H.R. 1991: Producer and Agricultural Credit Enhancement Act of 2025

This bill, titled the Producer and Agricultural Credit Enhancement Act of 2025, aims to modify certain provisions related to agricultural loans by amending the Consolidated Farm and Rural Development Act. Here’s a breakdown of the key components:

1. Increased Loan Limits

The bill proposes to increase the limits on two types of loans:

• Farm Ownership Loans: The current limit of $600,000 will be raised to $850,000, and the ceiling for loans guaranteed by the Secretary of Agriculture will rise from $1,750,000 to $3,500,000.
• Operating Loans: The limit for operating loans will increase from $400,000 to $750,000, and the guaranteed loan limit will also rise from $1,750,000 to $3,000,000.

2. Adjustments for Inflation

The method used to calculate inflation adjustments for various loan limits will change. Instead of relying on the Prices Paid by Farmers Index, it will use averages of farm real estate, cropland, and pasture values published by the National Agricultural Statistics Service.

3. Down Payment Loan Program Modifications

Changes will be made related to the down payment loan program, ensuring that specific limits and terms are adjusted to allow for better access to these resources.

4. Increase in Microloan Limits

The maximum amount for microloans will double from $50,000 to $100,000, providing more resources for smaller-scale farmers.

5. Refinancing Options for Guaranteed Loans

The bill allows for certain guaranteed loans to be refinanced into direct loans issued by the Farm Service Agency. Conditions for refinancing include:

• The guaranteed loan must be distressed.
• The borrower must have made attempts to work with the lender unsuccessfully.
• A reasonable chance of success for the operation financed by the guaranteed loan must exist.

6. Protection of Subsidy Rates

The bill ensures that refinancing guaranteed loans into direct loans will not affect the subsidy rates of either the guaranteed loans or the direct loans.

7. Congressional Intent

The legislation expresses the sense of Congress that access to credit is vital for farmers and ranchers, highlighting the importance of fully funding various loan programs to support agricultural producers, especially beginning farmers and family farms.

Relevant Companies

• DE (Deere & Company) - As a major supplier of equipment to farmers, Deere could see increased sales due to larger loan limits allowing farmers to invest more in machinery and equipment.
• ADM (Archer-Daniels-Midland Company) - With farmers potentially expanding their operations through higher loan limits, ADM could benefit from increased demand for agricultural services and products.