Sponsors (9)
The bill broadens Farm Credit eligibility to support aquaculture service providers—improving financing and supply-chain stability for that sector and related small businesses—while raising the risk that limited Farm Credit resources and credit exposure could shift away from traditional farm borrowers and increase potential losses for the Farm Credit System and taxpayers.
Small businesses that provide services to aquaculture producers (e.g., equipment suppliers, processors, transporters) are explicitly eligible for Farm Credit loans and guarantees, improving their access to short- and intermediate-term financing.
Producers and harvesters of aquatic products and their supply chains gain broader credit support from Farm Credit Banks and PCAs, which could help stabilize aquaculture supply chains and local rural economies.
Clarifying eligibility reduces legal uncertainty for Farm Credit institutions, making them more likely to increase lending activity to aquaculture-related sectors.
Traditional farm borrowers (crop and livestock producers) and some rural communities could see reduced access to limited Farm Credit resources if lending capacity shifts toward aquaculture service providers.
Expanding Farm Credit lending to new service providers may increase credit risk borne by the Farm Credit System and, indirectly, taxpayers or other participants if losses materialize.
Based on analysis of 2 sections of legislative text.
Adds businesses that provide services to aquatic-product producers/harvesters as eligible Farm Credit members and permits short- and intermediate-term loans, guarantees, and participations to them.
Expands Farm Credit System eligibility and lending authority to cover businesses that provide services directly tied to the operating needs of aquatic-product producers and harvesters. It adds those service providers as eligible members/stockholders and authorizes Farm Credit banks and production credit associations to make short- and intermediate-term loans, guarantees, or participations to them. The change broadens who can borrow from Farm Credit institutions (beyond direct producers) to include service businesses that support fisheries and aquaculture operations. The bill changes statutory language in the Farm Credit Act to create this explicit lending authority but does not appropriate new funds or create separate programs.
Introduced March 31, 2025 by Angus Stanley King · Last progress March 31, 2025