SCS/HCS/HB 557 - This substitute for HB 557 makes several revisions to agribusiness linked deposit programs under the management of the Missouri agriculture and small business development authority (herein after "authority").

The cap on the linked deposit guarantee program is raised from twenty to thirty million dollars of the one hundred sixty- five million currently allocated to the department of agriculture. A ten year renewal limit is established for all linked deposit programs.

Definitions are created or revised for "eligible beginning farmer", "eligible guaranteed agribusiness" and "eligible livestock operation".

The following funds under the management of the authority are at issue in the act:

1. "Single Purpose Animal Facilities Loan Guarantee Fund" -- cap on appropriations raised from three to four million dollars;

2. "Agricultural Product Utilization Grant Fund" -- cap on appropriations of one and one-half million dollars with single grant limits of one hundred-fifty thousand dollars and a yearly requirement that one-third of appropriations be awarded to requests of twenty-five thousand dollars or less for activities that add value to agricultural products;

3. "Agricultural Product Utilization and Business Development Loan Guarantee Fund" -- cap on appropriations of two and one-half million dollars with individual guarantee restrictions of twenty- five percent of the loan amount up to two hundred-fifty thousand dollars to be used to finance up to ninety percent of the acquisition amount of agricultural property; and

4. "Agricultural Product Utilization Business Development Loan Program Fund" -- established to collect fees from eligible borrowers to administer and market the value added agribusiness programs.
DENISE GARNIER