Utah to offer loans to agricultural producers as drought lingers over the state

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KEY TAKEAWAYS

Utah offers loans to farmers in 17 drought-affected counties.
The loans can provide farmers with up to $100,000 with no interest for two years, followed by low rates after that.
Drought continues to impact over 70% of the state ahead of this summer.

TAYLORSVILLE — Many Utah agricultural producers now have access to a new resource that might help them deal with the state's ongoing drought conditions.

Farmers and ranchers in the 17 counties included in Gov. Spencer Cox's drought declaration issued last month may qualify for low-interest loans through the Emergency Disaster Relief Loan program that is now available, the Utah Department of Agriculture and Food announced Tuesday. The seven-year amortized loans offer impacted producers up to $100,000 with no interest for the first two years, followed by 2.75% interest after that.

In a statement, Kelly Pehrson, the department commissioner, said the state is well aware of the "difficult decisions" that agricultural producers are facing this year, as water scarcity could threaten crops and livestock, as well as "long-term viability." The loan is an option to help ease the burden.

"We recognize the tremendous strain drought places on farm families and rural communities, and the Utah Department of Agriculture and Food is committed to doing everything we can to help," he said. "This loan program is just one of the tools we're using to support producers through this crisis and keep our agricultural economy strong."

The state plans to accept applications until Oct. 23. The loans are available to agricultural producers in Beaver, Carbon, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Piute, San Juan, Sanpete, Sevier, Tooele, Uintah, Washington and Wayne counties — the counties included in the governor's drought declaration — with an adjusted gross income of less than $250,000.

Loan funds can only be used to cover losses tied to "the official disaster declared," according to the program website. All applicants must submit their losses and expenses with their application, along with other terms listed on the site. The state notes that there is a program cap of $2 million.

Cox issued the emergency order on April 24, citing drought conditions and low streamflow forecasts.

Recent storms have helped alleviate drought conditions a bit, but most of Washington County and parts of Iron County remain in extreme drought. Most of the remaining southwestern corner of the state is listed in severe drought, as is the case for southeastern Utah, per the U.S. Drought Monitor. Over 70% of the state is listed as being in at least moderate drought, including over 40% in severe or extreme drought.

This week's storms helped slow down the spring snowmelt and improve soil moisture, but only 14% of the statewide snowpack collected this year remains in the mountains, according to the Natural Resources Conservation Service. The agency lowered its water outlook earlier this month after the snowpack melted faster than anticipated in April.

Snowpack accounts for about 95% of the state's water supply.

The state's reservoir system is about 87% full, with most of the mountain snow having melted, according to the state. Still, Cox urged Utahns to be "mindful" of water consumption this summer.

"Water conservation is critical for Utah's future," he said.

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