The 1983 State Legislature established the conservation practices revolving loan fund to provide loans to eligible landowners at no interest for the construction of permanent soil conservation practices. Authorized in Iowa Code Section 161A.71, eligible landowners may borrow up to $20,000 for a 10-year period. Repayment is made in 10 annual payments equal to 10% of the initial loan amount. In the event of land ownership transfer, payment is due immediately.
The Revolving Loan Fund is an alternative to the traditional cost share programs. It allows a landowner to put a conservation practice on the ground today, with payments extended out over a ten year period. For some landowners, it also provides tax advantages.
Fund allocations are made to soil and water conservation districts, commissioners set priorities for their use, and field office staff assure the technical quality of practices built. These practices are also subject to maintenance agreements. Unlike the cost share program, management practices are not authorized.
