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MINNESOTAPeter Scheffert Organization Title: Minnesota Rural Finance Authority (RFA) Program/Project Title: Basic Farm Loan Program Program Began: 1987 Contact Person: Gary Blahosky Target Group: Low-equity and beginning farmers wanting to purchase real estate Description: Borrowers must (1) have sufficient education, training or experience to succeed in the type of farming operation they intend to pursue; (2) have a total net worth not exceeding $398,000 (indexed); (3) agree to enroll in a farm business management program; and (4) agree to carry credit life insurance for the amount of the loan program. The RFA participation is limited to 45 percent of the loan principal up to $200,000. Program/Project Title: Seller-Assisted Loan Program Program Began: 1989 Contact Person: Gary Blahosky Target Group: Low-equity farmers Description: Similar to Beginning Farmer program with one exception -- it permits the sellers of a farm to fund a portion of the financing. The seller agrees to subordinate their financing to the lender/RFA. The lender and RFA provide the balance of the funds with a first mortgage. Program/Project Title: Agricultural Improvement Loan Program Program Began: 1992 Contact Person: Gary Blahosky Target Group: Low-equity farmers Description: Provides financing for farm improvements including grain handling facilities, machine storage, erosion control, wells and manure systems. Borrowers must not have a total net worth exceeding $398,000 (indexed). RFA participation is 45 percent of the loan principal up to $200,000. Program/Project Title: Restructure II Loan Program Program Began: 1993 Contact Person: Gary Blahosky Target Group: Low to mid equity farmers Description: Under this program, the RFA works with a local lender to help farmers reorganize their debt. This program is for farmers who remain in good standing with local lender, but are having trouble with cash flow due to adverse conditions beyond their control. Only debt of an agricultural nature is eligible. Borrower net worth cannot exceed $750,000. The RFA will participate on 45 percent of the loan principal up to $225,000. Program/Project Title: Livestock Expansion Loan Program Program Began: 1994 Contact Person: Gary Blahosky Target Group: Livestock farmers Description: This program creates affordable financing for new, state-of-the-art improvements to land, buildings, and other permanent structures used for livestock production. A borrower (1) must be actively engaged in a livestock operation, (2) have the ability to repay the loan, and (3) have a total net worth not exceeding $750,000 (indexed). The RFA may participate on a loan up to 45 percent of the loan principal to a maximum of $275,000. Program/Project Title: Agricultural Development Bond Program Program Began: 1991 Contact Person: Lori Schmidt Cost/Funding: $5.0 million reserve each year Target Group: Low-equity farmers Description: Patterned after a program developed in Iowa, the “aggie bond” applicant must be a beginning farmer. Net worth cannot exceed $398,000 (indexed for inflation) and applicant cannot have owned any substantial amount of farmland. Program/Project Title: Value-Added Ag Product Loan Program (Stock Loan Program) Program Began: 1994 Contact Person: Gary Blahosky Target Group: Low-equity farmers Description: Helps farmers finance the purchase of stock in an existing value-added cooperative or LLC or in a proposed new cooperative or LLC processing facility in Minnesota. The RFA participation is 45 percent up to $40,000. Program/Project Title: Disaster Recovery Loan Program Program Began: 1998 (major revision 2007) Contact Person: Gary Blahosky Target Group: Farmers who experienced losses due to high winds, hail, tornado, flood or drought. Description: Operation must be located within a county that was the subject of a state or federal disaster declaration. Borrower net worth cannot exceed $750,000 (indexed for inflation) and at least 50 percent of average gross income for the past three years had to come from farming. RFA participation is limited to 45 percent of the loan principal up to a maximum of $50,000 at an interest rate not to exceed four percent. Program/Project Title: Methane Digester Loan Program Program Began: 2002 Contact Person: Gary Blahosky Target Group: Livestock farmers Description: This program provides for either a direct loan from the RFA or a loan participation with an eligible lender to an eligible farmer for the purchase of necessary equipment and the construction of a system that will utilize manure to produce electricity. A direct loan or loan participation may not exceed $250,000. The financing provided by the RFA under this program must be at no interest. Maximum term is 10 years.
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