Producer and Agricultural Credit Enhancement Act of 2025

This bill makes it easier for farmers and ranchers to get and manage USDA Farm Service Agency (FSA) loans. It raises how much you can borrow for farm ownership and operating loans, updates how those limits change each year, improves the down payment program, raises the microloan cap, and lets some struggling borrowers refinance certain guaranteed loans into direct FSA loans under strict rules.

Key points

• Who is affected: Farmers and ranchers who use FSA farm ownership, operating, down payment, or microloan programs.
• Higher loan limits starting in fiscal year 2025: Farm ownership loans up to $850,000 (direct) and $3,500,000 (guaranteed); operating loans up to $750,000 (direct) and $3,000,000 (guaranteed).
• Annual adjustment: Instead of using a “prices paid” index, loan limits would adjust based on equal-weighted USDA reports of average per‑acre farm real estate, cropland, and pasture values.
• Down payment program: Clarifies that USDA can finance up to 45% of the lower of the purchase price or appraised value, subject to the overall loan caps.
• Microloans: Raises the cap from $50,000 to $100,000.
• Refinancing option: Within 1 year, USDA must set rules allowing certain distressed FSA‑guaranteed loans to be refinanced into direct loans, if the borrower tried but couldn’t work things out with the lender and the farm has a reasonable chance to succeed. This must not change subsidy rates for FSA loan programs; refinancing can move between FSA programs; and existing maximum loan limits still apply .

Congress also states that access to credit is vital and that FSA microloans, direct loans, and guaranteed loans should be fully funded to meet demand, help beginning farmers and ranchers, and support family farms.