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State Loans and Federal Financial Assistance - A Winning Combination for Smaller Open Feedlots

October 19, 2007

DES MOINES – Small open feedlots may find a winning combination this fall if they want to improve their open feedlot by moving part or all of it under a roof.

“For the first time, we’ll be able to offer a low interest loan to producers who want to replace part or all of their open feedlot with a deep-bedded confinement,” said Patti Cale-Finnegan, the Iowa Department of Natural Resources' loan coordinator.

“Loans are available to small and mid-size operations and can be used as a sole source of financing or can be combined with an application for federal financial assistance,” Cale-Finnegan said.

Producers who would like to combine the loan with federal financial assistance should apply for the Environmental Quality Incentives Program (EQIP). Apply this fall at local USDA Natural Resources Conservation Service offices for funding in 2008.

“In the past, EQIP has provided funding for about $100 per animal unit,” Cale-Finnegan said. “Converting to a confinement building often costs producers about $400 to $500 per animal unit, so the low interest loan is an attractive option.”  

Loans are available for the buildings because they confine the animals and manure, preventing runoff or discharge of the manure. Projects that will benefit Iowa’s water quality and environment are eligible. Because of federal funding sources, the loans are available only to facilities with less than 1,000 beef cattle, 700 mature dairy cows or 2,500 finishing hogs.

Funding can be used for deep-bedded buildings that:

  1. Replace an existing open feedlot, or

  2. Expand a facility as an addition to an existing open feedlot, provided the existing open feedlot remains in compliance with all environmental rules.

The loans cannot be used for some of the minor costs of the project, such as feed bunks or watering facilities, that don’t have a direct benefit to the environment or Iowa’s water quality.

Producers may apply for loans through many local lenders. Applications and more information about the program are available through the Iowa Agricultural Development Authority, which administers the loan program in cooperation with the DNR.  Contact Jeff Ward, (515) 281-6444 or go to http://www.iada.state.ia.us/livestock_wqfp.htm.

Writer: Karen Grimes

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New Rules Effective October 3

The DNR’s new rules that allow livestock producers to apply for low interest loans to replace part or all of their open feedlot with a deep-bedded confinement were effective Oct. 3. The DNR has approved applications for loans in the following counties:

  • Hardin County: A $230,000 loan used in conjunction with federal Environmental Quality Incentives (EQIP) financial assistance and the applicant’s funds. The loan will be used to replace an existing open feedlot with a 450-head cattle confinement building.

  • Hardin County: A $405,000 loan combined with EQIP and the applicant’s funds for a $502,000 project. The applicant plans to replace an existing open feedlot with two 450-head cattle confinement buildings.

  • Crawford County: A $450,000 loan will be combined with EQIP and the applicant’s funds to replace an existing open feedlot with hoop buildings to hold 999 cattle. The total project cost will be $500,000.

 

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Contacts:
Patti Cale-Finnegan, Iowa DNR, 515-725-0498
Dave Brommel, USDA-NRCS, 515-284-4353


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