Stimulus Package May Benefit the Ag Industry

• February 6, 2009
• Paul Neiffer

House Democrats proposed last week an $825 billion stimulus measure including $275 billion in tax breaks and $550 billion in spending that touches almost every area of the economy including agriculture.

• The bill included $245 million for the Farm Credit Service Agency to purchase a computer system to considered necessary to implement the 2008 Farm Act.
• $100 million to guarantee $2 billion in loans for farming, ethanol production and other rural business activities. This equates to an estimated 5% write off of these loans.
• $8 billion to guarantee up to $80 billion in loans for proven renewable and transmission technologies. This equates to an estimated 10% write off of these types of loans.
• $2 billion for energy efficiency and renewable energy research, development and deployment.
• $1.5 billion to support $3.8 billion in grants and loans to help rural communities fund drinking water and wastewater treatment systems.
• $400 million for Natural Resources Conservation Service watershed improvement programs.
• $2.825 billion for rural broadband infrastructure.
• $20 billion for food stamps.
• $30 billion in highway infrastructure.

This is a lot money and I hope Congress and the government does a better job of investing it than they have in the past.

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