Agricultural Improvement Loan Program

About this funding opportunity

Agricultural Improvement Loan Program

A loan participation program to assist eligible farmers to finance capital improvements to their farming operation. The program may help to improve production, efficiency, and increase farm income.

Agricultural improvements mean improvements to a farm, including the purchase and construction or installation of improvements to land, buildings and other permanent structures. This includes equipment incorporated in or permanently affixed to the land, buildings, or structures which are useful for and intended to be used for the purpose of farming. For this program, agricultural improvements also includes wind energy conversion facilities with an output capacity of one megawatt or less.

The farmer will work through their local lender. If the lender agrees to make a mortgage loan to the applicant, the lender and applicant will jointly complete an application for an RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file. The RFA may participate on a loan up to 45% of the loan principal to a maximum of $500,000. Loan proceeds may be used to refinance a limited amount of existing debt.

The participation term may be up to a maximum of 10 years. The loan may have a balloon. Collateral for the loan must include a first mortgage on farm real estate, but this does not have to include the farmstead.

The incentive to use the RFA program will be an affordable fixed interest rate for a fixed period of time. Call the RFA for a quote. There is a $50.00 non-refundable application fee on all loans. The lender may collect normal closing costs.

The borrower must be a Minnesota resident, a Minnesota domestic family farm corporation or a family farm partnership. The borrower or one of the borrowers must be the principal operator of the farm. The borrower may not have a total net worth, which exceeds $1,069,000 in 2026 (indexed annually for inflation).

Learn More

Ag Finance Section

Loan Comparison Chart - 1

Approved Farm Business Management Programs

Participating Lenders")

Forms + Resources

Loan Participation Program Submission Checklist (PDF)410.81 KB

Loan Participation Program Application - Ag Improvement or Livestock Expansion Programs (PDF)210.46 KB

Standard Loan Agreement and Note (PDF)406.69 KB

Contact Us Rural Finance Authority Office

Loan Programs

651-201-6004

(link sends email) RFA.Loans@state.mn.us

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Topic areas: Agriculture and Food, Energy and Environment.

Funding amount

This other provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Agricultural Improvement Loan Program is administered by Minnesota Department of Agriculture (MDA), listed via Minnesota Department of Agriculture.