ST. PAUL – The Minnesota House of Representatives has approved legislation that will allocate funds for the Rural Finance Authority (RFA) loan program.
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.
“The RFA loan program is an essential tool to help farmers access low-interest funding to start, expand or keep their family farm running,” said Rep. Deb Kiel, R-Crookston. “Northwest Minnesota is a key agriculture region of our state, and I will continue to champion commonsense policies that benefit rural families, farmers and taxpayers.”
“This program is extremely beneficial to farmers, and there is an urgency to get this done early so farmers can plan for the upcoming growing season,” said Rep. Dan Fabian, R-Roseau. “This is a beneficial public-private partnership that helps many folks working in agriculture across our state.”
The legislation calls for $35 million in bond proceeds to be allocated for future RFA loans.
The bill now heads to the Minnesota Senate for further debate.