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119-s-2797119th CongressWALLET

Capital for Beginning Farmers and Ranchers Act of 2025

Sponsored By: Senator Welch, Peter [D-VT]

Introduced

Summary

Low-cost development loans for beginning farmers and ranchers. This bill would create a USDA pilot to make or guarantee loans up to $100,000 for capital and business-development expenses that help new farmers build viable operations.

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  • Beginning farmers and ranchers would be able to borrow up to $100,000 for defined "development expenditures" such as buying initial assets, improving soil, establishing breeding stock, or creating bookkeeping and payroll systems.
  • Loan terms would be flexible with 3–10 year repayment and interest capped at 3% with a 0% floor. Lenders could reduce collateral requirements based on a borrower’s experience.
  • Borrowers would be required to receive comprehensive training on bookkeeping, taxes, credit, cash flow, profitability, risk management, and regulatory compliance delivered through contracted providers or existing USDA programs.
  • The Secretary would establish the pilot within two years and provide biennial reports to congressional agriculture committees describing how the pilot operates and its outcomes.

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Bill Overview

Analyzed Economic Effects

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

Low-cost loans for beginning farmers

If enacted, the bill would create a pilot loan program for qualified beginning farmers and ranchers. Loans would only pay for "development expenditures" such as equipment, soil and breeding improvements, bookkeeping and payroll systems, marketing, and other business-startup capital. Loans could be up to $100,000, run 3 to 10 years, have interest set by the Secretary between 0% and 3%, require annual interest payments in full, and require at least 1% of the remaining principal paid each year. Collateral would be capped at 100% loan-to-value but lenders may reduce that requirement based on borrower experience. Borrowers would get training on bookkeeping, taxes, credit, cash flow, profitability, risk management, and the Secretary must evaluate and report on the pilot (to be set up within two years).

Sponsors & CoSponsors

Sponsor

Welch, Peter [D-VT]

VT • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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