# Agriculture (GAG)

## Title 2. Department of Agriculture

### Subtitle 6. Farmer Disaster Loan Program

#### Section 2-601

The Farmer Disaster Loan Program is created within the Department of Agriculture for the purpose of making loans at a preferred rate of interest to allow farmers to rebuild, repair, or recover their farmlands, buildings, crops, or livestock damaged or destroyed by a natural disaster. The Department shall manage and supervise the Program.

#### Section 2-602

(a) The Department may make loans under the Farmer Disaster Loan Program from funds provided in the budget.

(b) Money derived from payment of principal and interest on the loans shall be used by the Department, as needed, to make additional loans under the Farmer Disaster Loan Program. If any money derived from the payment of principal and interest as provided in this subsection exceeds $200,000, then that excess amount shall revert to the General Fund of this State.

#### Section 2-603

(a)

  (1) The Department may make direct loans not exceeding $15,000 to qualifying farmers at an interest rate which will make the program self-supporting. In establishing the interest rate from time to time, the Department shall take into account all of the expenses of the program including administrative expenses of the program, and possible losses. The interest rate may not exceed 1 percent above the cost of the loans to the State.

  (2) The Department may collect a uniform application fee, and retain from it any amounts not expended for credit reports, appraisals, and other expenses of processing loan applications.

  (3) Loans made under this subtitle shall be secured by a mortgage or lien on the property purchased and any improvements and fixtures, crops, and livestock on it, or whatever the Secretary of Agriculture may require.

(b)

  (1) To be eligible for a loan, an applicant shall meet all of the following conditions of eligibility:

    (i) The Governor shall have declared a state of emergency because of a natural disaster making the applicant's farm eligible for aid;

    (ii) The applicant must have been the one to have suffered the actual loss as a result of the natural disaster;

    (iii) The applicant shall have applied for a farm loan from any agency of the federal government; and

    (iv) The applicant must make application for a farmer disaster loan within six months of the time of the natural disaster.

  (2) The conditions of eligibility listed in this section apply jointly and severally in the case of spouses who are living together, except that the domicile requirement may be satisfied by either spouse.

  (3) If a person receives a farm disaster loan from any agency of the federal government, that person shall reimburse the Department of Agriculture of Maryland for any loan made according to this subtitle, including any expense and interest as provided in subsection (a)(1) of this section.

#### Section 2-604

The Department may:

(1) Make farmer disaster loans and extend or modify the terms of an existing loan, set the principal amounts and maturities (not exceeding five years) thereof, enforce them according to their terms, and execute all necessary and convenient documents in connection therewith; foreclose mortgages; and obtain and enforce deficiency judgments. Approval or execution by the Board of Public Works is not needed to assign for value, to release loans when paid, or to accomplish foreclosures.

(2) Require and obtain appraisals, credit information, and other information necessary or desirable to make sound loans, and to adopt reasonably minimum requirements of creditworthiness and security.

(3) Contract for services relating to any aspect of the operations of the program in accordance with procedures required by law for State contracts.

(4) Adopt, and amend from time to time, in accordance with statutory requirements, rules and regulations governing all aspects of the operation of the program, including definitions of terms.

#### Section 2-605

Whoever knowingly makes or causes to be made any false statement or report for the purpose of influencing the action of the Department upon any application for a loan or any action of the Department affecting a loan already made, shall be subject to a penalty in the amount of three times the amount of the loan with interest of 6 percent from the date of the loan. The Department may enforce this penalty in the appropriate court.

---

Md. Code Ann., Agric. (as displayed at mgaleg.maryland.gov, October 16, 2026)