|
DES MOINES – Iowa Secretary of Agriculture Bill Northey today said that during the past fiscal year nearly $12 million was loaned to Iowa farmers and land owners to install voluntary conservation practices that improve water quality. The low-interest loans were available through the State Revolving Loan Fund’s Local Water Protection and Livestock Water Quality Facility Loan Funds.
“Since 2006 when the fund was created, 1,800 farmers have borrowed more than $54 million to support additional conservation on their farm,” Northey said. “As those funds are repaid they will be loaned out again to continue to support conservation in our state.”
To apply for funds, farmers and landowners work with the local Soil and Water Conservation District in their county. Applications are accepted at any time during the year and are typically processed in a few days.
Once approved, the loan recipient will work with an approved local lender who will make the loan. The Iowa Finance Authority then deposits funds equal to the principal amount of the loan at 0% interest with your lender. This deposit enables the lender to reduce the interest rate charged to the borrower.
Virtually all practices eligible for State Cost Share, Resource Enhancement and Protection (REAP) and Environmental Quality Incentive Program (EQIP) are eligible for loans. The practices covered include, but are not limited to:
- Terraces, grade stabilization structures, water & sediment control basins
- Pasture & hay land planting or prescribed grazing
- Grassed waterways and filter strips
- Field borders, windbreaks and buffers
- Waste storage facilities
- Deep bedded buildings or other roofed manure control structures
However, loans to implement practices for animal feeding operations can only be made to operations that are under 1,000 animal units and operations that are not required to have an NPDES permit.
Loans can be for $5,000 up to a maximum of $500,000 per borrower and can fund up to 100 percent of actual costs. The terms are up to 15 years and a fixed interest rate of no more than 3 percent for the life of the loan.
Funding comes from the Clean Water State Revolving Fund (CWSRF), a water quality financing program administered by the Iowa Department of Natural Resources and the Iowa Finance Authority. The CWSRF uses a combination of federal capitalization dollars, leveraged bonds, repayments, and interest earnings to generate a continually revolving and growing fund that helps Iowans protect water resources.
“This is another example of minimal state support generating significant investment by Iowa farmers and landowners to install conservation practices that allow them to better care for their land,” Northey said. |
