Utah offers ‘unprecedented’ 0% loans for farmers amid difficult drought, wildfire year

Citing an “exceptionally difficult” year for Utah farmers due to drought, wildfire and animal disease, Utah Department of Agriculture and Food officials said they are taking an “unprecedented step” to give financial relief to producers with active department of agriculture loans. 

“Utah’s farmers and ranchers have faced challenge after challenge this year, and we want them to know that we are in their corner,” UDAF Commissioner Kelly Pehrson said in a prepared statement in a news release issued Friday. “We know producers are hurting, and we want to help.”

Beginning Nov. 1, all existing UDAF loans will automatically be reduced to 0% interest for one year. Borrowers will also have the option to defer their loan payments for up to 12 months, the department said. 

The 0% interest rate will run through Oct. 31, 2027. Borrowers don’t need to take any action to receive the temporary interest reduction, so long as they have an active UDAF loan during that time frame. On. Nov. 1, 2027, rates will revert back. 

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Borrowers who need more relief may also apply to defer their payments,  available in monthly, quarterly, semiannual and annual payment schedules, department officials said. Borrowers who have already made their 2026 payment may also choose to defer their 2027 payment instead. 

Those who want to defer payments must fill out an online form by Oct. 31.

More information about how to apply is available on the UDAF’s loan website. 

The new loan options will give farmers more flexibility as they recover from challenges posed by the 2026 production year, stricken by extreme drought, unprecedented water conditions, record-low snowpack, and historically high temperatures. 

“UDAF’s job is to make agriculture work in Utah, and right now that means doing everything we reasonably can to give producers some breathing room and help keep their operations moving forward,” Pehrson said. 

The department’s new loan options are temporary. They were approved unanimously by the Utah Conservation Commission last month, along with the Utah Agricultural Advisory Board on Sept. 9, according to state officials. 

State agriculture officials noted in Friday’s release that Gov. Spencer Cox has “championed these unprecedented relief measures as a meaningful investment in the farmers and ranchers who feed Utah and sustain rural communities across the state.”

“By providing immediate financial relief during an exceptionally difficult year, state leaders are sending a clear message to Utah producers: we are committed to helping you weather today’s challenges and continue operating for years to come,” the department said.  

State officials also pointed to the UDAF’s broader efforts to help farmers through this year’s challenges, including working to connect producers with disaster assistance, technical support, emergency loans and other tools meant to help keep their businesses viable

“Utah’s farmers and ranchers are being hit from every direction this year, and for some, the question is whether they can keep their operations going,” Sierra Nelson, executive director of the Utah Wool Growers Association and Agricultural Advisory Board member, said in a prepared statement.

Nelson applauded state agriculture officials and Cox for “recognizing the urgency of this moment and taking meaningful action.”

“This relief will provide a much-needed lifeline, but just as importantly, it sends a message to producers that they are not facing these challenges alone — that they have partners who understand what they’re going through and are willing to stand with them and advocate for them,” Nelson said.