The Rural Finance Authority (RFA) Board reviews loan applications normally on the first Wednesday of every month. Applications must be in the Authority's office by the close of business Friday before that particular Board meeting in order to be processed for next month's meeting.
Following is a list of items to be submitted when making application for a loan:
Completed Beginning Farmer Loan Program Application (PDF), which should be typed or printed in black ink. If it is illegible, it may be returned or delayed.
$50 application fee and allocation fee. Make check payable to the Minnesota Rural Finance Authority (RFA).
Allocation Fee of:
- $20 for loans up to $149,999
- $40 for loans from $150,000 to $249,999
- $60 for loans from $250,000 to $349,999
- $80 for loans from $350,000 to $449,999
- $100 for loans from $450,000 to $533,500
A background letter containing the following information about the Beginning Farmer:
- Experience and/or education in farming.
- If the loan is for land, state access to farm equipment or livestock. There are restrictions
on financing farmland with tax-exempt proceeds on which a CRP contract is involved. Consult the Program Summary for details or contact the RFA office. Ultimately, an appraisal will be needed on the buildings (if any) CRP land, pasture or timberland, and cropland.
- If the loan is for farm equipment or livestock, state access to land.
- The Beginning Farmer's access to operating capital and who will supply this capital.
A financial statement taken within the last 60 days prior to submission of the application. The statement must be typed or printed legibly. If not, it could cause the application to be delayed or tabled.
The statement (please call if you need a financial statement form) must be signed and dated by the Beginning Farmer and spouse (if any) as well as by a bank officer. When listing machinery, a value for each item must be shown, including age. The value of all livestock (weights where applicable) should be included as well as bushels of grain and the price per bushel.
Contracts will be furnished by the Authority after the application is approved. Contract sellers using this program should prepare the contract between the Seller and the RFA. A contract should not be filed/recorded until attorneys for the Authority have reviewed its contents and the Executive Director has signed for the Authority.