(St. Paul, MN) – On Thursday, March 12th, the Minnesota Senate approved $50 million in bonding for the Rural Finance Authority (RFA).  The RFA is Minnesota’s main agricultural lending arm and partners with community banks to provide farmers with lower interest rates.  This bill requires priority be given first to beginning farmer loans, second to seller-sponsored loans, and third to agricultural improvement loans.

“Farmers have been hit hard by the economy over the last few years,” said Senator Mike Goggin (R-Red Wing). “We know the importance of keeping RFA loans available for these folks, and I am glad we took care of it quickly. They are important to our communities and our state, and we will continue to provide the support they need.”

RFA is a vital financing tool for farmers, especially as the agriculture sector faces continued hardships.  The funds are responsibly loaned, and the default rate is very low. Losses have been less than 1% since the program began in 1986.  RFA is nearly depleted, so quick legislative action was needed.

The bill passed unanimously.

More information on the RFA loan program can be found at https://www.mda.state.mn.us/financebudget/agfinance.