By Allen Sommerfeld
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 repair and replace items not covered by insurance from 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 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 $50,000.
The loans will be offered in the following eight counties that have been declared a disaster by the President due to flooding conditions from June 11- July 11: Chippewa, Freeborn, Jackson, Murray, Nobles, Pipestone, Renville, and Rock.
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 $209 million has been invested in over 2,800 participations by the RFA in these programs.
Source:mn.us