Budzinski, Bost Introduce Bill to Modernize USDA Loan Programs

WASHINGTON, D.C. – Yesterday, U.S. Reps. Nikki Budzinski (IL-13) and Mike Bost (IL-12) introduced legislation to remove outdated eligibility barriers that prevent modern family farms from accessing U.S. Department of Agriculture loan programs. The USDA Loan Modernization Act updates eligibility standards to better reflect the structure of today’s multi-generational, family-run farms. This bill would expand access to operating, emergency, and real estate loans for producers in Central and Southern Illinois and across the country.

"While farming operations have changed drastically over time, our loan rules haven’t kept up,” said Congresswoman 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.”

“For too long, USDA loan rules have failed to keep up with the reality of modern farming,” said Congressman 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.”

"Farm Credit thanks Reps. Bost and Budzinski for introducing the USDA Loan Modernization Act," said Farm Credit Council President and CEO Christy Seyfer. "This small but meaningful update to FSA loan program eligibility requirements will allow the next generation of producers to utilize modern farm business structures while still accessing FSA loan programs. We look forward to working with Reps. Bost and Budzinski to ensure this important legislation is included in Farm Bill 2.0.”

The USDA Loan Modernization Act updates eligibility requirements to allow producers with at least a 50 percent operational interest to qualify for loans and gives the Farm Service Agency greater flexibility to consider a range of family farm entities. The legislation is supported by groups including the Farm Credit Council, Illinois Corn Growers Association, Illinois Pork Producers Association, Farm Credit Illinois, Compeer, National Rural Lenders Association, Independent Community Bankers Association, Illinois Farm Bureau Federation, and the National Council of Farmer Cooperatives.

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