ST. PAUL – $35 million in bond proceeds would be allocated to the Rural Finance Authority (RFA) loan program under a proposal approved recently by the Minnesota House. State Representative Rod Hamilton (R-Mountain Lake), who chairs the Minnesota House Agriculture Finance Committee, said the legislation is necessary because the RFA is nearly out of funds.
“In just a few months farmers will be looking to get out in the fields, which means there will be a need for low cost financing,” Hamilton said. “It’s very important that we get this bill to the governor quickly.”
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.