FARMLAND DRAINAGE PROGRAM – REVOLVING LOAN FUND

The Development Authority of the North Country Farmland Drainage Program is available for farmland drainage in Jefferson and St. Lawrence Counties. The Farmland Drainage Loan Program was established through a legislative grant by Senator James Wright and the Development Authority of the North Country to provide low-interest loans to the farming community in order to increase crop production yields through farmland drainage.

Many years of research has shown that drainage is desirable for increased trafficability and soil aeration, which result in higher crop yields, better quality crops, and more timely planting and harvesting conditions.

In order to provide the necessary technical assistance in areas such as determining soil content, drainage system design, and wetland regulation, the Authority has partnered with the following agencies:

These technical assistance providers will work closely with potential borrowers to determine the appropriateness of their drainage project request. They will also monitor drainage system installation and assist farmers in measuring crop yields.

Eligibility: Farming must be the applicant’s primary business. Land to be drained should presently be productive farmland that with drainage would improve crop production yields.

Eligible Use of Funds: Purchase, installation and associated soft costs to install drainage systems to lands presently producing crops. Drainage includes both subsurface and surface systems.

Interest Rate: The greater of one-half (½) of the prime rate fixed at closing, or a floor of 3%.

Financial Underwriting: The Development Authority of the North Country will review loan applicant’s credit history including references from applicant’s bank and two vendors. All borrowers must have ability to repay the loan and be in good credit standing. Applicant’s having poor credit history will be denied funding from the program.

The Development Authority of the North Country and its partnering agencies will solicit loan requests from the farming community throughout Jefferson County and areas of St. Lawrence County. After a financial and feasibility review by the Development Authority and its partnering agencies, loan commitments will be made to specific borrowers. Borrowers will receive a written commitment letter from the Development Authority of the North Country detailing the terms and conditions of the loan.