H.R. 5004: Next Generation of Farmers Act of 2025

The Next Generation of Farmers Act of 2025 proposes changes to the eligibility criteria for direct farm real estate loans under the Consolidated Farm and Rural Development Act. Specifically, the bill aims to make it easier for farmers and ranchers to qualify for these loans by adjusting the experience requirements. The key changes include:

1. Reduced Experience Requirement

Currently, farmers or ranchers must have at least three years of experience in managing a farm or ranch to qualify for a direct loan. The bill would reduce this requirement to:

• At least 1 year of experience in managing farm operations or acceptable education and experience, as determined by the Secretary of Agriculture.
• Alternatively, the experience could be as little as 6 months if the individual meets the educational or other criteria set by the Secretary.

2. Amendments to Loan Eligibility

The bill also proposes to amend other related eligibility criteria for these loans, specifically modifying related definitions and requirements as determined by the Secretary of Agriculture.

3. Purpose of the Changes

The overarching goal of these changes is to foster a new generation of farmers by providing them with better access to financing. By lowering the barriers to entry, the legislation aims to encourage more individuals to enter the farming and ranching business.

4. Legislative Process

The bill has been introduced in the House of Representatives and referred to the Committee on Agriculture for consideration.

Relevant Companies

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