Bill Text: FL S1804 | 2019 | Regular Session | Comm Sub
Bill Title: Emergency Loans for Agricultural Producers
Spectrum: Bipartisan Bill
Status: (Failed) 2019-05-03 - Died in Appropriations Subcommittee on Agriculture, Environment, and General Government [S1804 Detail]
Download: Florida-2019-S1804-Comm_Sub.html
Florida Senate - 2019 CS for SB 1804
By the Committee on Agriculture; and Senator Albritton
575-03192-19 20191804c1
1 A bill to be entitled
2 An act relating to emergency loans for agricultural
3 producers; transferring, renumbering, and amending s.
4 570.82, F.S.; renaming the Agricultural Economic
5 Development Program for disaster loans as the
6 Agricultural Economic Development and Disaster Loans
7 Program; transferring administration of the program
8 from the Department of Agriculture and Consumer
9 Services to the Division of Emergency Management
10 within the Executive Office of the Governor; revising
11 authorized uses of loan funds; revising eligibility
12 requirements for loans; increasing the total loan
13 limit and deleting the minimum limit; revising loan
14 requirements; requiring borrowers to pay closing
15 costs; specifying a limit on such costs and providing
16 that such costs may be paid directly or be financed;
17 specifying loan limits for certain crops; requiring
18 the division to work with borrowers in evaluating the
19 need to extend loan terms under certain circumstances;
20 specifying the minimum and maximum allowable extension
21 term; redefining the terms “losses” and “essential
22 physical property” and defining the term “direct input
23 costs”; revising eligible crops; defining the terms
24 “commercial fishing” and “industrial crops”; deleting
25 requirements for farm plans and participation in
26 certain training programs; revising loan application
27 requirements; providing that farm assets may be used
28 as collateral; revising requirements for loan
29 repayment; authorizing remedies for the division
30 relating to loan defaults; specifying requirements for
31 the division in administering the program; deleting a
32 provision requiring the department to establish a
33 certain grant program; amending s. 201.25, F.S.;
34 conforming a provision to changes made by the act;
35 providing an effective date.
36
37 Be It Enacted by the Legislature of the State of Florida:
38
39 Section 1. Section 570.82, Florida Statutes, is
40 transferred, renumbered as section 252.65, Florida Statutes, and
41 amended, to read:
42 252.65 570.82 Agricultural Economic Development and
43 Disaster Loans Program disaster loans and grants and aid.—
44 (1) USE OF LOAN FUNDS AND LOAN TERMS.—
45 (a) The division shall use funds appropriated for the
46 program to make loans Loan funds to agricultural producers who
47 have experienced losses from a natural disaster or a
48 catastrophic weather socioeconomic condition or event. Such
49 loans may be used to:
50 1. Restore or replace essential physical property or remove
51 debris on farmland or from essential physical property.
52 2. Pay all or part of production costs associated with the
53 disaster year, including direct input costs.
54 3. Pay the deductible to repair or replace insured farm or
55 irrigation equipment essential family living expenses.
56 4. Restructure farm debts.
57 (b) To be eligible, agricultural producers must have a
58 parcel or parcels of land in production not exceeding 300 acres.
59 (c) A loan must be zero-interest and in an amount of not
60 Funds may be issued as direct loans, or as loan guarantees for
61 up to 90 percent of the total loan, in amounts not less than
62 $30,000 nor more than $500,000 $300,000. The borrower shall pay
63 closing costs, which may not be more than 1 percent of the loan.
64 The closing costs may be paid directly by the borrower or may be
65 financed as part of the loan Applicants must provide at least 10
66 percent equity.
67 (c) The following loan limits apply per federal employer
68 identification number:
69 1. For timber, up to $500 per acre.
70 2. For cotton, up to $275 per acre.
71 3. For peanuts, up to $125 per acre.
72 (d) The term of the loan is 10 years. If a subsequent
73 natural disaster or catastrophic weather event affects the same
74 property for which a borrower has an outstanding loan made under
75 this section and that loan is still within its original term,
76 the division must work with the borrower to evaluate the
77 necessity of extending the term of the loan. The evaluation must
78 include, but need not be limited to, a review of the borrower’s
79 financial condition, the availability of other financial
80 resources or programs, and consistency with the administration
81 of the program under subsection (8). If the division determines
82 it necessary to extend the term of the loan, the extension may
83 be for up to an additional 5 years but must be for at least 1
84 year.
85 (e)(d) As used in For purposes of this subsection, the
86 term:
87 1. “Direct input costs” means costs incurred for:
88 a. Seed;
89 b. A boll weevil eradication program under part I of
90 chapter 593;
91 c. Fertilizer, lime, or other soil amendment;
92 d. Chicken litter;
93 e. Chemicals;
94 f. Custom application;
95 g. Hand weeding;
96 h. Crop scouting;
97 i. Fuel and lube;
98 j. Repairs and maintenance;
99 k. Irrigation;
100 l. Labor;
101 m. Insurance;
102 n. Land rent;
103 o. Interest on operating capital;
104 p. Drying and cleaning; or
105 q. Marketing and fees.
