A loan program to assist livestock and dairy producers finance the construction of state-of-the-art facilities is offered through the Rural Finance Authority (RFA) in the Minnesota Department of Agriculture.

Livestock expansion means improvements to a livestock operation, including the purchase and construction or installation of improvements to land, buildings, and other permanent structures, including 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 raising livestock. The purchase of livestock is NOT an eligible purpose for this program.

The livestock producer 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 a 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 $525,000.

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 certain period of time. Call the RFA for a quote. There is a $50 non-refundable application fee on all loans. The lender may collect normal closing costs.

An applicant must meet the following requirements:

  1. Be a Minnesota resident, a Minnesota domestic family farm corporation or a family farm partnership.
  2. At least one of the applicants must be the principal operator of the farm and be actively engaged in a livestock operation.
  3. Have a total net worth not to exceed $2,150,000 in 2024 (indexed annually for inflation; please call the RFA for current limitation), including the assets and liabilities of their spouse and dependents.