175.4 - LEGISLATIVE FINDINGS.
175.4 LEGISLATIVE FINDINGS.
The general assembly finds and declares as follows:
1. The establishment of the authority is in all respects for the
benefit of the people of the state of Iowa, for the improvement of
their health and welfare and for the promotion of the economy, which
are public purposes.
2. The authority will be performing an essential governmental
function in the exercise of the powers and duties conferred upon it
by this chapter.
3. There exists a serious problem in this state regarding the
ability of nonestablished farmers to acquire agricultural land and
agricultural improvements and depreciable agricultural property in
order to enter farming.
4. This barrier to entry into farming is conducive to
consolidation of acreage of agricultural land with fewer individuals
resulting in a grave threat to the traditional family farm.
5. These conditions result in a loss in population, unemployment
and a movement of persons from rural communities to urban areas
accompanied by added costs to communities for creation of new public
facilities and services.
6. One major cause of this condition has been recurrent shortages
of funds in private channels and the high interest cost of borrowing.
7. These shortages and costs have made the sale and purchase of
agricultural land to beginning farmers a virtual impossibility in
many parts of the state.
8. The ordinary operations of private enterprise have not in the
past corrected these conditions.
9. A stable supply of adequate funds for agricultural financing
is required to encourage beginning farmers in an orderly and
sustained manner and to reduce the problems described in this
section.
10. Article IX, section 3, of the Constitution of the State of
Iowa requires that, "The General Assembly shall encourage, by all
suitable means, the promotion of intellectual, scientific, moral, and
agricultural improvement," and agricultural improvement and the
public good are served by a policy of facilitating access to capital
by beginning farmers unable to obtain capital elsewhere in order to
preserve, encourage and protect the family farm which has been the
economic, political and social backbone of rural Iowa.
11. It is necessary to create an agricultural development
authority to encourage ownership of farms by beginning farmers by
providing purchase money loans to beginning farmers who are not able
to obtain adequate capital elsewhere to provide such funds and to
lower costs through the use of public financing.
12. All of the purposes stated in this section are public
purposes and uses for which public moneys may be borrowed, expended,
advanced, loaned or granted.
13. The erosion of topsoil on agricultural land by wind and water
is a serious problem within the state and one which threatens to
destroy the natural resource most responsible for Iowa's prosperity.
14. It is necessary to the preservation of the economy and
well-being of the state to encourage soil conservation practices by
providing loans for permanent soil and water conservation practices
on agricultural land within the state and for the acquisition of
conservation farm equipment.
15. There exists a serious problem in this state regarding the
ability of farmers to obtain affordable operating loans for
reasonable and necessary expenses and cash flow requirements of
farming.
16. Farming is one of the principal pursuits of the inhabitants
of this state. Many other industries and pursuits, in turn, are
wholly dependent upon farming.
17. The inability of farmers to obtain affordable operating loans
is conducive to a general decline of the economy in this state.
18. It is necessary to establish an agricultural loan assistance
program in this state to assist farmers in obtaining adequate
financing at affordable rates for operating expenses and thereby
assist in the stabilization of the economic condition of this state.
19. A serious problem continues to exist in this state regarding
the ability of agricultural producers to obtain, retain, restructure,
or service loans or other financing on a reasonable and affordable
basis for operating expenses, cash flow requirements, and capital
asset acquisition or maintenance.
20. Because the Iowa economy is dependent upon the production and
marketing of agricultural produce, the inability of agricultural
producers to obtain, retain, restructure, or service loans or other
financing on a reasonable and an affordable basis for operating
expenses, cash flow requirements, or capital asset acquisition or
maintenance contributes to a general decline of the state's economy.
21. The decline in the number of beef cattle production
operations is a serious problem within the state, resulting in the
conversion of land used for pasture to row crop production, which
threatens to destroy a significant part of Iowa's agricultural base
and damage the economic viability of the state.
22. It is necessary to create a program in this state to assist
agricultural producers who have established or intend to establish
beef cattle production operations, to obtain adequate financing, and
management assistance and training, and to convert land used for row
crop production to pasture. Section History: Early Form
[C81, § 175.4; 82 Acts, ch 1243, § 4] Section History: Recent Form
86 Acts, ch 1027, § 3; 87 Acts, ch 52, § 2; 87 Acts, ch 169, § 2