St. Paul, Minn. – The Minnesota Senate passed legislation Thursday providing approximately $50 million for the Rural Finance Authority for user financed loans. Senator Kent Eken (DFL-Twin Valley) voted in favor of the bill.
“The Rural Finance Authority is a key economic lifeline for thousands of farmers throughout the state to keep their farms going and to support their needs,” said Senator Eken. “Right now, farmers are facing particularly difficult circumstances due to weather and the global economy. By moving quickly to refill this fund, Minnesota farmers can continue to get the financial assistance they need.”
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.
More information about the RFA and how to apply for one of their loans is available here: https://www.mda.state.mn.us/financebudget/agfinance/rfaboard.