Wisconsin Ag Connection - State Senate Passes Bill to Adjust WHEDA CROP Loan Program

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State Senate Passes Bill to Adjust WHEDA CROP Loan Program
Wisconsin Ag Connection - 10/28/2011

State lawmakers approved a bill this week that would make changes to agricultural production loan guarantees administered by WHEDA. Governor Scott Walker announced on Thursday the passage of Special Session Bill 20 by the Senate. As part of the Legislature's special session on creating job, the measure makes several key changes to the Credit Relief Outreach Program, or CROP.

First, it lowers the minimum loan amount from the current $30,000 to $2,000 and raises the maximum loan amount from the current $100,000 to $150,000. Lowering the minimum and raising the maximum loan amounts is intended to make it easier for farmers to obtain working capital.

The bill also changes the loan guarantee term from the current expiration of March 31 of a calendar year in which the loan was made to a 12 month term and deletes a provision in current law that allows lenders to extend the guarantee term. Changing the guarantee term to a 12 month term and deleting the provision which allows lenders to extend the term are intended to make the CROP loan program more user friendly for farmers by making a repayment term more consistent.

Senators Dale Schultz and Lee Nerison authored the policy changes. Supporters say the adjustments will help producers keep pace with increased input costs, while making WHEDA a relevant financial resource for farm families to leverage growth.

"This productive special session proves that we are laser beam focused on making it easier for employers to create jobs in Wisconsin," Gov. Walker said. "As this special session moves forward, I am confident that more pro-jobs bills will make their way to my desk and become law, helping small business owners and employers put more people back to work. I thank the Legislature for their hard work."

The bill will now be considered by the Assembly.

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