U.S. Representatives Mike Bost and Nikki Budzinski have introduced the USDA Loan Modernization Act, aiming to remove outdated eligibility barriers that prevent many modern family farms from accessing USDA loan programs. The proposed legislation updates eligibility standards to better reflect today’s multi-generational, family-run farms, expanding access to operating, emergency, and real estate loans for farmers across the country. Key provisions include revising eligibility requirements so producers with at least a 50% operational interest can qualify for loans. The bill also gives the Farm Service Agency greater flexibility to consider a wider range of family farm entities. The initiative has received support from the Illinois Farm Bureau, Illinois Corn Growers Association, Illinois Pork Producers Association, and other agricultural groups.
“For too long, USDA loan rules have failed to keep up with the reality of modern farming,” said Rep. Bost. “Family farms shouldn’t be punished for choosing a path that helps them manage risk or plan for the next generation. Our legislation cuts through red tape, brings common sense back to USDA lending, and makes sure farmers who are doing things the right way aren’t locked out from the capital they need to keep their operations running.” “While farming operations have changed drastically over time, our loan rules haven’t kept up,” added Rep. Budzinski. “This legislation closes that gap by updating USDA loan rules and making sure small and multi-generational family farmers aren’t penalized for using responsible, modern business structures. Most importantly, it puts decisions back in farmers’ hands; giving them the freedom to set up their operations and land in ways that work best for their families without putting their existing FSA loans at risk.”