TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 30. TEXAS AGRICULTURAL FINANCE AUTHORITY: YOUNG FARMER LOAN GUARANTEE PROGRAM

Subchapter A. GENERAL PROCEDURES

4 TAC §30.5

The Board of Directors of the Texas Agricultural Finance Authority (the Authority) of the Texas Department of Agriculture (the department) adopts an amendment to §30.5, concerning general requirements for the Young Farmer Loan Guarantee Program, without changes to the proposal published in the September 12, 2003 issue of the Texas Register (28 TexReg 7913). The amendment is adopted to allow for the use of funds guaranteed under the Authority's Young Farmer Loan Guarantee Program for the purchase of real estate for agricultural production purposes. Such use is not allowed under the current rule. The board has determined that use of program funds for the purchase of real estate for agricultural purposes will be beneficial to the program because it will allow the funds to be used in a broader way, giving increased flexibility to borrowers under the program. The amendment deletes language in subsections (a) and (b) of §30.5 that prohibits the use of program funds for the purchase of real estate for agricultural production.

No comments were received on the proposal.

The amendment to §30.5 is adopted under the Texas Agriculture Code (the Code), §58.052, which provides that the Board of Directors of the Authority (Board) with the authority to administer the Young Farmer Loan Guarantee Program; and the Code, §58.023, which provides the Board with the authority to adopt rules to establish criteria for participation any program administered by the Board.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 17, 2003.

TRD-200308642

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: January 6, 2004

Proposal publication date: September 12, 2003

For further information, please call: (512) 463-4075