OFN spoke with Tony Stafford, Executive Director of the Missouri Agricultural and Small Business Development Authority. Mr. Stafford gave us an overview of some of the programs available through the Missouri Department of Agriculture. There are certain requirements and limits to size of herd, type of livestock and producer. To be eligible for assistance, individuals must be a resident of Missouri and the project must be in Missouri.
The great news is that they have plenty of funds available. There is capacity on all of the programs discussed. They have several different types of funding sources. Some are tax-free interest bonds that are authorized by the IRS each year. Others are guaranteed programs that the state guarantees 50 percent of the loans, and some are direct funding programs.
Single Purpose Animal Facilities Loan Guarantee Program is typically used for facilities. It can be utilized to finance the acquisition, construction, improvement, rehabilitation, or operation of land, buildings, facilities, equipment, machinery and animal waste facilities used to produce poultry, hogs, beef or dairy cattle or other animals in a single purpose animal facility. General purpose buildings such as a machine shed would not qualify. A 50 percent loan guarantee may be provided on loan limits of $250,000 with a 10 percent cost of project down payment required.
Animal Waste Programs are for people who are NOT required to be permitted through DNR (less than 1,000 animal units). They can be used for storage structures, eligible land, engineering costs, fencing around lagoons, irrigation systems to pump down lagoons, animal waste treatment systems and equipment, dedicated waste treatment equipment, portions of feeding floors and loafing areas used for waste collection, vegetative filters, filter strips, contour buffer strips and diversions or other water pollution reduction activities associated with animal waste treatment systems, compost houses, lagoons, deep pits, flush systems, dairies, swine and poultry operations.
Alternative loans can be used for alternative agriculture buildings. The $20,000 maximum loan can be for portable buildings, chicken houses on skids, rabbit barns or hutches and green houses would qualify. These loans are geared to non-traditional agriculture.
Beginning Farmer Programs are typically for real estate. They can include buildings and improvements. A beginning farmer is someone who has not owned more than 30 percent of the median size farm in the county. Gross farm income has to exceed off-farm income based on a projected cash flow after the loan is made.
For more information about these and other programs, please contact Missouri Agricultural and Small Business Development Authority at 573-751-2129.
