The Missouri Agricultural and Small Business Development Authority (MASBDA) is proposing an emergency rule to make operating funding available to dairy, pork and poultry producers by expanding an existing loan guarantee program.
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This action comes after the urging of Missouri Farm Bureau to make similar loan funding available to help struggling livestock farmers.
"We are pleased MASBDA is taking action to provide farmers this additional funding through the Single Purpose Animal Loan Guarantee Program," said Charles Kruse, president of Missouri Farm Bureau. "Changing the rules to allow this loan program to not only be used for construction costs but operating capital as well will provide an infusion of cash to help livestock farmers survive these difficult economic times."
With this rule change, dairy, pork and poultry producers can obtain a loan from lending institutions for up to $250,000. The state provides a 50% guarantee on the loan which can be used for refinancing or for operating capital. Currently the Single Purpose Animal Loan Guarantee Program can only be used for construction costs.
Missouri Farm Bureau called
upon the Governor and legislators to make similar credit available in a special session by funding another loan guarantee program called the Livestock Feed and Crop Input Loan Guarantee Program. The new loan program was approved by the state legislature in 2008, but the Governor vetoed funding for it earlier this year.
The emergency rule change is to take effect Nov. 2.