By Andi Anderson
U.S. Senator Joni Ernst of Iowa is working to expand opportunities for beginning farmers and small manufacturers by leading the bipartisan Modernizing Agricultural and Manufacturing Bonds Act (MAMBA).
The proposed legislation aims to update outdated rules for Industrial Development Bonds (IDBs) and First-Time Farmer Bonds, also known as Aggie Bonds.
Aggie Bonds help farmers secure low-interest loans from private lenders by offering tax-free interest. Iowa is currently the top user of this program. However, the rules for these bonds have not been updated in nearly 30 years, limiting their effectiveness in today’s market.
Senator Ernst said, “It’s time to cut the red tape and give our farmers, small manufacturers, and rural lenders room to grow.” She added that the bill would drive new investment by making capital more accessible.
The roundtable featured voices from the Iowa Finance Authority, banking leaders, agricultural advocates, and extension programs. Participants expressed strong support for MAMBA, calling it a much-needed step to strengthen rural America.
Supporters of the bill include the National Young Farmers Coalition, the Council of Development Finance Agencies, and the Independent Community Bankers of America (ICBA).
They all agree that modernizing these bonds will improve access to land and credit, support economic competitiveness, and provide flexible financing options.
The Bond Dealers of America and New American Industrial Alliance also praised the bill, stating that these updates are vital for promoting rural growth and reviving small manufacturing across the country.
With strong bipartisan support, the MAMBA Act could soon become a powerful tool to support America’s future farmers and manufacturers.
Photo Credit: gettyimages-mintr
Categories: Iowa, Rural Lifestyle