Rural Finance Authority Clears Way for Disaster Loans
The Minnesota Department of Agriculture's (MDA) Rural Finance Authority (RFA) Board today determined that an emergency exists in parts of Minnesota due to recent severe weather, which makes zero-interest loans available for Minnesota farmers whose operations may be suffering from damage caused by storms.
The resolution declares an emergency for the following counties: Aitkin, Becker, Beltrami, Benton, Big Stone, Brown, Carlton, Chippewa, Chisago, Clay, Clearwater, Cook, Cottonwood, Douglas, Faribault, Grant, Isanti, Jackson, Kanabec, Kandiyohi, Kittson, Koochiching, Lac Qui Parle, Lake, Lake of the Woods, Lincoln, Lyon, Mahnomen, Marshall, Meeker, Morrison, Murray, Nobles, Norman, Otter Tail, Pennington, Pine, Pipestone, Polk, Pope, Red Lake, Renville, Rock, Roseau, Saint Louis, Sherburne, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wadena, Wilkin, Yellow Medicine, and adjacent counties.
The Disaster Recovery Loan Program can be used to help cover lost revenue or expenses not covered by insurance. The funds can be used to help clean up, repair, or replace farm structures and replace livestock.
The declaration applies to physical property damage and/or death of livestock taking place due to heavy rains and high winds in May 2022.
Eligible farmers must have received at least 50% of their annual gross income from farming for the past three years and will work through their bank to secure the loans from the RFA. Interest rates on the RFA portion of the loan are currently set at 0.0%.
The Minnesota Legislature this spring appropriated $2.5 million in additional funds to replenish the revolving loan account that funds the Disaster Recover Loan program, which has recently been used for highly pathogenic avian influenza poultry losses, drought, and COVID-19 expenses.
More information on the Disaster Recovery Loan is on the MDA website.