Congress has an opportunity to break the cycle of short-term Farm Bills by coming together and sending a 5-year extension with critical reforms to the President’s desk.
A long-term Farm Bill that includes risk management tools for farmers and ranchers, agricultural loan guarantees, rural development programs, nutrition assistance, and conservation investments will strengthen access to credit and help support the financial needs of agricultural communities.
Key ABA-supported provisions in the bill will:
- Increase USDA Farm Service Agency (FSA) guaranteed farm loan limits to better reflect today’s agricultural economy.
- Expand eligibility for beginning farmer loan programs by modernizing the definition of owner-operator and supporting greater flexibility for agricultural business structures.
- Modernize Farmer Mac by allowing the purchase of Rural Energy for America Program (REAP) loans, expanding secondary market access to agricultural credit, and improving liquidity for rural banks through Farmer Mac programs.
At the same time, Congress must maintain parity between banks and the Farm Credit System so that rural banks and Farm Credit lenders can compete on a level playing field, benefiting the borrowers they both serve.