Farmers Increasingly Turning to Non-Traditional Lenders
A Kansas State University agricultural economist says that non-traditional lenders are becoming a bigger part of doing business in farm country. The majority of farmers use farm credit lenders and commercial banks to finance purchases of land, equipment, crop insurance, or other expenses. But there are three categories of lenders that producers are now turning to as alternatives.
Want More New Farmers on the Land? Give Landowners a Tax Break
Farmers in Minnesota rallied for more support when it comes to buying their own farmland and, in 2017, the state legislature passed the Beginning Farmer Tax Credit, which offers tax credits to landowners for the sale or lease of farmland and other assets to beginners. In 2019, Pennsylvania did the same, and now, Ohio could follow suit as farmers in Ohio are advocating for legislation that would financially incentivize landowners to pass their land to beginning farmers.
Local and Regional Farmer and Market Support Act Introduced in Congress
Congresswoman Alma Adams (D-NC-12) introduced the Act to provide meaningful support to farmers, ranchers, and critical local and regional food systems businesses. The Local Farmer Act would provide direct payments to local and regional food producers based on their historic revenue, and help their local markets as they both cope with the economic impacts of the coronavirus pandemic.
RESTAURANTS Act Gains Momentum
A bipartisan bill to aid restaurants is gaining momentum, with over 180 co-sponsors and additional endorsements announced in the past few weeks. The bill is officially titled the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive Act of 2020, but is better known as the RESTAURANTS Act of 2020 ("the Act"). The Act was introduced in the Senate and in the House of Representatives. The Act currently has 182 co-sponsors in the House.
Steps for Ag Lenders to Mitigate Climate Risk and Finance Resilience
Farmers in the U.S. are facing severe challenges including poor economic conditions, extreme weather, and disruptions from COVID-19. These risks also impact farmers' financial partners, including agricultural lenders. While some of these risks are difficult to anticipate and plan for, there are growing opportunities and resources available for farmers and their lenders to better understand their vulnerabilities related to climate change — and take steps to build resilience.
New Co-op Grocery Opens in Downtown Kansas City, KS
The Merc Co+op recently opened the doors of their new full-service grocery store in downtown Kansas City, mitigating food access challenges in the area. This $7 million project was made possible by a public-private partnership which includes property tax from the Downtown Grocery Tax Increment Financing District and New Market Tax Credits allocated by the Central Bank of Kansas City. Local Initiatives Support Corporation also provided low-cost capital to complete the financing of the project with access to Healthy Food Financing Initiative funding.
Legislation Introduced to Create New Soil Health Transition Loan Program
U.S. Representative Abigail Spanberger — Chair of the U.S. House Agriculture Committee's Subcommittee on Conservation and Forestry — announced the introduction of her legislation to establish a "Soil Health Transition Loan Program" at the U.S. Department of Agriculture (USDA) to support farmers and producers looking to start or strengthen existing conservation efforts on their farms.
Farm Credit Quality Remains Solid in Pandemic
The economic fallout from the coronavirus outbreak hasn't yet severely hindered farmers from getting or repaying loans from a major network of agricultural lenders. While the Farm Credit System's financial results for the first half of 2020 reflect continued stability in agriculture, experts say the pandemic's effects on agricultural debt may still be felt in the future.
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