The Livestock Equipment Loan Program is designed to help finance the purchase of livestock-related equipment. Loans may be used for the acquisition of equipment for animal housing, confinement, animal feeding, milk production and waste management.
This is a loan participation program available through the Rural Finance Authority (RFA). Farmers will work through their local lender. Upon completion of an application, the lender will apply for RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file.
The farmer candidate must meet the following criteria:
While all lending institutions are eligible to be part of the program, they are not required to do so. Their decision to join the program is voluntary.
Each lender must enter into an agreement with the RFA and offer farm loans based upon certain pre-established rules in order to qualify for RFA participation.
The RFA will participate in a livestock equipment loan equal to 90 percent of the purchased equipment value with a participating lender to a farmer who meets the eligibility requirements. Participation is limited to 45% of the principal amount of the loan or $40,000, whichever is less. The loan will be for a maximum of ten years. The interest rates and repayment terms of the authority's participation interest may differ from the interest rates and repayment terms of the lender's retained portion of the loan, but the authority's interest rate must not exceed 3%. The authority may review the interest annually and make adjustments as necessary. Refinancing of existing debt is not an eligible purpose.
The originating lender will retain the balance of each loan. The borrower must satisfy the local lender's guidelines. The local lender will control the day-to- day operation of the loan. Participating lenders are allowed to charge a fixed or adjustable interest rate consistent with their normal lending practices and their agreement with the RFA.
Money may be used for loans for the acquisition of equipment for animal housing, confinement, animal feeding, milk production, and waste management, including the following, if related to animal husbandry:
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, email@example.com