HARRISBURG, PA — Pennsylvania farmers could gain access to significantly larger state-backed loans under legislation unanimously approved by the state House on Monday, a move supporters argue is necessary as agricultural operators face rising costs for land, equipment and facility improvements.
House Bill 2207, sponsored by state Reps. Paul Friel, D-Chester, and John Lawrence, R-Chester, would raise the borrowing limit available to agricultural businesses through the Pennsylvania Industrial Development Authority’s Small Business First Fund.
The measure seeks to address a financing disparity that currently limits agricultural businesses to loans of $400,000 while non-agricultural businesses can access up to $2 million through the same program.
If enacted, the legislation would expand access to low-interest financing for farm operators seeking to purchase land, modernize equipment, construct facilities or make other long-term capital investments.
The proposal comes as many Pennsylvania farms face increasing operating and expansion costs while competing in a challenging agricultural economy.
“Our farmers are small business owners, job creators and essential contributors to Pennsylvania’s economy,” Friel stated. “As costs continue to rise, access to affordable capital is more important than ever.”
Lawrence described the legislation as a modernization effort aimed at improving financing opportunities for agricultural businesses.
“This legislation is a top priority for the Chester County Economic Development Council and the Chester Delaware County Farm Bureau, and it would greatly improve financing opportunities for small and midsize farming operations across the commonwealth,” Lawrence stated.
Farmers currently can obtain PIDA loans and lines of credit through local Certified Economic Development Organizations, but supporters of the bill contend the existing statutory cap no longer reflects the capital requirements of modern farming operations.
Agriculture remains one of Pennsylvania’s largest industries, and proponents argue the higher lending threshold would help farms remain competitive while supporting future growth and investment.
The legislation now moves to the Pennsylvania Senate for consideration.
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