BILL REQ. #:  S-0598.1 

Read first time 01/13/2005.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to the beginning farmers loan program; adding a new section to chapter 43.180 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that there are a significant number of people from both urban and rural areas of the state with the training, expertise, and interest in initiating a livelihood in farming but who lack the financial resources to get started. The legislature also finds that the average age of existing farmers is increasing, the number of full-time commercial farms is decreasing, and an increasing concern that there will be insufficient young people who have both the capability and interest to fulfill the needs for the next generation.
     The legislature finds that there are a significant number of new small farms in the state and a significant enrollment in agricultural courses offered by public community colleges and universities and the beginning farmer program offered by Washington State University cooperative extension.
     The purpose of this act is to establish a program to test the feasibility, interest, and results of a beginning farmer loan program.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.180 RCW to read as follows:
     (1) The commission shall establish and administer a program for providing loans for beginning farmers. In developing the initial program, the commission shall establish criteria that will allow it to choose those applicants that are well prepared, have the greatest chance of success, and have developed a farm business plan. In developing the criteria, the commission shall establish an advisory committee that includes successful farmers, experienced agricultural lenders, and university faculty that have taught courses on the development of farm business plans.
     (2) The program shall offer loans to well qualified prospective farmers at rates and terms that are equivalent to those currently provided to the prospective home buyers. The commission, in consultation with the advisory committee, may establish eligibility standards.
     (3) The commission shall inquire into the eligibility of beginning farmer loans authorized under this section for the federal beginning farmer and rancher loan guarantee program authorized under section 5004 of the federal farm security and rural investment act of 2002.
     (4) For purposes of the beginning farmer loan program, the commission shall allocate one percent of the authorized limit on indebtedness as established pursuant to RCW 43.180.160.