ST. PAUL – The Minnesota House of Representatives has approved legislation that will allocate funds for the Rural Finance Authority (RFA) loan program.
State Representative Tim Miller (R-Prinsburg), who chief-authored the bill, said the program is critical as it assists farmers with low-cost financing.
“With farmers beginning to prepare for a new growing season and basically no money left for RFA funding, lawmakers needed to act with a sense of urgency,” Miller said.
Miller 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.
Miller’s bill calls for $35 million in bond proceeds to be allocated for future RFA loans.
“With a strong demand for restructured 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.
Miller’s bill now heads to the Minnesota Senate for further debate.