December 12, 2000

USDA will make low interest loans available to apple farmers who are suffering hardships due to low prices for their fruit. Loan funds may be used to refinance debt; pay costs associated with reorganizing a farm to improve profitability; pay annual operating expenses; purchase farm equipment or fixtures; acquire, enlarge or lease a farm.

Also, the loans may be used to make capital improvements to a farm; purchase stock in a cooperative for credit, production, processing or marketing purposes; and pay closing costs on debt re-financing.

To qualify for the Special Apple Loan Program, applicants must have produced apples for market in either 1999 or 2000 on a minimum of 10 acres. Eligible applicants may obtain loans up to $300 per acre of apple trees in production in 1999 or 2000, for a maximum of $500,000. Interested farmers should contact their local USDA Farm Service Agency offices or USDA Service Centers for more information.

The state of Washington produces about half of the nation's apples. Other high apple production states include New York, Michigan and California.