More U.S. Farmers Would Be Eligible For Federal Loans Under New Bipartisan Bill

By Will Bauer

New federal legislation that’s working its way through the House Committee on Agriculture would allow farmers or ranchers with just 50% stake in the business to get a loan from the U.S. Department of Agriculture.

The agency administered 24,555 loans to U.S. producers in 2024, totaling nearly $5.4 billion.

Under the current system, eligible loan applicants must be the sole owner-operator of their farm or the legal entity that owns it. But critics say the requirements are outdated and don't take into account the more complicated ownership structures of many modern-day farms, like limited liability companies or partnerships.

Supporters of the legislation, including farmers, ranchers and their lobbying and trade groups, say it’s a necessary update to better reflect how agribusiness is done in today’s world — and to maintain a path for younger producers to stay in an increasingly costly industry.

“Very simply, it will help provide access to this much-needed capital to help farmers, the next generation of farmers, to get out and get in the field and do what they need to do to keep agriculture going in this country,” said Christy Seyfert, President and CEO of Farm Credit Council, a national trade association representing lenders who offer credit to farmers.