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Authorizes loans to agricultural producers to construct or upgrade propane storage facilities used primarily for agricultural production, by adding that loan purpose to the statute governing certain USDA loans. The change references the existing regulatory definition of "agricultural production" in 7 C.F.R. §4279.2 and also updates statutory paragraph formatting.
Amend Section 1614(a) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8789(a)) by striking and inserting new text that begins with the phrase "funds for— (1) producers; and" as shown in the section. This changes the text layout and available paragraph designations in the statute.
Add a new paragraph (designated as paragraph (2)) to authorize loans to agricultural producers to construct or upgrade storage facilities for propane that is primarily used for agricultural production. The phrase "agricultural production" is referenced to the definition in 7 C.F.R. §4279.2 (as in effect on the date of enactment of this paragraph).
Who is affected and how:
Farmers and agricultural producers: Direct beneficiaries. Producers who rely on propane for crop drying, greenhouse heating, livestock facilities, or other production needs can now seek loans to build or upgrade on-site propane storage, improving energy reliability and potentially lowering short-term capital barriers to infrastructure upgrades.
Owners/operators of commercial farms and rural agricultural businesses: Will have an expanded financing option under an existing federal loan program, which could be especially useful for small and mid-sized operations that cannot easily finance large infrastructure projects through commercial credit.
Contractors, equipment manufacturers, and local suppliers: Likely see modest increased demand for installation, upgrade, and maintenance of propane storage systems as more projects become financeable.
Federal administering agency (USDA or delegated office): Must update loan guidance, application materials, and underwriting procedures to incorporate the new eligible purpose and ensure compliance with the regulatory definition of agricultural production. Administrative workload is likely modest.
Communities and regulators: Rural communities that host expanded propane storage should continue to follow state and local permitting and safety requirements; the law does not alter those standards. Environmental and safety considerations (storage siting, leak prevention, fire safety) remain governed by existing codes and regulations.
Net effect: This is a targeted, narrow expansion of an existing loan program to support farm energy infrastructure, likely to benefit producers needing on‑site propane storage with limited fiscal or administrative disruption and no direct new appropriations or broad regulatory mandates.
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GRAIN DRY Act
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced May 21, 2025 by Joni Ernst · Last progress May 21, 2025
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate