Senators Want Alfalfa Loans Expedited

September 26, 2000

Ten western senators want Agriculture Secretary Dan Glickman and the Office of Management and Budget Director Jacob Lew to implement no-interest loans for alfalfa seed producers in 39 states whose seed buyer, AgriBio Tech, Las Vegas, went bankrupt. The growers could lose $4.5 million in payments still owed them, the senators say.

Congress provided more than $35 million earlier this year in no_interest loans to alfalfa seed growers in 39 states who face financial difficulty from the bankruptcy. The Agricultural Risk Protection Act provided the growers with loans of up to 65% of what is owed to them by AgriBio Tech. The loans would be repayable in 18 months or upon settlement of the bankruptcy. But the money for the loans has been slowed by bureaucratic administration, the senators say.

Signing the letter were Sens. Michael Enzi (R-WY), Craig Thomas (R-WY), Conrad Burns (R-MT), Max Baucus (D-MT), Larry Craig (R-ID), Ron Wyden (D-OR), Gordon Smith (R-OR), Mike Crapo (R-ID), Patty Murry (D-WA), Slade Gorton (R-WA).

"AgriBioTech was one of the largest handlers of turfgrass seed, alfalfa seed, and clover seed in the nation prior to its abrupt bankruptcy filing early this year," they said in their letter. "The dissolution of the company, and the associated ongoing legal process, has left thousands of small farmers still awaiting payment for their crops. Due to the generally poor market conditions

in agriculture in recent years, many of these farmers are in no position to withstand the financial impacts of this bankruptcy."