Loans Available to Help Minnesota Farmers Restructure Debt

ST. PAUL, Minn. - Minnesota farmers may seek assistance from the Rural Finance Authority’s (RFA) Restructure Loan program if they have good credit but are having trouble with cash flow.

The Restructure Loan program is available for refinancing debt related to agricultural activities only and requires collateral of a first mortgage on farm real estate.

“This may be a good option for Minnesota farmers who are in good standing with their local lender but are struggling with cash flow,” said RFA Senior Loan Officer Ryan Roles. “The current interest rate is 4.25 percent and the participation term may be up to a maximum of ten years.”

The RFA will participate on 45 percent of a qualifying loan up to a maximum of $525,000. There is a $50.00 non-refundable application fee on all loans.

An applicant must meet the following requirements:

1. Be a resident of Minnesota, a Minnesota domestic family farm corporation, or family farm partnership.

2. Be the principal operator of the farm.

3. Not be a current or previous participant in an RFA farm debt reorganization program.

4. Have a total net worth that does not exceed $1,777,000 (indexed for inflation).

5. Have received 50 percent of their gross income from farming over the past three years.

6. Have expenses that do not exceed 95 percent of income.

Information on the Restructure Loan Program and all RFA loan programs is available at http://www.mda.state.mn.us/restructure.