The Michigan Legislature is providing some relief to farmers who are trying to keep their businesses viable after a series of unprecedented weather events.

With strong bipartisan support, both chambers passed House Bill 4234, supplying $15 million to lending institutions — translating to more than $300 million in loan values — available to farm businesses in the form of interest rate reductions through the Agricultural Disaster Loan Origination Program.

More than 410 farmers contacted state representatives and senators in advance of the vote.

“Farming is facing uncertainty that we haven’t seen in years,” Michigan Farm Bureau President Carl Bednarski says. “It’s humbling to see the Legislature understand what’s happening and be willing to step up to the plate for our industry, and we are grateful for their support and fast action.

“Having this additional tool available to our farm families helps the food and agriculture industry remain the strong economic driver and job provider it is today in rural, urban and suburban communities across the state.”

MFB legislative counsel Rebecca Park says Gov. Gretchen Whitmer is expected to sign the legislation.

“Naturally, now farmers are asking when the money will be available, are they eligible and how they can apply,” Park says. “When the bill is signed into law, borrowers can contact their lending institution for application procedures and consultation on individual farmers’ situations.”

While HB 4234 provides funding, the Agricultural Disaster Loan Origination Program structure itself was already in state law, allowing it to be easily activated. Outlined within the law are base eligibility requirements:

Visit michfb.com to see additional information about the base rate, loan terms and amounts.

“Lending institutions may have additional requirements or terms individuals will need to negotiate,” Park says. “And given the high level of attention to emergency provisions at the federal level, it’s important to note this state-level program is not commodity specific and is autonomous from federal program provisions.”

Source: Michigan Farm Bureau, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.