Amid drought, Utah is offering up to $2 million in low-interest loans to help farmers
Irrigation systems water crops near St. George, Utah. (Photo by)
The Utah Department of Agriculture and Food announced it has up to $2 million in low-interest loans available to help farmers who are struggling due to drought.
The department issued a news release on Tuesday to raise awareness of the availability of the loans through the Emergency Disaster Relief Loan program.
State officials said loans are available to eligible agricultural producers in 17 counties named in an executive order Gov. Spencer Cox issued last month due to drought, including: Beaver, Carbon, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Piute, San Juan, Sanpete, Sevier, Tooele, Uintah, Washington and Wayne counties.
Utah Gov. Cox issues drought executive order, urges Utahns to conserve water
Eligible farmers can apply for seven-year loans of up to $100,000 each, with two years of no interest and 2.75% interest thereafter, according to the department. Applications for the loans will be accepted until Oct. 23.
'Utah's agricultural producers are on the front lines of drought impacts, facing difficult decisions as water scarcity threatens crops, livestock, and long-term viability,' Commissioner Kelly Pehrson said in a prepared statement.
'We recognize the tremendous strain drought places on farm families and rural communities, and the Utah Department of Agriculture and Food is committed to doing everything we can to help,' Pehrson added. 'This loan program is just one of the tools we're using to support producers through this crisis and keep our agricultural economy strong.'
As of May 13, almost the entire state of Utah remains 'abnormally dry,' according to the U.S. Drought Monitor. Areas in southern Utah including Washington County are in 'extreme drought,' while other rural counties on the southern, eastern and western sides of the state face either severe or moderate drought.
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State officials with the Utah Department of Agriculture and Food urged farmers to visit the state's website to learn more about the program and how to apply.
'These funds are only available for agricultural producers to address declared disaster-related losses and cannot be used for any value-added projects,' the website says.
To be eligible, the department says:
All losses and expenses submitted for funding must be documented.
Loan funds may only be used to cover losses related to the official disaster declared.
Loan funds may only be used to cover losses not already covered by indemnity, insurance, or other compensation.
Eligible losses and expenses will be further defined in application information provided specific to the declared disaster.
Additionally, state officials encouraged farmers to also contact their local USDA Farm Service Agency office to explore other available federal drought assistance options.
They also referred farmers to the state's drought resources website, which provides updates on available financial resources and how to access them.
'We understand the challenges that drought conditions present, and we are committed to providing the necessary resources to help Utahns navigate these difficult times,' the website says. It also encourages all Utahns to 'focus on water conservation efforts to help mitigate the impacts of the drought.'
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