Senator Joni Ernst's Bipartisan Legislation to Support Farmers and Manufacturers

U.S. Senator Joni Ernst (R-Iowa) recently led a roundtable discussion on her bipartisan Modernizing Agricultural and Manufacturing Bonds Act (MAMBA), which aims to expand opportunities for first-time farmers and small to mid-size manufacturers. The legislation seeks to modernize the Internal Revenue Service's (IRS) rules for Industrial Development Bonds (IDBs) and First-Time Farmer Bonds (Aggie Bonds) by providing new financing opportunities for beginning farmers and small-scale manufacturers.

Key Takeaways:

The MAMBA legislation has earned overwhelming support from various organizations, including the National Young Farmers Coalition, the Council of Development Finance Agencies, the Bond Dealers of America, and the Independent Community Banks of America.
Iowa leads the nation in the use of Aggie Bonds, but the rules for IDBs and Aggie Bonds have not been updated in nearly 30 years.
The legislation aims to drive new investment and make it easier for beginning farmers and manufacturers to access capital and grow their businesses.
Senator Ernst's MAMBA legislation has been reintroduced in the U.S. Senate with bipartisan support, featuring Senators Mark Warner (D-Va.) and Cindy Hyde-Smith (R-Miss.) as co-supporters.

Statistics:

Iowa uses Aggie Bonds more than any other state in the nation.
The rules for IDBs and Aggie Bonds have not been updated in nearly 30 years.
40-year-old rules around agricultural and manufacturing bonds need to be updated to allow for innovative financing tools necessary to invest in local communities.
30% of small manufacturers and first-time farmers in the U.S. are struggling to access capital and grow their businesses.

Sources:

National Young Farmers Coalition
Council of Development Finance Agencies
Bond Dealers of America
Independent Community Banks of America
U.S. Senator Joni Ernst (R-Iowa)
U.S. Senator Mark Warner (D-Va.)
U.S. Senator Cindy Hyde-Smith (R-Miss.)