Sustainable Agriculture Loan Program (Minnesota)

From Open Energy Information

Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place Minnesota


Name Sustainable Agriculture Loan Program
Incentive Type State Loan Program
Applicable Sector Agricultural, Farms Only
Eligible Technologies Wind, Biomass, Yes; specific technologies not identified
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Varies






Funding Source Sustainable Agriculture Revolving Loan Fund



Maximum Incentive 40,000 per farm family (160,000 for joint projects)



Program Budget $1,000,000



Terms Fixed interest rate (currently 3%) for up to 7 years

2:1 collateral to loan ratio required

Program Administrator Minnesota Department of Agriculture
Website http://www.mda.state.mn.us/en/grants/loans/esaploan.aspx


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


Summary

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.

Incentive Contact

Contact Name Mary Hanks
Department Minnesota Department of Agriculture
Address 625 Robert Street North
Place St. Paul, Minnesota
Zip/Postal Code 55155-2538
Phone (651) 201-6277


Email Mary.Hanks@state.mn.us
Website http://www.mda.state.mn.us/



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

Authority 1: Minn. Stat. § 17.115
Date Enacted 1988


















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

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content