Spring 2006

Update on Low-Interest Loans for Animal Feeding Operations


By Patti Cale-Finnegan, Iowa Department of Natural Resources; and Jeff Ward, Iowa Agricultural Development Authority

photoProducers have received their first loans from a low-interest financing program that can help animal feeding operations upgrade their manure management facilities. The Livestock Water Quality Facilities Program, operated by the Iowa Agricultural Development Authority, has either closed loans or is processing loans for several types of facilities.

The Iowa Agricultural Development Authority approved loans recently for the following projects:

  • Building a dry litter compost building for turkey litter in north central Iowa. Maintaining nutrient value in the litter will have an economic benefit when the litter is sold.
  • Adding a lagoon and a sand separator to separate solids and sand for a dairy that uses sand bedding in northwest Iowa.  By reusing the sand, the producer will reduce production costs and reduce land application from a daily occurrence to twice per year.
  • Purchasing a skid loader and manure tank.

The loan program can be used by animal feeding operations with less than 1,000 animal unit capacity which do not require an operating permit from the Department of Natural Resources.

Producers will find the program less restrictive after rule changes currently underway are completed. In previous rules, the program required that producers either have a Comprehensive Nutrient Management Plan (CNMP), or develop one as part of the loan.  Those rules have been revised to require a manure management plan approved by the Department of Natural Resources.  At the time this article was written, the proposed changes were going through the administrative rules review process and were expected to be effective in mid-April.

Producers also can expect the eligibility date to be eliminated. Previously, operations built after Dec. 31, 2001, were not eligible to borrow through the program.  The new rules proposal takes out that date, and allows more recently constructed operations to apply.  The program will still not be available for construction of new animal feeding operations.

Interested applicants may contact: Jeff Ward, Executive Director, IADA, 505 5th Ave, Ste 327, Des Moines, Iowa 50309, (515) 281-6444; email to iada@iada.state.ia.us or on the Web at www.iada.state.ia.us.


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