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TO: BOARD OF SUPERVISORS
Contra
FROM: Supervisor Tom Torlakson
Costa
DATE: July 8, 1986 COLIC lty
SUBJECT: FINANCIAL HELP FOR AGRICULTURAL PRODUCERS
SPECIFIC REQUEST(S)'OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION: Refer to the Community Development and the
Agricultural Advisory Committee for review proposed legislation (AB
4261) and develop recommendation for course of action.
BACKGROUND INFORMATION: Please refer to information provided in
the article reprinted below which appeared in the June 13 , 1986 issue
of Alert, a newsletter of the California Chamber of Commerce.
Financial help for agricultural producers
A proposal is moving through the The bill aims to assist agricultural
Legislature to help the agricultural producers by providing short-term low-
industry,which is suffering major interest loans for working capital and
economic stress resulting in foreclosures, equipment.The criteria for a borrower to
bankruptcies and loan restructuring.The qualify would be:
California Farm Recovery Finance 1)Annual gross income shall be more
Authority Act created in AB 4261,as than$40,000 for not less than 3 of the last I
amended June 2,would authorize the 5 years.
issuance of revenue bonds to assist 2)Net assets shall not exceed$1 million.
agricultural producers. Total assets shall not exceed$5 million.
AB 4261,now authored by Assembly 3)The debt-to-asset ratio shall be no
Speaker Willie Brown,also establishes the less than.40.
California Farm Recovery Advisory 4)Loans provided to the borrower shall
Commission,prescribes its membership represent the only financial option.
and authorizes the commission to review 5)The borrower shall present evidence
potential agricultural loan needs and the showing ability to repay the loan,
effects in California should legislation including a statement displaying sufficient
pending before the U.S.Congress be cash flow and profitability of the
enacted.The commission is to report to agricultural operation within 3 years.
the Legislature no later than January 1, The California Chamber's Farm Credit/
1987.The finance authority shall not issue Taxation Subcommittee will considerF
or sell revenue bonds prior to the AB 4261 next week.Chamber position
commission's findings. pending.❑Staff contact:Jim Van Maren
CONTINUED ON,ATTACHMENT: YES SIGNATURE: /(f s✓`� l /`��t�y�/J
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON July 8, 1986 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT III, IV ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISOR, ON THE DATE SHOWN.
CC: Community Development Director ATTESTED 1p86 _
Agriculture Dept (/!Wpi�cfielF, Clerk of i�-60—a
County Administrator &*VbMId AdmmisUdf
M3e2/1-e3 BY DEPUTY