The AgBMP Loan Program is a water quality program that provides low-interest loans to farmers, rural landowners, and agriculture supply businesses. The purpose is to encourage agricultural Best Management Practices that prevent or reduce runoff from feedlots, farm fields and other pollution problems identified by the county in local water plans.
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 approves the project and assists them in locating a cooperating banker.
The projects are managed through local Soil and Water Conservation Districts or County Environmental Offices.
The local banker evaluates the financial aspects of the project. With approval of county and local bank, the project is implemented. Once the project is complete, funds are sent from the Minnesota Department of Agriculture to the local bank and the loan is drawn up between the local bank and borrower.
A total of $14,275,000 dollars have been appropriated from the Clean Water Fund to improve program's capacity to implement water quality projects.