Sponsors (9)
The bill broadens Farm Credit eligibility to support aquaculture service providers and producers—boosting financing and supply-chain stability for that sector—while raising the trade-off of potentially diverting limited Farm Credit resources and increasing credit risk for the Farm Credit System and taxpayers.
Small businesses that provide services to aquaculture producers gain clear eligibility for Farm Credit loans and guarantees, increasing their access to short- and intermediate-term financing.
Aquaculture producers and harvesters (and the rural communities that depend on them) can receive broader credit support through Farm Credit Banks and PCAs for operations tied to service providers, which may stabilize supply chains and business operations.
Clarifying eligibility for Farm Credit institutions reduces legal uncertainty, making lenders more likely to extend loans to aquaculture-related sectors and increasing overall lending activity.
Traditional farm borrowers may face reduced access to Farm Credit if lending capacity is shifted toward aquaculture service providers, potentially diverting limited resources away from established farm sectors.
Expanding lending to new aquaculture-related service providers increases credit risk within the Farm Credit System, which could raise exposure for the System's backstops and, indirectly, taxpayers or government support mechanisms.
Based on analysis of 2 sections of legislative text.
Expands Farm Credit Act eligibility and lending authority to include businesses that provide services directly to producers/harvesters of aquatic products.
Adds service businesses that support commercial fishing and other aquatic producers to the list of entities eligible for Farm Credit System membership and loans. The bill amends parts of the Farm Credit Act of 1971 to explicitly allow Farm Credit Banks and Production Credit Associations to make short- and intermediate-term loans, guarantees, or participations to businesses that furnish services directly related to the operating needs of producers or harvesters of aquatic products.
Official title: Amend the Farm Credit Act of 1971 to support the commercial fishing industry.
Introduced March 31, 2025 by Angus Stanley King · Last progress March 31, 2025