Montana Board of Investments CRP Loans
Doane Western is the contracted loan originator for the State of Montana Board of Investments CRP Enhancement Loan Program.
General Information:
The State of Montana has a loan program which allows farmers to receive a lump sum amount in return for assigning their remaining CRP contract to the Board of Investments (BOI). The lump sum paid is in the form of a loan. The loans are fully amortized with the remaining years of the CRP contract. Each year, as the CRP payment is made to the BOI, a portion is allocated to interest on the loan and the remaining amount is applied to principal.
The program requires a first lien position be granted to the BOI on the CRP acreage only. The legal description of the CRP acres must be a recordable unit, therefore in some cases additional adjacent land must be offered as security to complete a recordable unit (usually down to 20 acres).
Items Required for Application Submission:
• A completed CRP Loan application provided to the borrower for each CRP contract.
• Copies of FSA field maps showing the CRP acres.
• Copies of the CRP contracts.
• $500 application fee to be included with completed application. ($250 of the application fee is credited to the borrower at loan closing to apply to other loan closing costs.)
• No financial information or appraisal required.
Loan Costs:
• $500 Application Fee ($250 is credited toward the below costs).
• 1/2 of 1 percent loan origination fee ( example: $375 for $75,000 loan ) title insurance fee charged by title company • UCC lien search (typically $15)
• Recording fees (typically $75)
• Closing Fee charged by title company (typically $125 – $250)
• Any wiring fees required to payoff other lien holders.
Borrower Eligibility:
• Must be able to provide first lien to BOI on CRP acres. Funds must be used for Montana Agricultural Purposes (purchase land, cattle or equipment, refinance other debt, or use for operating funds.
• Borrower is not in bankruptcy or foreclosure at loan closing.
• Borrower is not on the Federal Debt Register at time of loan closing.
For more information, or an application packet, please call 406-587-1201