Browse Ambrook’s collection of funding programs by Minnesota Rural Finance Authority

Complete the Aggie Bond Beginning Farmer Loan Program Application (PDF) and work with your financing entity: a local commercial lender, or a private individual or estate that is not a close relation. See the MDA's Application Instructions page and the Aggie Bond Summary and Instructions (PDF), and use the Aggie Bond First Time Farmer Eligibility form to confirm eligibility.

Consultation with a Farm Business Management Instructor may help determine whether the planned farming operation can be profitable and self-supporting. For a program summary and additional details, the MDA directs applicants to contact the RFA at 651-201-6556; the RFA loan programs general line is 651-201-6004 / RFA.Loans@state.mn.us.

Rural Finance Authority Office
Loan Programs

Rural Finance Authority - Aggie Bond program summary line

Loan Programs

The Aggie Bond Loan Program is a federal bonding program administered by the State of Minnesota through its Rural Finance Authority (RFA). The program offers affordable financing for a qualified beginning farmer by securing a reduced interest rate on the loan the applicant submits for approval under the program.


Qualified beginning farmers may use the program to purchase productive agricultural farmland; new or used depreciable agricultural property such&#x2004;as livestock used for breeding purposes or dairy production (feeder cattle, feeder pigs, and feeder lambs do not qualify); and farm machinery including trucks. Making an improvement to a farm is also an eligible purpose.


The loan may be financed by a local commercial lender, or through private financing from an individual or an estate (neither of which can be a close relation). The financing entity is required to give a reduced interest rate on the type of loan being made.



The Aggie Bond Loan Program is a federal bonding program administered by the State of Minnesota through its Rural Finance Authority (RFA). The program offers affordable financing for a qualified beginning farmer by securing a reduced interest rate on the loan the applicant submits for approval under the program.

Qualified beginning farmers may use the program to purchase productive agricultural farmland; new or used depreciable agricultural property such as livestock used for breeding purposes or dairy production (feeder cattle, feeder pigs, and feeder lambs do not qualify); and farm machinery including trucks. Making an improvement to a farm is also an eligible purpose.

The loan may be financed by a local commercial lender, or through private financing from an individual or an estate (neither of which can be a close relation). The financing entity is required to give a reduced interest rate on the type of loan being made.

A beginning farmer is a person who intends, over time, to become a full-time farmer. The definition excludes established farmers who already own farmland and are expanding their operations; land speculators and investors seeking tax advantages are also not eligible. Farmers who currently rent farmland and those with very limited ownership are eligible.

A beginning farmer must:

- Be an individual who is a resident of Minnesota
- Have a net worth of less than $1,069,000 in 2026 (indexed annually for inflation), including assets and liabilities of their spouse and dependents
- Never have owned more than 30% of the county median size farm where they reside
- Have a financial need for a loan and the ability to repay the loan
- Have sufficient education, training, or experience to succeed in the type of farming they intend to practice
- Be purchasing land, animals, or machinery that will be located in Minnesota
- Intend to be the principal operator of the type of operation involved in the application
- Agree to enroll in a farm business management program approved by the Minnesota Commissioner of Agriculture for at least the first three years of the loan, if an approved program is available within 45 miles of the borrower's residence
- Agree to consult with a local Board of Water and Soil Resources office or the county Natural Resources Conservation Service

Borrowers may wish to obtain credit life insurance for the amount of the debt incurred to purchase the security. Additional income may be earned off the farm by an eligible family member; the RFA recognizes that many farm families need non-farm income to supplement farm earnings, especially in the early years.

A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

- Application Instructions: https://www.mda.state.mn.us/aggie-bond-beginning-farmer-loan-application-instructions
- Aggie Bond Summary and Instructions (PDF): https://www.mda.state.mn.us/sites/default/files/docs/2022-12/AGGIEBONDSUMMARY12082022.pdf
- Aggie Bond First Time Farmer Eligibility (PDF): https://www.mda.state.mn.us/sites/default/files/2018-07/aggieeligibility.pdf
- MDA Ag Finance Section: https://www.mda.state.mn.us/financebudget/agfinance
- Approved Farm Business Management Programs: https://www.mda.state.mn.us/fbmprograms
- Loan Comparison Chart: https://www.mda.state.mn.us/business-dev-loans-grants/loan-comparison-chart-1

Historically Underserved

A borrower may borrow up to an aggregate of $616,000 under this program, and may have more than one loan under the program as long as they remain eligible under the current rules each time they apply. Within that aggregate:

- Used depreciable property is limited to a total of $62,500
- New depreciable farm property, such as buildings, machinery, and breeding livestock, is limited to a total of $250,000

While there is no set discount required by program rules, the RFA generally expects the interest rate offered to be a minimum of two to two and one-half percent below the current rate being charged for that type of loan.

