ALM H.B. 2499 75(R)BILL ANALYSIS AGRICULTURE & LIVESTOCK H.B. 2499 By: Pete Patterson 3-25-97 Committee Report (Unamended) BACKGROUND In 1993, legislation was passed that moved the Farm and Ranch Finance program from the Veterans Land Board to the Texas Department of Agriculture (TDA). The purpose of the program is to provide affordable financing (5% down payment) to eligible farmers and ranchers in order to purchase land for a base of operation. Only one loan has been made, and some think the inactivity of the program is due to the low net worth and loan caps. Funds to operate the program will be exhausted in a few months. The governing board (Texas Agricultural Finance Authority) does not believe it prudent to issue debt to maintain program operation. Therefore, the board recommends using approximately $450,000 that is dedicated to the Young Farmer Loan Guarantee Program, but not being utilized. The $450,000 is in state fund #474 and is the balance of the funds resulting from the resolution of the Farm and Ranch Loan Security Fund created in 1979. All but $450,000 of the fund has been utilized for other Texas Department of Agriculture programs. PURPOSE This legislation raises the Farm and Ranch Finance program net worth and loan caps and transfers funds to it. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 59.024, Agriculture Code, by raising the maximum net worth from $300,000 to $400,000 that an applicant may have to be eligible for a Farm and Ranch Finance loan. SECTION 2. Amends Section 59.025, Agriculture Code, by raising the maximum Farm and Ranch Finance loan amount from 150,000 to $250,000. SECTION 3. Amends Section 252.082, Agriculture Code, by transferring the balance and income of the Farm and Ranch Loan Security fund to the Farm and Ranch Finance program fund. Deletes language that previously transferred Farm and Ranch Loan Security fund money to other programs. SECTION 4. Emergency clause.