The MDA developed the Methane Digester Loan Program in 1998 to help supplement the funds needed for livestock producers in Minnesota to begin installing digesters on their farms.  The criteria for the Methane Digester Loan are listed below (also, see Session Laws 2002, 41B.049).

What is the purpose of Methane Digester Loan Program?

To help finance the purchase of necessary equipment and the construction of a system that will use manure to produce electricity. The State of Minnesota has established a revolving loan fund to appropriate funds for this program.

Who is eligible for loans for manure methane digester technology?

To be eligible for a loan under this section a borrower must:

  • locate the projects and use the equipment and practices on a farm in Minnesota;
  • provide evidence of financial stability;
  • demonstrate an ability to repay the loan;
  • provide evidence that the practices implemented and capital assets purchased will be properly managed and maintained; and
  • a borrower who has previously received a loan under subdivision 1 may receive another methane digester loan under subdivision 1 if the previous loan has been repaid in full.

What are the terms and criteria of the methane digester loan program?

  • The Rural Finance Authority (RFA) of the Minnesota Department of Agriculture may participate with a local lender or make a direct loan to a farmer who is eligible for the biogas loans.
  • Loans made under this program are currently no-interest loans.
  • Application for a loan participation or direct loan must be made on forms prescribed by the RFA.
  • No loan participation or direct loan may exceed $250,000.
  • Standards for loan amortization shall be set by the RFA not to exceed ten years.
  • Security for the loans must be a personal note executed by the borrower and whatever other security is required by the eligible lender or the RFA.
  • No loan proceeds may be used to refinance a debt existing prior to application.
  • Loans under this program may be used as a match for Federal loans or grants.
  • There is a $100 non-refundable application fee due with the application.