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Volume 4 Issue 12     August 16, 2007

Governor Pawlenty Secures Agricultural Disaster Declaration
for Counties Impacted by Drought

Link to Drought Monitor web siteGovernor Tim Pawlenty received notice on August 7 from U.S. Secretary of Agriculture Mike Johanns that 24 Minnesota counties have been designated as federal agricultural disaster areas due this summer’s drought. Farmers and ranchers in an additional 32 adjacent counties will also be eligible for assistance.

The disaster declaration will allow drought-impacted farm operators to receive low-interest loans from the U.S. Department of Agriculture. Emergency loan funds may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses, reorganize the farming operation and refinance certain debts.

“Minnesota farmers and ranchers need this help to deal with the effects of a largely hot and dry summer that is challenging their crop and livestock operations,” Governor Pawlenty said. “We greatly appreciate the prompt work and response by Secretary Johanns and the USDA.”

The 24 Minnesota counties designated as primary natural disaster areas are:

Aitkin Cook Kanabec Kanabec
Anoka Crow Wing Lake St. Louis
Benton Douglas Mille Lacs Swift
Brown Hennepin Morrison Todd
Carlton Hubbard Pipestone Wadena
Cass Itasca Pope Wright

The additional 32 Minnesota counties also eligible for assistance because they are adjacent to the primary counties are:

Becker Cottonwood Lyon Redwood
Beltrami Dakota McLeod Renville
Big Stone Grant Meeker Rock
Blue Earth Isanti Murray Scott
Carver Kandiyohi Nicollet Stearns
Chippewa Koochiching Otter Tail Stevens
Chisago Lac Qui Parle Pine Washington
Clearwater Lincoln Ramsey Watonwan

While it is too early to predict actual yield losses, there are confirmed reports of significant forage loss which is of particular concern to livestock producers.

In addition to federal assistance, the State of Minnesota is responding to the drought with several low-interest loan programs and a “Hay List” to help ranchers find forage for cattle.

Minnesota Department of Agriculture Low-Interest Loans:
The Minnesota Rural Finance Authority will offer two loan programs that provide low-cost financing to farmers impacted by drought conditions.

Once a county obtains a disaster declaration, eligible producers will be able to apply for the Disaster Assistance Loan Program to help finance watering, irrigation or other drought mitigation systems.

Additionally, all producers, regardless of disaster declarations are eligible to apply for the Loan Restructuring Program designed to help produces remain in good credit standing with their local lender, but are having difficulty with cash flow due to adverse events.

For additional information contact the RFA Office at:
(651) 201-6004 or your local lender.

You can also access information on the web at:

http://www.mda.state.mn.us/about/divisions/agfinance.htm

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Last Updated:  August 17, 2007