AgBMP Loan Program
The AgBMP Loan Program provides needed funding for local implementation of clean water practices at an extremely low cost, is unique in its structure, and is not duplicated by any other source of funding. The AgBMP loan program provides 3% loans through local lenders to farmers, rural landowners, and agriculture supply businesses. Funds are used for proven practices that prevent non-point source water pollution or solve existing water quality problems.
The program provides low interest financing for capital improvements that improve water quality through: Feedlot Improvements, Conservation Tillage Equipment, Septic System Replacements / Upgrades, Erosion Control Structures, Shoreline Stabilization, and Wetland Restoration. This program helps landowners purchase equipment that results in less erosion and/or runoff to rivers and streams. It helps landowners fix septic systems that are discharging to surface or groundwater. It provides funds to seal old wells and relocate new wells in areas that are less environmentally sensitive. It helps landowners fix and stabilize gullies, waterways, shorelines, and riverbanks. Any practice that solves a water quality problem is eligible!
There are many great attributes of the AgBMP Loan program:
- Loans support local implementation of conservation practices,
- Loans fund proven practices that improve water quality,
- Loans can be used with cost share programs and funds are available statewide,
- The cost to the state is very low, averaging less than $200 per loan in administrative costs,
- The AgBMP loan program is a revolving fund, money is used, repaid and used again and again to provide a perpetual funding source for continued financing of more projects to support conservation.
This program bases the eligibility of practices on recommendations of the University of Minnesota, MPCA, Minnesota Department of Agriculture, United States Department of Agriculture-Natural Resources Conservation Service (USDA NRCS), and the knowledge and skills of local government unit staff including the county Environmental Office, county feedlot officers, local water planners, local soil and water conservation districts, and consulting engineers.
The Minnesota Department of Agriculture provides loans to local lenders. The lender is the fiscal agent, they are responsible to disburse the loans, service the loans, collect repayments, and guarantee those repayments back to the program. A soil and water conservation district (SWCD) or County Environmental Office is the local administering agency (see image under Media).Since the MDA provides only loans and the loans are fully guaranteed and always repaid, all funds provided by the AgBMP Loan Program are considered leverage. Ultimately, there are no state funds in an AgBMP loan.
The AgBMP loan program does not offer grants; the assistance is in the form of a loan that must be repaid and the repayments are then reused again and again to provide a perpetual funding source for continued financing of more projects. This is referred to as a revolving loan account structure.
As of 12/5/2022 the AgBMP Loan Program used Clean Water Fund dollars to support 2,212 loans totaling an amount of $31,531,821. By practice type,203 loans were for agricultural waste management projects, 79 for conservation tillage equipment, 981 for structural erosion control, 869 for septic systems upgrades or relocation, and 80 for other practices.
M.L. 2023: (c) $4,799,000 the first year and $4,799,000 the second year are for the agriculture best management practices loan program. Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.
M.L. 2021: (c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.
- Number of counties where individuals are receiving loans
- Total number of loans issued with Clean Water funding
- Number of loans related to agricultural waste management
- Number of loans related to structural erosion control
- Number of loans related to conservation tillage
- Number of loans addressing septic systems
- Dollars leveraged through AgBMP loans
- Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions
The following are cumulative measures as of 6/30/2023:
- Individuals have received loans in 69 counties
- 2,253 loans have been issued with Clean Water Funds
- 212 loans related to agricultural waste management
- 981 loans related to structural erosion control
- 92 loans related to conservation tillage
- 881 loans addressing septic systems
- 87 other practices
M.L. 2021: (c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.
- Number of counties where individuals are receiving loans
- Total number of loans issued with Clean Water funding
- Number of loans related to agricultural waste management
- Number of loans related to structural erosion control
- Number of loans related to conservation tillage
- Number of loans addressing septic systems
- Dollars leveraged through AgBMP loans
- Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions
The following are cumulative measures as of 12/5/2022.
- Individuals have received loans in 59 counties
- 2,212 loans have been issued with Clean Water Funds
- 203 loans related to agricultural waste management
- 981 loans related to structural erosion control
- 79 loans related to conservation tillage
- 869 loans addressing septic systems
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.
- Number of counties where individuals are receiving loans
- Total number of loans issued with Clean Water funding
- Number of loans related to agricultural waste management
- Number of loans related to structural erosion control
- Number of loans related to conservation tillage
- Number of loans addressing septic systems
- Dollars leveraged through AgBMP loans
- On and On an individual basis, to what degree or what extent have the loans helped farmers implement conservation practices?
- Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year must be added to the corpus of the loan fund.
