Agricultural Bond Program

Agricultural Bond Program

Program Name: Agricultural Bond Program

Resource Type: State

State: Indiana, Great Lakes

Agency: Program Source: Dedicated Revenue

Description: The Indiana Finance Authority (“IFA”) has established its Agricultural Development Loan Program for the purpose of providing assistance to farmers in the State of Indiana. The Program will enable qualifying farmers to borrow money for suitable agricultural projects at lower cost through the use of tax-exempt financing provided by IFA. Eligible Borrowers may finance Agricultural Property (as defined hereinafter) on a tax-exempt basis by following the procedures outlined in the Program Guide to be developed by IFA. Under the Program, IFA serves as a conduit between the Borrower and a Lender in order to pass through to the Borrower the IFA’s tax-exempt borrowing rate. Thus, the Borrower pays lower interest costs because the interest income received by the Lender will not be subject to federal or state income taxation. The Program does not involve any grant or direct subsidy from IFA, the State of Indiana or the United States.

Website: http://www.in.gov/ifa/2389.htm