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119-hr-6169119th CongressWALLET

Fair Credit for Farmers Act

Sponsored By: Representative Adams, Alma S. [D-NC-12]

In Committee

Summary

Farm loan relief and borrower protections are the core focus. The bill would pause payments for eligible farm loans for a two-year window and remake loan rules to widen eligibility, limit using a primary residence as collateral, and strengthen appeals and equitable relief.

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  • Covered producers would get a two-year deferral of principal and interest on direct farm loans and a fixed interest rate of 0.125 percent during that window. Loan maturity and repayment schedules would extend by two years.
  • Farmers and ranchers more broadly would face expanded eligibility for ownership and operating loans, new refinancing options for non-USDA debt, and protections that bar denying eligibility because of prior debt write-downs or losses.
  • Lenders and the appeals process would change: guaranteed loan lenders must waive guarantee fees for covered producers during the two-year window with up to a 180-day extension, and the National Appeals Division would gain stronger equitable relief powers and a shifted burden of proof for appellants with adjusted gross income at or below $300,000.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Stronger appeals and relief for farmers

If enacted, National Appeals Division hearing officers could award equitable relief in cases where FSA wrongly denied feasibility or where FSA officially promised and then reversed a loan or benefit. Relief for feasibility cases would equal projected income minus projected expenses from the application. Adverse decision letters would have to list each known reason, cite the rules or handbook guidance used, and explain how to find those materials online. Appellants with adjusted gross income of $300,000 or less (last year or five‑year average) would shift the burden of proof to the agency. Agencies implementing NAD decisions would have to use the same information the NAD used.

Two-year loan pause and fee waivers

If enacted, eligible borrowers would get a 2-year pause on principal and interest for direct farm ownership, operating, and emergency loans. Interest during the pause would be fixed at 0.125% on remaining principal. Lenders of guaranteed loans to covered producers would have to waive guarantee fees for at least 2 years, with a possible 180-day extension. "Eligible borrower" and "covered producer" would be defined in statute and regulation as described in the bill.

Easier refinancing and loan access

If enacted, direct operating loans could be used more broadly to refinance a borrower's debt. Direct farm ownership loans could refinance non‑USDA debt if the borrower used direct refinancing no more than four times before and the debt was owed to a non-Secretary creditor. The Secretary could require one year of farm experience for ownership loans but may waive that rule for qualified beginning farmers with mentoring or approved education. Beginning farmer set-asides would be distributed "to the extent practicable," and the Secretary could not limit the number of fiscal years in which a loan may be closed.

Limits on using homes as collateral

If enacted, the Secretary could use a borrower's principal residence to secure a direct farmer program loan only after other assets are shown inadequate. The bill would define principal residence to include the home and up to 10 adjoining acres. When other assets equal 100% of the remaining loan, the Secretary must partially release the residence automatically. For delinquent borrowers, the Secretary must seek liens on other assets first and may not take security greater than the loan amount.

Sponsors & CoSponsors

Sponsor

Adams, Alma S. [D-NC-12]

NC • D

Cosponsors

  • Rep. McClellan, Jennifer L. [D-VA-4]

    VA • D

    Sponsored 11/20/2025

  • Rep. McGovern, James P. [D-MA-2]

    MA • D

    Sponsored 1/7/2026

Roll Call Votes

No roll call votes available for this bill.

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