SB 1804 — Emergency Loans for Agricultural Producers

Florida Senate - 2019 CS for SB 1804 By Senatorthe AlbrittonCommittee 26-02031A-19on 20191804__Agriculture; A bill to be entitled An act relating to emergency loans for agricultural producers;

transferringand theSenator AgriculturalAlbritton Economic575-03192-19 Development20191804c1 ProgramA frombill theto Departmentbe ofentitled AgricultureAn andact Consumerrelating Services to theemergency Divisionloans offor Emergencyagricultural Managementproducers; within the Executive Office of the Governor by a type two transfer;

revisingrenaming eligibilitythe requirementsAgricultural Economic Development Program for disaster loans as the Agricultural Economic Development and Disaster Loans Program;

increasingtransferring administration of the maximumprogram amountsfrom the Department of programAgriculture loans;and Consumer Services to the Division of Emergency Management within the Executive Office of the Governor;

providingrevising theauthorized termsuses of theloan loans;funds;

requiringrevising theeligibility divisionrequirements tofor makeloans; an effort to extend the loan terms under certain circumstances;

redefiningincreasing the termtotal “essentialloan physicallimit property”and todeleting includethe irrigationminimum systems;limit;

requiringrevising certainloan applicantsrequirements; to submit an application within a specified timeframe;

requiring theborrowers division to administerpay theclosing program;costs;

specifying a limit on such costs and providing that such costs may be paid directly or be financed;

specifying loan limits for certain crops;

requiring the division to work with borrowers in evaluating the need to extend loan terms under certain circumstances;

specifying the minimum and maximum allowable extension term;

redefining the terms “losses” and “essential physical property” and defining the term “direct input costs”;

revising eligible crops;

defining the terms “commercial fishing” and “industrial crops”;

deleting requirements for farm plans and participation in certain training programs;

revising loan application requirements;

providing that farm assets may be used as collateral;

revising requirements for loan repayment;

authorizing remedies for the division relating to loan defaults;

specifying requirements for the division in administering the program;

deleting a provision requiring the department to establish a certain grant program;

conforming a cross-reference;provision to changes made by the act;

providing a directive to the Division of Law Revision;

2237 Be It Enacted by the Legislature of the State of Florida:

2439 Section 1. Pursuant1. Section to570.82, section 20.06(2), Florida Statutes, the Agricultural Economic Development Program is transferredtransferred, byrenumbered aas typesection two252.65, transferFlorida fromStatutes, the Department of Agriculture and Consumeramended, Services to theread: Division of Emergency Management within the Executive Office of the Governor.

Section252.65 2. Section570.82 Agricultural 570.82,Economic FloridaDevelopment Statutes,and isDisaster transferred,Loans renumberedProgram asdisaster sectionloans 252.65,and Floridagrants Statutes, and amended,aid.— (1) USE OF LOAN FUNDS AND LOAN TERMS.— (a) The division shall use funds appropriated for the program to read:make loans Loan funds to agricultural producers who have experienced losses from a natural disaster or a catastrophic weather socioeconomic condition or event.

252.65Such 570.82 Agricultural Economic Development Program disaster loans and grants and aid.— (1) USE OF LOAN FUNDS.— (a) Loan funds to agricultural producers who have experienced losses from a natural disaster or a socioeconomic condition or event may be used to:

1. Restore or replace essential physical property or remove debris on farmland or from essential physical property.

2. Pay all or part of production costs associated with the disaster year.year, including direct input costs.

3. Pay the deductible to repair or replace insured farm or irrigation equipment essential family living expenses.

(b)(c) Funds(c) A loan must be zero-interest and in an amount of not Funds may be issued as zero-interest direct loans, or as loan guarantees for up to 90 percent of the total loan, in amounts of at least not less than $30,000 but not nor more than $500,000 $300,000.

ApplicantsThe areborrower responsibleshall forpay closing costscosts, mustwhich providemay atnot leastbe 10more than 1 percent equity.of the loan.

(c) ForThe aclosing loancosts mademay underbe thispaid sectiondirectly afterby the effectiveborrower dateor ofmay thisbe act,financed theas termpart of the loan isApplicants must provide at least 10 years.percent equity.

If(c) The anotherfollowing natural disaster affects the same property for which the applicant received such a loan withinlimits theapply originalper termfederal ofemployer theidentification loan,number: the division must make an effort to appropriately extend the term.

(d) For1. For purposestimber, ofup thisto subsection,$500 theper term:acre.

1. “Losses”2. For meanscotton, lossup or damage to crops,$275 agriculturalper products,acre. agricultural facilities, infrastructure, or farmworker housing.

2. “Essential3. For physicalpeanuts, property”up meansto fences,$125 equipment,per structuralacre. production facilities such as shade houses and greenhouses, other agricultural facilities, infrastructure, irrigation systems, or farmworker housing.

(2) ELIGIBLE(d) The CROPS.—Cropsterm eligibleof for the emergency loan programis include:10 years.