HAY BARN LOAN PROGRAM
The AADA Hay Barn Loan Program is a low-interest loan program for Alabama hay producers and cattlemen to provide financial assistance for the construction of approved new hay barns for use on farms and ranches in Alabama. Access to a hay barn enables the farmer to store hay under cover and subsequently receive substantial economic benefits and improved hay quality. Hay barn plans must meet certain standard criteria with said plans required to be reviewed and approved by the oversight committee prior to start of construction. Each barn should be of sufficient height to be able to stack a minimum of 3 hay rolls high.
Allowable funding of the direct project cost is limited to a maximum of approved loan amount (to be verified by receipts.) As a guideline, two loan categories have been established based on the size of the hay barn:
$12,500 for a 40' x 60' barn
$25,000 for a 50' x 100' barn
Loans are for a maximum of 4 years at a simple annual interest rate of 4 percent. A signed promissory note denoting annual payments will be required along with verifiable first position on security that sufficiently collateralizes the loan. Proof of insurance and insurance assignment to AADA must be provided. A $50 application fee will be charged to cover collateral filing fees and other administrative costs.
If you would like to apply for a loan under this program, complete the Loan Application and attach a $50 application fee payable to Alabama Agricultural Development Authority, and submit to
Alabama Agricultural Development Authority
1445 Federal Drive
Montgomery, AL 36107
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