4oiGIFNEIEJJVCBEZXRlY3Rpb24=
Loan Programs for Livestock, Facilities & Land | South Dakota Department of Agriculture

Loan Programs for Livestock, Facilities & Land

Programs Administered by VAFA

Dairy FarmAgri-Business Bonding Program

A tax-exempt program which allows agricultural businesses involved in manufacturing, including processing, to receive lower interest rates on loans made by single individuals or financial institutions or group of individuals and/or financial institutions (bond purchasers). Borrowers may qualify for financing up to $10 million for any one project. Interest rates determined by bond purchasers.

(Instructions for Exhibit A: Please complete this form online, type or print legibly. This form will become part of the official Bond Documents provided by the Authority. Once completed, this form, along with the Loan Data Sheet and Appraisal (if applicable) must be mailed to the Authority prior to Closing. Appraisals must have values itemized.)

Beginning Farmer Bond Program

A tax-exempt bond program designed to assist beginning South Dakota farmers in acquiring agricultural property at lower interest rates. Enables lenders, individuals, partnerships, corporations and other entities (bond purchasers) to receive federally tax-exempt interest with respect to a loan or contract sale made to beginning farmers. Eligibility requirements: net worth of $400,000 or less, South Dakota resident; at least 18 years of age; ownership of agricultural land less than 30% of the county median farm size.

(Instructions for Exhibit A: Please complete this form online, type or print legibly. This form will become part of the official Bond Documents provided by the Authority. Once completed, this form, along with the Loan Data Sheet and Appraisal (if applicable) must be mailed to the Authority prior to Closing. Appraisals must have values itemized.)

Livestock Nutrient Management Bond Program

A tax-exempt bond program to assist financing capital expenditures associated with the handling and/or processing of byproducts and livestock nutrients. Interest rates and terms are determined by the bond purchaser.

(Instructions for Exhibit A: Please complete this form online, type or print legibly. This form will become part of the official Bond Documents provided by the Authority. Once completed, this form, along with the Loan Data Sheet and Appraisal (if applicable) must be mailed to the Authority prior to Closing. Appraisals must have values itemized.)

Value-Added Agribusiness Relending Program

A direct loan available to businesses for processing or marketing agricultural commodities. Maximum amount is 50% of total project cost or $150,000, whichever is less. Low interest rates and term of no more than 10 years.

For information on Financial and Loan Programs contact:

Terri LaBrie, Executive Director, Value Added Finance Authority

605.773.5436