Today, U.S. Rep. Randy Feenstra (R-Hull) helped introduce – alongside U.S. Reps. Darin LaHood (R-IL), Dan Kildee (D-MI), and Dwight Evans (D-PA) – the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA). This legislation would update outdated rules and regulations pertaining to manufacturing and agricultural bonds and help domestic manufacturers and family farmers expand their operations and remain profitable and productive.
“Industrial Development Bonds (IDBs) and First-Time Farmer Bonds (Aggie Bonds) are vital to economic development, manufacturing, and our farm economy in rural Iowa. However, outdated rules and regulations have hindered our domestic manufacturers and family farmers from utilizing these bonds,” said Rep. Feenstra. “I’m proud to work with my colleagues Rep. Darin LaHood, Rep. Dan Kildee, and Rep. Dwight Evans to modernize current law to reflect the intensive capital needs of Iowa farmers and manufacturers to be profitable and productive. I will continue to support policies that grow our manufacturing capabilities, generate robust economic activity, and help our beginning farmers thrive.”
More specifically, MAMBA would:
- Raise the maximum manufacturing bond size to $30 million from $10 million, updating this threshold for inflation and economic changes, and ties future increases to inflation.
- Modernize the definition of a “manufacturing facility” to include high-tech manufacturing processes, including biotechnology, design, and formula development.
- Increase the amount of bond proceeds that can go to first-time farmers to $1 million from $450,000 and allow new farmers to use bond proceeds to upgrade existing agricultural buildings and property and purchase farm equipment.
- Align the definition of “substantial farmland” in the federal tax code with existing law.