Low Interest Loan Dollars NOW Available in Ag BMP Loan Program

The Fillmore Soil & Water Conservation District each year applies for and receives an allocation of funds for the Ag Best Management Loan Program from the Minnesota Department of Agriculture. These funds provide low interest financing to farmers, agriculture supply businesses and rural landowners to encourage agriculture best management practices that prevent or reduce non point source pollution identified in the local water plan. Eligible Practices that the loan dollars can be used for include: improvements to animal waste control facilities, manure handling equipment, terraces, grassed waterways, structural erosion control structures, conservation tillage equipment, improvements of individual sewage treatment systems, and sealing of unused wells. The funding can not exceed $50,000 to any one individual or project, with a maximum loan length of 5-10 years depending on practice. The rate for theses loan funds is 3% + origination fee. To start the loan application, bring in a written estimate of the project to be done and fill out an application at the SWCD Office. Once the application is started at SWCD office you will then secure the loan through one or several participating local lenders in the county. These funds are on a first come, first serve basis and are meant to encourage water quality protection and may only be used for existing water quality problems.

Feedlot Program at Fillmore Soil & Water Conservation District

The Scoop on Poop

In Fillmore County there are approximately 1,100 registered feedlots. Registration started back in September of 2000 with a re-registration that took place in 2005 and still continues with new feedlots as farmers see the importance of protecting their interests. Of the 1,100 registered feedlots those feedlots with less than 300 animal units had the option of signing an Open Lot Agreement in addition to the required registration form. The Open Lot Agreement was optional and gave producers the benefit of extending the time to bring their feedlot site into compliance. Producers signing into this agreement have till October of 2010 to come into full compliance at their site. Those producers over 300 animal units or not having signed that open lot agreement have a shorter time frame to bring their site into compliance. This time frame is determined by the County Feedlot Officer when a pollution problem has been sited at the feedlot.

What is the next step to fixing a feedlot? Once the County Feedlot Officer has made an initial site visit to your site and determined there is a pollution problem and run an evaluation program called “FLEval”, he will turn it over to the SWCD Technician. The “FLEval” program is a program to objectively evaluate the potential pollution problems from the feedlot. The SWCD Technician will take the evaluation of the feedlot and work with the producer on a plan, cost estimate and cost share options. The technician works back and forth with the producer to develop a workable solution to the runoff problem that will meet the state standards and also work for the producer at his site.

What are some examples of possible fixes? The list is endless as to what fixes there are to do to a site. The main objective is to control and treat the runoff and be able to utilize the manure out on the crop fields for fertilizer. Some examples of possible practices are: clean water diversions, roof gutters, picket fences, catch box, filter/buffer strips, reduce lot size, manure storage, roof structures, etc. To fix a site we may use one practice or a combination of several practices put together to work as one system.

How do I pay for such fixes that are needed at the feedlot site? Depending on the level of fix that is needed there are different cost share options available. There are low cost fixes and high cost fixes on bigger projects. To be eligible for any cost share dollars there has to be an existing pollution problem that is being corrected. Before beginning any work you will need to sign up for the cost share dollars first and make sure they are available. Once work is completed at the site you then turn in receipts for the project and will be reimbursed for the eligible costs of the project.

The low cost fixes have different sources of pots of money. The County has $2,000 Feedlot Cost share dollars, some watersheds have $1,000 cost share dollars, and other agencies have $1,000 cost share dollars to all go towards a feedlot fix. These cost share dollars are 50% cost share up to the maximum dollar amount. These funds can be combined together as along as the site is eligible and do not exceed 50% cost share of the project. All of these low cost funding sources are on a first come, first serve basis and are not available every year.

The high cost fixes will typically look into applying for State or Federal dollars for assistance in constructing the practices needed. The Federal dollars are through a program called EQIP which is 50% cost share, with practices having a flat rate applied to them. A sign up is held each year for these funds through the NRCS Office.

The State dollars are through a program called Feedlot Water Quality Management that is administered by the Minnesota Board of Water and Soil Resources. These grant funds can pay up to 75% of the eligible costs of a feedlot project with a maximum dollar amount of $45,500. The producer is responsible to pay for the remaining 25% and any other non eligible items for the project. To be eligible for the state funds the feedlot has to be registered with less then 500 animal units, have an existing pollution problem, and be within a specific distance to a sensitive feature. A competitive sign up is held every year through the SWCD Office.

Once producers have fixed their feedlot sites they will be able to utilize the manure better, by applying it to the cropland as fertilizer. A producer may develop a nutrient management plan themselves or have one developed for them through the private sector or through the SWCD Office. Once a plan is developed records will need to be kept and the plan updated for each crop year.

By fixing up the feedlot site and controlling the runoff a producer not only improves surface and ground water quality but also improves cattle health and can save money by improving nutrient management plans. Another big factor in fixing up and improving the feedlot site is improving public relations between producers and non-producers.

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