Sponsor
Donald J. Bacon
Representative · R-NE
Representative · R-NE
The bill pilots faster, more flexible USDA farm-ownership lending that could expand access for farmers but raises risks of higher taxpayer costs, administrative burden, and uncertainty unless the program is extended.
Farmers and rural borrowers can get faster and more certain access to USDA direct farm ownership loans through pre-approval/pre-qualification and use of alternative eligibility criteria in the pilot, which may expand who can qualify and speed financing.
Congress and the public get regular information on the pilot's performance because USDA must report annually to the House and Senate Agriculture Committees, improving transparency and oversight.
Taxpayers and the USDA may face higher loan losses and costs if applicants approved under alternative eligibility rules default at higher rates.
Borrowers and lenders face limited long-term certainty because the pilot authority expires on September 30, 2030, unless Congress extends it.
USDA may incur additional administrative workload and costs to implement and report on the pilot, potentially diverting resources from other programs.
Based on analysis of 2 sections of legislative text.
Requires USDA to run a pilot for pre-approval/pre-qualification of direct farm ownership loans to streamline applications and increase borrower certainty.
Official title: To establish a pilot program to establish a pre-approval or pre-qualification process for direct farm ownership loans under subtitle A of the Consolidated Farm and Rural Development Act in order to streamline the application process and provide greater certainty to borrowers.
Introduced June 26, 2025 by Donald J. Bacon · Last progress June 26, 2025
Creates a USDA pilot program to offer pre-approval or pre-qualification for direct farm ownership loans under subtitle A of the Consolidated Farm and Rural Development Act, intended to streamline the loan process and give prospective borrowers greater certainty. The pilot must start within one year, may use alternative eligibility rules for loans processed through it, requires annual reporting to congressional agriculture committees, and expires September 30, 2030.