348.500. Family farms act--definitions--loan program for livestock, qualifications--rulemaking authority.
Family farms act--definitions--loan program for livestock,qualifications--rulemaking authority.
348.500. 1. This section shall be known and may be cited as the"Family Farms Act".
2. As used in this section, "small farmer" means a farmer who is aMissouri resident and who has less than two hundred fifty thousand dollarsin gross sales per year.
3. The agricultural and small business development authority shallestablish a family farm breeding livestock loan program for small farmersfor the purchase of beef cattle, dairy cattle, sheep and goats, and swineonly.
4. To participate in the loan program, a small farmer shall firstobtain approval for a family farm livestock loan from a lender as definedin section 348.015. Each small farmer shall be eligible for only onefamily farm livestock loan per family and for only one type of livestock.
5. The maximum amount of the family farm livestock loan for each typeof livestock shall be as follows:
(1) Seventy-five thousand dollars for beef cattle;
(2) Seventy-five thousand dollars for dairy cattle;
(3) Thirty-five thousand dollars for swine; and
(4) Thirty thousand dollars for sheep and goats.
6. Eligible borrowers under the program:
(1) Shall use the proceeds of the family farm loan to acquirebreeding livestock;
(2) Shall not finance more than ninety percent of the anticipatedcost of the purchase of such livestock through the family farm livestockloan; and
(3) Shall not be charged interest by the lender, as defined insection 348.015, for the first year of the qualified family farm livestockloan.
7. Upon approval of the family farm livestock loan by a lender undersubsection 4 of this section, the loan shall be submitted for approval bythe agricultural* and small business development authority. The authorityshall promulgate rules establishing eligibility under this section, takinginto consideration:
(1) The eligible borrower's ability to repay the family farmlivestock loan;
(2) The general economic conditions of the area in which the farm islocated;
(3) The prospect of a financial return for the small farmer for thetype of livestock for which the family farm livestock loan is sought; and
(4) Such other factors as the authority may establish.
8. For eligible borrowers participating in the program, the authorityshall be responsible for reviewing the purchase price of any livestock tobe purchased by an eligible borrower under the program to determine whetherthe price to be paid is appropriate for the type of livestock purchased.The authority may impose a one-time loan review fee of one percent whichshall be collected by the lender at the time of the loan and paid to theauthority.
9. Nothing in this section shall preclude a small farmer fromparticipating in any other agricultural program.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2006, shall beinvalid and void.
(L. 2006 S.B. 1017)*Word "agriculture" appears in original rolls.