loans will provide an investment to maintain the critical infrastructure that supports our unique fruit growing areas of the state."

Rep. Ray Franz (R-Onekama) introduced HB 5717 May 31. The measure makes those in designated disaster areas eligible for 1 percent loans of up to $400,000 for individual farmers; $800,000 for individual processors and handlers; and $1 million for processors with multiple locations. The loans would come from private lenders, who will determine eligibility based on the percentage of loss to the producer or processor. The state's role is to support the lenders with partial reimbursement of administrative costs equal to 5 percent of the loan principle.

"Of all the challenges to agriculture today, the weather is the most unpredictable and unforgiving," Franz said. "Farmers all across the state have been affected by this spring's frosts and freezes—many to a catastrophic degree. This legislation is not a handout but a helping hand to insure resource funds are available if needed to offset this year's devastating blow to Michigan agriculture."

"This bill is key for tart and sweet cherry growers in the state—it provides our growers a lifeline to get through the next 14 months," said Phil Korson, president of the Cherry Marketing Institute. "This year is a complete disaster for our industry. Year in and year out, Michigan produces 75 percent of the U.S. supply of tart cherries, with a capacity of 275 million pounds. The 2012 crop is forecast to be only 12.5 million pounds—just 5 percent of our normal crop.

"This is critical for our farmers. We thank the governor, the Senate and the House for making this a priority."

A perfect storm of adverse weather conditions stretching back well into the unusually mild winter has the state's tree fruit growers, handlers and processors facing what most agree is the worst disaster ever to hit Michigan's west-coast fruit belt. A mild winter, two summerlike weeks in March and a brutally cold April formed a perfect storm of destruction for Michigan's apples, cherries, juice grapes, peaches and other fruit along the entire west coast of the lower peninsula. Current estimates predict a loss of $223.5 million.

"The signing of this bill by Gov. Snyder comes as welcome assistance to hundreds of Michigan apple growers who are struggling through this difficult season, as well as the shippers and processors our industry needs now and in the future," said Diane Smith, interim executive director of the Michigan Apple Committee. "We are grateful to the state lawmakers who put this bill on the fast track, and hope it will help to offset the significant economic loss our state is experiencing."

"The Michigan apple industry appreciates Gov. Snyder and the legislature's recognition of the devastating crop loss suffered by growers this year," added Dawn Drake, manager of Michigan Processing Apple Growers Division of the Michigan Agricultural Cooperative Marketing Association. "The low-interest loans will help immensely to bridge the gap until growers begin to receive income in fall 2013."

Lenders will evaluate loan applications on a case-by-case basis, but GreenStone Farm Credit Services and Huntington Bank have made it clear they are both supportive of the program and eager to build or extend their relationships with farmers.

"Agriculture and its related industries are critical to the economic health of Michigan, and we are pleased to support the tremendous efforts and leadership of the administration to provide much-needed assistance to those affected by this crisis," said Jim Dunlap, president of Huntington Bank's Michigan Region. "Families across the United States depend on Michigan for the produce we grow here.

"Huntington wants to help these businesses to grow and prosper. It is the right thing to do."

"The damage that fruit producers and processors have witnessed in 2012 is unprecedented, and it is critical that we join together as a community to provide them with the tools they need to persevere during this disastrous time," said Dave Armstrong, president and CEO of GreenStone Farm Credit Services.

"I commend Gov. Snyder, the Michigan Legislature, the Michigan Department of Agriculture and Rural Development and the Michigan Farm Bureau for acting quickly to address this disaster."

Taking a wide-angle view of the situation, Michigan Farm Bureau President Wayne H. Wood assured those who have brought the measure this far that the state's farming community was particularly grateful.

"The success of similar programs following previous disasters has shown both the state and private lenders that Michigan's farmers are unique among borrowers," Wood said. "Few business people take higher risks, year in and year out, than farmers. But when Mother Nature overwhelms the odds, programs like this provide the helping hand they need to get through a disastrous year.

"As an organization representing all types of farms, when disaster strikes, we band together and help each other out. This year we're grateful for the speed and efficiency with which our legislature and our coalition of stakeholders in both the farming and banking industries have made this relief measure possible."