An Act relating to the Board of Agriculture and Conservation, to the agricultural revolving loan fund, to the disposal of state agricultural land, and to the Alaska Natural Resource Conservation and Development Board; and providing for an effective date

For Immediate Release: February 25, 1999
Contact: Representative Jeannette James at (907) 465-3743.

If we are going to close our fiscal gap, Alaska needs to encourage development! We need to remove roadblocks and allow industry to grow and prosper, for the benefit of our state and all its citizens.

HB 116 helps achieve that goal by restructuring the way agricultural and conservation services will function in our state, making them more responsive to the industry's needs and more in touch with the grass-roots operations of our producing farmers and land users, in keeping with sound conservation policies. It provides much-needed stability and allows long-term growth.

It proposes a new board - The Board of Agriculture and Conservation - which consolidates three existing boards into one. Not only does this save the State of Alaska money, it also extends the life of the Agriculture Revolving Loan Fund (ARLF) by instituting a grass roots, fiscally conservative board that has more control over ARLF funds. It changes the ARLF interest rate from eight to five percent, making it competitive with the Federal FSA (Farm Service Agency) loans which are currently drawing farmers away and shortening the life and income of the ARLF.

The sale of ARLF assets and agriculture lands becomes the new Board's responsibility. Income would go back into the ARLF to provide funding to extend the life and services of the Division of Agriculture and to be appropriated by the Legislature when needed.

Also, HB 116 bill allows flexibility for the Board to restructure loans if disaster is suffered three out of five years, and establishes an emergency loan program.

By combining existing boards into one, soil and water conservation and agricultural efforts will be able to pool resources and expertise, present a unified instead of fragmented organization, and have a truly strong voice in the future development of Alaska.