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Serving: MN
Coronavirus
tractor on farm Paula Mohr
FINANCIAL ASSISTANCE: The Minnesota Legislature this spring approved COVID-19 relief that included covering a portion of loan fees on FSA restructure loans. Eligible farmers can apply for funds until Dec. 1.

COVID-19 relief funds help farmers restructure debt

Half of the loan fees for FSA restructuring loans would be paid by the state.

Eligible Minnesota farmers restructuring their debt can get half of the loan guarantee fees on USDA Farm Service Agency restructuring loans covered through a new Minnesota Department of Agriculture program, paid for through federal COVID-19 funding.

The Minnesota Legislature appropriated $175,000 in COVID-19 relief this spring toward a grant program that covers 50% of loan guarantee fees for FSA loans to restructure farmers’ debt. Loan fees are 1.5% of the loan value and average $3,000-$5,000 in total.

Related: Complete coronavirus coverage

“This program is aimed at helping farmers most affected by the COVID-19 pandemic,” says MDA commissioner Thom Petersen. “We want to help more farmers get successfully through the mediation process.”

Farmers currently in mediation will receive first priority for the program funds.

Applications will be accepted now through Dec. 1.

To be eligible, farmers must have closed on an FSA restructure loan between May 28 and Dec. 15 and be in mediation or have recently received a mediation notice. They must be residents of Minnesota who regularly participate in the labor or operation of their farm and have a net worth of $800,000 or less.

For more information about how to apply and the application, visit the RFA’s Farm Loan Guarantee Fee Grant Program.

Source: The Minnesota Department of Agriculture, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all of its subsidiaries are not responsible for any of the content contained in this information asset.
TAGS: USDA
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