Farm Opportunities Loan Program
Administered by Minnesota Department of Agriculture
The Farm Opportunity Loan Program lets Minnesota farmers finance equipment that adds value to crops or livestock or boosts on-farm energy production—including solar, wind, biomass, and anaerobic digestion systems—through their local lender. The Rural Finance Authority will participate in up to 80% of the project cost, capped at $100,000 per individual (or $250,000 for groups of four or more), with loans up to 10 years at a current 2% RFA rate, plus potential 1% reduction if you complete equipment safety training. You must be a Minnesota resident, principal farm operator, with net worth under $1.7 million (adjusted annually), and cannot use funds for seed, fertilizer, fuel, or debt refinancing.
Contractors working with farmers on renewable energy and value-added equipment projects can offer financing through the Farm Opportunity Loan Program, which reduces customer capital requirements by having the RFA cover a substantial portion. The program covers solar thermal, photovoltaic, wind, biomass, hydroelectric, and anaerobic digestion equipment; farmers apply through their local lender, and you should encourage customers to complete available equipment safety courses to secure the additional 1% rate reduction. Lenders must have a Master Participation Agreement with the RFA and follow pre-established underwriting rules, so coordinate with farmers' financial institutions to streamline approvals.
The Farm Opportunity Loan Program is a loan participation vehicle administered by Minnesota's Rural Finance Authority in partnership with voluntary participating lenders; the RFA provides 2% interest on its share (currently capped at $100,000 per individual or $250,000 for groups, representing up to 45% of principal or 80% of equipment cost). The program targets Minnesota farm operators with net worth below $1.7 million (inflation-adjusted annually) investing in renewable energy and value-added agricultural equipment, funded through the RFA's authority to participate in locally-originated loans over a maximum 10-year term. Participating lenders retain the remaining loan balance and control day-to-day operations; the RFA reviews interest rates annually and funds cost reductions for farmers completing equipment training courses.
Program details
- Program ID
- 3395
- Last updated
- 7/29/2025
Eligibility
- Sectors
- agricultural
- Technologies
- solar water heat solar photovoltaics wind (all) biomass wind (small) hydroelectric (small) anaerobic digestion yes; specific technologies not identified
Program summary
The Farm Opportunity Loan Program (formerly known as the Sustainable Agriculture Loan Program) is designed to finance the purchase of equipment to add value to crops or livestock and increase on-farm energy production. Eligible loan uses do not include expenses related to seed, fertilizer, fuel, or other operating expenses. Refinancing of existing debt is not an eligible expense.
This is a loan participation program available through the Rural Finance Authority (RFA). Farmers will work through their local lender. Upon completion of an application, the lender will apply for RFA participation. The RFA must have a completed Master Participation Agreement with the lender on file.
Loan Terms
The RFA may participate in a Farm Opportunity loan equal to 80% of the project or equipment cost. Participation is limited to 45% of the principal amount of the loan or $100,000 per individual, whichever is less. For loans to a group made up of four or more individuals, participation is limited to 45% of the principal amount of the loan or $250,000, whichever is less.
The loan will be for a maximum of 10 years. The interest rates and repayment terms of the authority’s participation interest may differ from the interest rates and repayment terms of the lender’s retained portion of the loan, but the authority’s interest rate is currently 5%. The authority may review the interest annually and make adjustments as necessary.
The originating lender will retain the balance of each loan. The borrower must satisfy the local lender’s guidelines. The local lender will control the day-to-day operation of the loan. Participating lenders are allowed to charge a fixed or adjustable interest rate consistent with their normal lending practices and their agreement with the RFA.
The RFA will provide a 1% interest rate reduction from the standard 5% rate if a farmer uses this loan program to purchase equipment in which an associated equipment safety course is offered. The farmer must complete and submit documentation for the equipment training course to be eligible for the rate reduction.
To be eligible for this program, a borrower must have a total net worth, including assets and liabilities of the borrower's spouse and dependents, of less than $1.7 million in 2017 (adjusted annually for inflation).
Contact & resources
- Contact email
- Mary.Hanks@state.mn.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
