Missouri has created a 100 million farming loan program to help farmers affected by drought. The loans will be available through the state's MOBUCK program, which offers reduced interest rates on bank loans for farmers and small businesses.
To be eligible for the loan, farmers must reside in a county that is currently in moderate drought or worse, or in a county that is expected to enter moderate drought or worse soon. The loans will have a one-year term and can be renewed annually for up to five years.
Applications for the loan will be accepted until October 13, 2023, or earlier if demand exhausts funds.
“It has been one thing after another for Missouri’s farmers and ranchers,” said State Treasurer Vivek Malek. “The flooding in 2019, COVID, and now this drought. Most of the time, farmers just need the government to get off their back. Today, I am proud to announce that help is on the way.”
The loan program is part of a broader effort by the state to help farmers cope with the drought. The state has also waived some fees for water use and is providing financial assistance to help farmers drill new wells.
The drought has been particularly severe in southwest Missouri, where some counties have been in extreme drought for months. The drought has caused crop yields to decline and has made it difficult for farmers to irrigate their crops.
The farm relief loan program is expected to help some farmers stay afloat during the drought. However, it is not clear how much of the $100 million in loans will be used. The state is expecting high demand for the loans, and it is possible that not all the money will be available.
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Categories: Missouri, Business