HB 5603 Summary

• Creates the Agriculture Innovation Finance Authority as a body corporate within the Department of Agriculture and Rural Development to establish and administer loan guarantee programs for agricultural businesses and farmers.

• Establishes three loan programs: an agriculture innovation loan guarantee program (up to $5 million per transaction), a beginning and small farmer loan guarantee program (up to $1 million per transaction), and an optional interest rate assistance program.

• Authority is governed by a 9-member board including the Agriculture Director and State Treasurer, plus 7 appointed members with agricultural, banking, or business expertise, appointed by the Governor with Senate approval.

• Authority may issue up to $40 million in bonds and notes (excluding refunding bonds) to fund loan guarantees, which are payable solely from authority revenues and do not create state debt or pledge state credit.

• Requires annual reporting to the Governor and Legislature detailing operations, financial status, participating lenders, loan recipients, and progress toward performance goals including number of guarantees and capital investment amounts.