The Minnesota Rural Finance Authority (RFA) has lowered its interest rate on the Disaster Loan program to zero percent to help farmers cover the costs to replace and repair items lost or damaged due to flooding and not covered by insurance.
As with other RFA loans, the Disaster Loan program will be available for farmers through their existing agricultural lenders for financing for these repairs. The loans can be used to help clean up, repair, or replace farm structures and to replace seed, other crop inputs, feed, and livestock. The loan may also be used to repair and restore farm real estate that was damaged by flooding. The RFA participation is limited to 45 percent of the principal amount up to a maximum of $200,000.
The loans will be offered in the following 23 counties that have been declared a disaster by the Governor due to flooding conditions that started September 21, 2016 in Anoka, Blue Earth, Cottonwood, Dodge, Faribault, Freeborn, Goodhue, Hennepin, Houston, Le Sueur, Mower, Nicollet, Olmstead, Ramsey, Rice, Scott, Sibley, Steele, Wabasha, Waseca, Washington, and Winona counties.
“Minnesotans have a proud tradition of coming together to support one another after a disaster,” said Lt. Governor Tina Smith. “Providing zero interest loans to our ag producers will help them recover from severe weather and flooding. I encourage all eligible Minnesota farmers to apply for assistance.”
The RFA partners with local lenders to provide affordable credit to eligible farmers. Loan participations are purchased by the RFA under several programs that assist beginning farmers purchase agricultural land; finance improvements to the farm such as grain handling facilities, machine storage, and manure systems; help farmers reorganize their farm debt to improve cash flow; and, finance new livestock production facilities. Over $227 million has been invested in over 2,900 participations by the RFA in these programs.
Tags: flood damage