Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Legislative News and Views - Rep. Bud Nornes (R)

Back to profile

House Democrats block proposal to replenish funding for farm loans

Wednesday, February 19, 2020

ST. PAUL – Minnesota House Democrats on Wednesday unanimously voted against and blocked a House Republican proposal to allocate funds for a depleted loan program which aids farmers.

The Rural Finance Authority loan program runs out of funds on Friday, according the Minnesota Department of Agriculture. House Republicans attempted to replenish those funds to eliminate uncertainty for farmers and help them prepare for the upcoming growing season.

“We had a chance to replenish depleted funding for loan programs to help farmers, yet the House majority stood in the way for reasons I don’t think anyone understands,” said Rep. Bud Nornes, R-Fergus Falls. “There’s nothing to be gained by waiting until later to help farmers. All we’ll do is add to the uncertainty for financially stressed farmers as we get closer to the start of a new growing season.”

Nornes 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.

House Republicans attempted to allocate $50 million to the RFA on Wednesday.

-30-