FOR IMMEDIATE RELEASE
Tuesday, January 24, 2012

State Treasurer Clint Zweifel announces new agreement with USDA Farm Service Agency to help new farmers

JEFFERSON CITY – Missouri farmers who are just starting out have a new tool thanks to an agreement between State Treasurer Clint Zweifel (ZWY-ful) and the United States Department of Agriculture Farm Service Agency. Beginning immediately, first time Missouri farmers qualifying for a low-interest Missouri Linked Deposit Program loan could also receive a 95 percent loan guarantee and a waiver of the 1.5 percent origination fee from the FSA subject to its criteria and availability of funds.

“This is a great economic development tool for farmers because it encourages them to get started,” Treasurer Zweifel said. “We are lowering the interest rates and increasing the availability of loans because the USDA is taking almost all of the credit risk and waiving fees for the new farmers. This is critical because we know access to credit is essential for a successful agricultural operation.”

In 2011, nearly $24 million in Missouri Linked Deposit Program loans were given to 115 beginning farmers, saving them an estimated $370,000 in interest.

“This agreement ensures that beginning farmers who qualify for the Missouri Linked Deposit Program will have the standard 1.5 percent FSA Loan Guarantee Origination Fee waived if they meet our criteria,” said Eddie Hamill, Missouri State Executive Director of the USDA Farm Service Agency. “That along with the 95 percent loan guarantees and the low-interest loans from Treasurer Zweifel is good for Missouri agriculture.”

A beginning farmer qualifying for a Missouri Linked Deposit Program loan may use proceeds to purchase agriculture land, farm buildings, new and used farm equipment and livestock. The proceeds may also be used as working capital. Eligibility requirements may be found at www.treasurer.mo.gov/LinkedDeposit. Qualifying borrowers generally save 30 percent on the cost of the loan.

Since January 2009, nearly $906 million in Missouri Linked Deposit Program loans have been approved saving Missourians an estimated $16.3 million in annual interest and impacting more than 15,000 jobs and farmers. More than $341 million in loans have been approved just for farmers, saving them an estimated $5.5 million in annual interest.

About the Missouri Linked Deposit Program
The Missouri Linked Deposit Program is managed by State Treasurer Clint Zweifel. Missouri-based small businesses with up to 99 employees and farmers are eligible to receive a loan through the Missouri Linked Deposit Program based on lender underwriting standards. Additionally, local governments, housing developments and alternative-energy focused projects may qualify for the low-interest loans. About 130 lenders with 350 branches throughout Missouri use the Missouri Linked Deposit Program. An extensive list of participating lenders and program eligibility guidelines are online at www.treasurer.mo.gov/LinkedDeposit.