GILFILLAN ESTATE – Minnesota State Auditor Julie Blaha spoke about the Rural Finance Authority and the agricultural financing opportunities it offers Wednesday at Farmfest.
An RFA board member, Blaha said RFA offers low-interest loan programs to farmers for a variety of activities and partners with local lenders to provide affordable credit to eligible farmers.
“Loans through the Minnesota Department of Agriculture are for new farmers and can be a low-cost bridge with low interest rates.” Blaha said.
Loan participation programs include basic agricultural and vendor-assisted loans that help younger and beginning farmers purchase farmland.
Farm improvement loans finance farm improvements for any farming-related purpose, such as grain handling facilities, machine storage and manure systems.
Restructuring loans help farmers reorganize farm debt to improve cash flow.
Livestock extension loans create affordable financing for the modernization and upgrade of livestock production facilities.
To date, more than $270 million has been invested in 2,959 RFA loans.
Current interest rates ranged from 2-2.5% with no origination fees and $50 application fees.
The Aggie Bond program creates a federal tax break for banks and a federal and state tax break on interest income to an individual seller in exchange for offering below-market interest rates to eligible farmers who start buying real estate agricultural, agricultural improvements, cattle breeding. and machinery
Revolving accounts support other loans. The Sustainable Agriculture and Manure Digester Loan Programs are administered by the Finance and Budgeting and Agricultural Marketing and Development divisions of the MDA.
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