ST. PAUL – Minnesota House Democrats on Wednesday unanimously voted against and blocked a House Republican proposal to allocate funds for a depleted loan program which aids farmers.
The Rural Finance Authority loan program runs out of funds on Friday, according the Minnesota Department of Agriculture. House Republicans attempted to replenish those funds to eliminate uncertainty for farmers and help them prepare for the upcoming growing season.
“Demand for RFA programs remains high as farmers work to overcome low commodity prices and razor-thin margins,” said Rep. Paul Anderson, R-Starbuck. “Unfortunately, the funds to support the RFA programs are running out. The growing season is right around the corner and there is concern that waiting until the end of the legislative session to address this issue will be too late for some people. There is no good reason to wait, so it is disappointing to see the majority refused to declare urgency on this matter so we can help farmers.”
Anderson said the RFA partners with agricultural lenders to provide low-cost financing to farmers on terms and conditions not otherwise available from other credit sources. The RFA portion of the loan is carried at a reduced interest rate to improve the cash flow of eligible farmers. RFA offer loans within the beginning farmer loan and seller assisted program, agricultural improvement program, debt restructuring program, and livestock expansion programs.
House Republicans attempted to allocate $50 million to the RFA on Wednesday.
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