MS HB1681

Establishes a loan guaranty program for agribusinesses engaged in sweet potato growing and farming to encourage conventional financing and letters of credit from lenders, with guaranties covering 90% of lender assistance.

Requires eligible agribusinesses to have been actively engaged in sweet potato farming before January 1, 2010, and to have incurred disaster-related losses during calendar year 2009.

Limits individual loans to 70% of the borrower's 2009 sweet potato production costs (maximum $1,700 per acre, excluding machinery), with loan proceeds restricted to 2010 planting, production, and harvesting costs.

Authorizes $17,000,000 in aggregate loan guaranties drawn from the Emerging Crops Fund, funded by an additional $17,000,000 in state general obligation bonds.

Requires borrowers to obtain and maintain federal Noninsured Agricultural Program (NAP) insurance coverage and sets loan repayment terms between 5-7 years with no prepayment penalties.