Sponsors (4)
The bill lowers barriers to land ownership for new and nontraditional farmers by relaxing experience requirements and allowing alternative qualifications, but it increases fiscal and program risks—higher credit risk, greater demand on limited loan funds, and more discretionary decision-making that could be uneven across regions.
Beginning farmers and ranchers (including many aspiring buyers) will become eligible for USDA direct farm real estate loans with as little as one year of experience (or six months via waiver), improving access to land financing.
Aspiring entrants and next-generation family farmers will face a lower barrier to entry for starter farmland financing, increasing the likelihood of new farm entry and generational turnover.
Nontraditional entrants (for example, veterans or people with relevant education) will benefit because the Secretary can recognize alternative education or experience, expanding pathways into farming.
Taxpayers and the USDA loan program may face higher fiscal risk because reduced experience requirements could increase borrower credit risk and lead to more loan defaults.
USDA loan resources and available funds could be strained because broader eligibility may increase demand, potentially limiting assistance for more experienced or established producers.
Beginning and nontraditional applicants may face uneven or opaque outcomes because greater Secretary discretion to waive or recognize alternative experience could produce inconsistent regional decisions.
Based on analysis of 2 sections of legislative text.
Lowers the minimum experience needed to qualify for USDA direct farm real estate loans to 1 year and allows the Secretary to reduce it to 6 months.
Introduced August 19, 2025 by Zach Nunn · Last progress August 19, 2025
Lowers the minimum experience needed to qualify for USDA direct farm real estate loans to one year of substantial participation in farm or ranch management (or equivalent education/experience) and gives the Secretary authority to reduce that requirement further to six months. It also updates cross-references in the Consolidated Farm and Rural Development Act to reflect the new one-year standard. The change aims to make direct farm real estate loans more accessible to newer farmers and ranchers by shortening multi-year experience thresholds and adjusting waiver language, without creating new funding or changing loan terms beyond eligibility standards.