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Financial Incentives: Agricultural Best Management Practices Loan Fund

AgBMP Loan Brochure

The Agricultural Best Management Practices Loan Fund (AgBMP) Program provides low interest financing for individuals to install conservation practices or purchase conservation equipment. An annual allocation from the Minnesota Department of Agriculture is available to farm operators and agricultural land owners for implementing water quality improvement projects.

The AgBMP Loan Program is a 3% low interest loan option to rural landowners within Dakota County for conservation practices. AgBMP funds can be allocated for installing feedlot and manure storage systems, replacing or upgrading individual sewage treatment systems (ISTS), sealing abandoned wells, purchasing conservation tillage equipment designed to allow for higher levels of crop residue, or installing terraces, diversions, sediment and water control basins.

AgBMP Loan Application

To be eligible for the program, applicants must:

  • Have a water quality improvement project
  • Receive financial approval from a participating local lender
  • Agricultural waste storage and handling equipment projects must operate within the guidelines of a Animal Confinement and/or Manure Storage Facility (Feedlot) Permit
  • Conservation tillage equipment projects must develop and implement a conservation management plan with the Natural Resources Conservation Service
  • Individual sewage treatment system are required to be constructed as per MN Statute 7080

AgBMP low interest loans may also be used in conjunction with State Cost Share or Federal Environment Quality Incentives Program dollars.