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119-hr-5367119th CongressWALLET

Capital for Beginning Farmers and Ranchers Act of 2025

Sponsored By: Representative Strickland, Marilyn [D-WA-10]

In Committee

Summary

Low-cost development loans for beginning farmers and ranchers. This bill would create a USDA pilot program to make or guarantee loans for long-term capital needs like equipment, soil improvements, branding, and business systems.

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  • Beginning farmers and ranchers would be eligible for development loans up to $100,000 at very low interest, set between 0% and 3%. Loans would target capital and business-startup expenses and require annual interest payments with flexible principal schedules.
  • Lenders would face a collateral cap of 100% loan-to-value that may be reduced for experienced borrowers. Loans would be limited to defined development expenditures and treated under existing operating loan rules while not counting toward certain operating loan limits.
  • Borrowers must complete comprehensive training in bookkeeping, payroll, regulatory compliance, cash flow, and risk management. The USDA Secretary would have to establish the pilot within two years and report biennially to the House and Senate agriculture committees on results.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Low-cost start-up loans for beginning farmers

If enacted, the Agriculture Secretary would have to start a pilot program within two years to make or guarantee development loans for qualified beginning farmers and ranchers. Loans would be limited to $100,000 and used only for capital "development expenditures" that benefit the farm for more than one year. Repayment terms would run from 3 to 10 years. Interest would be set between 0% and 3%, and borrowers would pay interest once a year. Each year at least 1% of the remaining principal would be due on a date set by the Secretary. Collateral could not exceed 100% loan-to-value unless the lender lowers that requirement for experienced borrowers. The Secretary would provide required training on bookkeeping, taxes, credit, compliance, cash flow, and risk management and would evaluate the pilot and report to congressional agriculture committees every two years.

Sponsors & CoSponsors

Sponsor

Strickland, Marilyn [D-WA-10]

WA • D

Cosponsors

  • Rep. Adams, Alma S. [D-NC-12]

    NC • D

    Sponsored 9/15/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 9/15/2025

  • Rep. Sewell, Terri A. [D-AL-7]

    AL • D

    Sponsored 9/15/2025

  • Rep. Figures, Shomari [D-AL-2]

    AL • D

    Sponsored 9/15/2025

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 9/15/2025

  • Rep. Smith, Adam [D-WA-9]

    WA • D

    Sponsored 9/26/2025

  • Rep. Carson, André [D-IN-7]

    IN • D

    Sponsored 10/24/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 8/31/2026

Roll Call Votes

No roll call votes available for this bill.

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