HR-5631 : Still Just a Bill

The H.R. 5631, also known as the "Producer and Agricultural Credit Enhancement Act of 2023," proposes several changes to farm ownership and operating loan programs. Key provisions include:

• Increased Loan Limits: It increases the maximum amount for farm ownership loans to $850,000 (or $3,500,000 if guaranteed) and operating loans to $750,000 (or $3,000,000 if guaranteed).
• Inflation Calculation: It modifies how inflation adjustments are calculated for these loan limits, using changes in average U.S. farm real estate, cropland, and pasture values instead of the Prices Paid By Farmers Index.
• Down Payment Loan Program: It amends the down payment loan program to align with the new farm ownership loan limits.
• Microloan Limit Increase: It raises the limit on microloans from $50,000 to $100,000.
• Loan Refinancing: It directs the Secretary of Agriculture to establish regulations allowing distressed guaranteed loans to be refinanced into direct loans under certain conditions.
• Sense of Congress: The bill expresses Congressional support for fully funding Farm Service Agency loan programs to support farmers and ranchers, especially beginning farmers and family farms.