ST. PAUL, Minnesota (KEYC) – The Minnesota Department of Agriculture’s Rural Finance Board announced Wednesday that it is providing zero-interest loans to Minnesota farmers whose businesses are suffering from a lack of rain.
The decision to grant the loans was made by the RFA Council that Minnesota was in a drought emergency.
“RFA board members voted unanimously to provide these funds for disaster recovery due to current drought conditions,” said Minnesota Agriculture Commissioner Tom Petersen. “This interest-free loan program is especially important for farmers whose crops and livestock have been hit by drought and have not been insured or insufficiently insured.”
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 plumbing systems; or replace seeds, fertilizers (or other crop growing materials), feed, livestock and poultry.
Farmers in Minnesota counties believed to be experiencing severe drought or worse (denoted as Category D2 and above in the image below) and adjacent counties are eligible to apply for Disaster Recovery Loan Program…
In addition, 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. The interest rate on the part of the RFA loan is currently set at 0.0%.
More about Disaster Recovery Loan Program available on the Minnesota Department of Agriculture website.
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