Farm loan bill clears first hurdle

The Rural Finance Authority has helped provide nearly 3,000 low-interest loans to farmers over the last 30 years totaling $228 million. But when 2016 ended, so did the authority’s power to fund those loans.

A bill approved by the House Agriculture Finance Committee Tuesday would change that.

Sponsored by Rep. Tim Miller (R-Prinsburg), HF14 seeks $35 million in bond proceeds for the authority. This money would be used to help fund loans under the authority’s Beginning Farmer, Loan Restructuring, Seller-Sponsored, Agricultural Improvement and Livestock Expansion programs.

“Before session began, I identified this as a need, and I’ve been working very hard to ensure we can get this moving forward,” Miller said.

The authority was created in 1986 in response to the farm crisis. It works to increase rural economic development, but requires authorization from the Legislature before it can submit a bonding request.

It last received bonding authorization in 2012, and sought reauthorization as part of last year’s bonding bill. However, that legislation failed and bonding authority ran out in 2016.

WATCH Full video of Tuesday's meeting of the House Agriculture Finance Committee on YouTube

Miller told the committee HF14 was “a peculiar situation” because such a request is usually included in the bonding bill, but the Department of Agriculture asked him to move a separate bill due to uncertainty over the fate of a potential bonding bill this session.

“We need to get this moving, and Rep. Miller’s bill needs to be on a fast track to get this done,” Rep. Paul Anderson (R-Starbuck) said.

HF14 now moves to the House Capital Investment Committee. The companion, SF236, is sponsored by Sen. Andrew Lang (R-Olivia) and awaits action by the Senate Capital Investment Committee.