Oregon drought aid available for businesses, farms and communities

OREGON (KTVZ) -- State and federal agencies are making multiple financial and technical assistance programs available to support Oregon communities, small businesses and agricultural producers affected by ongoing drought conditions.

Find the full press release here.

The available programs offer funding for local water infrastructure, drought mitigation planning and economic recovery.

The resources include low-interest disaster loans, emergency water grants and well repair assistance administered by agencies including the U.S. Small Business Administration, the U.S. Department of Agriculture and the Oregon Water Resources Department. State emergency officials are encouraging eligible groups to apply.

Erin Zysett serves as the public information officer for the Oregon Department of Emergency Management. “Drought impacts every region of Oregon differently, but the message is the same everywhere: help is available,” Zysett said.

The U.S. Small Business Administration is providing Economic Injury Disaster Loans of up to $2 million for working capital to small businesses, private nonprofits and agricultural cooperatives impacted by drought in designated Oregon counties. The loans feature terms of up to 30 years with no interest or required payments during the first 12 months after disbursement. Interest rates are set at 4% for small businesses and 3.625% for private non-profit organizations.

For rural communities and federally recognized Tribes with populations of 10,000 or fewer, the U.S. Department of Agriculture offers Emergency Community Water Assistance Grants. These grants provide up to $150,000 for water transmission line repairs and up to $1 million for water source development, such as new wells or treatment plants, provided applicants can document a significant decline in water quality or quantity within the last two years. Additionally, the U.S. Bureau of Reclamation's WaterSMART program offers funding to help water districts and regional authorities develop drought contingency plans and expand water distribution infrastructure.

Homeowners with low-to-moderate incomes and members of federally recognized Tribes in Oregon can access the Well Abandonment, Repair and Replacement Fund administered by the Oregon Water Resources Department. The program reimburses up to $40,000 for professional work and materials needed to repair, replace or abandon dry or damaged wells, including wells affected by wildfire. Funding is allocated on a first-come, first-served basis and state officials encourage residents to report dry wells on the state's tracking website.

Agricultural producers facing crop or grazing losses can access dedicated disaster programs through the USDA Farm Service Agency.

Available assistance includes:

• The Livestock Forage Disaster Program (LFP) provides compensation to eligible livestock producers who suffered grazing losses for covered livestock due to drought on privately owned or cash leased land.
• The Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) provides eligible producers with compensation for above-normal costs of hauling water and feed to livestock as well as transporting livestock to forage or other grazing acres.
• The Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters including qualifying drought (includes native grass for grazing). Producers must have obtained NAP coverage for the crop year in which the loss occurs.
• The Tree Assistance Program (TAP) provides assistance to eligible orchardists and nursery tree growers for qualifying tree, shrub and vine losses due to natural disasters including excessive wind and qualifying drought.  
• The Emergency Conservation Program (ECP) and Emergency Forest Restoration Program (EFRP)  provide landowners and forest stewards with financial assistance to restore damaged farmland and conservation structures or forests, including implementing emergency water conservation measures. This program may also help with damage to farmland due to natural disasters such as wildfire.
• Emergency and non-emergency haying and grazing of Conservation Reserve Program (CRP) acres may be authorized to provide relief to livestock producers in areas affected by a severe drought.
• USDA Farm Loans provide a variety of direct and guaranteed farm loans, including operating and direct emergency farm loans, to producers unable to secure commercial financing. Loans can help producers replace essential property, purchase inputs like livestock, equipment, feed and seed, cover family living expenses, or refinance farm-related debts and other needs.

The state also tracks drought conditions through the U.S. Drought Monitor, which classifies drought severity from abnormally dry to exceptional drought using streamflow, soil moisture and local field reports. Water right holders in counties under a governor-declared drought state can also utilize temporary emergency tools from the Oregon Water Resources Department, such as expedited water transfers, instream leases or temporary groundwater substitutions.

The application deadline for Small Business Administration Economic Injury Disaster Loans is March 1, 2027.

For agricultural producers, the USDA Farm Service Agency updates its list of counties eligible for livestock forage assistance every Thursday.

Additional resources:

Oregon Department of Emergency Management: oregon.gov/oem

Oregon Water Resources Department: oregon.gov/owrd