ST. PAUL – A bill that will replenish funds for the Rural Finance Authority (RFA) loan program has been approved in the Minnesota House. State Representative Joe Schomacker (R-Luverne) voted in favor the measure.
“The RFA can be vital to our local economy,” Schomacker said. “I’m glad to see we’ve prioritized the program and I was happy to support it.”
Schomacker said funds for the RFA program, which assists farmers with low cost financing, have basically dried up.
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.
Under this proposal, $35 million in bond proceeds would be allocated for future RFA loans. It now heads to the Minnesota Senate for further debate.