Producer and Agricultural Credit Enhancement Act of 2025

This bill aims to make it easier for farmers and ranchers to get and keep affordable credit. It raises the maximum sizes of some Farm Service Agency (FSA) loans, updates how those limits grow with inflation, and lets some struggling borrowers switch from FSA‑guaranteed loans to FSA direct loans if they meet certain safeguards. It also supports keeping microloans and other FSA lending well funded to meet demand.

Key changes

• Higher loan caps: Increases the maximum amounts for farm ownership and operating loans, including higher limits for guaranteed loans. For example, the farm ownership direct loan cap rises to $850,000 and the guaranteed cap to $3,000,000, starting in fiscal year 2025.
• Better inflation updates: Instead of using a general price index, annual adjustments will be based equally on average U.S. farm real estate, cropland, and pasture values published by USDA.
• Down payment help: Tweaks the down payment program so FSA can cover up to 45% of the lesser purchase price or appraised value, subject to overall loan limits, simplifying how the cap is applied.
• Bigger microloans: Raises the maximum microloan amount above the current $50,000 cap.
• Safety net for distressed borrowers: Within one year of enactment, USDA must set rules to let certain distressed FSA‑guaranteed loans be refinanced into direct FSA loans if the borrower tried to work with their lender, there’s a reasonable chance the farm can succeed after fixing identified problems, and taxpayer funds are protected. This refinancing cannot change subsidy rates for either program.

Who is affected and when

• Farmers and ranchers seeking FSA loans or struggling with existing FSA‑guaranteed loans.
• New loan limits begin in fiscal year 2025; refinancing rules must be issued within one year after enactment.

Overall, this proposal aims to match credit limits with today’s land values and costs, keep small and beginning producers in mind, and provide a path to stabilize farms facing loan trouble.