Agencies announce new Water Quality Loan Program for livestock producers

An agreement to launch a new loan program for livestock producers was signed recently. The Livestock Water Quality Facilities Program is a joint effort of the Iowa Agricultural Development Authority, the Iowa Department of Natural Resources, and the Iowa Finance Authority.

"The program will offer low-interest loans for a wide variety of eligible practices that protect water quality, including waste treatment structures; manure handling equipment; and runoff controls such as sediment control basins and filter strips," said Jeff Ward, executive director of the Iowa Agricultural Development Authority.

The program is limited to animal feeding operations with 1,000 animal unit capacity or less, built before Dec. 31, 2001.

"Current federal rules do not allow assistance for concentrated animal feeding operations (CAFOs), but use of loan funds will be allowed for operations that are attempting to redress problems that could cause them to be designated as a CAFO," said Patti Cale-Finnegan, State Revolving Fund coordinator for the Department of Natural Resources.

The minimum loan amount is $10,000. The Iowa Agricultural Development Authority will work with local lenders during the loan origination and closing process. Program loans can provide up to 100% of the costs of a project, or can be used to complement other funding sources such as cost-share or EQIP grants. Applicants must have a comprehensive nutrient management plan, but can roll the cost of preparing their plan into a loan.

The funding for the livestock loan program comes from the Iowa Water Quality Loan Fund.

"The new loan fund is one of the achievements that have come out of the Governor's Water Quality Summit. It's another tool that Iowans have to help protect water quality," said Lori Beary, community finance officer for the Iowa Finance Authority.

The Iowa Water Quality Loan Fund offers three other financing programs to help Iowans address non-point source water quality problems, including programs for local water protection, onsite wastewater systems, and general non-point source projects.

The Iowa Water Quality Loan Fund is the non-point source fund of the Clean Water State Revolving Fund (CWSRF). Under an agreement with the U.S. Environmental Protection Agency, the Iowa Department of Natural Resources administers the CWSRF in partnership with the Iowa Finance Authority. The CWSRF is capitalized through federal grants, state bond proceeds, and loan repayments, and since 1989 has financed municipal wastewater treatment systems. In 2002, the Iowa General Assembly opened the CWSRF to non-point source projects.

Interested applicants may contact the Iowa Agricultural Development Authority at 515-281-6444 or check the web at www.iowasrf.com.