ST. PAUL – The Minnesota House on Thursday provided broad, bipartisan approval of a bill to replenish funds for the state’s depleted Rural Finance Authority loan program for farmers.
Upon enactment, the bill would provide $50 million to the RFA after the program ran dry Feb. 21. State Rep. Paul Anderson, R-Starbuck, co-authored the bill (H.F. 2959) and said he is pleased with the strong support it received in passing the House 127-2.
“The RFA programs are important to farmers and getting this bill through the House removes some financial uncertainty as we enter the new growing season,” Anderson said. “Waiting until the end of session to get this done could have been problematic, so it is good we got to this now and it was good to see such overwhelming support in the House.”
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.
The bill now awaits action in the Minnesota Senate.
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