[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1991 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1991
To amend the Consolidated Farm and Rural Development Act to modify
limitations on amounts of farm ownership loans and operating loans, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2025
Mr. Finstad (for himself and Ms. Craig) introduced the following bill;
which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Consolidated Farm and Rural Development Act to modify
limitations on amounts of farm ownership loans and operating loans, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Producer and Agricultural Credit
Enhancement Act of 2025''.
SEC. 2. LIMITATIONS ON LOAN AMOUNTS.
(a) Limitations on Amount of Farm Ownership Loans.--Section
305(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1925(a)(2)) is amended by striking ``$600,000, or, in the case of a
loan guaranteed by the Secretary, $1,750,000 (increased, beginning with
fiscal year 2019'' and inserting ``$850,000, or, in the case of a loan
guaranteed by the Secretary, $3,500,000 (increased, beginning with
fiscal year 2025''.
(b) Limitations on Amount of Operating Loans.--Section 313(a)(1) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1943(a)(1))
is amended by striking ``$400,000, or, in the case of a loan guaranteed
by the Secretary, $1,750,000 (increased, beginning with fiscal year
2019'' and inserting ``$750,000, or, in the case of a loan guaranteed
by the Secretary, $3,000,000 (increased, beginning with fiscal year
2025''.
SEC. 3. INFLATION PERCENTAGE.
Section 305(c) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1925(c)) is amended--
(1) in paragraph (1), by striking ``of the Prices Paid By
Farmers Index (as compiled by the National Agricultural
Statistics Service of the Department of Agriculture) for the
12-month period ending on July 31 of the immediately preceding
fiscal year'' and inserting ``of 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''; and
(2) in paragraph (2), by striking ``of such index (as so
defined) for the 12-month period that immediately precedes the
12-month period described in paragraph (1)'' and inserting ``of
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 year immediately
preceding the year described in paragraph (1) (as so
published), weighted equally''.
SEC. 4. DOWN PAYMENT LOAN PROGRAM.
Section 310E(b)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1935(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``exceed 45 percent of the least'' and inserting ``exceed,
subject to section 305(a), 45 percent of the lesser'';
(2) in subparagraph (A), by adding ``or'' after the
semicolon;
(3) in subparagraph (B), by striking ``; or'' and inserting
a period; and
(4) by striking subparagraph (C).
SEC. 5. LIMITATION ON MICROLOAN AMOUNTS.
Section 313(c)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1943(c)(2)) is amended by striking ``$50,000'' and
inserting ``$100,000''.
SEC. 6. REFINANCING OF GUARANTEED LOANS INTO DIRECT LOANS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Agriculture, acting through the
Administrator of the Farm Service Agency (referred to in this section
as the ``Secretary''), shall promulgate regulations allowing certain
loans guaranteed by the Farm Service Agency to be refinanced into
direct loans issued by the Farm Service Agency, in accordance with this
section.
(b) Requirements.--
(1) In general.--The regulations promulgated under
subsection (a) shall provide that a guaranteed loan described
in that subsection may be refinanced into a direct loan
described in that subsection only if the Secretary determines
that--
(A) the guaranteed loan is distressed;
(B) the borrower on that guaranteed loan has
attempted to work with the lender and has been
unsuccessful;
(C) a reasonable chance for the success of the
operation financed by the guaranteed loan exists; and
(D) all other criteria established by the Secretary
for purposes of this section to protect taxpayer funds
and the loan programs of the Farm Service Agency have
been satisfied.
(2) Reasonable chance of success.--For purposes of
paragraph (1)(C), the Secretary may determine that a reasonable
chance for the success of an operation exists if the Secretary
determines that--
(A) all relevant problems with the operation
financed by the guaranteed loan--
(i) have been identified; and
(ii) can be corrected; and
(B) on correction of those problems, the operation
can achieve, or be returned to, a sound financial
basis.
(c) No Effect on Subsidies.--In carrying out this section, the
Secretary shall ensure that the refinancing of guaranteed loans into
direct loans has no impact on the subsidy rate of--
(1) loans guaranteed by the Farm Service Agency; or
(2) direct loans issued by the Farm Service Agency.
(d) Loan Programs.--In making direct loans pursuant to the
regulations promulgated under subsection (a), the Secretary may
refinance a loan guaranteed under 1 program of the Farm Service Agency
into a direct loan issued under another program of the Farm Service
Agency, as the Secretary determines to be appropriate and in accordance
with the laws applicable to the program under which the new direct loan
is issued.
(e) Maximum Amount of Direct Refinancing Loans.--A direct loan
issued by the Farm Service Agency pursuant to the regulations
promulgated under subsection (a) shall be subject to any otherwise
applicable limitation on the maximum amount of a direct loan issued by
the Farm Service Agency, including, if applicable, the limitations
described in--
(1) section 305 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1925); and
(2) section 313 of that Act (7 U.S.C. 1943).
SEC. 7. SENSE OF THE CONGRESS.
It is the sense of the Congress that--
(1) access to credit is essential to the success of farmers
and ranchers; and
(2) microloans, direct loans, and guaranteed loans provided
by the Farm Service Agency should be fully funded to meet
producer demand, help beginning farmers and ranchers, and
support family farms.
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