Department of Agriculture

Growth Through Agriculture

"The Montana Growth Through Agriculture program works to strengthen and diversify Montana's agricultural industry". Ralph Peck, Director

The Montana Growth Through Agriculture program, through monetary investments in projects, establishes public/private sector partnerships that assist in the development of innovative agricultural products and processes to add value to the agriculture industry, to create new jobs, and to expand small business opportunities.

Who's Eligible?

Public and private entities and organizations, business and industry, educational institutions, local governments and individuals are eligible to submit proposals to the Montana Agriculture Development Council requesting a loan or an investment in a project. The Council reviews proposals on a quarterly basis to determine the investments.

Types of Projects

Generally, to qualify for consideration, proposals must have practical, near-term application involving new or alternative technologies, practices or organizational arrangements that will stimulate expanded agricultural development, economic activity and employment growth.

Growth Through Agriculture funds may be utilized, among other projects, to:

  • Conduct a market feasibility study
  • Conduct market research
  • Develop an education program
  • Design packaging, advertising and marketing materials
  • Print marketing materials
  • Marketing Development - Used to enhance agricultural research capabilities, market development and improve access to agricultural information.
  • Trade Activities - Used to promote sales, conduct marketing research and provide exporting assistance to businesses.

    The council also funds loans for capital investment in equipment, buildings, land or other items needed for value-added processing. The maximum limit in any one round of financing is $50,000. Successive rounds of financing in which the Council participates for any one company may not occur within a 9-month period. The total amount of investment for any one company may not exceed $150,000. A one-to-one cash or in kind match is required

    Type of Investments

    Public/private partnerships are established through the investment of Growth Through Agriculture funds in public or private projects. The Montana Agriculture Development council determines the investments, and may elect to invest in a project through one of three avenues:

    • Return on Investment (ROI) - an award of money with the expectation that the money will be repaid beginning in two to five years. No payments are required, and no interest is accrued during the initial time period. After this time the award recipient repays the investment plus interest over a period of up to eight years.
    • Seed Capital Loan - an award of money with the expectation that the money will be repaid with interest. Security and repayment provisions are structured on an individual case basis. Interest rates on loans may change with economic conditions, but are fixed for the term of any particular loan. Applicants must complete and submit a loan application. Typically, loans are awarded for projects requesting funds to purchase equipment or pay for other capital expenditures.
    • Investment without Repayment - an award of money without the expectation that the funds will be repaid.

    Agricultural Finance Program
    (Rural Rehabilitation)

    The purpose of the Agricultural Finance Program is to aid the rehabilitation of rural agricultural families. The program is designed to fill the gap in agricultural financing between private commercial lenders and the Farmers Home Administration. Funds may be used to make direct loans, refinance existing debt, and provide grants to individuals or organizations including 4-H Clubs, Future Farmers of America (FFA) chapters and the Young Ag Couples Conference. Loans under this program include:
    • Participation and Subordination - Rural assistance financed in conjunction with federal programs.
    • Rural Assistance - Used to finance agricultural enterprises (farmers and ranchers). Maximum loan amount is $35,000 per individual or $70,000 per household. Loans may be made to finance livestock, machinery, barns, irrigation systems, operating expenses, and agricultural land.
    • Junior Agriculture - Designed to finance 4-H and FFA projects. Loans to individuals cannot exceed $7,000. Loans of $14,000 can be made to FFA Chapters and 4-H Clubs. Projects can involve crop and livestock production, custom farming, marketing and distribution.

    Montana Agricultural Loan Authority (MALA)

    The MALA is also known as the Beginning Farmer Loan Program. It was implemented to provide low-interest loans to beginning farmers and ranchers.

    Department of Agriculture officials intend to revitalize this program for the 2002-2003 biennium because qualifying federal agricultural bonds for beginning farmers are now available. Application for a loan would be through a local bank or financial institution.

    The tax-deduction portion of this program remains active. Under this portion of the program, if an existing farm/ranch landowner sells to a beginning farmer, the landowner may be eligible to receive a reduction in taxable income of $50,000.

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