Utah farmers and ranchers with existing state loans will see their interest rates drop to 0% for one year, beginning November 1, as part of an “unprecedented step” by the Utah Department of Agriculture and Food (UDAF) to provide financial relief. State agriculture officials announced the temporary measures in a news release issued Friday, citing an “exceptionally difficult” year marked by drought, wildfire, and animal disease across the state.
The temporary 0% interest rate will apply automatically to all active UDAF loans and will run through October 31, 2027. On November 1, 2027, interest rates will revert to their previous levels, according to UDAF officials. Borrowers with active UDAF loans do not need to take any action to receive this temporary interest reduction.
In addition to the interest rate reduction, UDAF loan borrowers will have the option to defer their loan payments for up to 12 months. Department officials stated that those seeking payment deferral must complete an online form by October 31. Payment schedules for deferral are available monthly, quarterly, semiannually, and annually. For borrowers who have already made their 2026 payment, the option exists to defer their 2027 payment instead. More information on how to apply for payment deferral is available on the UDAF’s loan website.
UDAF Commissioner Kelly Pehrson noted in a prepared statement released Friday, "Utah’s farmers and ranchers have faced challenge after challenge this year, and we want them to know that we are in their corner." Pehrson added that the department's role 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."
The need for these relief measures stems from the severe conditions impacting the 2026 production year. State officials pointed to extreme drought, unprecedented water conditions, record-low snowpack, and historically high temperatures as significant challenges. Governor Spencer Cox has also issued an emergency declaration specifically over crops lost to unseasonal weather, as noted by state agriculture officials in Friday's release.
The temporary loan options were unanimously approved by the Utah Conservation Commission last month and by the Utah Agricultural Advisory Board on September 9, state officials confirmed. Governor Cox has "championed these unprecedented relief measures," which the department described as a "meaningful investment in the farmers and ranchers who feed Utah and sustain rural communities across the state." The department emphasized that by providing immediate financial relief, state leaders are sending a clear message to producers about their commitment to helping them "weather today’s challenges and continue operating for years to come."
Sierra Nelson, executive director of the Utah Wool Growers Association and a member of the Agricultural Advisory Board, highlighted the critical situation facing producers. Nelson stated that "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." She applauded state agriculture officials and Governor Cox for "recognizing the urgency of this moment and taking meaningful action," describing the relief as a "much-needed lifeline." Nelson also stressed that the measures send a message to producers that they are not alone and "have partners who understand what they’re going through and are willing to stand with them and advocate for them."
Beyond these specific loan adjustments, the UDAF is also engaged in broader efforts to assist farmers through the year's difficulties. These include working to connect producers with disaster assistance, technical support, emergency loans, and other tools designed to help maintain business viability.
