The bill would create a pilot program for loans or loan guarantees to qualified beginning farmers and ranchers. The loans could cover long-term business investments, such as equipment, soil improvements, breeding stock, bookkeeping systems, and labor or regulatory practices. The Agriculture Secretary would establish the program within two years of enactment, provide borrowers with farm and ranch management training, and report on the program’s operation and outcomes every two years.
If you qualify as a beginning farmer or rancher, you could apply for a loan of up to $100,000 for eligible development expenses. The loan would have a repayment term of three to ten years and could include flexible principal payments. Borrowers would also receive training and support on topics such as bookkeeping, taxes, cash flow, and risk management. The bill does not provide further eligibility details in the text provided.
Borrowers would pay annual interest at a rate set by the Secretary, between zero and 3 percent, and would make annual payments on the interest due. At least 1 percent of the remaining principal balance would be due each year. No total program funding amount is specified; no publicly available information.
The bill’s findings state that beginning farmers and ranchers may need early investments that benefit their businesses for more than one year, and that treating those investments as annual operating loans can make it harder to build working capital and meet loan terms.
No publicly available information.