All other terms are negotiated between the beginning farmer and the lending entity. Real estate loans may be made for up to forty years, though the average is generally around 20 years. Loans for depreciable property are usually not made for more than 10 years and are subject to the Internal Revenue Code. Payment frequency (monthly, annual, semi-annual, quarterly) is likewise negotiable. Zero down is acceptable to the program if a lender is willing to finance a loan that way, though it is not practical in most lending situations.

The RFA collects an allocation fee and a loan origination fee.

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.

Minnesota Department of Agriculture - Rural Finance Authority

Mary Gritzmacher

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&#x2004;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.



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.

- 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

HVAC

Lighting

Repairs

Infrastructure

Legal & Finance

- 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.

Complete the RFA Microloan Borrower Application (available in English, Spanish, French, Hmong, Kiswahili, and Somali) and submit it through an approved intermediary lender. Current approved lenders are:

- Compeer Financial (statewide) - Sai Thao, 952-597-4086, sai.thao@compeer.com
- Latino Economic Development Center / Centro para el Desarrollo Económico Latino (Twin Cities, Long Prairie area) - Andrés Salinas, 612-724-5332, andres@ledcmn.org
- United FCS (Chippewa, Kandiyohi, Lac qui Parle, Lincoln, Lyon, Meeker, Redwood, Renville, Swift, Yellow Medicine counties) - Lyn Voigt, Litchfield Office, 320-693-7953; Scott Anderson, Marshall Office, 507-532-5751

Any lending institution (non-profit or for-profit) in good standing with the State of Minnesota, with the appropriate business structure and suitable staffing to distribute and collect loan funds, may volunteer to become an Intermediary Lender with the RFA Microloan Program using the RFA Microloan Lender Application.

Program questions: Minnesota Rural Finance Authority, 625 Robert St North, St. Paul, MN 55155-2538, 651-201-6004, RFA.Loans@state.mn.us.

Sai Thao

Approved intermediary lender contact - Compeer Financial (statewide)

Andrés Salinas

Approved intermediary lender contact - Latino Economic Development Center (Twin Cities, Long Prairie area)

The MDA's Rural Finance Authority (RFA) established the Agricultural Microloan Program to provide working capital and credit for emerging and specialty farmers. The program's focus is to assist non-traditional farmers&#x2004;in the transition from their current situation to one where operators qualify for traditional avenues of agricultural credit.


Farmers can borrow up to $20,000 to be used for:


- Annual inputs like seed, feed, and fertilizer

- Land rent and other annual expenses

- Equipment and other farm assets with a common useful life of 10 years or less


Not eligible: land/real estate, cooperative stock, and refinancing of current debts.


Loans are made through intermediary lenders, who serve as lending agent and local support person for the farmer.



The MDA's Rural Finance Authority (RFA) established the Agricultural Microloan Program to provide working capital and credit for emerging and specialty farmers. The program's focus is to assist non-traditional farmers in the transition from their current situation to one where operators qualify for traditional avenues of agricultural credit.

Farmers can borrow up to $20,000 to be used for:

- Annual inputs like seed, feed, and fertilizer
- Land rent and other annual expenses
- Equipment and other farm assets with a common useful life of 10 years or less

Not eligible: land/real estate, cooperative stock, and refinancing of current debts.

Loans are made through intermediary lenders, who serve as lending agent and local support person for the farmer.

To be eligible for the Agricultural Microloan Program, applicants must:

- Be a Minnesota resident
- Be a member of a protected group as defined under Minn. Stat. § 43A.02, subd. 33 (racial minority, woman, person with disabilities) or a qualified non-citizen as defined under Minn. Stat. § 256B.06, subd. 4, par. (b) (refugee, immigrant, asylum)
- Raise specialty crops (fruits, vegetables, herbs, and cut flowers) or eligible livestock (open range poultry, sheep, goats)
- Show an ability to repay the loan

The program FAQ adds that applicants must be a current or potential farmer and must have a documented business plan, including a viable cashflow projection and marketing plan.