- Number of counties where individuals are receiving loans
- Total number of loans issued with Clean Water funding
- Number of loans related to agricultural waste management
- Number of loans related to structural erosion control
- Number of loans related to conservation tillage
- Number of loans addressing septic systems
- Dollars leveraged through AgBMP loans
- On and On an individual basis, to what degree or what extent have the loans helped farmers implement conservation practices?
- Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions
As of 12/31/2020 the AgBMP Loan Program used Clean Water Fund dollars to support 2,065 loans totaling an amount of $27,338,954.65. The program has leveraged $40,634,600. Under the revolving framework, the appropriations have been used 2 times.
By practice type:
- 187 loans were for agricultural waste management projects;
- 980 structural erosion control
- 55 conservation tillage equipment;
- 784 for septic systems upgrades or relocation; and
- 59 other.
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year shall be added to the corpus of the loan fund.
- Number of counties where individuals are receiving loans
- Total number of loans issued with Clean Water funding
- Number of loans related to agricultural waste management
- Number of loans related to conservation tillage
- Number of loans addressing septic systems
- Dollars leveraged through AgBMP loans
- On and On an individual basis, to what degree or what extent have the loans helped farmers implement conservation practices?
- Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions
As of 12/31/2018 the AgBMP Loan Program used Clean Water Fund dollars to support 1,313 loans totaling an amount of
$21,068,940.59. By practice type, 158 loans were for agricultural waste management projects, 34 for conservation
tillage equipment, and 718 for septic systems upgrades or relocation. At this time the program has leveraged 42% of
the total cost of projects. Overall, Clean Water funded AgBMP loans have leveraged $18,575,534.
The MDA knows the total cost of a project as reported on submitted receipts and invoices. By subtracting the amount of the AgBMP loan from the reported total cost we can estimate additional funding. The MDA defines “leveraged” funds as all NON-STATE funds that paid for the project. As of December 31, 2019, the total amount of leveraged funds was $18,575,534.
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year shall be added to the corpus of the loan fund.
Please see most recent year for updated information.
Please see most recent year for updated information.
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year shall be added to the corpus of the loan fund.
Please see most recent year for updated information.
Please see most recent year for updated information.
The MDA knows the total cost of a project as reported on submitted receipts and invoices. By subtracting the amount of the AgBMP loan from the reported total cost we can estimate additional funding. The MDA defines “leveraged” funds as all NON-STATE funds that paid for the project.
(c) $75,000 the first year and $75,000 the second year are for administering clean water funds managed through the agriculture best management practices loan program. Any unencumbered balance at the end of the second year shall be added to the corpus of the loan fund.
Please see most recent year for updated information.
Please see most recent year for updated information.
Every loan is issued from one of five sources of funds. This includes both federal and state sources. Currently, loans supported by the Clean Water Fund must be used to implement recommended practices identified in a Minnesota Pollution Control Agency (MPCA) approved Total Maximum Daily Load (TMDL) Implementation Plan. All other appropriations in the AgBMP account and their revolving revenue may be used anywhere in the state. The MDA knows the total cost of a project as reported on submitted receipts and invoices. By subtracting the amount of the AgBMP loan from the reported total cost we can estimate additional funding. The MDA defines “leveraged” funds as all NON-STATE funds that paid for the project. As of January 18, 2017 the total dollars leveraged was $8,370,202.00.
M.L. 2013: (c) $200,000 the first year and $200,000 the second year are for the agriculture best management practices loan program. At least $170,000 each year is for transfer to an agricultural and environmental revolving account created under Minnesota Statutes, section 17.117, subdivision 5a, and is available for pass-through to local government and lenders for low-interest loans under Minnesota Statutes, section 17.117. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Number of loans issued using monies from the Clean Water Fund (667 loans)Number of counties where individuals are receiving loans (47 counties)Number of loans issued per category: septic systems (542), conservation tillage (28), ag waste management (96)Number of loans addressing subsurface sewage treatment- Phosphorus load reduction (lbs), TSS load reduction (lbs)Number of loans related to conservation tillage- Number of acres affected, sediment loss reductions (tons)Number of loans related to agricultural waste management- Number of animal units managed, total phosphorus managed (tons), total nitrogen managed (tons) Minnesota state agencies are working together to establish and report outcome-based performance measures that monitor progress and impact of the Clean Water Fund activities. This inter-agency group completed a Clean Water Performance Reports in 2012, 2014 and 2016. At the heart of this report is a suite of quantifiable performance measures.The MDA's AgBMP Loan Program provides data for performance measure EDWOM9: Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions, FM4: Total dollars awarded in grants and contracts to non-state agency partners and FM5: Total dollars leveraged by Clean Water Fund implementation activities.
