The Montana Beginning Farm and Ranch Loan Program is a tax-exempt bond program designed to assist beginning farmers and ranchers to acquire agricultural property at lower interest rates.

The program enables Montana lenders, individuals, partnerships and other entities to receive federally tax-exempt interest from bonds associated with a loan or contract sale made to a beginning farmer or rancher. The financial institution, after arranging the loan or sales contract, will obtain a federally tax-exempt bond through the department, serving as Montana Agriculture Loan Authority, in the amount of the loan or unpaid balance. The loan and its collateral are assigned to the financial institution as security for the bond.