Sponsors (3)
I'll give you the short version of this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Amends subsection (c) (Inflation percentage) to replace use of the Prices Paid By Farmers Index averages with a weighted average of per acre average United States farm real estate value, cropland value, and pasture value (as published in the applicable Agricultural Land Values report of the National Agricultural Statistics Service), and adjusts the counterpart yearly comparison language accordingly.
Amends subsection (b)(1) of 7 U.S.C. 1935 by modifying the introductory clause to add the phrase 'subject to section 305(a),' before the 45 percent limit; inserting the word 'or' after the semicolon in subparagraph (A); replacing the text of subparagraph (B) with a period (thereby removing its substantive text); and striking subparagraph (C).
Amends subsection (c)(2) by striking the statutory microloan per-borrower outstanding principal limit of $50,000 and inserting a different amount (text given as "inserting00,000").
Increases and updates several Farm Service Agency (FSA) loan limits, changes how the law counts inflation for certain loan limits by using a three‑part U.S. per‑acre land‑value average, clarifies and tweaks statutory language in the down‑payment loan program, and requires the FSA to issue rules allowing some FSA‑guaranteed loans that meet distress and taxpayer‑protection criteria to be refinanced into FSA direct loans within one year. Also includes a congressional statement urging full funding of FSA microloans, direct loans, and guaranteed loans to meet producer demand and help beginning and family farmers. Also contains a textual replacement in one provision that appears to insert malformed text (likely a drafting error) and does not itself appropriate new funds; it mainly changes formulas, limits, and administrative authorities and timelines for agency rulemaking.
Amends Section 305(a)(2) of the Consolidated Farm and Rural Development Act to insert the text: "$850,000, or, in the case of a loan guaranteed by the Secretary, $3,000,000 (increased, beginning with fiscal year 2025" (text shown exactly as inserted in the section) .
Amends Section 305(a)(2) of the Consolidated Farm and Rural Development Act to insert the guaranteed-loan amount text: "$3,000,000 (increased, beginning with fiscal year 2025" as shown in the section .
Amends Section 313(a)(1) of the Consolidated Farm and Rural Development Act to insert the text: "$750,000, or, in the case of a loan guaranteed by the Secretary, ,600,000 (increased, beginning with fiscal year 2025" (text shown exactly as inserted in the section) .
Amends Section 313(a)(1) of the Consolidated Farm and Rural Development Act to insert the guaranteed-loan amount text shown in the section as ",600,000 (increased, beginning with fiscal year 2025" (this text appears exactly as written in the source file) .
Amends paragraph (1) of Section 305(c) by striking the phrase referring to the Prices Paid By Farmers Index and inserting a new measure: the per acre average United States farm real estate value, the per acre average United States cropland value, and the per acre average United States pasture value for the preceding year (as published in the applicable Agricultural Land Values report of the National Agricultural Statistics Service of the Department of Agriculture), weighted equally.
Primary effects fall on farm borrowers (especially beginning farmers and family farm owners) and on FSA program administration. Higher loan ceilings and a new refinancing pathway could improve credit access for viable operations that are distressed but have a reasonable chance to recover. Private lenders holding guaranteed loans may see some troubled loans transferred into FSA direct loans if borrowers meet the specified criteria; that can shift credit ownership and potential losses to the federal government in limited cases. USDA/FSA will have an administrative workload to adopt the new inflation measure, publish implementing rules within one year for refinancing, and adjust underwriting and accounting procedures. Because the bill does not itself appropriate funds, the real expansion of lending capacity depends on future appropriations; the legislative text explicitly urges full funding for microloans, direct loans, and guaranteed loans. The apparent typographic/drafting anomaly in one replacement clause adds legal uncertainty and may require a technical amendment or clarification before implementation.
Expand sections to see detailed analysis
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced March 6, 2025 by John Hoeven · Last progress March 6, 2025
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate