Relief for America's Small Farmers Act

Bill: 116-s-3602
Sponsor: full_name: Sen. Gillibrand, Kirsten E. [D-NY]
Introduced: 2020-05-05
Policy area: Agriculture and Food
Subjects: Agricultural prices, subsidies, credit

Government lending and loan guarantees

Income tax exclusion
Latest action: action_date: 2020-05-05
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-05-05
action_desc: Introduced in Senate
text: <p><b>Relief for America's Small Farmers Act</b></p> <p>This bill provides loan forgiveness of up to $250,000 for certain borrowers who are actively engaged in farming, have an average annual adjusted gross income of $300,000 or less over the previous five years, and have certain Department of Agriculture farm loans. </p> <p>The loan forgiveness is subject to the condition that the applicable borrower must continue to be actively engaged in farming for at least two years after receiving such forgiveness. </p>

tv_txt: II 116th CONGRESS 2d Session S. 3602 IN THE SENATE OF THE UNITED STATES May 5, 2020 Mrs. Gillibrand (for herself, Mr. Merkley , Mr. Booker , and Mr. Wyden ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide loan forgiveness for certain borrowers of Department of Agriculture direct farm loans, and for other purposes.

1. Short title This Act may be cited as the Relief for America's Small Farmers Act . 2. Direct farm loan forgiveness (a) Definitions In this section: (1) Eligible borrower The term eligible borrower means a borrower of an eligible loan that is actively engaged in farming (within the meaning of section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 )) with respect to a farming operation— (A) for which the eligible loan was made; and (B) the average annual adjusted gross income for the previous 5-year period of which is not more than $300,000. (2) Eligible loan The term eligible loan means a loan made before March 19, 2020, that is— (A) a direct farm ownership loan under subtitle A of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1922 et seq.); (B) a direct operating loan under subtitle B of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1941 et seq.); or (C) an emergency loan under subtitle C of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1961 et seq.). (3) Secretary The term Secretary means the Secretary of Agriculture. (b) Loan forgiveness (1) In general Not later than 1 year after the date on which the Secretary receives an application under paragraph (2), subject to paragraphs (3) and (4), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the date of enactment of this Act on an eligible loan for the eligible borrower. (2) Applications To be eligible for cancellation under paragraph (1), not later than 1 year after the date of enactment of this Act, an eligible borrower shall submit to the Secretary an application, which shall cover all eligible loans for which the eligible borrower is seeking cancellation. (3) Limitations The total amount cancelled under paragraph (1) with respect to a farming operation shall be not more than $250,000. (4) Condition The cancellation of an obligation under paragraph (1) shall be subject to the condition that the applicable eligible borrower shall continue to be actively engaged in farming (within the meaning of section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 )) for the 2-year period beginning on the date on which the Secretary cancels the obligation under that paragraph. (c) Effect An eligible borrower that receives cancellation of an obligation with respect to an eligible loan under subsection (b)(1) shall not be determined to be ineligible for any loan under subtitle A, B, or C of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1922 et seq.) because of that cancellation. (d) Taxability For purposes of the Internal Revenue Code of 1986, any amount which (but for this subsection) would be includible in gross income of the eligible borrower by reason of forgiveness described in subsection (b) shall be excluded from gross income.