Fruits

Vegetables

Herbs

Cut Flowers

Poultry

Sheep

Goats

Abiu

Achachairu

Antidesma

Apples

Apricots

Bananas

Barbados Cherry

Blueberries

Breadfruit

Cacao

Caimito

Calabaza Melon

Canary Melon

Canary Seed

Caneberries

Canistel

Cantaloupes

Casaba Melon

Cherries

Chinese Bitter Melon

Chokeberry

Citron

Citron Melon

Coconuts

Cranberries

Crenshaw Melon

Custard Apple

Dates

Dragon Fruit

Durian

Elderberries

Figs

Genip

Goji

Gooseberries

Grapefruit

Grapes

Guava

Guavaberry

Honeyberries

Honeydew

Huckleberries

Israel Melons

Jack Fruit

Jujube

Juneberries

Kiwiberry

Kiwifruit

Korean Golden Melon

Kumquats

Langsat

Lemons

Limequats

Limes

Longan

Loquats

Lychee

Mangos

Mangosteen

Mayhaw Berries

Mesple

Mulberries

Nectarines

Oranges

Papaya

Passion Fruits

Pawpaw

Peaches

Pears

Pineapple

Plantain

Plumcots

Plums

Pomegranates

Prunes

Pummelo

Raisins

Rambutan

Sapodilla

Sapote

Schizandra Berries

Soursop

Sprite Melon

Star Fruit

Star Gooseberry

Strawberries

Sugar Apple

Tangelos

Tangerines

Tangors

Wampee

Watermelon

Wax Jamboo Fruit

Winter Melon

Watercress

Winter Cress

Yuca

Alfalfa Sprouts

Aloe Vera

Artichokes

Ground Cherry

Wine

Cilantro

Boston Lettuce

Green Leaf Lettuce

Iceberg Lettuce

Lolla Rossa Lettuce

Oak Leaf Lettuce

Red Leaf Lettuce

Romaine Lettuce

Dry Onions

Green Onions

Bell Peppers

Potato Seeds

Processing Potatoes

Russet Potatoes

Sweet Potatoes

Zucchini

Turnip Top

Broilers

Chicks

Fryers

Layers

Pullets

Roasters

Ducklings

Goslings

Poults

Toms

Ground Lamb

Lamb Chops

Lamb Heart

Lamb Leg

Lamb Liver

Lamb Shank

Lamb Shoulder

Lamb Stew Meat

Specialty Crops

Horticulture

Floriculture

Livestock

Specialty Livestock

Nursery Crops

- Frequently Asked Questions: https://www.mda.state.mn.us/pilot-agricultural-microloan-program-frequently-asked-questions
- RFA Microloan Lender Application (PDF): https://www.mda.state.mn.us/sites/default/files/2018-07/ag03235microloanx.pdf
- Borrower application translations: Spanish https://www.mda.state.mn.us/sites/default/files/docs/2023-07/AG03236%20Borrower%20Application%20Pilot%20Ag%20Microloan%20ProgramESFinal.pdf ; French https://www.mda.state.mn.us/sites/default/files/docs/2023-07/AG03236%20Borrower%20Application%20Pilot%20Ag%20Microloan%20ProgramFRFinal.pdf ; Hmong https://www.mda.state.mn.us/sites/default/files/docs/2023-07/AG03236%20Borrower%20Application%20Pilot%20Ag%20Microloan%20ProgramHMVFinal.pdf ; Kiswahili https://www.mda.state.mn.us/sites/default/files/docs/2023-07/AG03236%20Borrower%20Application%20Pilot%20Ag%20Microloan%20ProgramSWFinal.pdf ; Somali https://www.mda.state.mn.us/sites/default/files/docs/2023-07/AG03236%20Borrower%20Application%20Pilot%20Ag%20Microloan%20ProgramSOFinal.pdf

Native Americans

Socially Disadvantaged

- Maximum loan principal is $20,000. The program FAQ states applicants can access up to $20,000 per operation, or 70% of annual produce value, whichever is less.
- The interest rate is determined by the lender but cannot exceed 10%.
- Loan term of 1 to 6 years, negotiated between the lender, applicant, and the RFA.
- Loans may contain prepayment penalties under limited circumstances.
- Other common fees are negotiated with the intermediary lender.
- The borrower must satisfy the local lender's guidelines. The local lender controls the day-to-day operation of the loan.

Interest rates and other specific terms vary from lender to lender depending on the conditions of the loan.

Complete the Agroforestry Loan Application (PDF) and work with a local lender, who then applies to the RFA for participation. All lending institutions are eligible to participate but do so voluntarily, and each lender must enter into a Master Participation Agreement with the RFA. The application fee is $50. Questions go to the Rural Finance Authority Office at 651-201-6004 or RFA.Loans@state.mn.us.

The Agroforestry Loan Program provides low-interest financing to farmers during the growing period required to convert agricultural land to agroforestry.


