Energy Efficient Farmstead Retrofit Program

Missouri Agricultural and Small Business Development Authority is offering tools and incentives for farmers to improve energy efficiency on livestock farms.


Description

The program provides the following assistance to farmers:

• Comprehensive energy audits for both the farm and home

• Rebates for the cost of the audit

• A Loan Loss Reserve Program to encourage lenders to finance the energy efficiency improvements on both the farm and home

• Interest Buy Downs or Down Payment Grants to the applicants to reduce the interest rate, principal amount or payback time for the retrofits.

Definitions

• Farm Energy Audit - a comprehensive energy audit that includes detailed recommendations about specific equipment and field operations.

• Home Energy Audit – a comprehensive energy audit that includes detailed recommendations about specific equipment.

• Energy Audit Rebate – a cash rebate if one or more of the audit finding(s) from which the energy savings realized is greater than the total cost of the audit and implementation. The farmer will then receive a rebate for the actual amount paid to the audit firm, not to exceed $500 for the farm audit and/or $250 for the farm home audit.

• Interest Buy Down – The Missouri Agricultural and Small Business Development Authority (MASBDA) will pay interest due on loans, for the implementation of energy-saving technologies; from the normal and customary rate down to a 3 percent rate.

• Cash Down Payment – Farmers may elect to receive the same dollar amount as the Interest Buy Down amount as cash down payment rather than the Interest Buy Down. If the farmer elects to receive the cash down payment then the interest rate shall be at the bank’s normal and customary interest rate.

• Loan Loss Reserve – a dedicated fund established for the purpose of payments of defaulted 75 percent guaranteed loans. The total outstanding loans guaranteed shall at no time exceed an amount which according to sound actuarial judgment would allow immediate redemption of 10 percent of the outstanding guaranteed loans by the fund at any one time. MASBDA has no legal or financial obligation beyond the funds committed to the loan loss reserve and is not subject to further recourse in the event losses exceed the amount of the loan loss reserve.

How does the Program Work?

Contact EnSave at 800-732-1399 to have an initial assessment completed to determine whether an energy audit is appropriate for the farm operation. To participate in the financial assistance programs available, please read the full guidelines and complete the applications.
Who is Eligible?

1. Animal agriculture farmers not required to be permitted as a confined animal feeding operation (CAFO).

2. Applicant must be a legal Missouri resident and at least 18 years old.

3. Applicant must be able to provide proof of citizenship or immigration status, identity and residence. If the borrower employs laborers, he/she must also provide proof of enrollment and participation in the federal work authorization program.

4. An eligible lender is any state or national bank, farm credit system, bank for cooperatives, federal or state chartered savings and loan association, federal or state building and loan association or a small business investment company. All lenders must be subject to credit examination by an agency of the state or federal government.

5. Eligibility will not be determined or otherwise affected by any consideration of race, religion, sex, creed, color or residence, other than the individual borrower must be a legal Missouri resident at least 18 years of age, and the farm and/or farm house must be located in Missouri.

Other Information

Records: MASBDA reserves the right to ask for additional information necessary to ensure program eligibility.

Audit: MASBDA reserves the right to audit approved loans to ensure compliance with program requirements.

Click here for more information.  To contact MASBDA click here.