The Utah Department of Agriculture and Food announced unprecedented loan relief for agricultural producers to assist with challenges faced during the 2026 production year. According to a notice from the department, all existing UDAF loans will receive a 0% interest rate for one year starting Nov. 1, 2026.
The relief measures include an automatic reduction of interest rates to 0% from Nov. 1, 2026, through Oct. 31, 2027. Borrowers do not need to take action to receive the interest reduction. Rates are scheduled to return to the levels established in each borrower's promissory note on Nov. 1, 2027.
Producers also have the option to defer loan payments for up to 12 months. This option applies to monthly, quarterly, semiannual, and annual payment schedules. To utilize this option, borrowers must submit an official online form by Oct. 31, 2026. Those who have already completed their 2026 payment may choose to defer their 2027 payment instead.
The temporary measures received unanimous approval from the Utah Conservation Commission on Aug. 24 and from the Utah Agricultural Advisory Board on Sept. 9. UDAF Commissioner Kelly Pehrson stated that the department aims to provide breathing room to help keep agricultural operations moving forward.
Sierra Nelson, Executive Director of the Utah Wool Growers Association and member of the Agricultural Advisory Board, noted that the relief provides a lifeline for producers facing multiple challenges, including drought, wildfire, and animal disease.
The department's actions build on previous efforts to connect producers with technical support, emergency loan resources, and disaster assistance. More information and the payment deferral form can be found on the UDAF Agricultural Loans webpage at https://ag.utah.gov/conservation/agricultural-loans/.
