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Agriculture Loan Programs

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The Agriculture Loans Section of the Utah Department of Agriculture and Food is involved in four agriculture and rural loan programs:

On July 1, 1983, the Utah Department of Agriculture expanded its Rangeland Development program to include cropland, watershed, and energy conservation practices. This expanded program is known as the Agriculture Resource Development Loan program or ‘ARDL’. This program is administered by the Department of Agriculture & Food (UDAF) under the direction of the Conservation Commission.

What Does the Program Do?

The program provides low interest loans to farmers and ranchers for projects which meet the conservation and pollution control goals of the program.

The goal of the program is to aid farmers and ranchers to:

  • Conserve soil and water
  • Increase agricultural yields
  • Maintain and improve water quality
  • Conserve and improve wildlife habitat
  • Prevent flooding
  • Develop on-farm energy projects
  • Mitigate damages resulting from natural disasters (e.g. flooding, drought, etc.)

Some examples of eligible projects are:

  • Irrigation systems
  • Animal manure management
  • Riparian improvement
  • Rangeland improvement
  • Reseeding watershed
  • Wind erosion control
  • Selected Crop and Food Storage
  • Hydroponic and Aquaponic Projects

Loan Terms:

Loan Amount Interest Rate Loan Terms Max Loan to Value
Less than $52,000 3.25% 7 years or 15 years 70%
$52,001 - $103,999 3% 15 years 70%
$104,000 or more 2.75% 15 years 70%

As of November 30, 2022, the administrative fee has been adjusted to one percent (1%).

Who is Eligible?

The United States Department of Agriculture defines a “farm” as an operation of five or more acres with annual sales of at least $1,000.00. Any private farm or ranch operator who meets this definition is eligible to apply for an ARDL loan. The planned projects must be applied to farmland or ranchland.

Can Loan Funds Be Used with Other Federal Programs?

Combining ARDL funds with other grants and loans is encouraged in order to provide the maximum benefit in conservation. There are no restrictions against combining ARDL funds with other types of funds.

Why Should I Implement a Conservation Project?

Conservation of resources not only helps the environment, it helps you. Good conservation practices help to maximize profits by reducing costs through the effective use of valuable resources. Improvement of wildlife habitat, rangeland, and waterways means better conditions for livestock and wildlife as well as for better crop yields. The efficient use of water and the reduction of silt from erosion in streams and reservoirs means that more water is available for culinary and recreational purposes. The improvement of wildlife habitat and the reduction of erosion and pollution also helps improve the relations between agriculture and the environmental and urban communities, a real concern in today’s world.

How Do I Apply for a Loan?

An application can be obtained from your local Conservation District supervisor, your local USDA Service Center, or the Utah Department of Agriculture & Food.

Click here for the application. Application must be returned to the Conservation District Supervisor or the Resource Coordinator for each zone.

If the project meets the ARDL program guidelines a specialist from the Natural Resources Conservation Service (NRCS) or the Utah Association of Conservation Districts (UACD) will be assigned to help you design and develop the project.

After the project is developed it will be submitted to the local Conservation District board for review. The board will also determine the dollar amount to be allocated for the project. Project planning is done at the local level to ensure the ability to adapt to local conditions. The board will use local conservation priorities to determine the best use of funds.

When the plan is approved the application and plan are sent to the loan office at the UDAF. The State staff will approve the credit eligibility, determine collateral and prepare the loan papers. When the loan process is complete you may begin your project.

Administrators of ARDL

The following individual is responsible for the handling of the applications at UDAF: Loan Specialist: Amy Wengren [email protected] (801) 982-2227.

Click here to learn more and how to apply.

The Rural Rehabilitation Loan Program is another source of low-interest loans for farms and ranches. The purpose of this program is to help those who want to buy, begin or improve an agricultural operation but who cannot qualify for conventional financing. The current interest rates for these loans are from 5-6 percent. This loan fund was augmented by the Legislature to assist distressed farmers in 1992, and has since grown as a result of additional appropriations and internal growth through earnings.The program contains both state and federal funds. Delinquencies in all loan programs are very low.

In addition to the agriculture loans, the loans section manages the Petroleum Storage Tank Loan program in cooperation with the Division of Environmental Response and Remediation (DERR) of the Utah Department of Environmental Quality (DEQ). Loan applications and more information on the PST Program can be found here.

The section also cooperates with the Division of Water Quality in underwriting non-point source pollution prevention loans funded by the State Revolving Fund.

Rural Rehabilitation (Utah Code Annotated: Title 4, Chapter 19)

Agriculture Resource Development Loans (ARDL) (R64-1)

Petroleum Storage Tank Loan Program (Utah Code Annotated: Title 19, Chapter 6, Section 405)