| Requirements | Beginning Farmer & Seller Assisted**** Loan Programs | Aggie Bond Beginning Farmer Program | Agricultural Improvement Program |
|---|---|---|---|
| Residency: | Minnesota only | Minnesota only | Minnesota only |
| Location of property: | Minnesota only | Minnesota only | Minnesota only |
| Maximum net worth: | $1,042,000 | $1,042,000, also can never have owned more than 30% of the county median size farm | $1,042,000 |
| Loan purposes: | Real estate | Purchase animals, machinery, real estate or to make an improvement. (No refinancing) | Any physical improvement to farm operation. (Limited refinancing) |
| Financing allowed: | First real estate mortgage filed by local lender. Additional $$ help by the seller.**** | Secured as lending entity requires. | First real estate mortgage. Mortgage does not need to cover the entire farm. |
| Equity required: | 10% minimum. Lender may require higher down payment. Seller may help.**** | Negotiated with lending entity. | Negotiated with Lender and RFA. |
| Interest rate: |
RFA - Call for current quote. Lender-negotiate. Seller-negotiate.**** |
Reduced interest rate for buyer and tax benefit for lender. |
RFA - Call for current quote. Lender-negotiate. |
| Loan amounts: | No limits - but RFA participation 45% of first mortgage to a max of $500,000. | $616,000 max. but only $62,500 max. for used depreciable assets; $250,000 max for new depreciable farm property. (The RFA does not participate.) | No limits - but RFA participation 45% of first mortgage to a max of $500,000. |
| Sales between related persons? | Yes | Yes, bank financing only. | N/A |
| Off-farm income okay? | Yes | Yes | Yes |
| Must show adequate management skills? | Yes | Yes | Yes |
| Must be or become a full-time farmer? | Yes | Yes | Yes |
| Must farm unit? | Yes | Yes | Yes |
| Must contact local SWCD office? | Yes | Yes |
Yes Permits required? |
| Must purchase insurance? | Yes | Recommended | Recommended |
| Must attend farm management classes? | Yes | Yes | N/A |
| RFA Fees: |
$50 application fee (non-refundable) |
$20 / 40 / 60 / 80 / 100 / 120 allocation fee 1.5% loan origination fee |
$50 application fee (non-refundable) |
Contact Us
Ryan Roles
Finance & Budget
651-201-6004
Ryan.Roles@state.mn.us
