Animal Waste Treatment Loan Program

Description

The purpose of the Animal Waste Treatment System Loan Program is to finance animal waste treatment systems for independent livestock and poultry producers at below conventional interest rates.

Loan proceeds may be used to finance 100% of the cost of an eligible animal waste treatment system (less the amount of grants from any other state or federal agency) such as:

  • Storage structures (earthen, concrete, or slurry systems),
  • Eligible land,
  • Engineering cost, finance charges,
  • Fencing around lagoons,
  • Irrigation systems to pump down lagoon,
  • Animal waste treatment system equipment,
  • Dedicated waste treatment equipment,
  • Portions of feeding floors and loafing areas used for waste collection,
  • Flush systems,
  • Composters,
  • Vegetative filters,
  • Filter strips,
  • Water and sediment strips,
  • Contour buffer strips, and
  • Diversions or other water pollution reduction activities associated with animal waste treatment systems

How Does the Program Work?

The Animal Waste Treatment System Loan Program provides loans that are directly funded by the Missouri Agricultural and Small Business Development Authority.

  • The borrower submits an application to the authority.
  • Borrowers must meet cash flow and debt-to asset ratio requirements established by the authority
  • Borrowers must provide adequate security for loans (a first or second deed of trust)
  • Borrowers must provide a "dedicated source of repayment"

Who is Eligible?

  • A borrower may be an individual who is at least 18 years of age, a partnership, corporation, firm, or cooperative association
  • The project financed must be used in Missouri by state residents or by businesses located in or transacting business within the state
  • Borrower must be able to provide proof of citizenship, identity and legal Missouri residence. If the borrower employs laborers, he/she must also provide proof of enrollment and participation in the federal work authorization program.
  • A borrower’s operation must produce less than 1,000 animal units and have a NRCS Certification
  • Entities who collect or process animal waste and dead animals may also qualify for a loan if their operations do not require a National Pollutant Discharge Elimination System (NPDES) operating permit from MDNR

Loan Amount and Terms

There is no dollar limit for loans. Borrowers must provide proof of expenditures prior to the authority making the loan. Loans may be made for up to 10 years, but cannot exceed the expected useful life of the facility or equipment financed. The current fixed interest rate is 5.02 percent.

Restrictions

  • Construction financing is not provided. The authority refinances these expenses from a lender after completion of the project
  • Animal waste systems located within a poultry house, milk parlor, or hog confinement facility except for pit and flush system and composters
  • Borrowers whose poultry or livestock operations exceed 1,000 animal units
  • Concentrated Animal Feeding Operations

Fees

A non-refundable $150 application fee must be submitted with the application. A loan participation fee equal to one and a half percent of the amount of the loan (with a minimum of $250) must be paid at closing. The participation fee may be included in the loan.

Other Information

The authority also administers the Single-Purpose Animal Facilities Loan Guarantee Program for independent livestock producers.

Application Information