$40,000 per farm family ($160,000 for joint projects)
Sustainable Agriculture Revolving Loan Fund
The Minnesota Sustainable Agriculture Loan program will provide loans to Minnesota residents actively engaged in farming for capital expenditures which enhance the environmental and economic viability of a farm. Loan proceeds may be used for a variety of purposes including projects related to on-farm energy production, energy use reductions or efficiency improvements, and solar powered equipment. Projects must result in both environmental improvement and improved profitability. Past loans have supported wind turbines, solar grain dryers and water pumps, small on-farm fuel production, and biomass burning furnaces, but most have been directed towards soil conservation.
Loans are available in amounts of up to $40,000 per farm family, with up to $160,000 ($40,000 per farmer) available for joint projects. The program currently offers a fixed interest rate of 3% over a term based on the expected life of the loan collateral, not to exceed 7 years. A 2:1 ratio of collateral to loan amount is required. The actual interest rate could change in the future, but is limited by statute to 6% or less. Repayment of the loan takes place on a semi-annual schedule.
Loan proceeds may not be used to cover operating expenses or to refinance existing debt obligations. The program accepts and reviews applications throughout the year. Please visit the program website or contact the Minnesota Department of Agriculture for additional information.