SF1517

SF1517 (Legislative Session 94 (2025-2026))

Rural Finance Authority bond issue and appropriation

Related bill: HF199

AI Generated Summary

Senate File No. 1517 is a legislative bill proposing to support farmers in Minnesota through financial mechanisms. The bill seeks to allocate $50,000,000 from the bond proceeds fund to the Rural Finance Authority. This fund is designated for various loan programs aimed at aiding farmers, including programs for beginning farmers, loan restructuring, seller-sponsored transactions, agricultural improvements, and livestock expansion.

The bill also includes a provision for $50,000 to cover expenses related to the sale of state bonds needed to finance these programs. These bonds are authorized to be sold and issued by the state to raise the required funds.

The Rural Finance Authority is tasked with managing the fund and ensuring that all loans are priced appropriately to cover the principal and interest fully, along with a reserve for potential losses. Priority for the loans is specified: primarily to assist new farmers, followed by seller-sponsored loans, and then agricultural improvement loans.

In summary, this bill facilitates financial support for Minnesota's agricultural sector, particularly benefiting beginning and expanding farmers, through the structured sale and issuance of state bonds.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	Senate	Floor	Action	Introduction and first reading
February 16, 2025	Senate	Floor	Action	Referred to	Capital Investment

Citations

[
  {
    "analysis": {
      "added": [
        "Granting new funds specifically allocated for beginning farmers."
      ],
      "removed": [
        "Previous restrictions on how funds could be used by beginning farmers."
      ],
      "summary": "Appropriation for beginning farmer program under section 41B.039.",
      "modified": [
        "Change in the amount and terms of funding disbursement."
      ]
    },
    "citation": "41B.039"
  },
  {
    "analysis": {
      "added": [
        "Specific new funds for restructuring existing loans."
      ],
      "removed": [
        "Specific conditions previously required for eligibility."
      ],
      "summary": "Appropriation for the loan restructuring program under section 41B.04.",
      "modified": [
        "Terms of loans under the restructuring program updated."
      ]
    },
    "citation": "41B.04"
  },
  {
    "analysis": {
      "added": [
        "Additional funds allocated for seller involvement."
      ],
      "removed": [
        "Prior requirements on seller eligibility."
      ],
      "summary": "Appropriation for the sellersponsored program under section 41B.042.",
      "modified": [
        "Adjustments to how seller-sponsored loans are managed."
      ]
    },
    "citation": "41B.042"
  },
  {
    "analysis": {
      "added": [
        "New funding for improvements in agricultural operations."
      ],
      "removed": [
        "Earlier caps on funding amounts per applicant."
      ],
      "summary": "Appropriation for the agricultural improvement loan program under section 41B.043.",
      "modified": [
        "Revised criteria for what improvements qualify for loans."
      ]
    },
    "citation": "41B.043"
  },
  {
    "analysis": {
      "added": [
        "Increased funds for livestock-related projects."
      ],
      "removed": [
        "Limited types of livestock projects eligible in the past."
      ],
      "summary": "Appropriation for the livestock expansion and modernization loan program under section 41B.045.",
      "modified": [
        "Expansion of project eligibility terms and conditions."
      ]
    },
    "citation": "41B.045"
  },
  {
    "analysis": {
      "added": [
        "Obligations for repayment structured under this section."
      ],
      "removed": [
        "Prior repayment schedules and amounts."
      ],
      "summary": "Repayment of debt service on bond proceeds under section 16A.643.",
      "modified": [
        "Updated repayment conditions and expectations."
      ]
    },
    "citation": "16A.643"
  },
  {
    "analysis": {
      "added": [
        "New allocation specifically for managing expenses."
      ],
      "removed": [
        "Any redundant or obsolete expense accounts."
      ],
      "summary": "Bond sale expenses appropriated under section 16A.641 subdivision 8.",
      "modified": [
        "Clarification on the use of allocated funds for expenses."
      ]
    },
    "citation": "16A.641 subdivision 8"
  },
  {
    "analysis": {
      "added": [
        "Incorporates broader legislative guidelines for bond issuance."
      ],
      "removed": [
        "Older mandates on how bonds could be marketed."
      ],
      "summary": "Terms and conditions for the sale and issuance of state bonds under sections 16A.631 to 16A.675.",
      "modified": [
        "Adjustment to terms under which bonds can be issued."
      ]
    },
    "citation": "16A.631 to 16A.675"
  }
]