Amends the Consolidated Farm and Rural Development Act to establish a pilot program for development loans and loan guarantees for beginning farmers and ranchers.
Aims to address the financial challenges faced by beginning farmers and ranchers, particularly regarding substantial early-stage investments.
Defines “development expenditure” as a capital investment benefiting a farming or ranching business for more than one year, including various types of investments such as initial assets, soil fertility, equipment, branding, and compliance systems.
Requires the Secretary to establish the pilot program within two years of enactment.
Specifies loan terms: repayment period of 3 to 10 years, maximum loan amount of $100,000, and interest rates between 0% and 3%.
Allows for flexible principal repayment and limits collateral requirements based on borrower experience.
Loans will not count towards existing limitations on other loan types and will be treated as direct or guaranteed operating loans.
Mandates comprehensive training and support for borrowers, covering management issues like bookkeeping, taxation, and risk management.
Training to be provided through various entities, including those with existing contracts or funding from related programs.
Requires ongoing evaluation of the pilot program and biennial reports to Congress on its operation and outcomes.