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Purpose

The BIG Missouri Linked Deposit for Agriculture Programs was established to assist farmers and agricultural operations by making funds available at reduced interest rates to lenders who in turn pass the savings along to agricultural borrowers.

Program Objectives

The intent of the agriculture programs is to make funds available at reduced interest rates to lenders who pass on reduced interest rate loans to agricultural borrowers.  Participation in the program is limited to a maximum of five years for Farming Operations and Beginning Farmers, ten years for Guaranteed Livestock Operations and Guaranteed Agribusiness and up to fifteen years for Facility Borrowers.

Farming Operation Program

The purpose of the Farming Operation Program is to assist the established farmer with low cost operating funds for production expenses including equipment purchase or rental, custom harvesting expense, rent, wages, livestock, feed, fertilizer, chemicals, professional fees, or renovations, repairs, expansion or purchase of buildings and ancillary fixed assets (loading chutes, grain storage, etc.) Funds may not be used for purchasing or refinancing land.

  • Borrower must be headquartered and operating in Missouri
  • Must have fewer than 10 employees
  • Equity (total assets less total liabilities, divided by total assets) can not be more than 60%
  • Projected farm income (not including spouse’s income) must be greater than non-farm income
  • Preference given to farms suffering drought-related losses

Beginning Farmer Program  

Average Size Farm in Missouri Spreadsheet

The purpose of the Beginning Farmer Program is to help both the beginning farmer and the part-time farmer who now wants to farm full-time to purchase agricultural land, farm buildings, new and used farm equipment, livestock and working capital.

  • Borrower must be a permanent Missouri resident and at least 18 years of age
  • The proposed project is located within the State of Missouri
  • Borrower has adequate working capital and experience in the type of farming operation for which the loan is sought
  • The project shall be used only for farming by the borrower or by the borrower’s immediate family
  • In previous 5 years has not owned acreage in excess of 50% of the average size farm in the county they are farming in or own farmland with an appraised value over $450,000
  • Projected farm income (not including spouse’s income) must be greater than non-farm income

Guaranteed Agribusiness Program

The purpose of the Guaranteed Agribusiness Program is to allow low cost funds to be used for the purchase of shares in value added agriculture ventures approved by the Missouri Agriculture and Small Business Development Authority’s Value-Added Loan Guarantee Program.

  • Must have MASBDA loan guarantee
  • Headquartered in Missouri
  • Maintains operations and transact business in Missouri
  • Borrower is organized for profit

NOTE:  Only applicants who have received a loan guarantee from the Missouri Agriculture and Small Business Development Authority’s Value-Added Loan Guarantee Program are eligible for this linked deposit program. For more information about this loan guarantee program, please call (573) 751-2129 or visit MASBDA’s website at www.mda.mo.gov.

Guaranteed Livestock Operations Program

The purpose of the Guaranteed Livestock Operations Program is to provide low cost funds for the production of livestock or poultry in an authorized farm corporation, family farm, or family farm corporation.
  • Must have MASBDA loan guarantee
  • Headquartered in Missouri
  • Maintains operations and transact business in Missouri
  • Borrower is organized for profit

NOTE:  Only applicants who have received a loan guarantee from the Missouri Agriculture and Small Business Development Authority’s Single-Purpose Animal Facilities Loan Guarantee Program are eligible for this linked deposit program. For more information about this loan guarantee program, please call (573) 751-2129 or visit MASBDA’s website at www.mda.mo.gov .

Facility Borrower Program

The purpose of the Facility Borrowers Program is to allow a development facility or renewal fuel production facility borrower qualified by the MASBDA to apply for a reduced rate loan. Funds may be used to finance new costs or refinance existing debt associated with facilities producing either a good derived from an agricultural commodity or using a process to produce a good derived from an agricultural product; or facilities producing an energy source that is derived from a renewable, domestically grown organic compound capable of powering machinery, including and engine or power plant, and any by-product derived from such energy source. 

