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Loan Applications Available for Missouri Businesses Affected by Drought
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Loan Applications Available for Missouri Businesses Affected by Drought

Financial help is on the way for some Missouri businesses after drought hit the state this fall.

In October, Governor Mike Parson signed a decreedeclaring a drought alert in Missouri until March 31, 2025. As a result, some farms in the state have struggled.

Mid-Missouri farms have faced droughts this fall, according to Alfred Brandt, executive director of Missouri Dairy. Although Brandt said dry weather didn’t hit central Missouri as hard as other parts of the state this summer, the region felt the effects in September and October.

“Missouri is still two weeks away from a drought,” Brandt said. “We can have really good precipitation, until we don’t. In September and October we didn’t have any rain, so the fall pastures are basically dry.”

Brandt said the dry weather was particularly problematic for one of Missouri’s largest producers.

“Missouri is the second-largest state in the country in terms of beef cows,” Brandt said. “Beef producers, in particular, rely on fall pastures.”

Faced with a lack of food, farmers have been forced to turn to hay to feed their livestock earlier than usual. Brandt said most farms try not to feed hay until the first snowfall. However, dry conditions have caused many people in central Missouri to use hay this fall.

“This hay is expensive to feed, so they want to keep their barns full as long as they can,” Brandt said. “Any time you have to feed earlier than expected, it’s a financial burden.”

Now, instead of relying on a free supply of pasture for cows, farmers pay about $35 per bond for hay, according to Brandt. He said the financial impact is trickling down to Missouri consumers.

“With the droughts of the last few years, cattle herds have really declined,” Brandt said. “Everyone recognized him when they went to the grocery store.”

However, financial assistance is on the way for some Missouri businesses. The U.S. Small Business Administration announced that small businesses that rely on farmers and ranchers, as well as those that have been directly impacted by the weather, can now apply for low interest federal loans.

According to the SBA, loans are available to businesses in 39 Missouri counties, including Miller, Osage, Cole, Callaway and Moniteau. Additionally, the guidelines state that the loans carry an interest rate of 4% for businesses and 3.62% for nonprofits.

Although groups can apply for a loan now, funds cannot be distributed immediately. According to SBA, the program is at capacity and awaiting Congress to appropriate more funding.

The SBA said businesses can complete their application now, so they are ready when funds become available.

Meanwhile, Brandt said he’s confident most farms in central Missouri have survived the fall droughts and doesn’t expect serious long-term effects.

“Most people here managed to weather the storm,” Brandt said.

To help monitor drought conditions in Missouri, Michael Weller with the Missouri Department of Natural Resources said residents can view the state’s report. drought mitigation response plan. According to Weller, reports and photographs play a key role in authorities’ ability to assess drought conditions.

As such, he encouraged residents to submit information about conditions in their area, using the MNR form. Condition Monitoring Observer Reports.