HCS HB 1349 -- FAMILY FARMS ACT (Loehner)

COMMITTEE OF ORIGIN:  Agriculture Policy

This substitute establishes the Family Farms Act which will allow
small farmers who have obtained a loan for the purchase of
breeding 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 substitute 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 substitute contains small farmer qualification requirements
and specifies the duties of the authority in administering the
program.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$1,500,000 in FY 2007, FY 2008, and FY 2009.  No impact on Other
State Funds in FY 2007, FY 2008, and FY 2009.

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