South Dakota Department of Agriculture
Loan Programs

Building Our South Dakota Rural Communities (BOSDRC) Grants
BOSDRC Grant funds for 4-H clubs and FFA/FHA chapters to conduct community development projects. In conjunction with the National FFA Building Our American Communities. Maximum grant of $750, on a competitive basis.

Conservation Tillage Loan
Loans available for 80% purchase of conservation tillage equipment and grass seeding and harvesting equipment. Available to conservation districts on low-cost rental basis. Maximum $30,000 and 5 year term.

Cooperative Stock Guaranty
The Guaranty Program will provide up to a 50% guaranty on the original principal amount with a maximum of $10,000. The maximum length of a guaranty is 5 years. Interest rates may not exceed the lenders lowest rate for this loan. The Guaranty Program will provide up to a 50% guaranty on the original principal amount with a maximum of $10,000. The maximum length of a guaranty is 5 years. Interest rates may not exceed the lenders lowest rate for this loan.

Junior Livestock Guaranty
A 30% guaranty of amount borrowed from a local lender to provide an educational experience for youth between 12-18 and members of 4-H or FFA. Maximum loan request is $10,000 and 5 year term.

Livestock Loan Participation
Participation of up to 50% with local lender in making a livestock loan. Maximum $100,000 participation; term depends on type of livestock purchased. Operator must have feed and facilities available.

Rural Development Agricultural Loan Participation
Loans must be used for value-added production, processing, marketing or exporting of agricultural products. Maximum loan participation $300,000; 10 year maximum term.

Value Added Livestock Underwriting (VALU) Guaranty
A 50% guaranty on livestock purchase money. Maximum guaranty of $50,000; no greater than 26 month term. Operator must have feed and facilities available.

Agri-Business Bonding Program
A tax-exempt program which allows agricultural businesses involved in manufacturing, including processing, to receive lower interest rates on loans made by single individuals or financial institutions or group of individuals and/or financial institutions (bond purchasers). Borrowers may qualify for financing up to $10 million for any one project. Interest rates determined by bond purchasers.

Beginning Farmer Bond Program
A tax-exempt bond program designed to assist beginning South Dakota farmers in acquiring agricultural property at lower interest rates. Enables lenders, individuals, partnerships, corporations and other entities (bond purchasers) to receive federally tax-exempt interest with respect to a loan or contract sale made to beginning farmers. Eligibility requirements: net worth of $300,000 or less, South Dakota resident; at least 18 years of age; ownership of agricultural land less than 30% of the county median farm size.

Livestock Nutrient Management Program
A tax-exempt bond program to assist financing capital expenditures associated with the handling and/or processing of byproducts and livestock nutrients. Interest rates and terms are determined by the bond purchaser.

Value-Added Agribusiness Relending Program
A direct loan available to businesses for processing or marketing agricultural commodities. Maximum amount is 50% of total project cost or $250,000, whichever is less. Low interest rates and term of no more than 10 years.
 

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