Boll Weevil Eradication Loan Program (10.449)
Program
10.449 Boll Weevil Eradication Loan Program
Federal Agency
FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
Authorization
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, Public Law 104- 180, 7 U.S.C. 1989.
Program Number
10.449
Last Known Status
Active
Objectives
To assist producers and State governmental agencies to eradicate boll weevils from the United States.
Types of Assistance
Direct Loans.
Uses and Use Restrictions
Funds may be used to purchase or lease supplies and equipment, to pay entity operating expenses and to pay salaries and benefits. Loan funds may not be used to pay for lobbying, public relations, or related activities.
Eligibility Requirements
Applicant Eligibility
Applicants may be determined eligible if the organization: (a) Meets the Animal and Plant Health Inspection Service (APHIS) cost-sharing requirements; (b) possesses a legal nonprofit corporate authority; (c) possesses the legal authority to enter into a contract; (d) operates in an area approved by a majority of cotton producers via referendum; (e) is unable to obtain funds elsewhere; and (f) may pledge producer assets as loan collateral.
Beneficiary Eligibility
The beneficiaries of this program include the local boll weevil organization and agricultural community as well as local, State, and national governments.
Credentials/Documentation
All applicants must be nonprofit entities, authorized to operate under the appropriate State law and for the specific purpose of eradicating boll weevils from the nation's agricultural community.
Application and Award Process
Preapplication Coordination
Applicants are eligible for loan consideration after pre-approved funding is established by APHIS. This program is excluded from coverage under E.O. 12372.
Application Procedure
Complete applications will be accepted by the National Office accompanied by documentation showing the entity's authority to borrow and the operation's ability to make the scheduled loan payment(s).
Award Procedure
Loans will be written within specific credit guidelines as well as within the borrowing entity's documented ability to repay the loan.
Deadlines
Initial loan request should be reviewed with APHIS prior to the funding year with a complete loan package submitted to FSA 90 days prior to the anticipated disbursal of funds.
Range of Approval/Disapproval Time
Appeals
None.
Renewals
Boll weevil loans are term loans based upon certain procedural and program criteria. Although loans are not renewed, additional loan requests may be submitted by each entity for consideration.
Assistance Considerations
Formula and Matching Requirements
While there are eligibility requirements, there are no formula or matching fund requirements.
Length and Time Phasing of Assistance
Loans can be applied for at anytime during the year. The loan term varies anywhere from one to seven years.
Post Assistance Requirements
Reports
Profit and loss statements may be required monthly, but are always required quarterly and annually. Income and expense deviations in excess of ten percent must be reported immediately.
Audits
Audited financial statements and profit and loss statements will be annually submitted for review and analysis.
Records
Detailed records will be maintained by each entity in the respective offices. These same records will be made available to the Agency for review upon demand.
Program Accomplishments
The FSA Boll Weevil Eradication program is in its third year. Loans have been made or are in the process of being made in most all cotton producing States. Although the eradication of the boll weevil is difficult, where implemented, the program is highly successful. Full implementation is anticipated within the next five years and general eradication accomplished within the next decade. Maintenance programs will be required perpetually. In fiscal year 2001, 11 boll weevil loans were made; in fiscal year 2002, 13 boll weevil loans were made.
Financial Information
Account Identification
12-1140-0-1-351.
Obligations
(Loans) FY 02 $100,000,000; FY 03 est $100,000,000; and FY 04 est $100,000,000.
Range and Average of Financial Assistance
Loans for fiscal year 2001 ranged in size between $1,000,000 and $46,000,000. The median loan would total approximately $7,000,000.
Regulations, Guidelines and Literature
The Federal regulations are found at 7 CFR Part 1941, Subpart C.
Related Programs
10.025, Plant and Animal Disease, Pest Control, and Animal Care.
Information Contacts
Regional or Local Office
Not applicable.
Headquarters Office
Farm Service Agency, Loan Making Funds Management Branch, 1400 Independence Avenue SW., Stop 0522, Room 5438 SO/AGRIB, Washington, DC 20250-0522. Telephone: (202) 720-1632.
Web Site Address
Examples of Funded Projects
Tennessee Boll Weevil Eradication Foundation.
Criteria for Selecting Proposals
The criteria for selecting applications are based upon area boll weevil infestation, APHIS recommendation, individual State and Charter authority, and the ability of the entity to repay the loan.
