MN Lawmakers Reintroduce Legislation Modernizing Loan Limits for Farmers

Reps. Brad Finstad and Angie Craig reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act, bipartisan legislation that would modernize the current limits on the Farm Service Agency’s (FSA) Ownership and Operating loans. Democratic Sen. Amy Klobuchar and Senate GOP colleague John Hoeven (R-ND) have introduced companion legislation in the Senate.

“Farmers across southern Minnesota, especially those who are just starting out, rely on dependable financing options to grow and maintain their operations,” said Rep. Finstad, who farms in Brown County and represents Minnesota’s First District . “It is imperative that the limits on FSA loans align with the current challenges farmers and producers face today. I’m proud to reintroduce the PACE Act, which will provide farmers with certainty and make it easier to obtain the loans they need.”

The PACE Act is supported by numerous state and national groups, including the Minnesota Soybean Growers Association (MSGA) and American Soybean Association. MSGA President Darin Johnson said the organization looks forward to discussing policy solutions during Hill Visits with legislative leaders March 19 in Washington, D.C.

Background:

Congressman Finstad and Congresswoman Craig introduced the Producer and Agricultural Credit Enhancement (PACE) Act during the 118th Congress, and several of its provisions were included in the House Agriculture Committee-passed Farm Bill.

“Farming is volatile work, and our family farmers are often tasked with navigating uncertain conditions, whether that’s periods of low commodity prices or extreme weather events,” said Rep. Craig, who serves Minnesota’s Second District. “That’s why I’m working across the aisle with Rep. Finstad to help give Minnesota’s farmers and producers the certainty they need to continue operating through challenging times. This bipartisan bill will bolster generational operations, while ensuring that new and beginning farmers have access to the resources they need to get their businesses up and running.

Specifically, the PACE Act would increase FSA Guaranteed Operating Loans from $2.25 million to $3 million, increase Guaranteed Ownership Loans from $2.25 million to $3.5 million, increase Direct Operating Loans from $400,000 to $750,000, and increase Direct Ownership Loans from $600,000 to $850,000. FSA’s Operating and Ownership Loans are critical tools to ensure farmers have access to the financing needed to get started, expand their family’s operation, or restructure with certainty.