Senate Bill 2068

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    Florida Senate - 2000                                  SB 2068

    By Senator Lee





    23-1615-00

  1                      A bill to be entitled

  2         An act relating to agriculture; amending s.

  3         570.242, F.S.; redefining the term

  4         "agriculturally depressed area"; creating s.

  5         570.249, F.S.; creating the Agricultural

  6         Emergency Loan Program Review Committee to make

  7         recommendations to the Commissioner of

  8         Agriculture for granting loans to agricultural

  9         producers who have experienced crop losses from

10         a natural disaster; providing criteria for

11         eligible crops, loan applications, loan

12         repayment, and the use of loan funds; providing

13         an effective date.

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

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17         Section 1.  Subsection (1) of section 570.242, Florida

18  Statutes, is amended to read:

19         570.242  Definitions.--For purposes of this act, the

20  following terms shall have the following meanings:

21         (1)  "Agriculturally depressed area" means a rural area

22  which has declining profitability from agricultural

23  enterprises and one or more of the following characteristics:

24         (a)  A stable or declining population.

25         (b)  A stable or declining real per capita income.

26         (c)  A traditional economy based on agriculture or

27  extraction of solid minerals.

28         (d)  A low ad valorem tax base.

29         (e)  A need for agribusiness and leadership training.

30         (f)  Crop losses or economic depression resulting from

31  a natural disaster.

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    Florida Senate - 2000                                  SB 2068
    23-1615-00




  1         Section 2.  Section 570.249, Florida Statutes, is

  2  created to read:

  3         570.249  Agricultural Emergency Loan Program.--

  4         (1)  AGRICULTURAL EMERGENCY LOAN PROGRAM REVIEW

  5  COMMITTEE.--There is created an Agricultural Emergency Loan

  6  Program Review Committee consisting of five members appointed

  7  by the commissioner for the purpose of making recommendations

  8  to the commissioner about granting emergency loans to

  9  agricultural producers who have experienced crop losses from a

10  natural disaster. The members shall be appointed based upon

11  the recommendations submitted by each entity represented on

12  the committee and shall include:

13         (a)  The commissioner or the commissioner's designee.

14         (b)  One representative from the Farm Credit Service.

15         (c)  One representative from the Florida Rural

16  Development Committee.

17         (d)  One representative from the Florida Farm Bureau

18  Federation.

19         (e)  One agricultural economist from the Institute of

20  Food and Agricultural Sciences or from Florida Agricultural

21  and Mechanical University.

22         (2)  COMMITTEE DUTIES.--The committee shall:

23         (a)  Review each application for an emergency loan that

24  meets the basic program criteria.

25         (b)  Make recommendations to the commissioner regarding

26  all aspects of each eligible emergency loan application,

27  including the acceptance or rejection of each application.

28         (c)  Prioritize the emergency loan applications

29  recommended for acceptance.

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    Florida Senate - 2000                                  SB 2068
    23-1615-00




  1         (d)  Forward all written comments and recommendations

  2  to the commissioner, who shall include them in the annual

  3  report of the department.

  4         (3)  USE OF LOAN FUNDS.--Loan funds may be used to

  5  restore or replace essential physical property, such as

  6  animals, fences, equipment, structural production facilities,

  7  orchard trees; pay all or part of production costs associated

  8  with the disaster year; pay essential family living expenses;

  9  and restructure farm debts. Funds may be issued as direct

10  loans, or as loan guarantees for up to 90 percent of the total

11  loan, in amounts not less than $30,000 nor more than $250,000.

12  Applicants must provide at least 10 percent equity.

13         (4)  ELIGIBLE CROPS.--Crops eligible for the emergency

14  loan program include:

15         (a)  Crops grown for human consumption;

16         (b)  Crops planted and grown for livestock consumption,

17  including, but not limited to, grain, seed, and forage crops;

18         (c)  Crops grown for fiber, except for trees; and

19         (d)  Speciality crops, such as aquacultural,

20  floricultural, or ornamental nursery crops; Christmas trees;

21  turf for sod; industrial crops; and seed crops used to produce

22  eligible crops.

23         (5)  FARMING INFORMATION.--A borrower must keep

24  complete and acceptable farm records and present them as proof

25  of production levels. A borrower must operate in accordance

26  with a farm plan that he or she develops and that is approved

27  by the commissioner. A borrower may be required to participate

28  in a financial management training program and obtain crop

29  insurance.

30         (6)  LOAN APPLICATION.--In order to qualify for a loan

31  under this section an applicant must submit an application to

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    Florida Senate - 2000                                  SB 2068
    23-1615-00




  1  the committee within 30 days after the natural disaster occurs

  2  or the date the crop damage becomes apparent. An applicant

  3  must be a citizen of the United States, a bona fide resident

  4  of the state, and, together with the applicant's spouse and

  5  their dependents, have a total net worth of less than the

  6  $100,000. The value of any residental homestead owned by the

  7  applicant must not be included in determining the applicant's

  8  net worth. An applicant must also demonstrate the need for

  9  economic assistance, be worthy of credit according to

10  standards established by the commissioner, prove that he or

11  she cannot obtain commercial credit, and demonstrate that he

12  or she has the ability to repay the loan.

13         (7)  LOAN SECURITY REQUIREMENTS.--All loans must be

14  fully collateralized. A first lien is required on all property

15  or product acquired, produced, or refinanced with loan funds.

16  The specific type of collateral required may vary depending

17  upon the loan purpose, repayment ability, and the particular

18  circumstances of the applicant.

19         (8)  LOAN REPAYMENT.--Repayment of loans for crops,

20  livestock, and non-real-estate losses should normally be

21  repaid within 7 years, or, in special circumstances within 20

22  years. Loans for physical losses to real estate and buildings

23  should normally be repaid within 30 years. Borrowers are

24  expected to return to conventional credit sources when they

25  are financially able. Loans are a temporary source of credit

26  and borrowers must be reviewed periodically to determine

27  whether they can return to conventional credit.

28         Section 3.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                                  SB 2068
    23-1615-00




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  2                          SENATE SUMMARY

  3    Redefines the term "agriculturally depressed area" to
      include an area economically depressed due to a natural
  4    disaster. Creates the Agricultural Emergency Loan Program
      to grant loans to agricultural producers who have
  5    experienced crop losses from a natural disaster.

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