July 07, 2011
Loan Guarantee Program Now Available for Livestock Feed and Crops
The program took effect July 1 and may provide support for loans up to $40,000
A newly available program can aid farmers in obtaining commercial financing for purchases of livestock feed and inputs for livestock feed crops. A newly available program can aid farmers in obtaining commercial financing for purchases of livestock feed and inputs for livestock feed crops.
"We continue to do everything we can to support our state's agricultural producers," said Director of Agriculture Dr. Jon Hagler. "This newly available loan guarantee program for livestock feed and crops is a great tool for lenders and producers as they secure needed financing in a time of ever-increasing input costs and tight credit markets."
The Missouri Agricultural and Small Business Development Authority (MASBDA) administers the program, which took effect July 1, 2011. Through the program, MASBDA may provide a 50 percent first-loss guarantee on collateralized loans up to $40,000 from a commercial lender.
Eligible producers must be Missouri residents with no less than a ten percent down payment on their loan. Loan funds must be used to purchase livestock feed or inputs for crops produced for livestock feed.
Borrowers qualifying for the Livestock Feed and Crop Input Loan Guarantee program may also qualify for the Missouri Linked Deposit Program, which provides funds at reduced interest rates to lenders which are then shared with agricultural borrowers.
The Missouri Linked Deposit Program is administered by the Missouri State Treasurer's Office. For more information, visit http://www.treasurer.mo.gov or call (573) 751-2372.
For more information about the loan guarantee, dual eligibility and other agricultural finance programs, visit http://www.mda.mo.gov or call MASBDA at (573) 751-2129.