HB 1349 -- Family Farms Act

Sponsor:  Loehner

This bill establishes the Family Farms Act which will allow small
farmers who have obtained a loan for the purchase of livestock a
waiver of the interest payments for the first year.  A small
farmer will be eligible for one family farm loan, and the loan
proceeds must be spent on one type of livestock.  The maximum
amount of a loan will be:

(1)  $75,000 for beef cattle;

(2)  $75,000 for dairy cattle;

(3)  $35,000 for swine; and

(4)  $30,000 for sheep and goats.

The Agricultural and Small Business Development Authority will
administer the program and may charge a one-time fee of 1% of the
loan amount.  The bill will allow a lender to apply to the
authority for a tax credit in an amount equal to the amount of
interest which would have otherwise been paid in the first year
by the small farmer.  Upon approval, the authority will issue a
tax credit for taxes otherwise due in the year the credit was
issued.  The credit may be used to satisfy quarterly tax
obligations, and any unused portion may be carried forward up to
three years.

The bill contains small farmer qualification requirements and
specifies the duties of the authority in administering the
program.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:43 am