Agricultural Finance / Rural Finance Authority

The Rural Finance Authority (RFA) offers low-interest loan programs to farmers for a wide variety of activities. The RFA partners with local lenders to provide affordable credit to eligible farmers. Loan participations are purchased by the RFA under the following programs:

Basic Farm and Seller-Assisted Loans – help younger and beginning farmers purchase ag land 

Agricultural Improvement Loan – finances farm improvements for any ag related purpose, such as grain handling facilities, machine storage and manure systems

Restructure II Loan – helps farmers reorganize their farm debt to improve cash flow

Livestock Expansion Loan – creates affordable financing for new state-of-the-art livestock production facilities.

To date, over $270 million has been invested in 2,959 participations by the RFA in these programs.

Loan Programs Interest Rate Origination Fee Application Fee
Beginning Farmer 3.75% None $50
Seller Assisted 3.75% None $50
Agricultural Improvement 4.00% None $50
Livestock Expansion 4.25% None $50
Restructure II 4.25% None $50
Value-Added Stock 2.00% None $50
Livestock Equipment 2.00% None $50
Farm Opportunity 2.00% None $50


The Aggie Bond Program creates a federal tax exemption for banks, and a federal and state tax exemption on interest income to an individual seller in exchange for offering below market interest rates to eligible beginning farmers to purchase farm real estate, agricultural improvements, breeding livestock and machinery. Two hundred ninety-six farmers have benefited from over $42 million loans.

Revolving accounts have been established to support other loan activities. The RFA has provided over $4.5 million in loans to 200 lower equity farmers to purchase stock in cooperatives that own and operate value-added agricultural processing facilities. The Livestock Equipment Loan Program is designed to help finance the first purchase of livestock-related equipment and make livestock facilities improvements. The Sustainable Agriculture and Manure digester loan programs are administered jointly by the MDA Finance & Budget and Ag Marketing & Development Divisions.

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