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119-s-899119th CongressWALLET

Producer and Agricultural Credit Enhancement Act of 2025

Sponsored By: Senator Hoeven, John [R-ND]

Introduced

Summary

Expand and modernize credit access for farmers and ranchers. This bill would raise major loan caps, shift inflation adjustments to land values, expand small-dollar lending, and let some guaranteed loans be refinanced into direct Farm Service Agency loans.

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  • Farmers and owners: Raises farm ownership loan limits to $850,000 for non‑guaranteed loans and $3.0 million for guaranteed loans, effective beginning in fiscal year 2025.
  • Small and beginning producers: Increases operating loan ceilings including guaranteed loans up to $2.6 million and raises the microloan cap to $100,000 to improve access to smaller loans.
  • Program and rule changes: Replaces the prior inflation index with a three-part per‑acre U.S. land value measure, recalibrates the down payment loan threshold, and directs the FSA to issue rules to refinance certain distressed guaranteed loans into direct loans when a reasonable chance of success exists.

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Bill Overview

Analyzed Economic Effects

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

Higher FSA loan limits for farms

If enacted, eligible farmers and ranchers could borrow more from the Farm Service Agency (FSA). Direct farm ownership loans could increase to $850,000 and guaranteed ownership loans to $3,000,000 beginning in fiscal year 2025. Direct operating loans could rise to $750,000 and guaranteed operating loans to $2,600,000 beginning in fiscal year 2025. The FSA microloan cap would increase from $50,000 to $100,000 upon enactment.

Refinance some guaranteed loans

If enacted, the Secretary would have to write rules within one year to let some FSA‑guaranteed loans be refinanced into FSA direct loans. Refinancing would be allowed only for distressed loans after a borrower tried and failed to work with the lender and when the Secretary finds a reasonable chance the operation can recover. The rules must protect taxpayer funds, cannot change loan subsidy rates, and any new direct loan must follow FSA direct loan maximums.

Change to FSA inflation measure

If enacted, the bill would change how the FSA calculates annual inflation adjustments for certain loan limits. It would base the adjustment on three per‑acre land values (farm real estate, cropland, pasture), weighted equally, using prior‑year NASS data. This could make future loan‑limit adjustments higher or lower depending on land values each year.

Clarify FSA down payment test

If enacted, the bill would clarify that the 45% test for the FSA Down Payment Loan Program is subject to section 305(a) (the statute's loan limits). It would also remove one subparagraph and make small punctuation edits. This may change who qualifies for down payment loans in some cases.

Sponsors & CoSponsors

Sponsor

Hoeven, John [R-ND]

ND • R

Cosponsors

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 3/6/2025

  • Sen. Slotkin, Elissa [D-MI]

    MI • D

    Sponsored 5/8/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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