Agricultural Improvement Loan Program in Minnesota - EnergyBot

Agricultural Improvement Loan Program

July 29, 2025

Summary

The Agricultural Improvement Loan Program is administered by the Minnesota Department of Agriculture through the Minnesota Rural Finance Authority (RFA) and  provides loans to farmers for improvements or additions to permanent agricultural facilities. In 1995, wind-energy systems with a maximum capacity of 1 megawatt (MW) became eligible for the program.

Like Minnesota's Stock Loan Program, this is a "participation loan," where loans are made by individual financial institutions working with the RFA. The RFA has a Master Participation Agreement with over 400 financial institutions throughout the state; this agreement governs the responsibilities of the various parties in such participation loans. RFA participation is limited to a minimum of $20,000 and a maximum of $500,000. Terms for the remainder of the loan are negotiated between the participant and the lender.

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 $1,042,000 in 2025 (indexed for inflation). Applicants are required to pay a non-refundable $50 application processing fee.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Minnesota
Incentive Type: Loan Program
Web Site: https://www.mda.state.mn.us/agricultural-improvement-loan-program
Administrator: Rural Finance Authority
Start Date:
Eligible Renewable/Other Technologies:
  • Wind (All)
  • Biomass
  • Wind (Small)
  • Anaerobic Digestion
Maximum Loan: $20,000 - $500,000
Loan Term: Maximum term of 10 years

Authorities

Name: Minn. Stat. § 41B.043
Date Enacted: 01/01/1995

Contact

Name: Rural Finance Authority Office
Address: 625 Robert Street North
Saint Paul MN 55155
Phone: (651) 201-6004
Email: RFA.Loans@state.mn.us

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.