Sponsors (3)
Official title: To amend the Consolidated Farm and Rural Development Act to reform farm loans, to amend the Department of Agriculture Reorganization Act of 1994 to reform the National Appeals Division process, and for other purposes.
Introduced November 20, 2025 by Alma Adams · Last progress November 20, 2025
The bill provides substantial short‑term relief, expanded access, and stronger appeals protections for many farmers—especially underserved and lower‑income producers—while increasing taxpayer costs, administrative burdens, and risks of moral hazard and credit‑market side effects.
Distressed farmers and ranchers receive immediate relief: a 2-year deferral of principal and interest, a temporary cut in interest on direct loans, and waived guaranteed‑loan fees—easing cash flow, lowering borrowing costs, and reducing near-term foreclosure risk.
Beginning, limited‑resource, socially disadvantaged, and veteran producers face lower barriers to credit: fee waivers, mentoring/education pathways, and relaxed participation requirements improve access to direct ownership loans and broaden refinancing options.
Borrowers gain stronger appeals rights and greater transparency: agencies must give detailed adverse‑determination letters with reasons/links, NAD hearing officers can grant equitable relief, and lower‑income appellants (AGI ≤ $300,000) benefit from the agency bearing the evidentiary burden, making appeals more accessible and predictable.
Taxpayers face higher fiscal cost and federal exposure: deferred payments, reduced interest income, waived fees, and looser refinancing increase program costs and the government's potential loan losses.
USDA/FSA will incur significant administrative burden and possible delays: detailed adverse‑determination requirements, eligibility identification, and new procedural limits will require more staff/time and could slow decision timelines.
The bill increases moral‑hazard and program sustainability risks: extended repayment limits, fee waivers, and loosened reuse/ refinancing rules could encourage delaying needed restructurings or repeated program use, reducing availability for other applicants.
Based on analysis of 4 sections of legislative text.
Provides 2-year payment deferments and low interest for eligible FSA direct loans, waives certain guaranteed-loan fees, limits use of primary residence as collateral, and changes appeal procedures.
Provides short-term payment relief and lower interest for distressed and disadvantaged farm borrowers, waives certain guaranteed-loan fees, and changes appeals and administrative procedures governing Farm Service Agency (FSA) loans and program decisions. It also adds protections limiting use of a farmer’s primary residence as collateral, updates eligibility rules for several direct loan programs, and shifts evidentiary burdens in Division appeals for lower-income appellants. Implements: (1) a two-year deferment of principal and interest and a low 0.125% interest rate on outstanding direct loans for eligible borrowers; (2) a two-year waiver of guaranteed-loan fees for covered producers; (3) new notice, collateral, and loan-eligibility rules under a new farmer-program loan reform provision; and (4) changes to burdens of proof and agency implementation rules in appeal proceedings to strengthen procedural protections for lower-AGI appellants.