March 10, 2025
Mr. Finstad (for himself and Ms. Craig) introduced the following bill; which was referred to the Committee on Agriculture
To amend the Consolidated Farm and Rural Development Act to modify limitations on amounts of farm ownership loans and operating loans, and for other purposes.
Section 1. Short title
This Act may be cited as the Producer and Agricultural Credit Enhancement Act of 2025
.
Sec. 2. Limitations on loan amounts
(a) Limitations on amount of farm ownership loans
Section 305(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)(2)) is amended by striking $600,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019
and inserting $850,000, or, in the case of a loan guaranteed by the Secretary, $3,500,000 (increased, beginning with fiscal year 2025
.
(b) Limitations on amount of operating loans
Section 313(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943(a)(1)) is amended by striking $400,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019
and inserting $750,000, or, in the case of a loan guaranteed by the Secretary, $3,000,000 (increased, beginning with fiscal year 2025
.
Sec. 3. Inflation percentage
Section 305(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(c)) is amended—
(1)
in paragraph (1), by striking of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year
and inserting of the per acre average United States farm real estate value, the per acre average United States cropland value, and the per acre average United States pasture value for the preceding year (as published in the applicable Agricultural Land Values report of the National Agricultural Statistics Service of the Department of Agriculture), weighted equally
; and
(2)
in paragraph (2), by striking of such index (as so defined) for the 12-month period that immediately precedes the 12-month period described in paragraph (1)
and inserting of the per acre average United States farm real estate value, the per acre average United States cropland value, and the per acre average United States pasture value for the year immediately preceding the year described in paragraph (1) (as so published), weighted equally
.
Sec. 4. Down payment loan program
Section 310E(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)(1)) is amended—
(1)
in the matter preceding subparagraph (A), by striking exceed 45 percent of the least
and inserting exceed, subject to section 305(a), 45 percent of the lesser
;
(2)
in subparagraph (A), by adding or
after the semicolon;
(3)
in subparagraph (B), by striking ; or
and inserting a period; and
(4)
by striking subparagraph (C).
Sec. 5. Limitation on microloan amounts
Section 313(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943(c)(2)) is amended by striking $50,000
and inserting $100,000
.
Sec. 6. Refinancing of guaranteed loans into direct loans
(a) In general
Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture, acting through the Administrator of the Farm Service Agency (referred to in this section as the Secretary), shall promulgate regulations allowing certain loans guaranteed by the Farm Service Agency to be refinanced into direct loans issued by the Farm Service Agency, in accordance with this section.
(b) Requirements
(1) In general
The regulations promulgated under subsection (a) shall provide that a guaranteed loan described in that subsection may be refinanced into a direct loan described in that subsection only if the Secretary determines that—
(A)
the guaranteed loan is distressed;
(B)
the borrower on that guaranteed loan has attempted to work with the lender and has been unsuccessful;
(C)
a reasonable chance for the success of the operation financed by the guaranteed loan exists; and
(D)
all other criteria established by the Secretary for purposes of this section to protect taxpayer funds and the loan programs of the Farm Service Agency have been satisfied.
(2) Reasonable chance of success
For purposes of paragraph (1)(C), the Secretary may determine that a reasonable chance for the success of an operation exists if the Secretary determines that—
(A)
all relevant problems with the operation financed by the guaranteed loan—
(i)
have been identified; and
(ii)
can be corrected; and
(B)
on correction of those problems, the operation can achieve, or be returned to, a sound financial basis.
(c) No effect on subsidies
In carrying out this section, the Secretary shall ensure that the refinancing of guaranteed loans into direct loans has no impact on the subsidy rate of—
(1)
loans guaranteed by the Farm Service Agency; or
(2)
direct loans issued by the Farm Service Agency.
(d) Loan programs
In making direct loans pursuant to the regulations promulgated under subsection (a), the Secretary may refinance a loan guaranteed under 1 program of the Farm Service Agency into a direct loan issued under another program of the Farm Service Agency, as the Secretary determines to be appropriate and in accordance with the laws applicable to the program under which the new direct loan is issued.
(e) Maximum amount of direct refinancing loans
A direct loan issued by the Farm Service Agency pursuant to the regulations promulgated under subsection (a) shall be subject to any otherwise applicable limitation on the maximum amount of a direct loan issued by the Farm Service Agency, including, if applicable, the limitations described in—
(1)
section 305 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925); and
(2)
section 313 of that Act (7 U.S.C. 1943).
Sec. 7. Sense of the Congress
It is the sense of the Congress that—
(1)
access to credit is essential to the success of farmers and ranchers; and
(2)
microloans, direct loans, and guaranteed loans provided by the Farm Service Agency should be fully funded to meet producer demand, help beginning farmers and ranchers, and support family farms.