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Committee backs revival of AgLink program to lend state funds to Oklahoma ag banks
Summary
House Bill 1541, a request of the state treasurer, would revive the AgLink program to lend state-held funds to local agricultural banks at below-market rates; the committee endorsed the bill and adopted a sponsor amendment 8-0.
The House Committee on Banking, Financial Services and Pensions voted unanimously to recommend House Bill 1541, a state treasurer request bill that seeks to revive the AgLink agricultural lending program.
Representative Patzkowsky explained the proposal as an effort to keep state savings invested in Oklahoma agriculture rather than in federal T-bills. "The treasurer... would like to lend that 4 and a half ish interest rate money to ag banks in our own state rather than send it back east," he said, describing a model in which the treasurer lends to local banks, which then add a margin and lend to producers at lower interest rates.
Committee members adopted a committee amendment that struck duplicative language and the sponsor described the amendment as clarifying and narrowing statutory text. After discussion, the committee recorded an 8-0 vote to recommend the bill for further consideration by another committee.
The sponsor said banks would be prequalified and that "there is no risk of our public funds" because participating banks must prequalify and remain responsible for repayment to the state under the program as described in committee remarks.
The measure will proceed to the next committee for further review.
