ST. PAUL – The Minnesota Disaster Recovery Loan Program is now accessible to farmers who are suffering financial damages related to the COVID-19 outbreak after the Legislature expanded access to the funds.
Legislative approval of a bill March 26 increased program flexibility, providing a resource to farmers for expenses not covered by insurance.
“Any flexibility we can give the program to allow a quicker response to this situation is good,” said Rep. Paul Anderson, R-Starbuck. “We can’t anticipate every twist and turn that’s going to come our way, so allowing some discretion – while maintaining necessary guardrails – will be helpful to farmers.”
The Minnesota Department of Agriculture (MDA) indicates program dollars can be used to “replace livestock or flocks, make building improvements, or cover the loss of revenue. Loan proceeds may also be used to repair or replace septic and water systems, and replace destroyed agricultural buildings.”
The program is coordinated by the Rural Finance Authority (RFA) and farmers will work through their local lenders to secure financing. The MDA reports the RFA participation in a qualifying loan is limited to 45 percent of the principal amount, up to $200,000. Other terms, conditions and qualification standards apply and can be found at the MDA website, or by calling (651) 201-6666.
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