Utah farmers with active state agriculture loans will soon benefit from a temporary 0% interest rate and optional payment deferrals, the Utah Department of Agriculture and Food (UDAF) announced Friday in a news release. UDAF officials described the move as an "unprecedented step" to provide financial relief, citing an "exceptionally difficult" year for producers.
Beginning November 1, 2026, all existing UDAF loans will automatically have their interest rates reduced to 0% for one year. This temporary reduction will remain in effect through October 31, 2027. Borrowers with active UDAF loans during this period do not need to take any action to receive the interest reduction, as rates will automatically revert on November 1, 2027, according to department officials.
In addition to the interest rate change, borrowers will also have the option to defer their loan payments for up to 12 months. This relief is available across various payment schedules, including monthly, quarterly, semiannual, and annual options. For those who have already made their 2026 payment, the option to defer their 2027 payment instead is also available, department officials stated. Producers wishing to defer payments must complete an online form by October 31, with more information accessible on the UDAF’s loan website.
UDAF Commissioner Kelly Pehrson noted in a prepared statement within the news release, "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, "We know producers are hurting, and we want to help."
The department detailed the severe conditions prompting these measures, linking the new loan options to recovery from the "2026 production year." This period was marked by extreme drought, unprecedented water conditions, record-low snowpack, and historically high temperatures. State officials also pointed out that Gov. Spencer Cox issued an emergency declaration over crops lost to unseasonal weather, as mentioned in Friday's release.
"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 explained.
These new, temporary loan options received unanimous approval from the Utah Conservation Commission last month, and also from the Utah Agricultural Advisory Board on September 9, state officials confirmed. The state agriculture officials further highlighted in Friday’s release that Governor Cox has "championed these unprecedented relief measures" as a significant investment in the farmers and ranchers who sustain communities across the state.
Sierra Nelson, executive director of the Utah Wool Growers Association and an Agricultural Advisory Board member, expressed support in a prepared statement. "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," Nelson stated. She lauded state agriculture officials and Gov. Cox for "recognizing the urgency of this moment and taking meaningful action," emphasizing that the relief provides a "much-needed lifeline" and sends a message of support to producers.
The UDAF also continues its broader efforts to assist farmers through current challenges, including connecting producers with various resources like disaster assistance, technical support, and emergency loans, according to state officials.
