State investment and federal disaster loans are available for Minnesota farmers.
From the Minnesota Department of Agriculture, the Rural Finance Authority is offering loans with new lower interest rates.
Minnesota Management and Budget secured favorable rates for government bonds it recently sold, allowing the RFA to cut 1.75% off its already-favorable rates for five different loan categories:
- Livestock Expansion Loan — rate reduced from 4.25% to 2.5%
- Restructure II Loan — rate reduced from 4.25% to 2.5%
- Agricultural Improvement Loan — rate reduced from 4% to 2.25%
- Beginning Farmer Loan — rate reduced from 3.75% to 2%
- Seller Assisted Loan — rate reduced from 3.75% to 2%
The RFA partners with local lenders to provide affordable credit to eligible farmers. To date, more than $270 million has been invested in 2,959 participations.
This spring, the Minnesota Legislature allocated an additional $50 million to the RFA to replenish its funding so that beginning farmers and those expanding, restructuring or transferring their operations can continue to take advantage of these rates.
Learn more about RFA loan programs online.
Minnesota farmers who lost property due to recent natural disasters may be eligible for USDA physical loss loans through the Farm Service Agency.
Approval is limited to applicants who suffered severe physical losses only, including the loss of buildings and livestock. Applications are due by May 3, 2021.
Physical loss loans are available to eligible farmers in Goodhue County who suffered losses due to hail and high winds that occurred on Aug. 8 through Aug. 9. Producers in the contiguous Minnesota counties of Dakota, Dodge, Olmsted, Rice and Wabasha, along with Pepin and Pierce counties in Wisconsin, are also eligible to apply for emergency loans.
Physical loss loans are available to eligible farmers in Yellow Medicine County who suffered losses due to excessive rain, high winds and hail that occurred on Aug. 8. Producers in the contiguous Minnesota counties of Chippewa, Lyon, Lac Qui Parle, Redwood, Lincoln and Renville, along with Deuel County, S.D., are also eligible to apply for emergency loans.
Physical loss loans are available to eligible farmers in Washington County who suffered losses due to hail, high winds and a tornado that occurred July 17 through July 18. Producers in the contiguous Minnesota counties of Anoka, Chisago, Dakota and Ramsey, along with Pierce, Polk and St. Croix counties in Wisconsin, are also eligible to apply for emergency loans.
Physical loss loans can help producers repair or replace damaged or destroyed physical property essential to the success of the agricultural operation, including livestock losses. Examples of property commonly affected include essential farm buildings, fixtures to real estate, equipment, livestock, perennial crops, fruit and nut bearing trees, and harvested or stored crops and hay.
For more information on FSA disaster assistance programs or to find your local USDA Service Center, visit farmers.gov/recover.