Capital for Beginning Farmers and Ranchers Act of 2024

house

senate

president

Legislation Details

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 in making 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 certain limitations and will be treated as operating loans for regulatory purposes.
Mandates comprehensive training and support for borrowers on farm and ranch management, including bookkeeping, taxation, and risk management.
Training to be provided through various entities, including those funded by existing agricultural programs.
Requires ongoing evaluation of the pilot program and biennial reporting to relevant congressional committees on its operation and outcomes.

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 in making 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 certain limitations and will be treated as operating loans for regulatory purposes.
Mandates comprehensive training and support for borrowers on farm and ranch management, including bookkeeping, taxation, and risk management.
Training to be provided through various entities, including those funded by existing agricultural programs.
Requires ongoing evaluation of the pilot program and biennial reporting to relevant congressional committees on its operation and outcomes.