H.R.1991 - Producer and Agricultural Credit Enhancement Act of 2025 (119th Congress)
Summary
H.R.1991, the Producer and Agricultural Credit Enhancement Act of 2025, aims to amend the Consolidated Farm and Rural Development Act. The bill seeks to modify limitations on farm ownership and operating loan amounts, adjust inflation percentage calculations, and refine the down payment loan program. It also addresses microloan amounts and allows for refinancing of guaranteed loans into direct loans.
Expected Effects
The likely effect of this bill is increased access to credit for farmers and ranchers. This could lead to greater agricultural production and economic activity in rural areas. The refinancing provisions may provide relief to distressed borrowers.
Potential Benefits
- Increased loan limits for farm ownership and operating loans, potentially enabling larger and more efficient farming operations.
- Adjustment of inflation calculation to better reflect land values, providing more accurate loan adjustments.
- Refinancing options for distressed guaranteed loans into direct loans, offering a lifeline to struggling farmers.
- Increased microloan amounts, supporting smaller-scale agricultural ventures.
- The sense of Congress that Farm Service Agency loans should be fully funded to meet producer demand.
Potential Disadvantages
- Increased loan amounts could lead to higher debt levels for farmers, increasing financial risk.
- The shift in inflation calculation might not accurately reflect the true costs faced by farmers.
- Refinancing provisions could create additional administrative burden for the Farm Service Agency.
- Potential for increased risk to taxpayer funds if refinancing criteria are not carefully managed.
- No guarantee that increased loan availability will translate into improved profitability for all farmers.
Constitutional Alignment
The bill appears to align with the General Welfare Clause of the Constitution, as it aims to support farmers and agricultural communities. Congress has the power to regulate commerce and provide for the general welfare, as outlined in Article I, Section 8. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).