COVID-19 relief funds help farmers restructuring their debt
Eligible Minnesota farmers restructuring their debt can get half of the loan guarantee fees on USDA Farm Service Agency restructuring loans covered through a Minnesota Department of Agriculture program, paid for through federal COVID-19 funding, according to a press release.
The Minnesota Legislature appropriated $175,000 in COVID-19 relief toward a grant program that covers 50% of loan guarantee fees for FSA loans to restructure farmers’ debt. Loan fees are 1.5% of the loan value and average $3,000 to $5,000 in total.
To be eligible, farmers must have closed on an FSA restructure loan between May 28 and Nov. 9. Preference will be given to farmers currently in mediation or who have recently received a mediation notice. They must be residents of Minnesota who regularly participate in the labor or operation of their farm and have a net worth of $800,000 or less. Applications will be accepted now through Nov. 9.
For more information about how to apply and the application, visit the RFA’s Farm Loan Guarantee Fee Grant Program web page.
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