The AgBMP Loan Program is a water quality program that provides low-interest loans to farmers, rural landowners, and agriculture supply businesses. The purpose is 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.
Access to Loans
The AgBMP loan program is intended to implement projects that prevent or mitigate nonpoint source pollution. Access to loan funds by potential borrowers depends on the following factors:
- Whether Faribault County has applied for and received an allocation
- The amount available through the County's revolving accounts
- The priorities in the Local Water Plan
- Credit decisions by the local lender
Projects include feedlot improvements, manure storage basins, spreading equipment, terraces, grass waterways, conservation tillage equipment, and other agricultural best management practices (BMP's) that reduce or treat runoff from farm yards and fields. BMP's that receive cost share funding and projects needed to comply with water related rules or laws are eligible.
Projects which are not eligible include projects already completed, improving feedlots over 1,000 animal units, and constructing a new facility.
To apply for a loan
Potential borrowers should contact the SWCD for information regarding the AgBMP Program. The SWCD will refer eligible borrowers to an appropriate local lender. Local lenders will make credit decisions based on the borrowers ability to repay the loan.
- Maximum loan length is 10 years
- Maximum loan amount is $100,000
- Maximum interest rate is 3%
- Lender may charge customary fees
- Lender may require collateral
- Borrower must meet lending criteria