  • Must have MASBDA certificate of qualification
  • For refinancing, cannot exceed 90% of fair market value of facility
  • Headquartered in Missouri
  • Must be partnership, corporation, or LLC organized in Missouri; maintains operations and transacts business in Missouri
  • Facility has twelve or more producer members
  • Facility is organized for profit
  • Does not currently owe any unpaid, non-protested taxes to the State or any political subdivision
  • Facility has no environmental compliance issues with the MO Department of Natural Resources

NOTE:  Only applicants who have received a certificate of qualification from the Missouri Agriculture and Small Business Development Authority’s BIG Missouri Linked Deposit are eligible for this linked deposit program. For more information about this program, please call (573) 751-2129 or visit MASBDA’s website at www.mda.mo.gov.

Allocation of Funds

A total of $330 million has been allocated for the BIG Missouri Linked Deposit Program for Agriculture.

  • Each Eligible Farming Operation and Beginning Farmer may qualify for deposits; there is no limit on the amount of the deposit.  These loans are renewable for up to five years if funds are available.

  • Eligible Livestock Operations and Agribusiness whose loans are guaranteed by the Missouri Agriculture and Small Business Development Authority may qualify for deposits up to $250,000.  These loans are renewable for up to ten years if funds are available.

  • Facility Borrowers who have a certificate of qualification from the MASBDA may qualify for deposits up to $70 million dollars.  These deposits can be for five years and may be extended up to two additional periods of five years each for a maximum total of fifteen years.

Interest Rate on Deposits

The interest rate for the deposit with the financial institution providing a linked deposit loan is based on a formula set by State law.  The interest rate is set based on the Treasury bond yield of the comparable term.  When Treasury yields are above 5% for the comparable term, the State Treasurer may reduce the yield on the deposit to the financial institution by as much as 3%. When Treasury yields are below 5%, the State Treasurer may reduce the yield based on a formula set in law, so long as the yield on the deposit with the State is not below 1%. 

State law requires that the amount of the interest rate reduction must be passed on to the loan applicant for a linked deposit.

Interest Owed for Early Principal Payments or Other Situations

The below-market interest rates described above apply only to the amount actually placed and on loan by the qualified applicant. For lines of credit or other types of loans in which the amount of funds actually placed and being used by the client may be less than the amount of the linked deposit, the financial institution shall pay the State the usual market rate on any portion of a deposit held for any period when there is no corresponding linked deposit loan outstanding. Such a situation may arise as principal payments are made by the applicant for instance.

At the anniversary date of each linked deposit, the financial institution is required to calculate the loan dollar days for each loan by completing a "Deposit Data Summary" report. Any interest due to the State at the usual market rate is then required to be remitted. A spreadsheet which can be used to track any interest due can be downloaded below. Please contact the State Treasurer's Office for the actual interest rate factor.  

Interest Rate on Loans

The loan rate provided to the borrower for a linked deposit is set by state regulation and is dependent on the size of the linked deposit loan.  For loans under $100,000, the loan is calculated as: sum of the current Prime Rate plus 1.50% multiplied by 75%.  For loans over $100,000, the loan is set based on a certification by the financial institution of the normal lending rate that would have been offered to the applicant.  This lending rate is multiplied by 70% to determine the new loan ceiling rate for the linked deposit applicant. 

Certification

Borrowers are required to:

  • To be in compliance with all state and federal laws
  • To meet the eligibility requirements specified in the laws governing the linked deposit program
  • To use loan proceeds only for authorized purposes
  • The total loan amount must not exceed the allowable maximum
  • Be current on state taxes

Any loan proceeds not used for authorized purposes must be returned to the lender.  Misrepresentation of information provided in order to obtain a linked deposit, or violation of certification requirements, is a Class A misdemeanor.  The Treasurer monitors compliance with these provisions of the law.

Application Procedure

Applications for this program are available at financial institutions statewide. You may also contact the Treasurer’s Office in order to request an application:

Treasurer Sarah Steelman
Attn:  Linked Deposit Program
PO Box 210
Jefferson City, MO 65102
(573) 751-2372

Click on the link below to download the application from this web site.

Complete the short and easy loan application, making sure to fill in or check all portions on the form.  Submit the application to any participating financial institution.  The financial institution will forward the application to the Treasurer’s Office.  Loan approval is determined by the financial institution, subject to its standard credit policy.

Download Applications Here