TAYLORSVILLE — It’s been a tough time for the agricultural industry in Utah. Drought, wildfires, a late frost, animal diseases and other pressures on Utah producers have negatively impacted the state’s economy.
The Kem C. Gardner Policy Institute reported that farm operations in the Beehive State generated $2.3 billion in animal products and crop sales in 2022.
The Utah Department of Agriculture and Food wants to help producers who are trying to weather these difficult times.
“Utah’s agriculture sector is a dynamic part of our state’s economy, particularly in rural areas, generating over $2 billion in sales annually,” said Eric Albers, senior natural resources analyst at the Gardner Institute and lead author of the report. “Our report, based on the U.S. Department of Agriculture’s 2022 Census of Agriculture, also illustrates the significant changes being felt by Utah farmers, from shifting market dynamics and rising input costs to an aging workforce.”
UDAF will automatically reduce interest rates on qualified loans to 0% for one year beginning in November 2026. Borrowers will also have the option to defer loan payments for up to 12 months, giving producers additional flexibility as they recover from the challenges of the 2026 production year.
“Utah’s farmers and ranchers have faced challenge after challenge this year, and we want them to know that we are in their corner,” said UDAF Commissioner Kelly Pehrson. “We know producers are hurting, and we want to help. 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.”
This temporary measure was approved unanimously by the Utah Conservation Commission on Aug. 24 and by the Utah Agricultural Advisory Board on Sept. 9.
Gov. Spencer Cox said he hopes these relief measures will be an investment in the farmers and ranchers who feed Utah and sustain rural communities across the state.
State leaders are committed to helping them weather today’s challenges and continue operating for years to come.
“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,” said Sierra Nelson, executive director of the Utah Wool Growers Association and Agricultural Advisory Board member. “We applaud UDAF and Gov. Cox for recognizing the urgency of this moment and taking meaningful action.”
She said this relief 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.
The 0% interest rate will apply automatically to every active UDAF loan from Nov. 1, 2026, through Oct. 31, 2027. No action is required from borrowers to receive the interest reduction. On Nov. 1, 2027, rates will return to those established in each borrower’s promissory note. Borrowers who need additional relief may also apply to defer payments for up to 12 months.
The option is available across monthly, quarterly, semiannual and annual payment schedules. Borrowers who have already made their 2026 payment may elect to defer their 2027 payment instead.
Borrowers who wish to defer payments must submit the official online form by Oct. 31, 2026. Loan staff will review requests and provide an electronic loan modification agreement for approved deferrals.
More information and the payment deferral form are available at UDAF’s Agricultural Loans webpage.