Sustainable Agriculture Loan Program (Minnesota)
Last modified on December 17, 2014.
Financial Incentive Program
|Name||Sustainable Agriculture Loan Program|
|Incentive Type||State Loan Program|
|Applicable Sector||Agricultural, Farms Only|
|Eligible Technologies||Wind, Biomass, Yes; specific technologies not identified|
|Energy Category||Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs|
|Funding Source||Sustainable Agriculture Revolving Loan Fund|
|Maximum Incentive||40,000 per farm family (160,000 for joint projects)|
|Terms|| Fixed interest rate (currently 3%) for up to 7 years|
2:1 collateral to loan ratio required
|Program Administrator||Minnesota Department of Agriculture|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Mary Hanks|
|Department||Minnesota Department of Agriculture|
|Address||625 Robert Street North|
|Place||St. Paul, Minnesota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Minn. Stat. § 17.115|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.