Loan Guarantees
The Missouri Value-Added Loan Guarantee Program
The Missouri Value-Added Loan Guarantee Program provides a 50% first-loss guarantee to lenders who make agricultural business development loans for the acquisition, construction, improvement, or rehabilitation of agricultural property used for the purpose of processing, manufacturing, marketing, exporting, and adding value to an agricultural product.
Agricultural property includes:
- Land,
- Buildings,
- Structures,
- Improvements,
- Equipment,
- Guarantees may also be made on loans to buy stock in a start-up cooperative that processes an agricultural product, and
- Plant stock for grapes which will be processed into wine
The Single-Purpose Animal Facilities Loan Guarantee Program
The Single-Purpose Animal Facilities Loan Guarantee Program provides a 50 percent first-loss guarantee on loans up to $250,000 that lenders make to independent livestock producers to finance breeding or feeder livestock, earthworms, land, buildings, facilities, equipment, machinery and animal waste systems used to produce poultry, swine, beef cattle, dairy cattle (and other livestock) and earthworms.
The Crop and Livestock Loan Guaranty Program
The Crop and Livestock Loan Guaranty Program provides financial benefits to Missouri youth who undertake crop or livestock production projects. Program benefits are available for 4-H and FFA members wishing to secure a loan through the loan guarantee program. Participants must apply for a loan through a bank, savings and loan association, the Farm Credit System or other eligible lender.
The Missouri Department of Agriculture will guarantee 50 percent of the loan made to a 4-H or FFA member to finance a supervised project for a period of two years.
Loans eligible for the program are limited to the purchase of livestock, feed, seed, fertilizer, herbicides, insecticides, fuel, and other miscellaneous out-of-pocket expenses directly related to the project. Up to 25 percent of the loan may be used to purchase livestock equipment necessary for the successful completion of the project. Examples: feeders, waterers, head gates, farrowing crates, etc.