The AgBMP loan program provides loans for projects that reduce existing water quality problems caused by non-point source pollution. The program provides needed funding for local implementation of clean water practices at a very low cost. It is unique in its structure and is not duplicated by other programs or funding sources.
To date, over $14,050,000 million from the Clean Water Fund (CWF) has been made available to local units of government ($76,824,195 from all sources) to improve the program's capacity to help solve pollution problems. As of 1/18/2017 the AgBMP Loan Program used Clean Water Fund dollars to support 765 loans totaling $15,236,400.52. By practice type, 116 loans were for agricultural waste management projects, 28 for conservation tillage equipment, and 609 for septic systems upgrades or relocation. At this time the program has leveraged 35% of the total cost of projects. Overall, Clean Water funded AgBMP loans have leveraged $8,370,201.70.
Appropriations from the CWF are incorporated directly into the structure and procedures of the Ag BMP revolving loan program. This program has an existing administrative procedure to award funds, approve projects, issue loans, and collect repayments. Every loan is issued from one of five sources of funds. This includes both federal and state sources. Currently, loans supported by the Clean Water Fund must be used to implement recommended practices identified in a Minnesota Pollution Control Agency (MPCA) approved Total Maximum Daily Load (TMDL) Implementation Plan. All other appropriations in the AgBMP account and their revolving revenue may be used anywhere in the state.
**Although not spent immediately, all CWF appropriations are allocated to local units of governments to implement local water priorities. Funds are issued to local lenders as projects are completed.
Loans must be used towards practices that improve an existing water quality problem, such as reducing soil erosion or ensuring safe manure and waste water management. So far, Clean Water Funds have been used by the AgBMP Loan Program to:
AgBMP Loan Program
AgBMP.Loans@state.mn.us ~ 651-201-6618
Dwight Wilcox, Program Manager
Richard Gruenes, Program Administrator
Finance & Budget Division