Minnesota farmers affected by the recent flooding can take advantage of a zero-percent Disaster Loan Program offered by the Minnesota Rural Finance Authority (RFA). The program helps farmers cover flood clean-up, repair, and replacement costs not covered by insurance.
The severe summer storms, which began on June 9, 2018, have caused significant flooding and damage to farm property in the Red Lake Nation and 36 counties including Aitkin, Becker, Beltrami, Blue Earth, Brown, Carlton, Cass, Clearwater, Cottonwood, Faribault, Fillmore, Freeborn, Jackson, Kittson, Lake, Lyon, Mahnomen, Martin, Mille Lacs, Mower, Murray, Nicollet, Nobles, Pine, Pipestone, Polk, Red Lake, Redwood, Renville, Rock, Sibley, Stearns, Stevens, St. Louis, Waseca, and Watonwan.
The loans can be used to help clean up farm operations, repair or replace farm structures, and 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.
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 RFA participation is limited to 45 percent of the principal amount up to a maximum of $200,000.
Interested borrowers should contact their lender or call RFA at 651-201-6004. More information is also available on the RFA website at www.mda.state.mn.us/agfinance.
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.