The Oklahoma Beginning Farmer Loan Program (OBFLP) helps provide additional credit options for those entering farming. The loan can be used to obtain or improve capital items such as agricultural land and property, depreciable machinary and equipment, and/or breeding livestock. The Oklahoma Development Finance Authority administers the Oklahoma tax-exempt bond program. Agricultural tax-exempt bond programs, often referred to as "Aggie bonds," are an incentive for lenders or contract sellers to offer loans for beginning farmers (defined later) at a generally lower interest rate. The lender, in most cases, is eligible to earn state and federally tax-exempt interest from the loan proceeds. The lender assumes all risk for obtaining security for the loan and repayment.