A newly available program to aid farmers in obtaining commercial financing for purchases of livestock feed and inputs for livestock feed crops is now available. The Livestock Feed and Crop Input Loan Guarantee program can provide a 50% guarantee for loans up to $40,000.
"We continue to do everything we can to support our state's agricultural producers," said Missouri Director of Agriculture 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 administers the program, which took effect July 1, 2011. Through the program, MASBDA may provide a 50% 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 10% 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. Visit www.treasurer.mo.gov or call (573) 751-2372.
For more information about the loan guarantee, dual eligibility and other agricultural finance programs, visit mda.mo.gov or call MASBDA at (573) 751-2129.
Source: Missouri Department of Agriculture