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​The Kentucky Division of Conservation administers the Equipment Revolving Loan Program, which has been in effect since 1948. During this time, over $62 million has been loaned to more than 2,000 individuals and conservation districts for the purpose of purchasing specialized equipment. Equipment eligible for loans through the program include dozers, backhoes, no-till drills, precision applicators for agriculture chemicals and other equipment suited for conservation work.

Application for loans are submitted by the conservation district to the Kentucky Soil and Water Conservation Commission. Loans can be requested for up to two-thirds of the purchase price including sales tax. The one-third down payment can be satisfied by either trade-in or cash. The equipment then can be leased to a contractor in the area who agrees to conservation work.

Once loans are approved by the Kentucky Soil and Water Conservation Commission, the Division of Conservation sets up the terms of the loan, repayment schedule and reporting requirements in a contract with the conservation district. Similar contract terms are drawn up when a conservation district leases to a contractor.

The loan terms include:

  • One percent interest per annum on the outstanding balance.
  • Payments are required monthly or need to be made current at the end of each six month period. (Contractors are required to report work completed and pay a flat rate per hour or acre).
  • Loans can be repaid over a 3 to 7 year period.

The Division of Conservation holds the title to all equipment until the loan is paid in full. At that time the lien will be released to the conservation district and may be transferred to the contractor. Contractors must give priority to conservation work. If no conservation work is available, contractors can use the equipment for any work not specifically forbidden by the contract. Contractors must report monthly the type and amount of work completed.

If you have questions or need additional information concerning the Equipment Revolving Fund, contact the local conservation district office in your county or Johnna McHugh, assistant director, Kentucky Division of Conservation. A downloadable equipment loan application​​ and loan report form are available.

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