Local lenders participating with the AgBMP Loan Program are responsible for determining if a loan is financially feasible for the individual. Most commercial lending institutions, counties, regional development commissions, drainage authorities, and other local governments with taxing authority may sign up to be local lenders. The banker makes lending decisions, writes the loans, and collects payments from borrowers. Because the money is a loan and must be repaid, only those projects that are financially feasible and provide environmental benefits will be funded.
The AgBMP loan program has funded over 1500 different activities. Any activity or practice that improves water quality is eligible. The following is a list of some of the general categories:
Agricultural Waste Management – Projects that manage and reduce the inflow of agricultural waste into surface and groundwater systems
Structural Erosion Control – Measures intended to reduce soil erosion which adversely affects ground water quality
Conservation Tillage – Practices that improve soil organic content and reduce erosion
Septic Systems – Individual or cluster type home sewage treatment systems
Any practice that improves water quality is eligible. See a list of example practices.
These loans are meant to encourage water quality protection and may only be used to solve existing water quality problems.
The program is run locally through the Soil and Water Conservation District or Environmental Office. Call your local county offices to find out their local application procedures.
Local Contact Map
The program has lenders available in all counties. For those lenders not yet signed up with the program, please contact us about participation.
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 may approve the project and refer it to a cooperating banker. The local banker evaluates the financial aspects of the project. With the approval of the county and the local bank, the project can be implemented. Once the project is complete, funds are sent from the MDA to the local bank and the loan is drawn up between the local bank and the borrower.
The AgBMP Loan Program allows local governments the flexibility needed to address specific local water quality concerns.
The Local Government helps the farmers, agriculture supply business and landowners identify problems and find solutions to water quality issues related to the agricultural industry or failing septic systems.
The Local Banker is responsible for assessing the economics of the proposed project and determining if a loan is financially feasible for the individual. The banker makes lending decisions, administers the loans, and collects payments from the borrowers. Because the money is a loan and must be repaid, only those projects that are financially feasible and provide environmental benefits will be funded.
Since 1995, a total of $53,809,195.00 million has been made available through the federal Clean Water Act and the Minnesota Legislature. Please contact your local Soil and Water Conservation District or County Environmental Office if you are interested in this program.
Potential borrowers should contact their local Soil and Water Conservation District, county environmental office, or local water planning officials for more information about loan availability in their county.
Local units of government, lenders or individuals requiring additional information should contact us at:
Agriculture Best Management Practices Loan Program
Minnesota Department of Agriculture
625 Robert Street North
Saint Paul, MN 55155-2538
AgBMP Loan Program
AgBMP.Loans@state.mn.us ~ 651-201-6618
Dwight Wilcox, Program Manager
Richard Gruenes, Program Administrator
Finance & Budget Division