Steven Luetkemeyer wanted to expand his cattle operation. So, the fourth-generation cattle farmer took advantage of the Family Farm Breeding Livestock Tax Credit Program.

Offered by the Missouri Agricultural and Small Business Development Authority, the program provides producers with an opportunity to expand their herd while improving their genetics.

It provides a state tax credit to a lender in the amount of the first year’s interest for loans made to purchase breeding stock. The savings of that first year’s interest payment could contribute toward expenses such as an extra bred heifer or additional feed costs for the year.

“Small farmers make up an important part of Missouri’s livestock industry,” says Jill Wood, executive director of MASBDA. “Waiving the first year’s interest will keep that cash in the farmer’s pocket and allow them to increase their herd size, or even assist new producers in making their first livestock purchase. Missouri’s livestock industry accounts for more than $3 billion in cash receipts each year and is a major part of our state’s economy.”

Bank collaboration

MASBDA urges producers to visit with their lenders on how the program can benefit their operation.

For Luektemeyer, using these resources and knowing your lending capacity is important.

“Anything helps. You can have an impressive income, but all the expenses add up,” he says. “I took the difference and invested it into the principle cost of my loan. Don’t jump in too big, too quickly. Watch every dollar and remember you don’t always need to have the biggest, newest and best equipment as a small farmer. The old fits just the same.”

Scott Juergensmeyer, lending officer and vice president of Mid America Bank in Meta, Mo., has used the Family Farm Breeding Livestock Tax Credit Program to help some of his borrowers start or expand their livestock operations.

“The program offers minimal paperwork, eliminates a cost variable for producers and allows the bank to control all aspects of the loan,” Juergensmeyer says.

Program specifics

The program is for small farmers and ranchers that have less than $250,000 in gross agricultural product sales per year and is limited to one qualifying loan per household.

The maximum loan varies by species:

For information regarding the Family Farm Breeding Livestock Tax Credit Program or MASBDA, visit agriculture.mo.gov or call 573-751-2129.

Source: The Missouri Agricultural and Small Business Development Authority, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.