AgBMP Loan Program

Project Details by Fiscal Year
2019 Fiscal Year Funding Amount
$75,000
2018 Fiscal Year Funding Amount
$75,000
2017 Fiscal Year Funding Amount
$75,000
2016 Fiscal Year Funding Amount
$75,000
2015 Fiscal Year Funding Amount
$200,000
2014 Fiscal Year Funding Amount
$200,000
2013 Fiscal Year Funding Amount
$4,500,000
2012 Fiscal Year Funding Amount
$4,500,000
2011 Fiscal Year Funding Amount
$2,500,000
2010 Fiscal Year Funding Amount
$2,000,000
Fund Source
Clean Water Fund
Recipient
Farmers, Rural Landowners, and Agricultural Supply Businesses
Recipient Type
Individual
Status
In Progress
Start Date
July 2009
End Date
June 2019
Activity Type
Fund Administration
Restoration/Enhancement
Counties Affected
Anoka
Becker
Blue Earth
Brown
Carver
Cook
Cottonwood
Dakota
Dodge
Douglas
Faribault
Fillmore
Freeborn
Goodhue
Grant
Houston
Hubbard
Jackson
Kandiyohi
Lac qui Parle
Le Sueur
Lincoln
Lyon
Martin
Morrison
Mower
Murray
Nicollet
Olmsted
Pipestone
Pope
Redwood
Renville
Rice
Rock
Scott
Sherburne
Sibley
St. Louis
Stearns
Steele
Stevens
Todd
Traverse
Wabasha
Waseca
Washington
Watonwan
Winona
Yellow Medicine
Legal Citation / Subdivision
M.L. 2017, Chapter 91, Article 2, Section 3
Appropriation Language

(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.

2019 Fiscal Year Funding Amount
$75,000
Other Funds Leveraged
$18,575,534
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)
  • 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 systemsn
  • 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
Measurable Outcome(s)

As of 12/31/2018 the AgBMP Loan Program used Clean Water Fund dollars to support 1313 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.

Legal Citation / Subdivision
M.L. 2017, Chapter 91, Article 2, Section 3
Appropriation Language

(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.

2018 Fiscal Year Funding Amount
$75,000
Administration costs
$1,350
Number of full time equivalents funded
0.5
Legal Citation / Subdivision
M.L. 2015, First Special Session, Chapter 2, Section 3
Appropriation Language

(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.

2017 Fiscal Year Funding Amount
$75,000
Administration costs
$1,350
Number of full time equivalents funded
0.5
Legal Citation / Subdivision
M.L. 2015, 1st Special Session, Chapter 2, Article 2, Sec. 3
Appropriation Language

(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.

2016 Fiscal Year Funding Amount
$75,000
Administration costs
$1,350
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)

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, and ag waste managementNumber 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.

Measurable Outcome(s)

To date, $14,050,000 from the Clean Water Fund (CWF) has been made available to local units of government ($76,824,195 from all sources) to improve the program's capacity to help solve pollution problems. As of 1/18/2017, the AgBMP Loan Program used Clean Water Fund dollars to support 765 loans totaling $15,236,401. By practice type, 116 loans were for agricultural waste management projects, 28 for conservation tillage equipment, and 609 for septic systems upgrades or relocation. At this time the program has leveraged 35% of the total cost of projects. Overall, Clean Water funded AgBMP loans have leveraged $8,370,202.Estimate pollutant load reductions are available upon request.

Source of Additional Funds

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 “leverage” funds as all NON-STATE funds that paid for the project.

Legal Citation / Subdivision
M.L.2013, Chapter 137, Article 2, Section 3
Appropriation Language

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.

2015 Fiscal Year Funding Amount
$200,000
Other Funds Leveraged
$1,636,049
Administration costs
$1,350
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)

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.

Measurable Outcome(s)

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. 

Source of Additional Funds

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.

Legal Citation / Subdivision
M.L.2013, Chapter 137, Article 2, Section 3
Appropriation Language

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.

2014 Fiscal Year Funding Amount
$200,000
Administration costs
$1,350
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)

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. 

Measurable Outcome(s)

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.

Legal Citation / Subdivision
M.L. 2011, Chapter 6,Article 2, Sec.3
Appropriation Language

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.

2013 Fiscal Year Funding Amount
$4,500,000
Other Funds Leveraged
$3,261,890
Administration costs
$1,350
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Legal Citation / Subdivision
M.L. 2011, Chapter 6,Article 2, Sec.3
Appropriation Language

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. 

2012 Fiscal Year Funding Amount
$4,500,000
Other Funds Leveraged
$2,522,477
Administration costs
$1,350
Number of full time equivalents funded
0.5
Proposed Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Source of Additional Funds

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.

Legal Citation / Subdivision
M.L. 2009, Chapter 172, Article 2, Sec. 2
Appropriation Language

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.

2011 Fiscal Year Funding Amount
$2,500,000
Administration costs
$2,700
Number of full time equivalents funded
1
Proposed Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Legal Citation / Subdivision
M.L. 2009, Chapter 172, Article 2, Sec. 2
Appropriation Language

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.

2010 Fiscal Year Funding Amount
$2,000,000
Administration costs
$2,025
Number of full time equivalents funded
0.75
Proposed Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Measurable Outcome(s)

Please refer to fiscal year 2016 for the most recent information

Project Overview

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 ImprovementsConservation Tillage EquipmentSeptic System Replacements / UpgradesErosion Control StructuresShoreline StabilizationWetland RestorationThis 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 practicesLoans fund proven practices that improve water qualityLoans can be used with cost share programs and funds are available statewideThe cost to the state is very low, averaging less than $200 per loan in administrative costsThe 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 conservationThis 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.

About the Issue

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.

Project Details

As of 12/31/2018 the AgBMP Loan Program used Clean Water Fund dollars to support 1313 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.

Project Manager
First Name
Dwight
Last Name
Wilcox
Organization Name
Minnesota Department of Agriculture
Street Address
625 Robert Street North
City
St. Paul
State
Minnesota
Zip Code
55155
Phone
(651) 201-6608
Email
Dwight.Wilcox@state.mn.us