ST. PAUL – The Minnesota House of Representatives has unanimously approved legislation that will allocate funds for the Rural Finance Authority (RFA) loan program.
“The time to pass this bill to refill the RFA was now. Farmers are starting to get ready for the growing season and the RFA was basically out of money,” said Rep. Matt Grossell, R-Clearbrook. "I am glad we were able to get this important bill through the House and help reassure Minnesota farmers that help is on the way."
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, chief authored by Rep. Tim Miller, R-Prinsburg, calls for $35 million in bond proceeds to be allocated for future RFA loans.
The bill now heads to the Minnesota Senate for further debate.
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