Irrigation Loans in Drought Areas Expedited

The Nebraska Energy Office will expedite new loans for agricultural irrigation systems and related improvements in counties where drought conditions are prevalent.

"The Energy Office has financed 434 agricultural projects totaling more than $7.4 million in the last ten years," Governor Johanns said. "A significant number of these projects were irrigation systems or improvements such as low pressure pivots and replacement motors."

According to the Energy Office, most agricultural projects will require a technical energy analysis of the project being proposed. "The one page application is very simple," Jack Osterman from the Energy Office said. "We only need to know the basics of the project, how much energy is used and how much energy use will be reduced."

The Governor said the agency would expedite reviews of the energy analyses and loan applications for irrigation systems because of the impact of the drought on the state's crops. "These reviews will be done right away," the Governor said. "Normally, this review would take a couple of weeks."

Improvements financed with the loans must save enough in energy costs to recover the cost of the improvement within ten years. The length of the loan can vary up to the simple payback of the project and is negotiated with local lenders. Interested Nebraskans can get loan forms from participating lenders, from the Energy Office in Lincoln, or at the agency's web site.

No state or federal tax dollars are used for these loans.

Web Site Access Speeds Loans

To find out more about 5% Dollar and Energy Saving Loans contact any one of the 293 banks, savings and loans or credit unions in the state that offer the loans.

Information can also be obtained from the Energy Office or visit the agency's web site at: www.nol.org/home/neo

Return to the Summer 2000 Newsletter