Methane Digester Loan Program (Minnesota)

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Last modified on December 17, 2014.

Financial Incentive Program

Place Minnesota

Name Methane Digester Loan Program
Incentive Type State Loan Program
Applicable Sector Agricultural
Eligible Technologies Biomass, Anaerobic Digestion
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount RFA participation limited to 45% of loan principal

Funding Source Minnesota Rural Finance Authority (RFA)

Maximum Incentive RFA can provide up to 250,000 of loan principal

Terms 10 year maximum loan term, RFA portion at zero-interest
Program Administrator Minnesota Department of Agriculture
Date added to DSIRE 2007-09-19
Last DSIRE Review 2014-10-08

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Established in 1998, the Minnesota Dept. of Agriculture Methane Digester Loan Program helps livestock producers install on-farm anaerobic digesters used for the production of electricity by providing zero-interest loans to eligible borrowers. The loan program is part of the Rural Finance Authority (RFA) revolving loan fund, through which farmers can receive financial aid for many different farming related activities and improvements. The general eligibility requirements for loans through the RFA are contained in Minn. Stat. § 41B.03, which permits loans only to Minnesota residents, domestic family-farm corporations, and family-farm partnerships. The methane digester loan program is specifically authorized by Minn. Stat. § 41B.049.

In order to be eligible for a Methane Digester Loan, a borrower must:

  • locate the projects and utilize the equipment and practices on land located 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
  • not have previously received a loan under this program

Within the Methane Digester Loan Program, the RFA may make a direct loan to the borrower or act as a participant in the loan with an eligible lender (more than 400 such approved lenders exist throughout the state). State participation is limited to 45% of the loan principal in the case of participation loans and may not exceed $250,000 for either participation or direct loans. The loan term is limited to a maximum of 10 years and repayment terms for the RFA's participation interest may differ from those of the outside lender. Loans can be used as a match for federal loans and grants, but may not be used to refinance a debt existing prior to the application.

Incentive Contact

Contact Name Ryan Roles
Department Minnesota Department of Agriculture
Division Rural Finance Authority
Address 625 Robert Street North
Address 2 St. Paul MN 55155-2538

Phone ((65) 1) --201



Authorities (Please contact the if there are any file problems.)

Authority 1: Minn. Stat. § 41B.049

Date Enacted 1998

Authority 2: Minn. Stat. § 41B.03

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"