Livestock Equipment Loan Program

The Livestock Equipment Loan Program is designed to help finance the purchase of livestock-related equipment. Loans may be used for the acquisition of equipment for animal housing, confinement, animal feeding, milk production, and waste management. This is a loan participation program available through the Rural Finance Authority (RFA).

Eligible expenditures include, if related to animal husbandry: fences; watering facilities; feed storage and handling equipment; milking parlors; milking equipment; scales; milk storage and cooling facilities; manure pumping and storage facilities; capital investment in pasture; hoop barns; portable structures; hay and forage equipment; and related structural work for the installation of equipment. Refinancing of existing debt is not an eligible purpose.

The farmer candidate must meet the following criteria:

• Be a resident of Minnesota, or a general partnership, family farm corporation, authorized farm corporation, family farm partnership, or authorized farm partnership as defined in section 500.24, subdivision 2.

• Be the principal owner of the livestock for which the equipment will be used.

• Demonstrate an ability to repay the loan.

• Have a total net worth of less than $607,616 in 2026 (indexed annually for inflation), including the assets and liabilities of their spouse and dependents.

• Hold an appropriate feedlot registration, or be using the loan under this program to meet registration requirements.

• The RFA will participate in a livestock equipment loan equal to 90 percent of the purchased equipment value with a participating lender to a farmer who meets the eligibility requirements. Participation is limited to 45% of the principal amount of the loan or $100,000, whichever is less.

• The loan will be for a maximum of ten years.

• The interest rates and repayment terms of the authority's participation interest may differ from those of the lender's retained portion, but the authority's interest rate must not exceed 2%. The authority may review the interest annually and make adjustments as necessary. The RFA's published current rate for Livestock Equipment is 2.00% with no origination fee and a $50 application fee.

• Refinancing of existing debt is not an eligible purpose.

• The originating lender retains the balance of each loan; the borrower must satisfy the local lender's guidelines, and the local lender controls the day-to-day operation of the loan. Participating lenders may charge a fixed or adjustable interest rate consistent with their normal lending practices and their agreement with the RFA.

Farmers work through their local lender. Upon completion of the Application for Livestock Equipment Loan Participation, the lender applies for RFA participation; the RFA must have a completed Master Participation Agreement with the lender on file. All lending institutions are eligible to participate but do so voluntarily, and each lender must enter into an agreement with the RFA. 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