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AGRICULTURE BEST MANAGEMENT PRACTICES (AgBMP) LOAN PROGRAM -
MINNESOTA DEPARTMENT OF AGRICULTURE
The AgBMP Loan Program was created in 1994 to provide low interest financing to farmers, agribusiness, and rural landowners for the implementation of practices that reduce or treat runoff from farm fields.
Access to Loans:
The AgBMP loan program is intended to implement projects that prevent or mitigate nonpoint source pollution. Access to loan funds by potential borrowers depends on the following factors:
- Whether Faribault County has applied for and received an allocation
- The amount available through the County's revolving accounts
- The priorities in the Local Water Plan
- Credit decisions by the local lender
Eligible projects:
Projects include manure handling systems, terraces, grass waterways, conservation tillage equipment, and other agricultural best management practices (BMP's) that reduce or treat runoff from farm yards and fields. BMP's that receive cost share funding and projects needed to comply with water related rules or laws are eligible.
Ineligible projects:
Projects which are not eligible include manure handling systems for operations with over 1,000 animal units, and operations that have had criminal proceedings begun against them for pollution problems.
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To apply for a loan:
Potential borrowers should contact the SWCD at (507) 526-2388 for information regarding the implementation of the AgBMP Program. The SWCD will refer eligible borrowers to the appropriate local lender. Local lenders will make credit decisions based on the borrowers ability to repay the loan.
Terms:
Maximum Loan Length:
Feedlots, manure handling systems, conservation tillage equipment, and other practices - up to 5 years.
Maximum Loan Amount:
Legislation limits the loan amount to $50,000 per project and $50,000 per individual at any given time.
Eligibility:
Faribault County limits participation in the program to a maximum of 3 contracts per individual/operator unless excess funding exists.
Maximum Interest Rate:
Legislation sets the interest rate at 3% or less with a one-time origination fee.
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