Harrisburg – Dec. 3, 2015 – Legislation that would preserve a tool that the agriculture industry uses to finance projects is now on its way to the governor for his signature into law, according to state Sen. Judy Schwank (D-Berks), the bill’s author.
“The legislation removes the sunset provisions in law related to the First Industries Program,” Schwank said. “What this means is that farm credit institutions will be able to continue guaranteeing loans for agricultural projects.
“We need to ensure that all tools are available for the agriculture industry to continue to grow and prosper in Pennsylvania that’s why I am confident that the governor will sign the bill into law.”
Schwank’s bill, Senate Bill 756, was approved by the state House of Representatives today 188 -3. The legislation unanimously cleared the Senate in late June.
The bill removes the program end date – or sunset date — which was statutorily set for July 15, 2015. By removing the sunset date, the Commonwealth Financing Authority can continue to guarantee loan principal of more than 51 but less than 90 percent of an agricultural project, Schwank said.
“There is no question that state help in financing projects is critically important to the agricultural community,” Schwank said.
Schwank said that farm credit institutions are frequent users of the First Industries Program. The program was developed to help strengthen agriculture and tourism. Loans from the program, or loan guarantees, can be used to acquire land or buildings, construction projects or purchase equipment.
“We need to do all we can to promote agriculture and make financing available for those who work in the industry,” Schwank said. “Farming is a capital intense industry and it requires significant private investment working in tandem with public dollars to ensure that projects can be completed.”
The Berks lawmaker said that she was very appreciative of the efforts of the Republican chair of the Senate Agriculture and Rural Affairs Committee, Sen. Elder Vogel (R-Beaver), for his support and co-sponsorship of the bill and his assistance in pushing the measure through the Senate.
Schwank serves as Democratic chair of the Senate Agriculture and Rural Affairs Committee. She has been involved in farming issues and land preservation for many years. She started the Berks Municipal Land Preservation Program and has been a strong advocate of retaining farmland in Berks County.
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