(1) The general assembly hereby finds and declares that:
The high cost and lack of available agricultural loans for farmers and other agricultural enterprises, with the resultant decrease in crop, livestock, and business productivity and resultant inability on the part of farmers and other agricultural enterprises to acquire modern agricultural equipment and processes, makes it difficult for farmers and other agricultural enterprises to maintain their present employment levels or to increase employment and lessens the supply of agricultural commodities available to fulfill the needs of the citizens of this state;
As a result of the continuing increase in the costs of maintaining operations, including costs of construction and rehabilitation, taxes, heating and electricity expenses, maintenance and repair expenses, and the cost of land, the state of Colorado suffers from structural economic weaknesses which contribute to a decline in capital investment, unemployment, and underemployment; and
The insufficiency of gainful employment in rural areas puts additional pressure onthe state's welfare, public health, and crime prevention programs.
(2) The general assembly further finds that:
Farm credit and agricultural loan financing is not currently available at interest rateswhich are consistent with the needs of farmers and other agricultural enterprises;
The problems set forth in this section cannot alone be remedied through the operationof private enterprise but can be alleviated through the creation of an agricultural development authority to encourage the investment of private capital in the agricultural sector through the use of public financing for the purpose of making loans available at interest rates lower than those available in the conventional farm credit markets. Creation of such an agricultural development authority to coordinate and cooperate with farmers and other agricultural enterprises is essential to alleviating these conditions.
Alleviating the conditions and problems set forth in this section by the encouragement of private investment through an agricultural development authority is a public purpose, and public money provided by the sale of revenue bonds may be borrowed, expended, advanced, loaned, and granted for such use. Such activities shall not be conducted for profit and are proper governmental functions best accomplished by the creation of an agricultural development authority vested with the powers and duties specified in this article.
This article is enacted to protect the health, safety, and welfare of the people of thisstate.
(3) The agricultural development authority created by this article shall make financing available for farmers and other agricultural enterprises to serve those people which private industry is unable to serve.
Source: L. 81: Entire article added, p. 1731, § 1, effective June 19.