House passes $35 million farm loan bonding bill

Help for farmer’s seeking low-interest loans could be on the way as the House passed HF14 Monday by a vote of 129-0.

Sponsored by Rep. Tim Miller (R-Prinsburg), the bill would authorize bond sales to raise $35 million for the Rural Finance Authority, which helps provide loans to increase rural economic development, but no longer has money to lend after the failure of last year’s bonding bill. The bill now goes to the Senate where Sen. Andrew Lang (R-Olivia) is the sponsor.

Rep. Tim Miller

“With a strong demand for restructure loans due to low commodity prices, I’m pleased the House recognized the importance of RFA loans and took quick action on this bill,” Miller said in a statement.

Several members offered support for the bill, but also called attention to other projects around the state in need of funding.

“There’s a lot of urgency in Minnesota in undone work that didn’t happen last year,” Rep. Rick Hansen (DFL-South St. Paul) said.

The RFA was created in 1986 in response to the farm crisis. It offers several types of loans under its Beginning Farmer, Loan Restructuring, Seller-Sponsored, Agricultural Improvement and Livestock Expansion programs.

The authority 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.

“Time is of the essence here,” said Paul Anderson (R-Starbuck). “I understand the need for other [projects] around the state, but let’s work on this one today and get this done for the farmers of Minnesota.”

WATCH Full video from debate of the bill on the House Floor