Sponsors (3)
The bill increases access to financing for precision agriculture—potentially raising farm productivity, efficiency, and environmental benefits—while creating risks of open-ended federal spending, borrower losses, privacy concerns, and unequal access for credit-constrained producers.
Farmers and livestock producers can borrow up to $500,000 to purchase precision agriculture equipment, lowering upfront costs and enabling wider adoption of productivity- and efficiency-enhancing technologies that support rural economies.
Loan terms of up to 12 years align financing with equipment lifespan, making repayments more manageable and improving farm cash flow and financial planning.
Flexible security options (lien or other acceptable security) increase access to credit for creditworthy but asset-limited producers who otherwise might be unable to pledge traditional collateral.
The program is authorized at "such sums as are necessary," creating a risk of open-ended, uncapped federal spending that could increase costs for taxpayers.
Borrowers who default could lose equipment or other collateral because of lien requirements, threatening farm operations and livelihoods for some producers.
The program may preferentially benefit producers with established credit histories, leaving credit-constrained small, beginning, or disadvantaged farmers with reduced access and potentially worsening inequities.
Based on analysis of 2 sections of legislative text.
Creates an FSA loan program to finance precision agriculture equipment purchases for crop and livestock producers, with loans up to $500,000 and 12-year terms.
Introduced May 6, 2025 by Randy Feenstra · Last progress May 6, 2025
Creates a USDA loan program, run by the Farm Service Agency, to help crop and livestock producers buy precision agriculture equipment. Eligible producers with satisfactory credit can receive loans up to $500,000 with terms up to 12 years, secured by the purchased equipment or other acceptable collateral. The program defines covered precision technologies, allows the Secretary to add qualifying technologies, and requires detailed annual reporting on borrowers, loans, equipment categories, estimated input/environmental benefits, demographics, defaults, and geographic distribution. Funding is authorized as "such sums as are necessary."