SOUTH DAKOTA

Terri LaBrie Baker
South Dakota Department of Agriculture
523 East Capitol Avenue
Pierre, SD 57501-3182
(605) 773-5436
FAX (605) 773-3481
http://www.state.sd.us/doa/ag_dev/loan.htm
Terri.LaBrieBaker@state.sd.us

Value-Added Livestock Underwriting Program
1988
Terri LaBrie Baker
Farmers/ranchers

Allows farmers/ranchers to obtain livestock “purchase money” with up to 20 percent guaranty from the Department on loans up to a maximum of $200,000 for a term not greater than 26 months.

Livestock Loan Participation Program
1989
Terri LaBrie Baker
Farmers/ranchers

Allows farmers/ranchers to obtain livestock loans with the Department participating up to 50 percent in the loan with a local lender. The maximum loan is $200,000 with a maximum participation amount of $100,000. Maximum term of 5 years.

Beginning Farmer Bond Program
1996
Terri LaBrie Baker
Volume Cap: $10 million
Beginning farmers/ranchers

The program is a tax-exempt bond program available to individuals and partnerships that have never held substantial ownership or ownership interest in farm land. The program allows for the financing of agricultural land, improvements and depreciable agricultural property. The aggregate maximum for the program is $250,000. Loans can be made by local lenders, contract for deeds, or individual bond purchasers

Rural Development Loan Participation Program
1988
Terri LaBrie Baker
Value-added production, processing, and marketing projects.

This program provides a lower-cost participation loan for value-added production, processing and marketing projects. Eligible uses include land, buildings, improvements and equipment. Production agriculture land is not eligible. Participation amounts cannot exceed the lesser of 80 percent of the loan amount or $300,000.

Junior Livestock Loan Guaranty Program
1992
Terri LaBrie Baker
Youth ages 12-18 and members of FFA or 4-H

This program provides a 30 percent guarantee on livestock purchase money borrowed form a local lender. Provides an education experience for youth. Maximum loan amount is $10,000 and five-year term.

Cooperative Stock Guarantee Program
1998
Terri LaBrie Baker
Farmers/ranchers

Program allows farmers/ranchers to obtain loans for purchase of shares in eligible, producer-owned, value-added cooperative. Department provides up to 50 percent guarantee on loans up to $20,000 for a term not greater than 5 years.

Agribusiness Bond Program
1997
Terri LaBrie Baker
Volume Cap: $30 million
Agricultural processing and manufacturing businesses

The program is a tax-exempt bond program available for value-added agriculture businesses. Maximum for this program is $10 million per project. Must meet IRS definition of manufacturing and processing.

Program/Project: Conservation Tillage Loan
1990
Terri LaBrie Baker
Conservation districts

Loans available for 80 percent purchase of conservation tillage equipment and grass seeding and harvesting equipment. Available to conservation districts on low-cost rental basis. Maximum $30,000, 7.5 percent rate and 5 year term.

Program/Project: Livestock Nutrient Management Bond Program
2001
Terri LaBrie Baker
Volume Cap: $30 million
Livestock producers

Tax-exempt bond program for new and existing projects that involve livestock nutrient facilities. Maximum $10 million per project. Tax-exempt interest rates. Nutrient facilities include property or any portion thereof used for the collection, storage, treatment, utilization, processing or final disposal of livestock nutrients.

Program/Project: Value Added Agribusiness Relending Program
2001
Terri LaBrie Baker
Agricultural businesses involved in processing

A direct loan program which allows agricultural businesses in rural areas of South Dakota to obtain low-interest loans to acquire new businesses, expand existing businesses, create employment opportunities or to save existing jobs, and to add value to South Dakota agricultural commodities through further processing or marketing. Maximum loan term is 10 years. Interest rate is determined on the date of approval.

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