WISCONSIN

Denise Martin
Wisconsin Housing and Economic Development Authority (WHEDA)
201 West Washington Avenue
Madison, WI 53703
(608) 264-6856
FAX (608) 267-1099
denise.martin@WHEDA.com
Organization Began: 1972

Credit Relief Outreach Program (CROP) Guarantee
1985
Denise Martin
$15,000,000
Wisconsin residents who are actively engaged in the farm operation. May be used by partnerships, associations and corporations if legally registered in Wisconsin.

For 2005, the maximum oan amount is $60,000, with a 90 percent guarantee on loan amounts under $50,000, and an 80 percent guarantee on loan amounts of $50,000 and greater. Loan proceeds can only be used to pay for services or consumable goods necessary to produce an agricultural commodity. The commodity must be planted and harvested for consumption within the term of the loan. Livestock is eligible if purchased, fed and sold within the term of the loan. Maximum interest rate is Prime + 1 percent, set on the date of the Note, maturity date is March 31 of the year following origination. Farmer’s debt to asset ratio must be 40 percent or greater.

Beginning Farmer Bond (BFB)
1994
Denise Martin
$17,500,000
Beginning farmers

Federal tax law defines eligibility requirements. Loans can be used to purchase agricultural land, improvements, or depreciable personal property. Used depreciable personal property portion of loan cannot exceed $62,500. Total loan limit is $250,000. Borrowers must have a net worth of less than $250,000. Interest rate is below conventional rates, terms of Note agreed on by beginning farmer and lender.

Farm Asset Reinvestment Management (FARM) Guarantee
1996
Denise Martin
$10,000,000
Wisconsin residents who are currently operating farm premises. May be used by partnerships, associations, and corporations legally registered in Wisconsin.

Provides loan guarantee based on amount of FARM loan, borrower’s net worth, or program maximum of $200,000. Guarantee is limited to $100,000 if FARM loan is combined with other government financing programs. Use of loan proceeds limited to acquisition of agricultural assets defined as machinery, equipment, buildings, land or livestock kept for more than one year; or improvements to buildings or land for agricultural purposes; or WHEDA application and closing fees. Based on a current financial statement, the amount of Farmer’s debts, including the FARM loan, may not exceed 85 percent of the Farmer’s assets, including the value of assets acquired with the proceeds of the loan.

Agribusiness Guarantee
1990
Denise Martin
$5,000,000
Businesses that create products using raw ag commodities.

Create a product new to the business or expand production of an existing product that will increase the use of a raw agricultural commodity; or enhance the efficiency of the business. Business must be located in a Wisconsin municipality having a population of under 50,000 and must demonstrate it has made a notable effort to purchase a substantial percentage of its raw agricultural commodities from Wisconsin suppliers. Up to 80 percent guarantee on loans not exceeding $750,000. Businesses involved in direct production of raw agricultural commodities are not eligible

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