The AgBMP Loan Program, which was created by the 1994 State Legislature, brings low interest loans to farmers, rural landowners, and Agri-Businesses in Carver County to implement water quality improvement projects.  The program is a result of the 1987 Federal Clean Water Act.

More about the AgBMP Program

• Provides low interest financing to farmers, rural landowners, and agriculture supply businesses to encourage agricultural best management practices that prevent or reduce runoff from feedlots and farm fields, and other pollution problems identified by the Carver County water plan.
• Provides loans for projects that reduce existing water quality problems caused by agricultural activities or failing septic systems.
• Helps landowners comply with water related laws and rules.
• Can be used in conjunction with state and federal cost-share, or other sources of funding.

Who may apply for loans?

• Farmers
• Rural Landowners
• Agriculture supply businesses.

What are the Categories and Eligible Activities?

• Ag Waste Management
      Feedlot improvements
      Upgrading manure storage basins
      Improved manure handling, spreading, and incorporation equipment
• Structural Erosion Control
      Critical area stabilization
      Diversion
      Grade stabilization structures
      Stream bank and/or Lakeshore stabilizations
      Terraces
      Water and sediment basins
      Other practices that would follow state cost-share guidelines
• Conservation Tillage Equipment
      Chisel plows
      No-till attachment equipment for planters
      No-till drills
      High residue conservation row cultivators
• Septic Systems
      Mound Septic Systems
      Septic Repair
      Cluster Systems
      Central Sewer Connections
• For more example practices, visit the Minnesota Department of Agriculture website.

What are Ineligible Activities?

• Most new construction projects.
• Financing for projects that are already completed.
• Improvements for feedlots with more than 1,000 animal units.

Where and how to apply:

• Call the Carver SWCD for the loan application procedures (952-466-5230)
• Email the Carver SWCD for the loan application procedures.
• Stop at the Carver SWCD office for the loan application procedures (11360 Hwy. 212, Suite 6, Cologne)

Terms of loans:

• The maximum term for any category of loan is 10 years.
• The maximum loan amount is $100,000 for any one individual/landowner.
• The maximum interest rate is 3%, plus the normal and customary charges charged by Ag Star Financial Services.

Local Decision Makers

• Practice Approval - The Carver SWCD assists farmers, agriculture supply businesses, and rural landowners, to identify problems and find solutions to water quality issues related to the agricultural industry or failing septic systems.
• Financial Approval - Compeer Financial of Glencoe is responsible for assessing the economics of the proposed project and determines if a loan is financially feasible for the individual. Compeer Financial makes the lending decisions, administers the loans, and collects payments from borrowers. Because the money is a loan and must be repaid, only those projects that are financially feasible and provide environmental benefits will be funded.

Comparison of Typical Interest paid on 3% and 9% loans*

Term of loan (in years)	Loan Amount	Total Interest paid at 3%	Total Interest paid at 9%	Cost Savings
5	$5,000	$391	$1,227	$968
5	$10,000	$781	$2,455	$1,674
10	$30,000	$4,762	$15,603	$10,841
10	$50,000	$7,936	$26,005	$18,069
10	$100,000	$15,873	$52,011	$36,138

            * Interest is figured at 12 payments per year, with no additional principle

For more information about the AgBMP program, visit the Minnesota Department of Agriculture AgBMP Loan Program.

 

Primary Contact: Felicia Brockoff, Administrative & Finance Specialist
11360 Highway 212, Suite 6 | Cologne, MN 55322 | Phone: (952) 466-5230