106 3.1. “Losses” means loss or damage to crops;, agricultural
107 products;, agricultural facilities;, farm, ranch, or dairy
108 infrastructure;, or irrigation equipment farmworker housing.
109 2. “Essential physical property” means fences;, equipment;,
110 structural production facilities such as shade houses and
111 greenhouses;, other agricultural facilities;, farm, ranch, or
112 dairy infrastructure;, or irrigation equipment farmworker
113 housing.
114 (2) ELIGIBLE AGRICULTURAL PRODUCERS CROPS.—Agricultural
115 producers of the following crops are eligible for the emergency
116 loan program Crops eligible for the emergency loan program
117 include:
118 (a) Crops grown for human consumption.
119 (b) Crops planted and grown for livestock consumption,
120 including, but not limited to, grain, seed, and forage crops.
121 (c) Crops grown for fiber, except for trees.
122 (d) Specialty crops, such as seafood and aquaculture,
123 including, but not limited to, the products of shellfish or
124 oyster cultivation and harvesting, ornamental fish farming, and
125 commercial fishing; floricultural or ornamental nursery crops;
126 Christmas trees; turf for sod; industrial crops; and seed crops
127 used to produce eligible crops. As used in this paragraph, the
128 term “commercial fishing” means the activity of catching fish or
129 other seafood for commercial profit. As used in this paragraph,
130 the term “industrial crops” means crops that provide materials
131 for industrial processes and products, such as soybeans, cotton
132 lint and cottonseed, flax, or tobacco.
133 (3) FARMING INFORMATION.—A borrower must keep complete and
134 acceptable farm records and present them as proof of production
135 levels. A borrower must operate in accordance with a farm plan
136 that he or she develops and that is approved by the
137 commissioner. A borrower may be required to participate in a
138 financial management training program and obtain crop insurance
139 as a risk management tool.
140 (4) LOAN APPLICATION.—In order to qualify for a loan under
141 this section, an applicant must:
142 (a) Submit an application to the division department within
143 1 year 90 days after the date the natural disaster or
144 catastrophic weather socioeconomic condition or event occurs or
145 the crop damage becomes apparent.
146 (b) Be An applicant must be a citizen of the United States
147 and a bona fide resident of this the state, and must also
148 demonstrate the need for economic assistance, and demonstrate
149 that he or she has the ability to repay the loan. Only one loan
150 may be issued per federal employer identification number.
151 (c) Provide sufficient evidence to the division that he or
152 she used crop insurance as a risk management tool, if available,
153 at the time of the natural disaster or catastrophic weather
154 event.
155 (d) Be approved by the division.
156 (5) LOAN SECURITY REQUIREMENTS.—All loans must be secured.
157 A first lien is required on all property or product acquired,
158 produced, or refinanced with loan funds. The specific type of
159 collateral required may vary depending upon the loan purpose,
160 repayment ability, and the particular circumstances of the
161 applicant. Farm assets may be used as collateral.
162 (6) LOAN REPAYMENT.—A borrower shall repay the loan
163 Repayment of loans for crops, livestock, and non-real-estate
164 losses shall normally be made within 10 7 years or, except a
165 borrower who received an extension of a loan as provided in
166 paragraph (1)(d) shall repay the loan by the expiration of the
167 extension in special circumstances, within 20 years. Loans for
168 physical losses to real estate and buildings shall not exceed 30
169 years. A loan may not be extended or repaid beyond 15 years.
170 Borrowers are expected to return to conventional credit sources
171 when they are financially able. Loans are a temporary source of
172 credit, and borrowers must be reviewed periodically to determine
173 whether they can return to conventional credit.
174 (7) LOAN DEFAULT.—In the event of a default by a borrower,
175 the division may bring suit to enforce its interest, in addition
176 to any other remedy provided by law.
177 (8) ADMINISTRATION.—The division shall administer the
178 program in a manner consistent with federal disaster relief,
179 prioritizing the maximization of federal aid. All loan
180 repayments must be returned to the fund from which the
181 appropriation for the program was made.
182 (7) GRANTS AND AID.—The department shall establish a grant
183 program to provide aid to agribusinesses to assist in market
184 development.
185 Section 2. Subsection (2) of section 201.25, Florida
186 Statutes, is amended to read:
187 201.25 Tax exemptions for certain loans.—There shall be
188 exempt from all taxes imposed by this chapter:
189 (2) Any loan made by the Agricultural Economic Development
190 and Disaster Loans Program pursuant to s. 252.65 s. 570.82.
191 Section 3. This act shall take effect upon becoming a law.
