SW Minnesota Today

Although Minnesota House Democrats previously voted to block a bipartisan bill that would have directed funds to the Rural Finance Authority, the fund has been replenished.

According to the Minnesota House of Representatives, in February, House Democrats voted unanimously in opposition to a proposal that was introduced by State Rep. Rod Hamilton (R-Mountain Lake). 

Hamilton’s bill was a bipartisan effort to direct funds for the Rural Finance Authority (RFA) loan program, which was set to run out of funding on Feb. 21.

“With farmers beginning to prepare for a new growing season and basically no money left for RFA funding, lawmakers needed to act with a sense of urgency, and today a majority of them failed to do so,” Hamilton said. 

Hamilton’s plan at the time to was direct $50 million to RFA. While his attempt was originally shot down, it did eventually pass in March. 

According to Aberdeen News, the bill was passed and signed by Gov. Tim Walz on March 17. The bill includes $50 million in low-interest loan options for farmers in Minnesota, which are more affordable than loans that traditional financial institutions would have offered farmers.

Minnesota Agricultural Commissioner, Thom Petersen, said that this refilling of the loan program would have a massive positive impact on farmers throughout the state. 

“We’re so pleased that the Legislature understood the urgent need to replenish these funds so we can continue to help beginning farmers and those who want to expand or restructure,” Petersen said. “This is money that will come back to help Minnesota farmers again and again in the years to come.”

The variety of loans offered by the Rural Finance Authority include user finance loans, beginning farmer loans, restructure loans and livestock loans.

Farmers who want to learn more about the loan options available to them should call 651-201-6004 or visit the state agriculture department website.