By TIM ALEXANDER
Illinois Correspondent

CHICAGO, Ill. — Gov. Patrick Quinn signed legislation last month that will let more farmers take advantage of lower interest rates and increase producer and agribusiness access to capital.

Senate Bill 3719, sponsored in the state Senate by Michael W. Frerichs (D-Champaign) and Kyle McCarter (D-Decatur), expands the Illinois Finance Authority’s (IFA) loan guarantee program for agriculture and makes financing available at banks and other lending institutions within the state.

The legislation, which expands working capital and coverage for innovative farming practices, was also sponsored by six Illinois House representatives.

“With most farms just having completed their spring planting, we know money can be tight and quick access to capital can be challenging,” Quinn stated upon signing the bill May 22. “This new law will help farmers ease cash flow through the growing season.”
The IFA’s longstanding loan guarantee program will continue to make funds available for land purchases, ag-related businesses and debt restructuring, said Executive Director Christopher Meister.
“Illinois’ agriculture industry is one of the IFA’s most important partners, as we work to keep the state’s economy strong and vibrant,” Meister said in a release.

“That’s why we’ve targeted these lending tools to help finance growth in family farms, agribusinesses and industry.”

Frerichs explained the IFA is an important partner for his community’s farmers and agribusinesses, saying, “SB 3719 helps strengthen that partnership when a sagging economy makes our assistance more important than ever.”

Rep. Bill Black (R-Danville) agreed the timing of the bill could not have been better. “I’m especially pleased this program will support the industry at all levels, from family farms to larger agribusinesses,” he said.

The bill implemented use of the Industrial Project Insurance Fund, the Illinois Agricultural Loan Fund and the Illinois Farmer and Agribusiness Loan Guarantee Fund to satisfy state guarantees for agricultural assistance. The measure is effective immediately.