Bill to help more farmers qualify for disaster loans heads to House Floor

Assistance for farmers hard hit by heavy snow is headed for the House Floor.

Sponsored by Rep. Jeanne Poppe (DFL-Austin), HF2093, as amended, would broaden eligibility for the state’s Disaster Recovery Loan program by giving the Rural Finance Authority the ability to declare a market disaster or emergency.

Rep. Jeanne Poppe

It was approved Tuesday by the House Agriculture and Food Finance and Policy Division.

Recent snows left many farmers with barn and cattle losses, but gaps in insurance coverage are adding to the stress of a struggling farm economy, according to Poppe.

Currently, farmers can only access these recovery loans when a disaster is declared by the state or federal government. Those declarations are tied to public infrastructure damage, explained Deputy Agriculture Commissioner Andrea Vaubel. By allowing the Rural Finance Authority to make market disaster declarations, loans could be made available to help farmers with expenses not covered by insurance.

The bill was originally intended to be part of the omnibus agriculture policy bill, but was presented separately to allow quicker access to these funds.

An amendment successfully offered by Poppe removed language regarding disease outbreak. That language is expected to be returned to the omnibus bill, HF1733, through amendment on Thursday.

A companion, SF2225, sponsored by Sen. Michael Goggin (R-Red Wing), awaits action by the Senate Agriculture, Rural Development, and Housing Policy Committee.