Agricultural Improvement Loan Program
Administered by Rural Finance Authority
This loan program helps Minnesota farm operators finance permanent improvements like wind turbines (up to 1 MW), biomass systems, or anaerobic digesters through participating lenders. You'll work with your local bank to apply; if approved, the Rural Finance Authority can participate for up to $500,000 at a fixed interest rate for up to 10 years, though you must be a Minnesota resident principal farm operator with a net worth not exceeding $1,069,000 in 2026 (adjusted annually) and pay a non-refundable $50 application fee.
Farmers using this program can finance renewable energy and agricultural improvement projects through a participation loan where the RFA covers up to 45% of principal up to $500,000 at a fixed rate. Your customer will apply through their local lender who has a Master Participation Agreement with the RFA; the RFA's involvement makes the loan more affordable and accessible for eligible farm operations seeking to upgrade production efficiency.
The Minnesota Rural Finance Authority administers this participation loan program through over 400 financial institutions statewide, with RFA participation ranging from $20,000–$500,000 at fixed rates for terms up to 10 years. Target borrowers are Minnesota residents or family-farm entities (corporations/partnerships) with net worth ≤$1,069,000 (2026, inflation-indexed) who are principal farm operators; eligible uses include permanent structures, equipment, and wind systems ≤1 MW, plus biomass and anaerobic digestion systems, with first mortgage on farm real estate required as collateral.
Program details
- Program ID
- 205
- Last updated
- 7/29/2025
Eligibility
- Sectors
- agricultural
- Technologies
- wind (all) biomass wind (small) anaerobic digestion
Program 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.
Contact & resources
- Contact email
- Gary.Blahosky@state.mn.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
