Livestock Water Quality Program

Livestock Water Quality Program

The Livestock Water Quality Program (LWQ) offers low-interest loans through participating lenders to Iowa livestock producers for projects to prevent, minimize or eliminate non-point source pollution of Iowa’s rivers and streams from animal feeding operations.

The types of eligible projects include lagoons, manure management structures, equipment, vegetative filters and the development of manure management plans. Assistance is limited to existing facilities for animal feeding operations with less than 1,000 total animal unit capacity (AUC).

The Iowa Agricultural Development Authority (IADA) administers the program, and the Iowa Finance Authority (IFA) is the financial agent. Prior to receiving a loan, the landowner must receive project approval.

IFA deposits funds in an account at the local lending institution in an amount equal to the loan amount. This linked deposit allows the lender to make a loan to an eligible borrower at a low interest rate.

How Does It Work?

Local banks originate the loans of $10,000 and more with a maximum term of 20 years, depending on the useful life of the project.
The interest rate charged the borrower will not exceed 3%.
IFA deposits funds equal to the principal amount of the loan at 0% interest.
The deposit does not guarantee the loan nor is it collateral for the loan. The deposit is only to reduce the interest rate charged to the borrower.
Annually, IFA will withdraw from the deposit account an amount equal to the principal repayment of the outstanding loan. As a result, the amount in the deposit account will equal the principal outstanding on the loan.
All costs directly related to the design, permitting, construction and financing of the water pollution control facilities are eligible. Costs for development of a manure management plan, nutrient management plan or comprehensive nutrient management plan are also eligible.

Application Procedure
Applying for a LWQ loan is easy! Simply complete this step-by-step process.

Become a Participating Lender:

Sign up as a participating lender. Contact Jeff Ward at 515.281.6444 or jeff.ward@iada.state.ia.us. Or go to the IADA Web site.

Project Application Process:

The borrower works with IADA on project eligibility.

Loan Application Process:

The borrower completes the lender’s normal loan application process.
When the local lender approves the loan, he/she completes the LWQ application and sends it to IADA.

Loan Completion:

After the project has been completed and certified, IADA approves the project and loan amount online.
After IADA approves the project, IFA approves the application and the lender receives an email that funds can now be requested.
Lender goes online and requests the funds. This involves entering loan details (date of loan, term of loan, lender contact, etc.).
Funds are deposited in an IFA deposit account at the local lending institution and the borrower receives his/her loan from the lender.

Annually:

Approximately two weeks before the anniversary date of the loan, IFA will send a notice to the local lender via email reminding the lender that IFA will withdraw from its deposit account an amount approximately equal to the principal that has been repaid.
The amount in the deposit account and the amount of the outstanding principal on the loan will be the same.