As of December 31, 2015 the AgBMP Loan Program used Clean Water Fund dollars to support 667 loans totaling an amount of $12,871,313. Ninety six (96) loans were for agricultural waste management projects, 542 for septic systems upgrades or relocation and 28 for conservation tillage equipment. At this time the program has leveraged 39% of the total cost of projects. Overall, Clean Water funded AgBMP loans have leveraged $8,134,370. The amount reported in FY 15 ($1,636,049) represents dollars leveraged in FY14 and FY15.Estimates of pollutant load reductions are available upon request.
Every loan is issued from one of five sources of funds. This includes both federal and state sources. Currently, loans supported by the Clean Water Fund must be used to implement recommended practices identified in a Minnesota Pollution Control Agency (MPCA) approved Total Maximum Daily Load (TMDL) Implementation Plan. All other appropriations in the AgBMP account and their revolving revenue may be used anywhere in the state.
M.L. 2013: (c) $200,000 the first year and $200,000 the second year are for the agriculture best management practices loan program. At least $170,000 each year is for transfer to an agricultural and environmental revolving account created under Minnesota Statutes, section 17.117, subdivision 5a, and is available for pass-through to local government and lenders for low-interest loans under Minnesota Statutes, section 17.117. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Number of loans issued using monies from the Clean Water FundNumber of counties where individuals are receiving loansNumber of loans issued per category (septic systems, conservation tillage, ag waste management)/ percent issued per categoryNumber of loans addressing subsurface sewage treatment- Phosphorus load reduction (lbs), TSS load reduction (lbs)Number of loans related to conservation tillage- Number of acres affected, sediment loss reductions (tons)Number of loans related to agricultural waste management- Number of animal units managed, total phosphorus managed (tons), total nitrogen managed (tons) Minnesota state agencies are working together to establish and report outcome-based performance measures that monitor progress and impact of the Clean Water Fund activities. This inter-agency group completed a Clean Water Performance Reports in 2012 and 2014. At the heart of this report is a suite of quantifiable performance measures.The MDA's AgBMP Loan Program provided data for performance measure EDWOM9: Number of BMPs implemented with Clean Water funding and estimated pollutant load reductions, FM4: Total dollars awarded in grants and contracts to non-state agency partners and FM5: Total dollars leveraged by Clean Water Fund implementation activities.
As of September 22, 2014 the AgBMP Loan Program used Clean Water Fund dollars to support 456 loans totaling an amount of $9,500,000. Eighty four (84) loans were for agricultural waste management projects, 344 for septic systems upgrades or relocation and 28 for conservation tillage equipment. At this time the program has leveraged 45% of the total cost of projects. Overall, Clean Water funded Ag BMP loans have leveraged $7,500,000.Estimates of pollutant load reductions are avialable upon request.
M.L. 2011:(c) $4,500,000 the first year and $4,500,000 the second year are for the agriculture best management practices loan program. At least $3,500,000 the first year and at least $3,900,000 the second year are for transfer to the clean water agricultural best management practices loan account and are available for pass-through to local governments and lenders for low-interest loans under Minnesota Statutes, section 17.117. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Please refer to fiscal year 2016 for the most recent information
Please refer to fiscal year 2016 for the most recent information
M.L. 2011:(c) $4,500,000 the first year and $4,500,000 the second year are for the agriculture best management practices loan program. At least $3,500,000 the first year and at least $3,900,000 the second year are for transfer to the clean water agricultural best management practices loan account and are available for pass-through to local governments and lenders for low-interest loans under Minnesota Statutes, section 17.117. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Please refer to fiscal year 2016 for the most recent information
Please refer to fiscal year 2016 for the most recent information
The MDA knows the total cost of a project as reported on submitted receipts and invoices. By subtracting the amount of the AgBMP loan from the reported total cost we can estimate additional funding. MDA defines “leverage” funds as all NON-STATE funds that paid for the project.As of May 1, 2013, the total amount of leveraged funds was $6,354,833.
M.L. 2009: (e) $2,000,000 the first year and $2,500,000 the second year are for the agricultural best management practices loan program. At least $1,800,000 the first year and at least $2,200,000 the second year are for transfer to a clean water agricultural best management practices loan account and are available for pass-through to local governments and lenders for low-interest loans. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Please refer to fiscal year 2016 for the most recent information
Please refer to fiscal year 2016 for the most recent information
M.L. 2009: (e) $2,000,000 the first year and $2,500,000 the second year are for the agricultural best management practices loan program. At least $1,800,000 the first year and at least $2,200,000 the second year are for transfer to a clean water agricultural best management practices loan account and are available for pass-through to local governments and lenders for low-interest loans. Any unencumbered balance that is not used for pass-through to local governments does not cancel at the end of the first year and is available for the second year.
Please refer to fiscal year 2016 for the most recent information
Please refer to fiscal year 2016 for the most recent information