Responding to the severe drought conditions affecting farmers and ranchers across Missouri, State Treasurer Vivek Malek is introducing the Farm Relief Loan (FRL) program. The Farm Relief Loan program will provide vital assistance to producers impacted by this year’s drought.
“It has been one thing after another for Missouri’s farmers and ranchers. The flooding in 2019, COVID, and now this drought. Most of the time, farmers just need the government to get off their backs. I am proud to announce that help is on the way.” Malek added, “The Farm Relief Loan program underscores my commitment to supporting farmers during these very challenging times and aiding them in rebuilding and preserving their way of life.”
Treasurer Malek is directing the program to accept applications for “Farm Relief Loans” to support farmers affected by this summer’s drought. These loans can be used for operating expenses.
Missouri’s most prominent advocates for farmers weighed in on Treasurer Malek’s announcement:
- Governor Mike Parson: “We are grateful to Treasurer Malek for opening up the MOBUCK$ Farm Relief Loan Program and allowing farmers impacted by this summer’s drought to participate,” Governor Mike Parson said. “Hay reserves are depleted, and many farmers have been forced to market their livestock early. Despite recent rains, we will continue to feel the effects of drought throughout the coming winter months, but the MOBUCK$ program is another great way we can help support our agriculture communities.”
- Missouri Farm Bureau Federation President Garrett Hawkins: “Missouri’s farmers and ranchers have dealt with numerous challenges in recent years, culminating with arduous drought conditions this spring and summer. The MOBUCK$ Farm Relief Loan Program will provide an opportunity for our state’s farm and ranch operations, and Missouri Farm Bureau is grateful to Treasurer Malek for this assistance to Missouri’s agriculture community.”
MOBUCK$ Background
- The MOBUCK$ program offers reduced interest rates on bank loans for farmers and small businesses.
- How it works: state funds are deposited at banks, serving as collateral, equaling borrowers’ loans from those banks. Borrowers receive loans at reduced interest rates, approximately 30% below the prime rate.
- The MOBUCK$ program has a maximum deposit limit of $800 million. The application portal was temporarily closed in May to prevent exceeding the cap due to high demand.
Farm Relief Loan (FRL) Program
- The MOBUCK$ Farm Relief Loan program will provide reduced-rate loans to drought-affected farmers.
- $100 million will be allocated for Farm Relief Loans.
- The application portal will close on Friday, October 13, 2023, or earlier if demand exhausts funds.
- Eligible farmers should apply promptly. Eligibility requires residency in counties outlined in Governor Parson’s Executive Order (EO) 23-05 or in counties entering moderate (or worse) drought status covered by the EO. Applicants must demonstrate economic losses due to drought conditions.
- Loans will have a one-year term, renewable annually up to five years.
- Farmers are advised to contact their lenders for further details.
Those interested should contact their lender or visit The Missouri State Treasurer’s website.