This is a loan participation program available through the MDA's Rural Finance Authority (RFA). Farmers work through their local lender; after the farmer completes an application, the lender applies for RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file. The application fee is $50.



The Agroforestry Loan Program provides low-interest financing to farmers during the growing period required to convert agricultural land to agroforestry.

This is a loan participation program available through the MDA's Rural Finance Authority (RFA). Farmers work through their local lender; after the farmer completes an application, the lender applies for RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file. The application fee is $50.

The farmer candidate must:

- 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 Minnesota Statutes section 500.24, subdivision 2
- Be or plan to become a grower of short-rotation woody crops on agricultural land suitable for their profitable production
- Be a member of a producer-owned cooperative that will contract to market the short-rotation woody crop to be planted by the borrower
- Not have received more than $150,000 in assistance under this program over the producer's lifetime
- Agree to work with appropriate local, state, and federal agencies and the marketing cooperative to develop an acceptable establishment and maintenance plan
- Agree not to plant short-rotation woody crops within one-quarter of a mile of state or federally protected prairie
- Demonstrate an ability to repay the loan
- Meet any other requirements the authority may impose by administrative procedure or by rule

- MDA Ag Finance Section: https://www.mda.state.mn.us/financebudget/agfinance
- Participating Lenders lookup: http://www2.mda.state.mn.us/webapp/lenders/lenders.jsp

The authority may participate with eligible lenders in agroforestry loans to eligible farmers and agricultural landowners. The authority's participation is limited to 45% of the loan, or $75,000 of total cumulative principal per loan, whichever applies. Interest rates and repayment terms on the authority's participation interest may differ from those on the lender's retained portion. The loan may be disbursed over a period not to exceed 12 years.

Depending on the availability of funds, a borrower may receive loans for planted areas up to 160 acres for up to:

- The total amount necessary for establishment of the crop
- The total amount of maintenance costs, including weed control, during the first three years
- Seventy percent of the estimated value of one year's growth of the crop for years four through 12

Security for the loan must be the crop, a personal note executed by the borrower, and whatever other security is required by the eligible lender or the authority. Lifetime assistance under the program is capped at $150,000 per producer.

Work through your local lender to apply. Upon the farmer's completion of the Disaster Recovery Loan Participation Application, 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.

The Disaster Recovery Loan Program funds are available to farmers for expenses not covered by insurance, including replacement of&#x2004;flocks or livestock, building improvements, or to cover the loss of revenue. Eligible farmers work with their local lender to secure the loans from the RFA.


Eligibility for Disaster Recovery Loans is established through state or federal disaster declarations. For a current list of counties eligible for funding due to drought conditions and other severe weather events, see the USDA disaster designation information page. Applicants have one year from a disaster declaration date to apply for a loan.



The Disaster Recovery Loan Program funds are available to farmers for expenses not covered by insurance, including replacement of flocks or livestock, building improvements, or to cover the loss of revenue. Eligible farmers work with their local lender to secure the loans from the RFA.

Eligibility for Disaster Recovery Loans is established through state or federal disaster declarations. For a current list of counties eligible for funding due to drought conditions and other severe weather events, see the USDA disaster designation information page. Applicants have one year from a disaster declaration date to apply for a loan.

The farmer candidate must meet the following criteria:

- Be a Minnesota resident, or a domestic family farm corporation or family farm partnership as defined in section 500.24, subd. 2.
- Certify that the damage or loss was sustained within a county that was the subject of a state or federal disaster declaration, or due to the presence of a highly contagious animal disease, or due to an emergency determined by the RFA; or certify that the farm operation experienced a quantifiable loss of revenue due to human disease resulting in a declaration of a peacetime emergency in the state.
- Demonstrate an ability to repay the loan.
- Have received at least 25% of annual gross income from farming for the past year.

Applicants have one year from a disaster declaration date to apply for a loan.

Coronavirus

Fencing

Trade Relief

- This is a 55%/45% participation: the bank finances 55% of the loan and the RFA finances the remaining 45% at 0%.
- The RFA participation in a qualifying loan is limited to 45 percent of the principal amount, up to a maximum of $200,000. There is no maximum on the size of loan that a participating lender may make under the program.
- The interest rate on the RFA portion of the loan must not exceed 4.0 percent, and is currently set at 0.0 percent.
- Loan amortization will be scheduled on flexible terms not to exceed 10 years. Loan payments of interest only are permitted for the first two years.
- Down payment and collateral requirements are determined by the agricultural lender and the authority.
- 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.

List of Minnesota Rural Finance Authority Funding Opportunities