AgBMP Loan Program

Quick Links

What is the AgBMP Loan?

The Agricultural Best Management Practice (AgBMP) Loan Program is a water quality program that provides low interest loans to farmers, rural landowners and agriculture supply businesses. The purpose is to encourage agricultural Best Management Practices that prevent or reduce runoff from feedlots, farm fields and other pollution problems identified by the county in local water plans.

Loans can be for:

  • Conservation Tillage

  • Erosion Control

  • Wetland Restoration

  • Feedlot Improvements

  • Septic Systems

  • Well Relocating and Sealing

  • Various other projects to improve water quality

  • For a complete list see:  AgBMP Practices Flyer

For more information on the AgBMP Loan Program visit the Minnesota Department of Agriculture 

To begin the application process please contact Ron Otto:  507-702-7077 ~

AgBMP Loan Application


Sibley County

Septic Systems & Well Improvement

Loan Programs


Sibley County Septic System

Low Interest Loan Program

Owners of a Subsurface Sewage Treatment System (SSTS) are eligible for low-interest loans to upgrade their non-conforming septic system.  Furthermore, those in the High Island Creek Watershed are elgible for an additional $500 incentive from the High Island Creek Watershed District.

To be eligible the applicant must be a property owner of a non-conforming septic system as described in the septic loan application instructions.

**Additional septic system grant funding is available for low income applicants.

Sibley County Well Improvement Low Interest Loan Program

Owners of an existing well system are eligible for low-interest loans to replace and seal their existing wells and install a new well in compliance with MN Dept of Agriculture AgBMP Loan Regulations.

To be eligible the applicant must be a property owner of a parcel with an pre-existing well on site.  All newly developed lots for new home construction and no existing well onsite are ineligible for this loan.

General Guidelines:

  • You must be the landowner in order to be eligible for a loan.

  • All property taxes must be current with no delinquencies on payment.​

  • All loans have a fixed interest rate of 3% and must be repaid within 10 years, there is no penalty for paying off the entire loan amount at any given time within the repayment term.

  • Septic System and Well Improvement Loans are repaid as a line item under "Special Assessments" on your real estate/property taxes.

  • All loan applications with appropriate cost estimates must be filed with the Sibley SWCD.

  • Construction should not begin before the loan has been approved by the Sibley SWCD.

Contact Us!

Sibley Soil & Water

Conservation District

  • Facebook - Black Circle
  • YouTube - Black Circle