Dakota Farmer

7 tips for getting livestock permits, financing

Expanding or starting a livestock enterprise? Get financing and permit advice first.

Lon Tonneson, Editor, Dakota Farmer

December 13, 2018

2 Min Read
Cattle line up to eat from the bunk in a new hoop barn.
LIVESTOCK EXPANSION: Cattle line up to eat from the bunk in a new hoop barn.

At the recent South Dakota Livestock Development Summit, lenders, county commissioners and planning and zoning officials along with South Dakota State University Extension specialists suggested ways to obtain financing and permits to expand or start livestock enterprises.

Some of their top tips and advice included the following:

1. Be well prepared. Jeff Barth, a Minnehaha County commissioner, recalled one farmer who bought in his plan written in crayon on the back of feed sack. To get a permit today, most plans will require professionals to help prepare and present them, he said.

2. Know your costs. And, if you are expanding an existing operation, have benchmarking data that shows how you compare to industry averages, advised Terry Fjeldheim, vice-president, Farm Credit Services of America, Watertown, S.D.

3. Work with a lender who understands your enterprise. According to Ed Fiegen, senior agri-business banker, First Bank and Trust, Brookings, S.D., some lenders have experience financing beef feedlots. Others may have more expertise in dairy, hogs or poultry.

4. Understand the rules. Learn what the permit process requires and what you’ll need to provide to government officials.

5. Talk to your neighbors. Some farmers take the time to visit with neighbors before applying for a permit, said Jim Schmidt, a Lincoln County commissioner.

6. Earn trust. “It may not be enough to just to talk to you neighbors about what are doing,” noted Dana Loeske, chair of Friends of the Big Sioux and an East Dakota Water Development District board member. “You have to earn their trust.” Go beyond the regulations require and show you community that you are doing something for them, he suggested. Putting the barn closer to your house than your nearest neighbor and planning to be working in your barns everyday will help you win support for your project in your community.

7. Give a tour. Invite county commissioners and planning and zoning board members out to see to see where you want to build. Maps are okay, but it is important to be able to see the farm and the area, Schmidt said.

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