· Provides low interest financing to farmers, rural landowners, and agriculture supply businesses to encourage agricultural best management practices that prevent or reduce runoff from feedlots and farm fields and other pollution problems identified by the county in local water plans
· Provides loans for projects that reduce existing water quality problems caused by agricultural activities or failing septic systems
· Helps landowners comply with water related laws or rules
· Can be used with state and federal cost share or other sources of funding
· Has funds available in most counties
· Farmers
· Rural Landowners
· Agriculture supply businesses
· Feedlot improvements
· Upgrading manure storage basins
· Improved manure handling, spreading and incorporation equipment
· Terraces, waterways, stream bank protection, sedimentation basins, wind breaks and other practices that prevent erosion
· Conservation tillage equipment
· Repair of individual sewage treatment systems
· Sealing abandoned wells
· Most new construction projects
· Financing projects already completed
· Improvement for feedlots with more than 1,000 animal units
· Activities for operations that have criminal proceedings against them
The program is run locally through the Wadena Soil and Water Conservation District. The contact person for the loan program is Malinda Dexter.
The borrower proposes a project to the local county. If the borrower meets state eligibility requirements and the project addresses local water quality priorities, the county may approve the project and refer it to a cooperating banker. The local banker evaluates the financial aspects of the project. With the approval of the county and the local bank, the project can be implemented. Once the project is complete, funds are sent from the MDA to the local bank and the loan is drawn up between the local bank and the borrower.
The Ag BMP Loan Program allows local governments the flexibility needed to address specific local water quality concerns. The local loan fund is jointly administered by a local government and a cooperating local bank or financial institution.
The Local Government helps farmers, agriculture supply business and landowners identify problems and find solutions to water quality issues related to the agricultural industry or failing septic systems.
The Local Banker is responsible for assessing the economics of the proposed project and determining if a loan is financially feasible for the individual. The banker makes lending decisions, administers the loans, and collects payments from borrowers. Because the money is a loan and must be repaid, only those projects that are financially feasible and provide environmental benefits will be funded.
Since 1995, a total of $51 million has been made available through the federal Clean Water Act and the Minnesota Legislature. Over 6200 loans have been issued and currently, about $10 million is available for Agricultural Best Management Practices and upgrades to failing septic systems. Please contact the Wadena Soil and Water Conservation District if you are interested in this program.
· Loan amounts are limited to $50,000 to any one individual or project.
·
Maximum Loan Length:
Animal Waste Storage - 10 years
Equipment - 5 years
Septic systems - 5 years
Well sealing - 2 years
· The maximum interest rate is 3%, interest plus usual and customary fees charged by the lender.
· The county and local banker may set additional terms and requirements for eligibility of projects.
· These loans are meant to encourage water quality protection and may only be used to solve existing water quality problems.
|
|
|
Length
of Loan |
Loan Amount |
Total Interest Paid at 3% |
Total Interest Paid at 9% |
Cost Savings |
|
2 |
$5,000 |
$226 |
$685 |
$459 |
|
5 |
$5,000 |
$459 |
$1,427 |
$968 |
|
10 |
$30,000 |
$5169 |
$16,746 |
$11,577 |
|
10 |
$50,000 |
$8,615 |
$27,910 |
$19,295 |
Potential
borrowers should contact the Wadena Soil and Water Conservation District
for more information about loan availability in the county. Local units
of government, lenders or individuals wishing additional information
should contact Dwight Wilcox at:
Agriculture Best Management Practices Loan Program
Minnesota Department of Agriculture
90 West Plato Blvd.
St. Paul, MN 55107
(651) 215-1018