New program guarantees livestock feed and crop loans

The Livestock Feed and Crop Input Loan Guarantee Program, which took effect July 1, assists farmers in accessing commercial financing for livestock feed and livestock feed crop.

The program is administered by the Missouri Agricultural and Small Business Development Authority and provides a 50 percent first-loss guarantee on collateralized loans of up to $40,000 from commercial lenders, according to a Missouri Department of Agriculture news release.

To be eligible, producers must be Missouri residents with a minimum of 10 percent down on their loans. Loan funds must be used to buy livestock feed or inputs for crops that will be used as livestock feed.

“We continue to do everything we can to support our state's agricultural producers,” said Director of Agriculture Jon Hagler, in the release. “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.”

Those borrowers who qualify for the livestock feed guarantee program also may qualify for the Missouri Linked Deposit Program, a separate program administered by the Missouri State Treasurer’s Office that provides funding at reduced interest rates to lenders.  Details about the new loan guarantee program and other agricultural finance programs, as well as dual eligibility for the deposit program, are available at www.mda.mo.gov.[[In-content Ad]]