The bill would raise maximum Farm Service Agency farm ownership loans from $600,000 to $850,000 and operating loans from $400,000 to $750,000. For guaranteed loans, it would raise the limits from $1.75 million to $3 million for farm ownership and $2.6 million for operating loans. It would also change how certain loan limits are adjusted for inflation, using farm real estate, cropland, and pasture values weighted equally.
The bill would raise the microloan limit from $50,000 to $100,000 and change part of the down payment loan program’s rules. It would require regulations allowing some distressed guaranteed loans to be refinanced as direct loans. Eligibility would depend on factors including unsuccessful efforts to work with the lender and a reasonable chance that the farm operation can return to sound financial health. The new direct loan would remain subject to applicable loan limits.
Farmers and ranchers who use these loan programs could qualify for loans with higher maximum amounts. Some borrowers with distressed guaranteed loans could be considered for refinancing into direct loans if they meet the required conditions. The bill does not guarantee that any applicant will receive a loan.
No publicly available information.
The bill says that access to credit is essential for farmers and ranchers. It also states that Farm Service Agency loan programs should be fully funded to meet producer demand, help beginning farmers and ranchers, and support family farms.
No publicly available information.