The South Dakota Value Added Finance Authority board recently approved the issuance of two beginning farmer bonds at their regularly scheduled monthly meeting.
The two bonds will total $851,000 for two qualifying beginning farmers. Public hearings were held on both projects with no comments either for or against the project.
“The beginning farmer bond program, through the VAFA board, is a great way for qualifying beginning farmers to purchase real estate,” says Terri LaBrie, executive director of VAFA. “The program enables beginning farmers to get better rates and terms and also allows for tax-exempt interest income for the bond purchasers; typically their local lenders or a contract seller that is not a closely related party.”
VAFA is a seven member board established in 1995 to develop and promote agriculture in the state. The mission of VAFA is to provide lower cost financing for qualifying beginning farmers and agricultural businesses. “We are excited for these beginning farmers and happy we can provide these programs to help the next generation of farmers,” says Bob Hull, chairman of the board.
The board also approved a Livestock Nutrient Management Bond application at this month’s board meeting for a project in Lincoln County.
The tax-exempt bond programs offered through the VAFA are for beginning farmers, agribusinesses and projects with a solid waste disposal component. Board members are appointed by the governor.
All program details and applications through VAFA or the Department of Agriculture are available on the web at http://sdda.sd.gov/finance/. For questions on these financial programs, contact Terri LaBrie at 605-280-4745. For a list of other board members and more information on VAFA, visit https://sdda.sd.gov/boards-and-commissions/value-added-finance-authority/.
Agriculture is a major contributor to South Dakota’s economy, generating $25.6 billion in annual economic activity and employing over 115,000 South Dakotans. The South Dakota Department of Agriculture’s mission is to promote, protect and preserve South Dakota agriculture for today and tomorrow. Visit us online at http://sdda.sd.gov or find us on Facebook, Instagram and Twitter.