Bill No.: SF0008                  Drafter:  MRW

LSO No.:  08LSO-0062              Effective Date:  7/1/2008

Enrolled Act No.:  SEA0021

Chapter No.:       42

Prime Sponsor:     Joint Agriculture, State and Public Lands and Water Resources Interim Committee

Catch Title:       Farm loan program.

Subject:  Farm loan program.

Summary/Major Elements:

· Current law allows for drought assistance to livestock producers to help rebuild herds that had been reduced because of drought.

This act:

· Allows the state loan and investment board to make loans to enhance or restore livestock numbers.  The term for these loans cannot exceed 7 years.

· Repeals the specific drought assistance provision for breeding livestock.

· Increases farm loan limit from $600,000 to $800,000; requires that the loans secured by a first mortgage or made to restore livestock numbers may not exceed 70% of the appraised value of the security.

· Raises the minimum loan amount from $1,000 to $10,000.

· Modifies loan rates depending on the type of loan and limits available loan amounts.

Comments:

• Repeals loan for drought assistance to purchase breeding livestock.