Dairy Improvement Fund

Dairy Improvement Fund is sponsored by Maine Department of Agriculture, Conservation and Forestry. Offers loans for capital improvements to enhance the viability of dairy farms and enterprises.

Dairy Improvement Fund: Agricultural Resource Development Division: Maine DACF Bureaus & Programs → Bureau of Agriculture → Agricultural Resource Development Division → Grants & Loans → Dairy Improvement Fund Loan Agricultural Resource Development Division The Dairy Improvement Loan Fund (DIF) provides financing to help Maine agricultural businesses undertake projects to enhance the viability and vitality of the farm, and improve the manufacturing, marketability and production of their products.

DIF provides eligible Borrowers direct loans of up to $250,000 at a 1% fixed interest rate for capital improvements.

An eligible Borrower must: Be a dairy farm defined as “any place or premises where one or more cows, goats or sheep are kept and from which milk or milk products are provided, sold or offered for sale” Be located in the State of Maine; and Propose an eligible use of the fund that will assist the dairy farm in making capital improvements to maintain and enhance the viability of their farm.

Eligible Uses of the Fund Design, construct, or improve milking parlors, dairy barns and structures, and dairy feed storage structures; or Purchase, construct, or renovate buildings, land and equipment to maintain and enhance the viability and vitality of an established dairy enterprise, dairy, dairy farm, or business making milk products, located in the State of Maine.

Ineligible Uses of the Fund The Fund may not be used for: Refinancing projects commenced, costs incurred, or expenses paid prior to loan application. However, the Borrower may submit a written request for a waiver. Such waiver must be approved in writing by the Commissioner of the Department of Agriculture, Conservation and Forestry (DACF).

Project Eligibility Process 1. Before you complete any forms, take time to update your business plan, budget & financial projections to include the proposed project. 2.

Submit completed Project Eligibility Form (PDF) to DACF. 3. The DACF will review your Project Eligibility Form and may contact you to conduct a telephone interview and make a site visit.

4. The Commissioner will then either issue a Letter of Eligibility for your project or recommend that you revise and resubmit your Project Eligibility Form for reconsideration. 5.

If the Commissioner issues a Letter of Eligibility for your project, then you, as an Eligible Borrower, may submit your completed DIF Loan Application and FAME Personal Financial Statement to FAME. You must do this within 90 days. Please see FAME Dairy Improvement Fund webpage for more details and forms.