S-2890 : Still Just a Bill

The Producer and Agricultural Credit Enhancement Act of 2023, also known as S.2890, seeks to amend the Consolidated Farm and Rural Development Act to modify limitations on farm ownership and operating loans. Key provisions include:

• Increased Loan Limits:
  • Raises the limit for farm ownership loans to $850,000 (or $3,000,000 for guaranteed loans).
  • Increases the limit for operating loans to $750,000 (or $2,600,000 for guaranteed loans).
• Inflation Percentage Calculation: Modifies the calculation of inflation percentage to be based on per acre average United States farm real estate value, the per acre average United States cropland value, and the per acre average United States pasture value, weighted equally.
• Down Payment Loan Program: Modifies the down payment loan program.
• Microloan Amounts: Increases the limit on microloan amounts to $100,000.
• Refinancing of Guaranteed Loans: Mandates the Secretary of Agriculture to establish regulations allowing certain Farm Service Agency-guaranteed loans to be refinanced into direct loans under specific conditions, such as the guaranteed loan being distressed and the borrower being unsuccessful in working with the lender.
• Sense of Congress: Expresses the sense of Congress that access to credit is essential for farmers and ranchers and that Farm Service Agency loan programs should be fully funded.