Treasurer McKinney Celebrates Ag Program Anniversary
Over $200 Million Loaned to Save Kansas Family Farms 

Over 1485 loans have assisted family farmers during the last 10 years as part of the State Treasurer’s Agricultural Production Loan Deposit Program.  

“As a small business owner I know how tight some years can be due to many factors outside your control. Personally, I have experience drought and rapid declines in cattle prices” said State Treasurer Dennis McKinney. “This program helps Kansas’ Ag banks and family farms continue our tradition of producing the safest and most abundant food supply in the world.”   

Authorized by the 2000 Legislature, the Kansas Agricultural Production Loan Deposit Program allows for up to $55M in idle state funds to be loaned through Kansas banks at 2.0 percent below market rates to be used by agricultural borrowers with high debt to equity ratios.   Currently 387 loans are outstanding for nearly $49 million loaned to family farms. 

“With over 20 percent of the jobs in Kansas related to agriculture, this highly successful loan program is the least we can do to help ensure the survival of family farms in Kansas while saving and creating new Ag related jobs,” said McKinney. “I want Kansas agriculture organizations, farmers and bankers to make full use of this program to do all we can to help Kansas farm families to create jobs.” 

“These are difficult and challenging times on the farm,” said Steve Baccus, an Ottawa County farmer who serves as president of Kansas Farm Bureau. “The State Treasurer’s Agricultural Production Loan Deposit Program has proven to be a popular and valuable tool for many of our members in managing their operations.”   

“It’s an extremely successful program and a wonderful example of a win/win situation” states Donn Teske, president of the Kansas Farmers Union. “These idle funds would be earning little otherwise and very often a couple of points of interest less can be the difference on a farm operations cash flow.” 

As one of the major pillars of the Kansas economy, this program has proven very successful for all parties involved.  The state is able to earn a return on its idle funds.  Local financial institutions are able to increase loan volume and circulation of currency in the local economy. Local farmers are able to uses these funds as a source of capitol typically during start up opportunities or difficult economic times. 

For more information about the State Treasurer’s Agricultural Production Loan Deposit Program please see: http://www.kansasstatetreasurer.com/prodweb/agprod.php 

McKinney is a farmer, small business owner, and former legislator from Greensburg.  Since taking office in January of 2009, McKinney has worked to cut through bureaucratic red tape, set records in consecutive years for reuniting Kansans with their unclaimed property, emphasized careful management of taxpayer’s dollars, and reformed the state's housing loan program to promote new construction and good paying jobs for Kansas workers.