Committee Approves Changes to Agricultural Disaster Relief Program

Liz Gullett

Committee Approves Changes to Agricultural Disaster Relief Program

Jan 17, 2020

The Senate Appropriations Committee reported legislation that would allow farmers to apply soon for low-interest qualified loans. Introduced by Senator Dan Lauwers (R-Brockway), the bill would update the Agriculture Disaster Loan Origination Program to reflect the specific needs of the 2019 season and allow lenders to begin issuing loans with the $15 million appropriated by the legislature in June 2019.

The program is a partnership between farmers and processors, private lenders, and the state to support the agriculture industry through loss of crops due to weather-related disasters. It provides growers and agribusinesses low-interest loans and it allows farms to take out a loan based on their qualified losses to cover their everyday expenses, including machinery, land, and infrastructure payments.

Among other changes, the legislation would update the interest rate to the five-year U.S. Treasury Note rate plus 2% and extend the lending period to seven years.

The bill has been sent to the Senate floor for further consideration.

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