Agency: Agriculture Line Item: Agriculture Loan Programs Function The Loans line item administers the two loan funds: the Agriculture Resource Development Fund and the Rural Rehabilitation loan fund.
Statutory Authority The following laws govern operations of this program: - UCA 4-18-6 creates the Agriculture Resource Development Fund.
- UCA 4-19 makes the department responsible for the conduct and administration of the Rural Rehabilitation loan fund.
Performance Since this is revolving loan funds program, the objective is to keep the delinquency rates as low as possible, so that funds can be repaid and loaned out again to meet the intent of the program.  The program is measuring the percent of loan portfolio that is delinquent for more than 30 days. Though they did not always meet their target of 2% or less, the delinquency rates for the Agricultural Loans Program is significantly better than those of the commercial banking industry.Funding Detail The department administers two types of loans: - The Agriculture Resource Development Loan Fund. UCA 59-12-103(5)(b) requires that sales and use tax revenue generated by a 1/16 percent rate be used to deposit $525,000 (or 3% of $17,500,000) annually into this fund. Since this is in statute, it does not need to be part of the annual Appropriations Act. Other funding sources include loan repayments, interest, and money appropriated by the Legislature. Loans may be made for rangeland improvement, watershed protection, flood prevention, soil and water conservation, and energy efficient farming projects. The Agriculture Resource Development Loan (ARDL) provides low-interest (3 percent annual interest plus a one-time four percent technical assistance fee) loans.
- The Utah Rural Rehabilitation Loan Fund. Established from a one-time federal appropriation in 1937, this revolving loan fund is replenished by repayments and low interest rates. Interest rates are set by the Agricultural Advisory Board (4-19-3). In essence, the Rural Rehabilitation Program is a lender of last resort to farmers who represent too high a risk to acquire financing from conventional lending institutions. Assets may be used for real estate loans, farm operating loans, youth loans, educational loans, and irrigation / water conservation loans.
Financing to operate the loans program is transferred from the two loan funds. Sources of Finance
(click linked fund name for more info) | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Actual | 2013
Approp | | Agri Resource Development | $250,900 | $250,900 | $251,000 | $248,900 | $255,300 | | Utah Rural Rehab Loan State Fund | $63,000 | $63,000 | $140,300 | $140,300 | $140,300 | | Lapsing Balance | ($500) | ($100) | ($16,900) | ($14,500) | $0 | | Total | $313,400 | $313,800 | $374,400 | $374,700 | $395,600 |
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| | | | | | Programs:
(click linked program name to drill-down) | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Actual | 2013
Approp |
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| Agriculture Loan Program | $313,400 | $313,800 | $374,400 | $374,700 | $395,600 | | Total | $313,400 | $313,800 | $374,400 | $374,700 | $395,600 |
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| | | | | | Categories of Expenditure
(mouse-over category name for definition) | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Actual | 2013
Approp |
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| Personnel Services | $282,500 | $282,200 | $352,500 | $349,300 | $364,400 | | In-state Travel | $1,400 | $1,800 | $1,500 | $3,400 | $1,500 | | Out-of-state Travel | $800 | $1,300 | $1,500 | $2,300 | $1,200 | | Current Expense | $21,600 | $21,600 | $13,000 | $13,400 | $22,500 | | DP Current Expense | $7,100 | $6,900 | $5,900 | $6,300 | $6,000 | | Total | $313,400 | $313,800 | $374,400 | $374,700 | $395,600 |
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| | | | | | | Other Indicators | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Actual | 2013
Approp |
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| Budgeted FTE | 4.3 | 4.0 | 4.0 | 5.0 | 5.0 | | Actual FTE | 4.3 | 4.0 | 5.1 | 4.9 | 0.0 | | Vehicles | 0 | 1 | 1 | 1 | 1 |
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Subcommittee Table of Contents |