WASHINGTON -- The counties of Honolulu, Hawai'i, Maui and Kaua'i were designated as federal disaster areas today, opening the door for farmers to obtain low-interest loans to help with drought losses, Sens. Daniel K. Inouye and Daniel K. Akaka announced.

Agriculture Secretary Edward Schafer also declared Kalawao County on the Kalaupapa Peninsula of Moloka'i as a "contiguous disaster county," said the two senators, both Hawai'i Democrats.

"Our local farmers are hurting," Inouye said. "The emergency, low-interest loans that will now be available can be a lifeline for Hawai'i farmers."

The disaster designations open the process for eligible farmers to seek low-interest loans from the U.S. Farm Service Agency to offset drought-related crop losses.

Eligible farmers may borrow up to 100 percent of actual production or physical losses not to exceed a total of $500,000.

Akaka said drought has hurt many Hawai'i farmers, such as Windward O'ahu farmers, who are dealing with a mandatory 30 percent restriction on irrigation water use from the Waimanalo reservoir.

Big Island farmers are facing drought conditions spreading throughout the island, Northeast Kaua'i has lower reservoir levels that continue to hamper farmers and part of Maui are now suffering severe drought conditions that are hurting harvests, Akaka said.

"The Farm Service Agency's low interest loans will provide much needed relief to our farmers struggling to make it though this continuing drought," Akaka said.