Restructure II Loan Program

The Restructure II loan program is designed to help farmers who remain in good credit standing with their local agricultural lender but are having trouble with cash flow due to adverse events. Only debt of an agricultural nature is eligible for refinancing.

The RFA purchases a participation interest in a qualifying restructuring loan made by the farmer's local agricultural lender, which retains the balance of the loan.

An applicant must meet the following requirements:

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

• Be the principal operator of the farm.

• Not be a current or previous participant in an RFA farm debt reorganization program.

• Have a total net worth that does not exceed $2,269,500 in 2026 (indexed annually for inflation).

• Have received 50 percent of their gross income from farming over the past three years.

• Have expenses that do not exceed 95 percent of income.

• Meet with a local Soil and Water Conservation District (SWCD) official.

Only debt of an agricultural nature is eligible for refinancing. Participation is restricted to loans that do not exceed 80 percent of the appraised value of the real estate comprising the collateral.

• The RFA will participate on 45 percent of a qualifying loan, up to a maximum of $625,000. The agricultural lender retains the balance of the loan.

• Participation is restricted to loans that do not exceed 80 percent of the appraised value of the real estate comprising the collateral.

• The participation term may be up to a maximum of 10 years. Terms of the loan are determined by the type of debt being restructured. The loan may have a balloon.

• Collateral for the loan must include a first mortgage on farm real estate.

• The interest rate on the RFA portion of the loan is fixed — call the RFA for the current rate. The RFA's published current rate for Restructure II is 5.00% with no origination fee. Participating lenders are allowed to charge either a fixed or adjustable rate.

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

The farmer works through their local lender. If the lender agrees to make a mortgage loan to the applicant, the lender and the applicant jointly complete the RFA Application for Loan Participation (Basic Farmer / Seller Assisted / Restructure II) and the lender submits it to 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