Grants & Loans
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LOW INTEREST FINANCING FOR WATER QUALITY IMPROVEMENT

The AgBMP Loan Program

  • Provides low interest financing to farmers, rural landowners, and agriculture supply businesses 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.
  • Provides loans for projects that reduce existing water quality problems caused by agricultural activities or failing septic systems.
  • Helps landowners comply with water-related laws or rules.
  • Can be used with state and federal cost-share or other sources of funding.

Who May Apply for Loans

  • Farmers
  • Rural Landowners
  • Agricultural supply businesses

What are Eligible Activities

  • Waste Management, including feedlot runoff controls, clean water diversion, manure handling and incorporating equipment, upgrading manure storage, odor control, and dead animal composting facilities.
  • Improved manure handling, spreading, and incorporation equipment.
  • Terraces, waterways, streambank protection, sedimentation basins, wind breaks, and other practices that prevent erosion.
  • Conservation tillage equipment.
  • Repair of individual sewage treatment systems.
  • Sealing abondoned wells.

Terms of Loans

  • Loan amounts are limited to $200,000 to any one individual or project.
  • Borrowers may have multiple outstanding loans. However, the aggregate sum of all Ag BMP loans may not exceed the $200,000 principal balance maximum.
  • Example fees include: insurance, mortgage handling, filing, default and delinquency, and yearly maintenance fees.
  • Maximum loan term length is 10 years.
  • The maximum interest rate is 3 percent plus other normal and customary charges.
  • The frequency and number of payments are flexible and are negotiated with the lender.
  • The county and local lender may set additional terms and requirements for eligibility of projects.

Comparison of Typical Interest Paid on 3% and 6% loans for 5 to 10 years.

Years Loan Amount Total Interest Paid at 3% Total Interest Paid at 6% Cost Savings
5 $10,000 $918 $1,870 $952
5 $25,000 $2,294 $4,675 $2,380
10 $50,000 $8,615 $17,934 $9,319
10 $100,000 $17,231 $35,868 $18,637

 

For more information contact Elizabeth Harbaugh at 507-635-6272.

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NOTICE!! GRANT FUNDING - Grant Funding is for low income households with failing septic systems. See Application for eligibility criteria, or for more information please contact Elizabeth (Crane) Harbaugh at 507-635-6302.