of time. Details of this legislation were not 

 available. However, the legislation was reportedly 

 enacted to protect farmland values during a time of 

 numerous farm foreclosures in Iowa. 



Option #5 , 



Revamp the Montana Beginning Farm Loan Program 

 to make it a viable program to assist 

 beginning farmers and ranchers in obtaining 

 loans for the purchase of agricultural land 

 and property. 



Explanation 



This option seeks a redesign of the Beginning Farm 

 Loan Program so that it will serve the needs of 

 individuals seeking to enter agriculture in Montana. 

 This redesign is considered necessary because of serious 

 questions about the continued viability of the program 

 as it is presently structured. 



The Beginning Farm Loan Program is a tax-exempt 

 bond program designed to provide low-interest loans to 

 beginning Montana farmers and ranchers for the purchase 

 of land, agricultural improvements, and depreciable 

 property used in the operation of a farm or ranch. ^^ 

 Under the program, applications for agricultural loans 

 must be approved by the Montana Agricultural Loan 

 Authority and a participating financial lender. If a 

 loan application is approved, the Montana Agricultural 

 Loan Authority may issue bonds to fund the loan. The 

 lender purchases the bonds, and the Montana Agricultural 

 Loan Authority uses the bond proceeds to purchase the 

 bank's note that is then assigned as collateral for 



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