Compendium of Budget Information for the 2010 General Session

Natural Resources
Appropriations Subcommittee
Subcommittee Table of Contents

Agency: Agriculture

Line Item: Loans

Function

This program is responsible for the administration of the two loan fund programs.

Statutory Authority

The following laws govern operations of this program:

  • UCA 59-12-103(5)(b) requires the Department of Agriculture and Food to manage the Agriculture Resource Development Fund.
  • UCA 4-19 makes the department responsible for the conduct and administration of the Rural Rehabilitation loan fund.

Special Funds

Funding Detail

The department administers two types of loans:

  • The Agriculture Resource Development 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 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
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Agri Resource Development $296,100 $296,100 $471,100 $250,900 $250,900
Utah Rural Rehab Loan $18,000 $18,000 $63,000 $63,000 $63,000
Closing Nonlapsing $0 ($27,500) $0 $0 $0
Lapsing Balance ($11,400) $0 ($36,100) ($500) $0
Total
$302,700
$286,600
$498,000
$313,400
$313,900
 
Programs:
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Agriculture Loan Program $302,700 $286,600 $498,000 $313,400 $313,900
Total
$302,700
$286,600
$498,000
$313,400
$313,900
 
Categories of Expenditure
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Personnel Services $268,400 $250,100 $330,800 $282,500 $275,800
In-state Travel $1,800 $1,600 $6,100 $1,400 $6,600
Out-of-state Travel $1,600 $900 $0 $800 $2,000
Current Expense $21,300 $19,600 $19,900 $21,600 $22,500
DP Current Expense $5,100 $7,400 $6,200 $7,100 $7,000
Other Charges/Pass Thru $4,500 $7,000 $135,000 $0 $0
Total
$302,700
$286,600
$498,000
$313,400
$313,900
 
Other Indicators
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Approp
Budgeted FTE 4.0 4.4 4.4 4.3 0.0






Subcommittee Table of Contents