MI HB4562

Establishes a qualified agricultural loan origination program administered by the state treasurer to provide disaster relief loans to agricultural producers and businesses affected by governor-recognized agricultural disasters occurring after January 1, 2012.

Provides loans to three categories: farm operators with 25% or greater loss in major enterprises or 50% or greater loss in any one crop; agricultural businesses with 50% or greater loss in commodity volume; and farm retail businesses with 50% or greater reduction in exempt sales volume.

Sets loan terms with interest rates at 1% or the 5-year U.S. Treasury note plus 0.25%, maximum 5-year terms, and no principal payments required for 24 months after issuance.

Caps loan amounts at $400,000 for farm crop losses and $800,000 per facility or $1,000,000 per person for agricultural businesses and retailers; reduces farm loans by 30% or $100,000 (whichever is less) if the producer did not purchase available crop insurance.

Appropriates up to $15,000,000 for loan origination fees paid to participating financial institutions, with no more than $3,000,000 allocated for non-farm agricultural business loans; takes effect only if HB 4561 is enacted.