Farmers are one step closer to possible relief during a difficult growing year.
The Legislature this week approved a bill to help provide low-cost, low-interest loans to farmers and growers hit hard by the persistent spring rains, which have prevented planting.
“What it does, it really helps to augment the origination fees for the loans, keeps those costs down, gets it down to 1% for the interest rate,” explained Republican Rep. Mark Huizenga from Walker.
House Bill 4234 will free up $15 million for lending institutions to facilitate loans to farmers who meet the loss criteria. That financial support translates into much more for farmers and suppliers who were rained out this spring.
“That leverage amount basically will get them up to $300 million,” Huizenga said.
By subsidizing interest and loan origination fees, the state hopes to help farmers that suffer 25% or more in production losses, or agriculture suppliers who sell directly to farmers with similar losses.