(Radio Iowa) – Iowa’s deputy secretary of agriculture says there are frustrating and confusing inequities in federal programs meant to support farmers trying to recover from natural disasters. Grant Menke testified yesterday (Wednesday) before the U-S Senate Small Business Committee.

“In addition to the overall complexity of these programs, one of the most significant issues Iowans have faced is the disparity in accessibility and eligibility between USDA and SBA disaster programs,” Menke says. Farming operations are not eligible for Small Business Administration loans and Menke says the historic flooding and a record number of tornadoes have created significant challenges for Iowa farmers.

“In many cases, these folks lost nearly everything,” Menke said, “not just farm buildings and equipment, but also their homes.” Menke says S-B-A disaster loans offer lower interest rates and a longer repayment period than the disaster loans farmers have access to through the U-S-D-A. “SBA disaster loans also offer deferral of the first payment and no interest accrual for the first 12 months – features that are not available with USDA disaster loans. These discrepancies place an undue burden on farmers and farm businesses who already operate on thin margins, especially during the softening ag economy.”

Menke says another frustration is the U-S-D-A’s disaster loans have an upper limit that’s less than the maximum loan amount available through the S-B-A.