SCS/SB 284 - The act establishes the Dairy Herd Development Fund; a fund which shall be used to make loans to eligible applicants for the purchase of dairy cows. The fund is to be administered by the Missouri agricultural and small business authority.
The act provides for an initial appropriation of one million dollars at the discretion of the general assembly and provides the same opportunity every year thereafter until the authority is able to loan 1 million dollars per fiscal year from the principle and interest payments to the fund. Such a limit however, shall not limit the future balance of the fund in any way.
Eligible farmers shall use the dairy herd development loan to purchase dairy cows and may not finance more than ninety percent of the anticipated cost for the project with the loan. The time and repayment shall be established by rule promulgated by the authority. The manner of this repayment shall follow this schedule:
- No payments in the first year of repayment, however interest shall accrue during that time
- Interest only in the second year of repayment
- Amortized equal payments of principal and interest for the third to seventh year of repayment
The authority is granted rule making power to set limits on loans given from the fund provided that they consult with the Missouri Dairy Growth Council and receive recommendations to that end.
Eligibility for the loan shall be established by rule by the authority and take into consideration several factors; all of which are laid out in the act.