Agricultural Water Conservation Loan Program

TWDB's Agricultural Water Conservation Program was expanded as a result of Senate Bill 1053 passed by the 78th Texas Legislature. Under the new consolidated program, TWDB can

  • provide agricultural water conservation loans to political subdivisions and eligible lending institutions for their use either for improvements on their facilities or as loans to individuals.
  • provide a linked deposit loan program for individuals to access TWDB funds through participating local state depository banks and farm credit institutions.

TWDB has provided over 79 million dollars in loans for water conservation programs and projects in the last 30 years.

View more detail about the Agricultural Water Conservation Grant and Loan Program

Who can apply?

Any political subdivision such as a city, county, soil and water conservation district, underground water conservation district, or irrigation district can apply.

What can be funded?

Conservation programs or projects are eligible. This includes a conservation program that funds a political subdivision or person for a conservation project.

A conservation program is

  • an agricultural water conservation technical assistance program;
  • a research, demonstration, technology transfer, or educational program relating to agricultural water use and conservation;
  • a precipitation enhancement program in an area of the state where the program, in the TWDB’s judgment, would be most effective; and
  • a water conservation program administered by a state agency or political subdivision to provide loans to persons for conservation projects.

 A conservation project

  • improves the efficiency of water delivery to and application on existing irrigation systems;
  • prepares irrigated land for conversion to dry land conditions;
  • prepares dry land for more efficient use of natural precipitation;
  • purchases and installs on public or private property devices designed to indicate the amount of water withdrawn for irrigation purposes; or
  • prepares and maintains land to be used for brush control activities in areas of the state where those activities, in the TWDB’s judgment, would be most effective.

How do I apply?

Applications may be submitted at any time, are processed in the order received, and are subject to availability of funds. All submitted applications must be consistent with application guidelines as outlined on the Financial Assistance Program Guidance page.

What are the conditions of financial assistance?

Security Instrument: Bonds or loan agreements as appropriate per the applicant's requirements for debt issuance.

  • Pledge: System revenue, contract revenue, ad valorem tax, and tax ans revenue pledges are typically required.
  • Length of Loans: Up to 10 years.
  • Interest Rates: The interest rate to the political subdivision shall be equal to the asking yield for a U.S. Treasury Note with a 12-month maturity on the date rates are set.

Where can I get more information?

For additional information please contact Conservation Staff at (512) 463-7955.

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