I 
119TH CONGRESS 
1ST SESSION H. R. 1991 
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 
MARCH 10, 2025 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Producer and Agricul-
tural Credit Enhancement Act of 2025’’. 
SEC. 2. LIMITATIONS ON LOAN AMOUNTS. 
(a) LIMITATIONS ON AMOUNT OF FARM OWNERSHIP 
LOANS.—Section 305(a)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1925(a)(2)) is amended 
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by striking ‘‘$600,000, or, in the case of a loan guaranteed 
by the Secretary, $1,750,000 (increased, beginning with 
fiscal year 2019’’ and inserting ‘‘$850,000, or, in the case 
of a loan guaranteed by the Secretary, $3,500,000 (in-
creased, beginning with fiscal year 2025’’. 
(b) LIMITATIONS
ON
AMOUNT
OF
OPERATING 
LOANS.—Section 313(a)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1943(a)(1)) is amended 
by striking ‘‘$400,000, or, in the case of a loan guaranteed 
by the Secretary, $1,750,000 (increased, beginning with 
fiscal year 2019’’ and inserting ‘‘$750,000, or, in the case 
of a loan guaranteed by the Secretary, $3,000,000 (in-
creased, beginning with fiscal year 2025’’. 
SEC. 3. INFLATION PERCENTAGE. 
Section 305(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1925(c)) is amended— 
(1) in paragraph (1), by striking ‘‘of the Prices 
Paid By Farmers Index (as compiled by the Na-
tional Agricultural Statistics Service of the Depart-
ment of Agriculture) for the 12-month period ending 
on July 31 of the immediately preceding fiscal year’’ 
and inserting ‘‘of the 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 for the preceding year 
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(as published in the applicable Agricultural Land 
Values report of the National Agricultural Statistics 
Service of the Department of Agriculture), weighted 
equally’’; and 
(2) in paragraph (2), by striking ‘‘of such index 
(as so defined) for the 12-month period that imme-
diately precedes the 12-month period described in 
paragraph (1)’’ and inserting ‘‘of the per acre aver-
age United States farm real estate value, the per 
acre average United States cropland value, and the 
per acre average United States pasture value for the 
year immediately preceding the year described in 
paragraph (1) (as so published), weighted equally’’. 
SEC. 4. DOWN PAYMENT LOAN PROGRAM. 
Section 310E(b)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1935(b)(1)) is amend-
ed— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘exceed 45 percent of the least’’ and in-
serting ‘‘exceed, subject to section 305(a), 45 per-
cent of the lesser’’; 
(2) in subparagraph (A), by adding ‘‘or’’ after 
the semicolon; 
(3) in subparagraph (B), by striking ‘‘; or’’ and 
inserting a period; and 
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(4) by striking subparagraph (C). 
SEC. 5. LIMITATION ON MICROLOAN AMOUNTS. 
Section 313(c)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1943(c)(2)) is amended 
by striking ‘‘$50,000’’ and inserting ‘‘$100,000’’. 
SEC. 6. REFINANCING OF GUARANTEED LOANS INTO DI-
RECT LOANS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Agri-
culture, acting through the Administrator of the Farm 
Service Agency (referred to in this section as the ‘‘Sec-
retary’’), shall promulgate regulations allowing certain 
loans guaranteed by the Farm Service Agency to be refi-
nanced into direct loans issued by the Farm Service Agen-
cy, in accordance with this section. 
(b) REQUIREMENTS.— 
(1) IN GENERAL.—The regulations promulgated 
under subsection (a) shall provide that a guaranteed 
loan described in that subsection may be refinanced 
into a direct loan described in that subsection only 
if the Secretary determines that— 
(A) the guaranteed loan is distressed; 
(B) the borrower on that guaranteed loan 
has attempted to work with the lender and has 
been unsuccessful; 
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(C) a reasonable chance for the success of 
the operation financed by the guaranteed loan 
exists; and 
(D) all other criteria established by the 
Secretary for purposes of this section to protect 
taxpayer funds and the loan programs of the 
Farm Service Agency have been satisfied. 
(2) REASONABLE CHANCE OF SUCCESS.—For 
purposes of paragraph (1)(C), the Secretary may de-
termine that a reasonable chance for the success of 
an operation exists if the Secretary determines 
that— 
(A) all relevant problems with the oper-
ation financed by the guaranteed loan— 
(i) have been identified; and 
(ii) can be corrected; and 
(B) on correction of those problems, the 
operation can achieve, or be returned to, a 
sound financial basis. 
(c) NO EFFECT ON SUBSIDIES.—In carrying out this 
section, the Secretary shall ensure that the refinancing of 
guaranteed loans into direct loans has no impact on the 
subsidy rate of— 
(1) loans guaranteed by the Farm Service 
Agency; or 
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(2) direct loans issued by the Farm Service 
Agency. 
(d) LOAN PROGRAMS.—In making direct loans pur-
suant to the regulations promulgated under subsection 
(a), the Secretary may refinance a loan guaranteed under 
1 program of the Farm Service Agency into a direct loan 
issued under another program of the Farm Service Agen-
cy, as the Secretary determines to be appropriate and in 
accordance with the laws applicable to the program under 
which the new direct loan is issued. 
(e) MAXIMUM AMOUNT OF DIRECT REFINANCING 
LOANS.—A direct loan issued by the Farm Service Agency 
pursuant to the regulations promulgated under subsection 
(a) shall be subject to any otherwise applicable limitation 
on the maximum amount of a direct loan issued by the 
Farm Service Agency, including, if applicable, the limita-
tions described in— 
(1) section 305 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1925); and 
(2) section 313 of that Act (7 U.S.C. 1943). 
SEC. 7. SENSE OF THE CONGRESS. 
It is the sense of the Congress that— 
(1) access to credit is essential to the success 
of farmers and ranchers; and 
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(2) microloans, direct loans, and guaranteed 
loans provided by the Farm Service Agency should 
be fully funded to meet producer demand, help be-
ginning farmers and ranchers, and support family 
farms. 
Æ 
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