LANSING, Mich. — Sen. Dan Lauwers on Thursday applauded passage in the Senate of legislation that would help ensure Michigan farmers will be able to cover their expenses over the summer.
House Bill 4234 would appropriate $15 million into the Agricultural Disaster Loan Origination Program.
“This low-interest loan program will give farmers affected by the wet spring an important option for bridging the loss of revenue they will experience this year,” said Lauwers, R-Brockway Township. “Not planting a crop is like running a store or factory with no product — you have all the expenses with nothing to sell.”
The Agricultural Disaster Loan Origination Program is a partnership between farmers and processors, private lenders, and the state to support the agriculture industry through loss of crops due to weather-related disasters.
The program provides growers, processors and handlers a 1% interest rate on loans, and it gives farmers the peace of mind that they can take out a loan to cover their everyday expenses, including machinery, land and infrastructure payments.
HB 4234 has been sent back to the Michigan House, which is expected to send it to the governor Thursday to be signed into law.