119-s899

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 899 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 899

 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 SENATE OF THE UNITED STATES

 March 6, 2025

 Mr. Hoeven (for himself and Ms. Klobuchar) introduced the following 
 bill; which was read twice and referred to the Committee on 
 Agriculture, Nutrition, and Forestry

_______________________________________________________________________

 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, $3,000,000 (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, $2,600,000 (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 CONGRESS.

 It is the sense of 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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