I 

118TH CONGRESS 

1ST SESSION H. R. 5631 

To amend the Consolidated Farm and Rural Development Act to modify 

limitations on amounts of farm ownership loans and operating loans, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 21, 2023 

Mr. FINSTAD (for himself and Ms. CRAIG) introduced the following bill; which 

was referred to the Committee on Agriculture 

A BILL 

To amend the Consolidated Farm and Rural Development 

Act to modify limitations on amounts of farm ownership 

loans and operating loans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Producer and Agricul5 tural Credit Enhancement Act of 2023’’. 

6 SEC. 2. LIMITATIONS ON LOAN AMOUNTS. 

7 (a) LIMITATIONS ON AMOUNT OF FARM OWNERSHIP

8 LOANS.—Section 305(a)(2) of the Consolidated Farm and 

9 Rural Development Act (7 U.S.C. 1925(a)(2)) is amended 


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1 by striking ‘‘$600,000, or, in the case of a loan guaranteed 

2 by the Secretary, $1,750,000 (increased, beginning with 

3 fiscal year 2019’’ and inserting ‘‘$850,000, or, in the case 

4 of a loan guaranteed by the Secretary, $3,500,000 (in5 creased, beginning with fiscal year 2023’’. 

6 (b) LIMITATIONS ON AMOUNT OF OPERATING

7 LOANS.—Section 313(a)(1) of the Consolidated Farm and 

8 Rural Development Act (7 U.S.C. 1943(a)(1)) is amended 

9 by striking ‘‘$400,000, or, in the case of a loan guaranteed 

10 by the Secretary, $1,750,000 (increased, beginning with 

11 fiscal year 2019’’ and inserting ‘‘$750,000, or, in the case 

12 of a loan guaranteed by the Secretary, $3,000,000 (in13 creased, beginning with fiscal year 2023’’. 

14 SEC. 3. INFLATION PERCENTAGE. 

15 Section 305(c) of the Consolidated Farm and Rural 

16 Development Act (7 U.S.C. 1925(c)) is amended— 

17 (1) in paragraph (1), by striking ‘‘of the Prices 

18 Paid By Farmers Index (as compiled by the Na19 tional Agricultural Statistics Service of the Depart20 ment of Agriculture) for the 12-month period ending 

21 on July 31 of the immediately preceding fiscal year’’ 

22 and inserting ‘‘of the per acre average United States 

23 farm real estate value, the per acre average United 

24 States cropland value, and the per acre average 

25 United States pasture value for the preceding year 


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1 (as published in the applicable Agricultural Land 

2 Values report of the National Agricultural Statistics 

3 Service of the Department of Agriculture), weighted 

4 equally’’; and 

5 (2) in paragraph (2), by striking ‘‘of such index 

6 (as so defined) for the 12-month period that imme7 diately precedes the 12-month period described in 

8 paragraph (1)’’ and inserting ‘‘of the per acre aver9 age United States farm real estate value, the per 

10 acre average United States cropland value, and the 

11 per acre average United States pasture value for the 

12 year immediately preceding the year described in 

13 paragraph (1) (as so published), weighted equally’’. 

14 SEC. 4. DOWN PAYMENT LOAN PROGRAM. 

15 Section 310E(b)(1) of the Consolidated Farm and 

16 Rural Development Act (7 U.S.C. 1935(b)(1)) is amend17 ed— 

18 (1) in the matter preceding subparagraph (A), 

19 by striking ‘‘exceed 45 percent of the least’’ and in20 serting ‘‘exceed, subject to section 305(a), 45 per21 cent of the lesser’’; 

22 (2) in subparagraph (A), by adding ‘‘or’’ after 

23 the semicolon; 

24 (3) in subparagraph (B), by striking ‘‘; or’’ and 

25 inserting a period; and 


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1 (4) by striking subparagraph (C). 

2 SEC. 5. LIMITATION ON MICROLOAN AMOUNTS. 

3 Section 313(c)(2) of the Consolidated Farm and 

4 Rural Development Act (7 U.S.C. 1943(c)(2)) is amended 

5 by striking ‘‘$50,000’’ and inserting ‘‘$100,000’’. 

6 SEC. 6. REFINANCING OF GUARANTEED LOANS INTO DI7 RECT LOANS. 

8 (a) IN GENERAL.—Not later than 1 year after the 

9 date of enactment of this Act, the Secretary of Agri10 culture, acting through the Administrator of the Farm 

11 Service Agency (referred to in this section as the ‘‘Sec12 retary’’), shall promulgate regulations allowing certain 

13 loans guaranteed by the Farm Service Agency to be refi14 nanced into direct loans issued by the Farm Service Agen15 cy, in accordance with this section. 

16 (b) REQUIREMENTS.— 

17 (1) IN GENERAL.—The regulations promulgated 

18 under subsection (a) shall provide that a guaranteed 

19 loan described in that subsection may be refinanced 

20 into a direct loan described in that subsection only 

21 if the Secretary determines that— 

22 (A) the guaranteed loan is distressed; 

23 (B) the borrower on that guaranteed loan 

24 has attempted to work with the lender and has 

25 been unsuccessful; 


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1 (C) a reasonable chance for the success of 

2 the operation financed by the guaranteed loan 

3 exists; and 

4 (D) all other criteria established by the 

5 Secretary for purposes of this section to protect 

6 taxpayer funds and the loan programs of the 

7 Farm Service Agency have been satisfied. 

8 (2) REASONABLE CHANCE OF SUCCESS.—For 

9 purposes of paragraph (1)(C), the Secretary may de10 termine that a reasonable chance for the success of 

11 an operation exists if the Secretary determines 

12 that— 

13 (A) all relevant problems with the oper14 ation financed by the guaranteed loan— 

15 (i) have been identified; and 

16 (ii) can be corrected; and 

17 (B) on correction of those problems, the 

18 operation can achieve, or be returned to, a 

19 sound financial basis. 

20 (c) NO EFFECT ON SUBSIDIES.—In carrying out this 

21 section, the Secretary shall ensure that the refinancing of 

22 guaranteed loans into direct loans has no impact on the 

23 subsidy rate of— 

24 (1) loans guaranteed by the Farm Service 

25 Agency; or 


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1 (2) direct loans issued by the Farm Service 

2 Agency. 

3 (d) LOAN PROGRAMS.—In making direct loans pur4 suant to the regulations promulgated under subsection 

5 (a), the Secretary may refinance a loan guaranteed under 

6 1 program of the Farm Service Agency into a direct loan 

7 issued under another program of the Farm Service Agen8 cy, as the Secretary determines to be appropriate and in 

9 accordance with the laws applicable to the program under 

10 which the new direct loan is issued. 

11 (e) MAXIMUM AMOUNT OF DIRECT REFINANCING

12 LOANS.—A direct loan issued by the Farm Service Agency 

13 pursuant to the regulations promulgated under subsection 

14 (a) shall be subject to any otherwise applicable limitation 

15 on the maximum amount of a direct loan issued by the 

16 Farm Service Agency, including, if applicable, the limita17 tions described in— 

18 (1) section 305 of the Consolidated Farm and 

19 Rural Development Act (7 U.S.C. 1925); and 

20 (2) section 313 of that Act (7 U.S.C. 1943). 

21 SEC. 7. SENSE OF THE CONGRESS. 

22 It is the sense of the Congress that— 

23 (1) access to credit is essential to the success 

24 of farmers and ranchers; and 


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1 (2) microloans, direct loans, and guaranteed 

2 loans provided by the Farm Service Agency should 

3 be fully funded to meet producer demand, help be4 ginning farmers and ranchers, and support family 

5 farms. 

Æ 


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