MINNESOTA

Jim Boerboom
Minnesota Rural Finance Authority
625 Robert Street North
St. Paul, MN 55155-2538
(651) 297-3557
FAX (651) 296-9388
jim.boerboom@state.mn.us
Organization Began: 1986

Organization Title: Minnesota Rural Finance Authority (RFA)
Basic Farm Loan Program
1987
Gary Blahosky
$65,255,000
Low-equity beginning farmers wanting to purchase real estate

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 $350,000 (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 $200,000.

Seller-Assisted Loan Program
1989
Gary Blahosky
$2,235,000
Low-equity farmers

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.

Agricultural Improvement Loan Program
1992
Gary Blahosky
$10,779,000
Low-equity farmers

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 $350,000 (indexed). RFA participation is 45 percent of the loan principal up to $200,000.

Restructure II Loan Program
1993
Gary Blahosky
$21,684,000
Low to mid equity farmers

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 $660,000 (indexed). The RFA will participate on 45 percent of the loan principal up to $200,000.

Livestock Expansion Loan Program
1994
Gary Blahosky
$8,497,000
Livestock farmers

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 $660,000 (indexed). The RFA may participate on a loan up to 45 percent of the loan principal to a maximum of $275,000.

Agricultural Development Bond Program
1991
Lori Schmidt
$5.0 million reserve each year
Low-equity farmers

Patterned after a program developed in Iowa, the “aggie bond” applicant must be a beginning farmer. Net worth cannot exceed $350,000 (indexed for inflation) and applicant cannot have owned any substantial amount of farmland.

Value-Added Ag Product Loan Program (Stock Loan Program)
1994
Gary Blahosky
$968,000
Low-equity farmers

Helps farmer 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% up to $40,000.

Choose another state ...