The Montana Beginning Farm/Ranch Loan Program is a tax-exempt bond program designed to assist beginning farmers and ranchers to acquire agricultural property at lower interest rates.
The program enables Montana lenders, individuals, partnerships and other entities to receive federally tax-exempt interest from bonds associated with a loan or contract sale made to a beginning farmer or rancher. The financial institution, after arranging the loan or sales contract, will obtain a federally tax-exempt bond through the department, serving as Montana Agriculture Loan Authority, in the amount of the loan or unpaid balance. The loan and its collateral are assigned to the financial institution as security for the bond.
There is no minimum loan amount, under the program. The financial institution will make a credit evaluation of the beginning farmer/rancher, establish collateral deemed necessary and, with the beginning farmer/rancher, arrange the terms of the loan or contract.
There is no formal or defined application period. The loan program is ongoing, therefore an application may be submitted at any time.
The department recognizes some provisions of the program (summary link below) may be confusing to would-be applicants and lenders. Program staff can assist in answering questions or completing documents. Beginning farmers/ranchers and bond purchasers are encouraged to visit with the staff early in the application process for assistance.
Agricultural Finance Program
302 N Roberts
Helena, MT 59601
Phone: (406) 444-2402
Fax: (406) 444-9442
Published: June 1, 2011 2:02:00 PM MDT.
Last Modified: June 9, 2015 9:23:27 AM MDT