ST. LPO – The Minnesota Department of Agriculture’s Rural Finance Authority (RFA) Board has determined that Minnesota has a drought emergency that is immediately providing zero-interest loans to Minnesota farmers whose businesses are suffering from a lack of rain.
“This interest-free loan program is especially important for farmers whose crops and livestock were hit by drought and were uninsured or underinsured,” said Minnesota Agriculture Commissioner Tom Petersen.
A disaster recovery loan program can be used to cover lost income or expenses not covered by insurance. These funds can be used to help clean up, repair or replace farm buildings, repair or replace septic and water systems, replace seeds, fertilizers (or other agricultural materials), feed, or livestock and poultry.
Farmers in Minnesota counties deemed to be experiencing severe drought or worse (US Drought Monitor D2 +) and adjacent counties are eligible to apply.
Eligible farmers must have received at least 50% of their annual gross income from agriculture over the past three years and will work through their bank to obtain loans from RFA.
For more information visit mda.state.mn.us/disasterloan.