```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5338 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5338

To amend the Consolidated Farm and Rural Development Act to modify the 
 experience requirement for direct farm ownership loans, eliminate the 
 10-year limitation on direct farm ownership loans, allow direct loans 
    to be used for refinancing indebtedness, increase the lifetime 
 limitation on debt forgiveness per borrower, and provide flexibility 
    with respect to loan fund set asides for beginning farmers and 
                   ranchers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2024

   Mr. Welch introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
To amend the Consolidated Farm and Rural Development Act to modify the 
 experience requirement for direct farm ownership loans, eliminate the 
 10-year limitation on direct farm ownership loans, allow direct loans 
    to be used for refinancing indebtedness, increase the lifetime 
 limitation on debt forgiveness per borrower, and provide flexibility 
    with respect to loan fund set asides for beginning farmers and 
                   ranchers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Debt Relief and Farm Credit Access 
Act''.

SEC. 2. PERSONS ELIGIBLE FOR DIRECT FARM OWNERSHIP LOANS.

    Section 302(b) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1922(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--The Secretary may make a direct loan 
        under this subtitle only to a farmer or rancher who has at 
        least 1 year of experience substantially participating in the 
        management and business operations of a farm or ranch, as 
        determined by the Secretary.''; and
            (2) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Waiver authority.--In the case of a qualified 
        beginning farmer or rancher, the Secretary may waive the 1-year 
        requirement described in paragraph (1) if the qualified 
        beginning farmer or rancher--
                    ``(A) has an established relationship with an 
                individual who has experience in farming or ranching, 
                or with a local farm or ranch operator or organization, 
                approved by the Secretary, that is committed to 
                mentoring the qualified beginning farmer or rancher; or
                    ``(B) has other acceptable education or experience 
                for an appropriate period of time, as determined by the 
                Secretary.''.

SEC. 3. IMPROVEMENTS TO CERTAIN PROVISIONS OF THE CONSOLIDATED FARM AND 
              RURAL DEVELOPMENT ACT.

    (a) Allowed Purposes of Direct Loans.--Section 303(a)(1) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is 
amended by striking subparagraph (E) and inserting the following:
                    ``(E) refinancing the indebtedness of the farmer or 
                rancher, if the farmer or rancher--
                            ``(i) has used a direct loan under this 
                        subtitle to refinance indebtedness not more 
                        than 4 times previously; and
                            ``(ii) is refinancing a debt obtained from 
                        a creditor other than the Secretary.''.
    (b) Effect of Preferred Lender Certification.--Section 339(d)(4)(B) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1989(d)(4)(B)) is amended--
            (1) by striking ``institutions to'' and inserting the 
        following: ``institutions--
                            ``(i) to''; and
            (2) in clause (i) (as so designated)--
                    (A) by striking ``subsection relating'' and 
                inserting ``subsection, relating'';
                    (B) by striking ``worthiness, the'' and inserting 
                ``worthiness or the''; and
                    (C) by striking ``collection and liquidation of 
                loans, and to'' and inserting the following: ``or 
                collection of loans; and
                            ``(ii) to''.
    (c) Lifetime Limitation on Debt Forgiveness Per Borrower.--Section 
353(o) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2001(o)) is amended by striking ``$300,000'' and inserting 
``$600,000''.

SEC. 4. LOAN FUND SET-ASIDES FOR BEGINNING FARMERS AND RANCHERS.

    Section 346(b)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)(II), by inserting ``, to the 
                extent practicable'' after ``April 1 of the fiscal 
                year''; and
                    (B) in clause (iii), by inserting ``, to the extent 
                practicable'' after ``September 1 of the fiscal year''; 
                and
            (2) in subparagraph (B)(iii), by inserting ``, to the 
        extent practicable'' after ``April 1 of the fiscal year''.
                                 <all>
```