# 119-s-3126: Fair Credit for Farmers Act of 2025

119-s-3126, Fair Credit for Farmers Act of 2025, is a 119th Congress bill sponsored by Sen. Welch, Peter [D-VT] (D-VT); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-3126
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3126
- Congress: 119
- Title: Fair Credit for Farmers Act of 2025
- Status: introduced
- Introduced: 2025-11-06
- Sponsor: Sen. Welch, Peter [D-VT] (D-VT)
- Cosponsors: 2
- Policy area: Agriculture and Food
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Short-term payment relief for distressed farm borrowers** pairs a two-year, low-interest deferment with broad changes to loan rules and appeal processes. The bill lets eligible farmers pause direct loan payments and reshapes eligibility, collateral, refinancing, and the National Appeals Division. - Farmers and households: Eligible farmers can defer payments on direct farm loans for two years at a 0.125% interest rate. The Secretary may extend loan maturities up to two years beyond statutory maximums for each loan type and the deferment does not apply to loans of 12 months or less. - Lenders and loan rules: New eligibility rules require at least one year of substantial farm management experience or a mentoring waiver for beginning farmers, broaden refinancing uses and limit certain prior direct-loan refinancing to four uses. The bill tightens collateral limits to avoid primary residences and require only adequate security and partial releases, and guarantors must waive guarantee fees for covered producers during the two-year deferment with a possible 180 day extension. - Appeals and equitable relief: National Appeals Division hearing officers can grant equitable relief and NAD must rely on information it already used unless a final decision letter says otherwise. For appellants with adjusted gross income at or below $300,000 the agency must prove by substantial evidence that an adverse decision was not erroneous.

## Cosponsors (2)

- Sen. Gillibrand, Kirsten E. [D-NY] (D-NY), 2025-11-06T00:00:00.000Z
- Sen. Fetterman, John [D-PA] (D-PA), 2025-11-18T00:00:00.000Z

## Provisions PRIA read

- Two-year loan relief for farmers: benefit, high. If enacted, eligible farmers could delay principal and interest payments on qualifying USDA direct loans for two years. Interest on remaining principal would be 0.125% during that two-year period. Lenders must waive guarantee fees for covered producers for at least two years. The bill defines who i…
- Fair appeals and monetary relief: benefit, medium. If enacted, National Appeals Division hearing officers could award equitable monetary relief in certain Farm Service Agency errors. For feasibility errors, relief could equal projected income minus projected expenses from the original application. Agencies would have to use the same information NAD…
- Stronger home and collateral protections: benefit, medium. If enacted, delinquent borrowers who seek restructuring would give liens only up to 100 percent of the loan value. A borrower's principal residence could be used only as a last resort and would include the home plus up to 10 adjoining acres. If other assets fully secure the loan, the agency must st…
- More refinancing and eligibility protections: mixed, medium. If enacted, borrowers could refinance more private or guaranteed debt using USDA direct loans. A farm ownership loan could refinance debt from non-Secretary lenders, but direct-loan refinancing would be limited to four prior uses. Direct operating loans would also be allowed to refinance indebtedne…

## Related bills

- 119-s-5022: Cannabis Administration and Opportunity Act
- 119-s-2819: Head Start for America's Children Act
- 119-s-1507: Agriculture Resilience Act of 2025
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-3869: Healthy Families Act

## Sources
- [119-s-3126 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3126)

## Related
- [119-s-5022: Cannabis Administration and Opportunity Act](https://policyrisk.com/legislation/119-s-5022)
- [119-s-2819: Head Start for America's Children Act](https://policyrisk.com/legislation/119-s-2819)
- [119-s-1507: Agriculture Resilience Act of 2025](https://policyrisk.com/legislation/119-s-1507)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3126 (as of 2026-04-21).