Washington, D.C. – Today, Representatives Darin LaHood (IL-16), Randy Feenstra (IA-04), Terri Sewell (AL-07) and Dwight Evans (PA-03) reintroduced the Modernizing Agricultural and Manufacturing Bonds Act to help small and medium manufacturers and farmers generate good-paying jobs in Illinois and throughout the country.
“Having robust agriculture and manufacturing industries is vitally important to the success of communities throughout the 16th District,” said Rep. LaHood. “The Modernizing Agricultural and Manufacturing Bonds Act will provide entrepreneurs and first-time farmers with the financing tools they need to expand their operations, create good-paying jobs, and strengthen our local economies. I am proud to lead this bipartisan effort to ensure farmers and manufacturers have the resources they need to be successful and support our region.”
"The Industrial Development Bonds (DBS) and First Time Farmer (Aggie Bonds) are a key component to economic growth, manufacturing, supporting the next generation of farmers, and our farm economy here in rural Iowa,” said Rep. Feenstra. “However, outdated rules and regulations created unnecessary barriers for our domestic manufacturers and generational family farmers from utilizing these bonds. I am happy to work with my colleagues Rep. LaHood, Rep. Kildee, and Rep. Evans to reauthorize this critical legislation and ensure modern law reflects the intensive capital needs of Iowa farmers and manufacturers to remain competitive and productive. I remain committed to supporting policies that have not only worked, but continue to grow our manufacturing capabilities, generate robust economic activity, and help our beginning farmers thrive.”
“Many Pennsylvania farmers and manufacturers are struggling, and this is one way we can help them. In the Philadelphia region alone, there are more than 60 certified manufacturing businesses that could benefit from expanded eligibility to retain or create jobs,” said Rep. Evans. “And the farming sector is vital to Pennsylvania and the nation, both because of its sizable role in the economy and because we all need food!”
“Manufacturing and agriculture support good-paying jobs and drive growth in communities across Alabama,” said Rep. Terri Sewell. "Yet outdated federal rules have made it harder for small manufacturers and farmers to access the financing they need to compete and succeed. The Modernizing Manufacturing and Agricultural Bonds Act will help unlock new investment, strengthen domestic supply chains, and create opportunities for the next generation of American farmers and manufacturers. I am proud to join this bipartisan effort to modernize these critical economic development tools and ensure that Alabama’s workers, farmers, and businesses have the resources they need to thrive in the 21st-century economy.”
“We are thrilled that MAMBA has been reintroduced in the U.S. House with bipartisan support,” said CDFA President & CEO Toby Rittner. “With our country facing great economic opportunity, it has become clear that investments in farmers and manufacturers are necessary to strengthen the United States’ global competitiveness. By updating the 40-year-old rules around agricultural and manufacturing bonds, MAMBA allows for the innovative financing tools necessary to invest in local communities by expanding and growing American manufacturing and farming. Representatives LaHood and Sewell have been great champions of farmers and manufacturers and the development finance industry as a whole, and I am thankful for their commitment to those key pillars of the U.S. economy.”
Background:
The Modernizing Agricultural and Manufacturing Bonds Act updates the federal rules for manufacturing and agricultural bonds. These bonds are exempt from federal tax and are important tools used by state and local agencies to support small manufacturers and farmers and spur economic development. Over the last decade, use of these types of bonds has declined due to their outdated rules and regulations.
This legislation would:
- Raise the maximum manufacturing bond size from $10 million to $30 million, updating this threshold for inflation and economic changes. Additionally, the bill ties future bond size increases to inflation.
- Modernize the definition of a “manufacturing facility” to include high-tech manufacturing processes, including bio-technology, design and formula development.
- Eliminate restrictions that prevented bond proceeds from being used towards offices space, locker rooms, and cafeterias at small manufacturing facilities.
Increase the amount of bond proceeds that can go to first-time farmers from $450,000 to $1 million and allow new farmers to use bond proceeds to upgrade existing agricultural buildings and property and purchase farm equipment. - Align the definition of “substantial farmland” in the federal tax code with existing law.
Full text of the bill can be found HERE.
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