USDA Loan Modernization Act
Sponsored By: Senator Tuberville, Tommy [R-AL]
Introduced
Summary
Expands eligibility for USDA farm loans by lowering ownership thresholds to at least 50%. The bill also defines and defers to Secretary-defined “qualified operators” and creates rules for operating-only and embedded entities so more ownership arrangements can access real estate, operating, and emergency loans.
Show full summary
- Real estate loans: Replaces the phrase “a majority” with “at least a 50 percent” for owner and operator tests. It treats Secretary-designated qualified operators as meeting operator tests, lets operating-only applicants qualify when an owner holds at least 50%, and allows embedded entities to qualify when 75% of ownership is held by qualified operators.
- Operating loans: Applies the same 50% owner/operator threshold and adds parallel special rules. Embedded entities can meet direct ownership requirements if at least 75% of their ownership interests are directly or indirectly held by qualified operators.
- Emergency loans: Reorganizes eligibility language to use the 50% threshold and the same three-part special rules for qualified operators, operating-only entities, and embedded entities so emergency aid can reach more farm operators.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Easier USDA farm loan eligibility
This bill would make more people and farm entities eligible for USDA farm real estate, operating, and emergency loans. It would change the owner/operator test from "a majority" to "at least a 50 percent" share. Qualified operators, a term the Secretary would define, would count as meeting operator tests. An operating-only applicant would qualify if one or more individual landowners own at least 50 percent of that applicant. An embedded or multi-tier entity would qualify only if at least 75 percent of ownership is directly or indirectly held by qualified operators.
Sponsors & CoSponsors
Sponsor
Tuberville, Tommy [R-AL]
AL • R
Cosponsors
Sen. Husted, Jon [R-OH]
OH • R
Sponsored 2/26/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov