Livestock Expansion Loan Program

A loan program to assist livestock and dairy producers finance the construction of state-of-the-art facilities, 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.

An applicant must meet the following requirements:

• Be a Minnesota resident, a Minnesota domestic family farm corporation, or a family farm partnership.

• At least one of the applicants must be the principal operator of the farm and be actively engaged in a livestock operation.

• Have a total net worth not to exceed $2,269,500 in 2026 (indexed annually for inflation), including the assets and liabilities of their spouse and dependents.

• The RFA may participate on a loan up to 45% of the loan principal, to a maximum of $625,000.

• 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 certain period of time — call the RFA for a quote. The RFA's published current rate for Livestock Expansion is 5.00% with no origination fee.

• There is a $50 non-refundable application fee on all loans. The lender may collect normal closing costs.

• The purchase of livestock is not an eligible use.

The livestock producer 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