Additional resources sought for RFA

A bill was heard this week that appropriates $20 million to the Rural Finance Authority for user financed loans. The money used for this program lowers the interest rates on loans issued to qualifying farmers. While the Rural Finance Authority (RFA) has the ability to issue loans directly to farmers, it usually partners with private lenders. The RFA purchases a portion of the loan from the lender and charges a lower interest rate than the market would allow. This results in a blended rate that is lower than what is typically available in the private market. (S.F. 2551)