Debt Relief and Farm Credit Access Act

Bill: 118-s-5338
Sponsor: full_name: Sen. Welch, Peter [D-VT]
Introduced: 2024-11-18
Policy area: Agriculture and Food
Latest action: action_date: 2024-11-18
text: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Summaries:

tv_txt: II 118th CONGRESS 2d Session S. 5338 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.

1. Short title This Act may be cited as the Debt Relief and Farm Credit Access Act . 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. . 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 . 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 .