WASHINGTON, DC – Congressman Collin C. Peterson (DFL-7th District) announced today that the House Appropriations Committee has included an amendment to the Supplemental Appropriations Bill that would provide $40 million in additional guaranteed interest assistance loan authorization for Minnesota and North Dakota.
"I am pleased with the Committee's recognition of the problems that our farmers are facing," Peterson said. "Today's effort is one step closer to providing some needed relief. The fight for additional aid will be tough but I don't plan on backing away now." Peterson said that he has worked closely with Rep. Earl Pomeroy (D-ND) to coordinate the request for aid. Peterson plans to introduce legislation later this week to address several of the other problems facing the farmers in Northwest Minnesota and northeastern North Dakota. The bill will include crop insurance reform and other language.
"I am drafting the bill to address the unique problems that are facing our area because of the multi-year disaster cycle," Peterson said. "I plan to keep it focused on our region." According to Peterson, the supplemental spending bill will move to the floor of the House of Representatives for consideration after committee approval. Action is expected to be completed by the Easter break.
The USDA guaranteed interest assistance loans provide government guarantee to outside lenders and include a four percent interest buy-down. Because of extremely high demand for USDA credit, Minnesota is expected to deplete their FY98 allocation for the guaranteed interest assistance loan program as early as April 1. The loan program is offered through local FSA offices.