BALE Act of 2023

Subjects: Agriculture and Food

Summary:  <p><b>Beginning Agriculturalist Lifetime Employment Act of 2023 or the BALE Act of 20</b><strong>2</strong><b>3</b></p> <p> This bill revises the limits for the Department of Agriculture (USDA) conservation loan guarantee program. </p> <p>The bill replaces the existing 80% limit on the portion of a loan that USDA may guarantee with limits that range from 80%-90%, depending on the principal amount of the loan.</p> <p>For socially disadvantaged or beginning farmers or ranchers, the bill replaces the existing 90% limit with limits that range from 85%-95%, depending on the principal amount of the loan. </p> <p>The bill also (1) prohibits USDA from guaranteeing a loan under the program that exceeds $4 million, and (2) requires USDA to adjust the limits annually for inflation. </p> <p> <p> <p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 541 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 541

    To amend the Agricultural Act of 1961 to modify the limitations 
  applicable to qualified conservation loan guarantees, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2023

    Mr. Bost (for himself, Ms. Kelly of Illinois, Mr. Newhouse, Mr. 
   Walberg, and Mr. LaHood) introduced the following bill; which was 
                referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
    To amend the Agricultural Act of 1961 to modify the limitations 
  applicable to qualified conservation loan guarantees, 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 ``Beginning Agriculturalist Lifetime 
Employment Act of 2023'' or the ``BALE Act of 2023''.

SEC. 2. LIMITATIONS APPLICABLE TO QUALIFIED CONSERVATION LOAN 
              GUARANTEES.

    (a) Limitations Applicable to Loan Guarantees.--Section 304(e) of 
the Agricultural Act of 1961 (7 U.S.C. 1924(e)) is amended to read as 
follows:
    ``(e) Limitations Applicable to Loan Guarantees.--
            ``(1) Percentage of loan guaranteed.--The portion of a loan 
        that the Secretary may guarantee under this section shall--
                    ``(A) depend on the principal amount of the loan; 
                and
                    ``(B) except as provided in paragraph (2), may not 
                exceed the percentage specified for that principal 
                amount in the following table:


------------------------------------------------------------------------
                                     Principal Amount   Equal   Maximum
   ``Principal Amount  More Than        To Or   Less Than       Percent
------------------------------------------------------------------------
$0................................  $3,000,000...............        90%
$3,000,000........................  $3,100,000...............        89%
$3,100,000........................   $3,200,000..............        88%
$3,200,000........................   $3,300,000..............        87%
$3,300,000........................   $3,400,000..............        86%
$3,400,000........................  $3,500,000...............        85%
$3,500,000........................   $3,600,000..............        84%
$3,600,000........................   $3,700,000..............        83%
$3,700,000........................   $3,800,000..............        82%
$3,800,000........................   $3,900,000..............        81%
$3,900,000........................  $4,000,000...............       80%.
------------------------------------------------------------------------

            ``(2) Exception for certain producers.--In the case of a 
        loan to a producer that is a qualified beginning farmer or 
        rancher or a socially disadvantaged farmer or rancher (as the 
        term is defined in section 355(e)), the portion of the loan the 
        Secretary may guarantee under this paragraph may not exceed the 
        percentage specified for the principal amount of the loan in 
        the following table:


------------------------------------------------------------------------
                                     Principal Amount   Equal   Maximum
   ``Principal Amount  More Than        To Or   Less Than       Percent
------------------------------------------------------------------------
$0................................  $3,000,000...............        95%
$3,000,000........................  $3,100,000...............        94%
$3,100,000........................   $3,200,000..............        93%
$3,200,000........................   $3,300,000..............        92%
$3,300,000........................   $3,400,000..............        91%
$3,400,000........................  $3,500,000...............        90%
$3,500,000........................   $3,600,000..............        89%
$3,600,000........................   $3,700,000..............        88%
$3,700,000........................   $3,800,000..............        87%
$3,800,000........................   $3,900,000..............        86%
$3,900,000........................  $4,000,000...............       85%.
------------------------------------------------------------------------

            ``(3) Maximum amount.--The Secretary may not guarantee a 
        loan under this section in an amount that exceeds $4,000,000.
            ``(4) Annual inflation adjustment.--The Secretary shall 
        annually adjust the dollar figures under paragraphs (1), (2), 
        and (3) to reflect the change in the Prices Paid By Farmers 
        Index (as compiled by the National Agricultural Statistics 
        Service of the Department of Agriculture).''.
    (b) Applicability.--The amendments made by this section shall apply 
with respect to qualified conservation loans entered into by the 
Secretary of Agriculture under section 304 of the Agricultural Act of 
1961 (7 U.S.C. 1924) on or after the date of the enactment of this Act.
                                 &lt;all&gt;
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