News

A drought loan program available for MO producers

A new low-interest loan is available for Missouri farmers and ranchers who have experienced losses in the drought.

State Treasurer Vivek Malek says the Farm Relief Loan Program, part of the MOBUCK$ program, will lower interest rates for loans by 2 to 3 percent and farmers can go into their local bank to apply.

Here’s how it works…

“We’ll put an equal amount of CD from the treasurer’s office against that loan and ask for a lower interest rate on the CD from the bank and a difference of basis points will be transferred to the farmers.”

He says the one-year loan, which can be used for operating expenses, is capped at $1 million per applicant and can be re-financed up to 5 years.

 “I encourage any farmers impacted by the drought to contact their lenders.”

Applications are being accepted through Friday, October 13 or earlier if the demand exceeds available funding. $100 million is being allocated from the state reserves for these loans.

The MOBUCK$ program already has beginning farmer loans, ag operations, agribusiness, facility and livestock operations.