Family Farms Act Offers Interest Break For Missouri ‘Small Farmers’

Family Farms Act Offers Interest Break For Missouri ‘Small Farmers’
Aug. 31, 2006

Missouri House Bill No. 1349, also known as the “Family Farms Act,” was signed into law June 29 by Missouri Governor Matt Blunt as part of Senate Bill 1017. Effective Aug. 28, the Family Farms Act waives the interest payment for the first year on qualified loans for the purchase of breeding livestock by a Missouri-resident “small farmer,” which it defines as one who has less than $250,000 in gross sales per year. Each small farmer/family is eligible for only one loan, for only one type of livestock.

The maximum amount of the loan for each type of livestock is as follows.

1) $75,000 for beef cattle
2) $75,000 for dairy cattle
3) $35,000 for swine
4) $30,000 for sheep and goats

The loan shall be submitted for approval by an agricultural and small business development authority. That authority will take into consideration the eligible borrower’s ability to repay the loan; the general economic conditions of the area in which the farm is located; the prospect of financial return for the small farmer for the type of livestock for which the family loan is sought; and other factors the authority may establish.

The authority will also be responsible for reviewing the purchase price of livestock to determine whether the price is appropriate for the type of livestock purchased. The authority may impose a one-time loan review fee of 1%, which will be collected by the lender at the time of the loan and paid to the authority.

Nothing about the “Family Farms Act” precludes a small farmer from participating in any other agricultural program.

Missouri House Bill No. 1349 was originally sponsored by Rep. Tom Loehner (R) as part of the 93rd General Assembly, Second Regular Session. For more information about the Act, visit www.house.mo.gov/bills061/bills/HB1349.htm or contact Rep. Loehner’s office at (573) 751-1344.

— by Micky Wilson, assistant editor, Angus Productions Inc.