U.S. Reps. Mike Bost (R-IL) and Nikkie Budzinski (D-IL) introduced a bipartisan bill on Dec. 17 that would remove eligibility barriers to U.S. Department of Agriculture loans.
The USDA Loan Modernization Act, H.R. 6779, would update the eligibility standards to better reflect the structure of modern multi-generational, family-run farms, and expand access to operating, emergency and real estate loan for agricultural producers across the country.
“For too long, USDA loan rules have failed to keep up with the reality of modern farming,” Bost said. “Family farms shouldn’t be punished for choosing a path that helps them manage risk or plan for the next generation. Our legislation cuts through red tape, brings common sense back to USDA lending, and makes sure farmers who are doing things the right way aren’t locked out from the capital they need to keep their operations running.”
If enacted into law, the legislation updates eligibility requirements to allow producers with at least a 50 percent operational interest to qualify for loans and gives the Farm Service Agency more flexibility to consider a range of family farm entities. The legislation is supported by the Farm Credit Council, Illinois Corn Growers Association, Illinois Pork Producers Association, Farm Credit Illinois, Compeer, National Rural Lenders Association, Independent Community Bankers Association, Illinois Farm Bureau Federation, and the National Council of Farmer Cooperatives.
“This small but meaningful update to FSA loan program eligibility requirements will allow the next generation of producers to utilize modern farm business structures while still accessing FSA loan programs,” said Farm Credit Council president and CEO Christy Seyfer. “We look forward to working with Reps. Bost and Budzinski to ensure this important legislation is included in Farm Bill 2.0.”