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 include wind energy conversion facilities with an output capacity of one megawatt or less. Loan proceeds may be used to refinance a limited amount of existing debt.

• 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 exceeding $1,069,000 in 2026 (indexed annually for inflation).

• Collateral must include a first mortgage on farm real estate, but this does not have to include the farmstead.

• The RFA may participate on a loan up to 45% of the loan principal, to a maximum of $500,000.

• 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 is an affordable fixed interest rate for a fixed period of time — call the RFA for a quote. The RFA's published current rate for Agricultural Improvement is 4.75% with no origination fee.

• There is a $50.00 non-refundable application fee on all loans. The lender may collect normal closing costs.

• Loan proceeds may be used to refinance a limited amount of existing debt.

The farmer works through their local lender. If the lender agrees to make a mortgage loan to the applicant, the lender and applicant jointly complete the Loan Participation Program Application (Ag Improvement or Livestock Expansion Programs) and the lender applies to the RFA for a participation. The RFA must have a completed Master Participation Agreement with the lender on file. Participating lenders can be searched by county on the MDA's List of Participating Lenders. Questions: RFA loan programs, 651-201-6004, RFA.Loans@state.mn.us.

• Rural Finance Authority (RFA) program hub

• List of RFA Loans

• List of Participating Lenders

• RFA Loan Brochure (PDF)

• Loan Comparison Chart

• Approved Farm Business Management Programs