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 |
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| | 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 |
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| | 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 |
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| | Other Indicators | 2006
Actual | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Approp | | Budgeted FTE | 4.0 | 4.4 | 4.4 | 4.3 | 0.0 |
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Subcommittee Table of Contents |