Juneau -- The Alaska House of Representatives Friday passed House Bill 203, sponsored by Representative John Harris. HB 203 revises statutes pertaining to the State's Agricultural Revolving Loan Fund (ARLF) to make the program more attractive and useful to farmers.

"Agriculture is important to Alaska, but because State statutes have not kept pace with changing needs and outside financial pressures, our agricultural loan program is in jeopardy," Harris said. "HB 203 works to answer these needs and thereby revitalize Alaska's agriculture industry. It protects the State's interest in the ARLF by making it more attractive to borrowers, and it continues to help Alaska's farmers by making several necessary and overdue changes."

HB 203 permits the ARLF to compete on an equal footing with other loan funds by allowing it to adjust the interest rates it charges on loans to conform to market conditions. It also allows the board to set guidelines to restructure loans for individual farmers and redefines the composition of the loan committee.

The ARLF has approximately $6 million continuing to revolve to and from Alaska farmers and, at its current rate of use, is estimated to have approximately five years of useful life remaining.

HB 203 is supported by both the Commissioner of the Department of Natural Resources and the Director of the Division of Agriculture. It passed the House 34-1 and now moves to the Senate.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
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