USDA Opens $2 Million Drought Loans for Maine Businesses After 14 Counties Designated Disaster Areas

The U.S. Department of Agriculture designated seven counties in Maine as natural disaster areas last week. This action opens access to federal relief for farmers, businesses, and nonprofits across 14 counties. The decision follows a persistent drought that has affected the state for several months.

The USDA named Cumberland, Hancock, Kennebec, Knox, Lincoln, Sagadahoc, and Waldo counties as disaster areas. The agency cited data from the U.S. Drought Monitor, which showed these areas remained in severe or extreme drought for at least eight weeks during the growing season. Many of these locations have faced severe conditions since mid-August. A coastal stretch from Cumberland to Hancock County has been under extreme designation since mid-September.

Seven additional counties qualify for relief because they border the designated disaster zones. These include Androscoggin, Franklin, Oxford, Penobscot, Somerset, Washington, and York. Some of these areas also experienced severe drought conditions starting in mid-September. Aroostook and Piscataquis counties are not currently on the eligibility list. Parts of these northern areas only received severe designations in early October or later.

The Farm Service Agency announced emergency loans for the 14 eligible counties. These funds can replace equipment or livestock, or refinance debts. The agency will review applications based on the extent of losses, available security, and repayment ability. Tommy Higgins, the state executive director for the FSA in Maine, urged producers to report damages to local offices immediately. He advised them to gather farm records, herd inventories, receipts, and photos of losses.

The Small Business Administration announced on Monday that loans are available for businesses and nonprofits affected by the drought since Sept. 15. Small businesses, agricultural cooperatives, aquaculture enterprises, private nonprofits, and faith-based organizations may apply. These entities can borrow up to $2 million at interest rates starting at 3.6% for nonprofits and 4% for other groups. No interest or payments are required for the first 12 months of the 30-year terms.

Maine experienced a dry summer and fall in 2025 that triggered a previous natural disaster declaration. That drought subsided in early 2026 due to a rainy spring. A second dry summer brought the drought back, and conditions worsened through the first half of fall. Experts attribute the return to a lack of rain and the slow recovery of groundwater from past dry spells.

The U.S. Drought Monitor’s latest map, released Thursday, shows more than 55% of the state under at least severe drought. The entire state has been under moderate drought since Sept. 15. The most severe conditions remain along the coast. The agency expanded the severe designation to a large swath of northern Maine in early October and added another chunk of central Maine last week.