A loan program to assist livestock and dairy producers finance the construction of state-of-the-art facilities is offered through the Rural Finance Authority (RFA) in the Minnesota Department of Agriculture.
Livestock expansion means improvements to a livestock operation, including the purchase and construction or installation of improvements to land, buildings, and other permanent structures, including equipment incorporated in or permanently affixed to the land, buildings or structures, which are useful for and intended to be used for the purpose of raising livestock. The purchase of livestock is NOT an eligible purpose for this program.
The livestock producer will work through their local lender. If the lender agrees to make a mortgage loan to the applicant, the lender and applicant will jointly complete an application for a RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file. The RFA may participate on a loan up to 45% of the loan principal to a maximum of $525,000. The loan proceeds cannot be used to refinance an existing debt.
The participation term may be up to a maximum of 10 years. The loan may have a balloon. Collateral for the loan must include a first mortgage on farm real estate, but this does not have to include the farmstead.
The incentive to use the RFA program will be an affordable fixed interest rate for a certain period of time. Call the RFA for a quote. There is a $50 non-refundable application fee on all loans. The lender may collect normal closing costs.
An applicant must meet the following requirements:
Ryan Roles, Senior Loan Officer
Ryan.Roles@state.mn.us ~ 651-201-6666
Toll Free ~ 1-800-366-8927
Finance & Budget Division
Minnesota Department of Agriculture (MDA), 625 Robert Street N, St. Paul, MN 55155-2538, firstname.lastname@example.org