MINNESOTA

Ryan Roles, Senior Loan Officer
Minnesota Rural Finance Authority
625 N Robert St
St. Paul, MN 55155-2538
Telephone: (651) 201-6666 FAX: (651) 201-6109
E-mail: Ryan.Roles@state.mn.us
Website: www.mda.state.mn.us
Organization Began: 1986

Organization Title: Minnesota Rural Finance Authority (RFA)
Program/Project Title: Basic Farm Loan Program
Program Began: 1987
Contact Person: Gary Blahosky
Target Group: Low-equity and beginning farmers wanting to purchase real estate
Description: Borrowers must (1) have sufficient education, training or experience to succeed in the type of farming operation they intend to pursue; (2) have a total net worth not exceeding $409,000 (indexed); (3) agree to enroll in a farm business management program; and (4) agree to carry credit life insurance for the amount of the loan program. The RFA participation is limited to 45 percent of the loan principal up to $300,000.

Program/Project Title: Seller-Assisted Loan Program
Program Began: 1989
Contact Person: Gary Blahosky
Target Group: Low-equity and beginning farmers wanting to purchase real estate
Description: Similar to Beginning Farmer program with one exception -- it permits the sellers of a farm to fund a portion of the financing. The seller agrees to subordinate their financing to the lender/RFA. The lender and RFA provide the balance of the funds with a first mortgage.

Program/Project Title: Agricultural Improvement Loan Program
Program Began: 1992
Contact Person: Gary Blahosky
Target Group: Low-equity farmers
Description: Provides financing for farm improvements including grain handling facilities, machine storage, erosion control, wells and manure systems. Borrowers must not have a total net worth exceeding $409,000 (indexed). RFA participation is 45 percent of the loan principal up to $300,000.

Program/Project Title: Restructure II Loan Program
Program Began: 1993
Contact Person: Gary Blahosky
Target Group: Low to mid equity farmers
Description: Under this program, the RFA works with a local lender to help farmers reorganize their debt. This program is for farmers who remain in good standing with local lender, but are having trouble with cash flow due to adverse conditions beyond their control. Only debt of an agricultural nature is eligible. Borrower net worth cannot exceed $772,000. The RFA will participate on 45 percent of the loan principal up to $400,000.

Program/Project Title: Livestock Expansion Loan Program
Program Began: 1994
Contact Person: Gary Blahosky
Target Group: Livestock farmers
Description: This program creates affordable financing for new, state-of-the-art improvements to land, buildings, and other permanent structures used for livestock production. A borrower (1) must be actively engaged in a livestock operation, (2) have the ability to repay the loan, and (3) have a total net worth not exceeding $772,000 (indexed). The RFA may participate on a loan up to 45 percent of the loan principal to a maximum of $400,000.

Program/Project Title: Agricultural Development Bond Program (Aggie Bond)
Program Began: 1991
Contact Person: Lori Schmidt
Cost/Funding: $5.0 million reserve each year
Target Group: Low-equity farmers
Description: This program helps a young farmer receive an interest rate which is below market. Local lenders are able to offer the lower rate because the interest received is federally tax-exempt. Bonds can be used together with FSA's down payment loan program. Bonds are also available for use with qualified contract for deed sales which also makes the interest received both state and federally tax-exempt. Items that can be financed include agricultural land, agricultural improvements, depreciable agricultural property such as new and used equipment and breeding stock. Net worth cannot exceed $409,000 (indexed for inflation) and applicant cannot have owned any substantial amount of farmland.

Program/Project Title: Value-Added Ag Product Loan Program (Stock Loan Program)
Program Began: 1994
Contact Person: Gary Blahosky
Target Group: Low-equity farmers
Description: Helps farmers finance the purchase of stock in an existing value-added cooperative or LLC or in a proposed new cooperative or LLC processing facility in Minnesota. The RFA participation is 45 percent up to $40,000.

Program/Project Title: Disaster Recovery Loan Program
Program Began: 1998 (major revision 2007)
Contact Person: Gary Blahosky
Target Group: Farmers who experienced losses due to high winds, hail, tornado, flood or drought.
Description: Operation must be located within a county that was the subject of a state or federal disaster declaration. Borrower net worth cannot exceed $772,000 (indexed for inflation) and at least 50 percent of average gross income for the past three years had to come from farming. RFA participation is limited to 45 percent of the loan principal up to a maximum of $50,000 at an interest rate not to exceed four percent.

Program/Project Title: Methane Digester Loan Program
Program Began: 2002
Contact Person: Gary Blahosky
Target Group: Livestock farmers
Description: This program provides for either a direct loan from the RFA or a loan participation with an eligible lender to an eligible farmer for the purchase of necessary equipment and the construction of a system that will utilize manure to produce electricity. A direct loan or loan participation may not exceed $250,000. The financing provided by the RFA under this program must be at no interest. Maximum term is 10 years.

Program/Project Title: Livestock Equipment Pilot Loan Program
Program Began: 2005
Contact Person: Gary Blahosky
Target Group: Low-equity livestock farmers
Description: This program creates affordable financing for the purchase of livestock related equipment. The borrower must have a total net worth not exceeding $409,000 (indexed). The RFA may participate on a loan up to 45 percent of the loan principal to a maximum of $40,000. Financing on RFA’s portion is at 3% interest rate.

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