Legislation co-sponsored by Senator Darrel Aubertine and passed in the Senate would allow an increase the aggregate amount of linked deposit loans an eligible farm business may receive from $1 million to $2 million and extend the term of linked deposit from four to six years.
“By making more money available and extending the length of loans we are giving farmers greater financial incentives to reinvest in their business,” said Aubertine. “These capital improvements will increase productivity, cut energy costs and create and maintain jobs.”
According to the state Farm Bureau, the measure would allow farmers increased access to capital through the state's Linked Deposit loan program.
Under the program, eligible businesses can obtain loans at an interest rate that is generally 2 or 3 percentage points lower than the prevailing rate on such loans, thereby making borrowing less expensive.