Funding for farmers' loans increases 150%

The Federal Reserve Bank in Kansas City earlier this week reported weakened farm credit conditions in the third quarter, with more farms and ranches using credit to maintain operations.

In response to the greater need for aid, Missouri State Treasurer Sarah Steelman Nov. 30 approved a 150 percent increase in funding available to farmers through Believe, Invest and Grow Missouri loans.

Under the state loan program, known as BIG Missouri, farmers and small businesses can apply for reduced-rate loans through local banks. The banks then apply for BIG Missouri linked deposits at a preferred rate of up to 3 percent below the market.

Until now, farmers could access up to $100,000 for farm operating loans through the program, enacted Oct. 1. The change brings that amount to $262,000.

BIG Missouri allows up to $720 million of the state’s $3 billion portfolio to be placed in deposits linked to the program. Banks that make the loans assume all risks, and deposits are subject to the same security requirements as all state deposits.

A loan application is available at www.bigmissouri.com.

This story originally appeared in SBJ’s Dec. 1 e-news Daily Update. Click here to register.