Missouri Livestock Feed and Crop Input Loan Guarantee Program
The Missouri Livestock Feed and Crop Input Loan Guarantee Program provides up to a 50% first-loss guarantee on livestock feed and crop input loans made by eligible lenders not to exceed $100,000. This program is intended to encourage lenders to provide reasonable financing for livestock feed and crop inputs for producing livestock feed given the ongoing economic pressures faced by farmers.
- Farmers who will use the proceeds of the loan to finance the purchase of livestock feed used to produce livestock and inputs used to produce crops for the feeding of livestock.
- Borrowers must be legal Missouri residents who are at least 18 years old.
Loan Amount and Terms
- Loans made under the guarantee program may be on loan amounts not to exceed $100,000.
- The interest rate charged to a borrower will be negotiated between the lender and the borrower, but cannot exceed the rate normally charged by the lender for similar loans.
- The borrower can incur no penalties for accelerated payment of the loan.
- The borrower must provide a down payment or provide equity of at least 10% toward the cost of the project being financed.
Application and Approval
Producers wishing to secure a loan through the loan guarantee program must:
- Apply for a loan with an eligible lender.
- The participating lender must decide whether a prospective borrower meets its requirements for a loan if a 50% first-loss guarantee is provided through the Livestock Feed and Crop Input Loan Guarantee Program.
- After deciding to make a guaranteed loan, the lender must submit an application to the authority.
The following shall be considered in approval of the guarantee:
- Ability to repay the proposed loan.
- Economic conditions of the borrower’s area.
- Potential success of the particular farm operation for which the loan is sought.
- The existence of security on the loan.
A $50 participation fee is due at the time of closing. Additionally, a loan guarantee fee of one percent of the outstanding principal is due at closing and annually on the anniversary of the loan.
Borrowers qualifying for the Livestock Feed and Crop Input Loan Guarantee Program may also qualify for the Missouri FIRST Program administered by the state treasurer’s office. The Missouri FIRST Program makes funds available at reduced interest rates to lenders who in turn pass the savings along to agricultural borrowers. To find out more about the Missouri FIRST Program, call the state treasurer’s office at (573) 751-2372 or visit their website at www.treasurer.mo.gov.