Lenders Gauge Hurricane Impact On North Carolina Agriculture

Hurricane Bertha blew through North Carolina this month, leaving an estimated $155 million in crop losses behind. Now farm lenders are determining the financial impact on their customers.

"It is a devastating storm, if you were in it," said Eddy Jones, president of East Carolina Farm Credit, Greenville, N.C., a Farm Credit System lender whose territory covers the hardest-hit parts of the state. Some farmers could suffer large losses, he said.

Of the state's crops, high-priced tobacco fared worst, with an estimated $109 million in losses, followed by corn, with an estimated $31 million loss, said Greg Cook, a spokesman for North Carolina's Department of Agriculture. Cotton, soybean, and fruit and vegetable crops also were hit, he said.

Insurance adjusters and lenders still are assessing the damage. They said they will know more over the next couple of months - possibly in September, after tobacco crops are harvested.

"We're down, but we're far from out," said John Swindell, an agribusiness officer of $165 million East Carolina Bank, which is based in Engelhard, in central coastal North Carolina, and finances mostly corn, soybeans, and wheat.

"I'm not predicting that this (hurricane) would put anybody out of business in this area," Mr. Swindell said. "We just hope we don't have any more."

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