Bill > S899

This bill, known as the Producer and Agricultural Credit Enhancement Act of 2025, amends the Consolidated Farm and Rural Development Act to significantly increase loan limitations and modify loan program provisions for farmers and ranchers. The bill raises the maximum amount for direct farm ownership loans from $600,000 to $850,000 and increases guaranteed farm ownership loans from $1,750,000 to $3,000,000, starting in fiscal year 2025. Similarly, operating loans would see limits increase from $400,000 to $750,000 for direct loans and from $1,750,000 to $2,600,000 for guaranteed loans. The bill also changes how inflation adjustments are calculated, shifting from the Prices Paid By Farmers Index to a weighted average of farm real estate, cropland, and pasture values. Additionally, the legislation increases microloan limits from $50,000 to $100,000 and establishes a new process for refinancing distressed guaranteed loans into direct loans, with specific criteria to protect taxpayer funds and ensure the potential success of agricultural operations. The bill reflects a congressional recognition of the critical importance of agricultural credit access for farmers and ranchers, particularly beginning farmers and family farms.

Agriculture and Natural Resources

https://www.congress.gov/bill/119th-congress/senate-bill/899/all-info