Tax | Unsplash by Towfiqu barbhuiya
Tax | Unsplash by Towfiqu barbhuiya
The Missouri Agricultural and Small Business Development Authority is now accepting applications for two programs that can be used to reduce the amount of interest paid on qualifying loans. Both programs now have expanded loan limits that allow more producers to qualify.
“Rising interest rates can impact the profitability of agricultural producers, especially small and beginning farmers,” MASBDA Executive Director Jill Wood said. “Programs like the Beginning Farmer Loan Program and the Family Farm Breeding Livestock Tax Credit, which reduce or eliminate interest expense, provide needed relief to producers across the state.”
The Beginning Farmer Loan Program enables local lenders to receive federally tax-exempt interest on loans made to beginning farmers. The tax savings are passed on to beginning farmers in the form of lower interest rates. A qualified borrower can borrow up to $616,100 to buy agricultural land, farm buildings, farm equipment and breeding livestock. This program can be used in partnership with other state and federal programs, including the Missouri State Treasurer’s Office linked deposit program, MOBUCK$ and USDA’s Farm Service Agency direct and guaranteed loans.
The Family Farm Breeding Livestock Tax Credit program is a tax credit to a lender who waives the first year’s interest on a breeding livestock loan to a small farmer. A small farmer can borrow up to $150,000 for beef or dairy cattle, $70,000 for swine, and $60,000 to purchase sheep or goats. Each small farmer may utilize for the program more than once for new breeding livestock purchases.
Applications for both programs are submitted by the lender and may be found at masbda.com. For more information please contact the MASBDA team by email at masbda@mda.mo.gov or by phone at (573) 751-2129.
Original Source can be found here.
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