Fair Credit for Farmers Act
Sponsored By: Representative Adams
Introduced
Summary
Farm loan relief and borrower protections would give many farmers short-term payment relief, limit use of homes as loan collateral, and change appeals rules to favor low- and middle-income appellants. This bill would combine a temporary deferment and low interest with longer-term program reforms.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Protect farm homes used as collateral
If enacted, your primary home could secure a direct farmer program loan only if other assets are not enough. When other assets fully cover what you owe, the agency would have to start releasing your home from the lien without you asking. If you are delinquent before restructuring, the agency would first use other assets and use your home only as a last option. The agency could not take security beyond what the loan needs.
Fairer appeals and decisions for farm loans
If enacted, in appeals by farmers with AGI at or below $300,000 (last year or 5‑year average), the agency would have to prove its decision by substantial evidence. Hearing officers could grant equitable relief when FSA errors made an application no longer feasible; in those cases, the payment would equal projected income minus projected expenses from the original application. These relief rules would apply only to applications or official communications made after enactment. Decision letters would need to list all known reasons with regulation references, and omitted known reasons could not be used later unless your circumstances changed. When carrying out a final appeals decision, the agency would have to use the same information the appeals division used unless the decision letter allows more.
Two-year loan break for distressed farmers
If enacted, delinquent or financially distressed direct farm loan borrowers would get a 2‑year pause on payments. During the pause, interest on the remaining principal would be 0.125% per year. Loans of 12 months or less would not qualify. Lenders would also waive guarantee fees for covered producers (beginning, limited‑resource, socially disadvantaged, and veteran farmers) for at least 2 years, with a possible 180‑day extension. The 2‑year deferment would also add 2 years to the loan’s maturity.
New farm loan access and refinancing rules
If enacted, direct operating loans could refinance existing debt. Direct farm ownership loans could refinance debt from non‑USDA creditors, but only if you have used direct‑loan refinancing no more than 4 times before. The agency could not deny new loans just because you had a prior write‑down or loss to USDA. A new rule would generally require at least 1 year of farm management experience for a direct ownership loan, with waivers for qualified beginning farmers who have approved mentoring or other acceptable experience. The agency could not limit the number of years when you may close a loan, and timing for beginning‑farmer set‑asides would be based on what is practicable rather than fixed dates.
Sponsors & CoSponsors
Sponsor
Adams
NC • D
Cosponsors
McClellan
VA • D
Sponsored 11/20/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov