S.910 - Farm Ownership Improvement Act (119th Congress)
Summary
S.910, the Farm Ownership Improvement Act, directs the Secretary of Agriculture to establish a pilot program for pre-qualifying or pre-approving farmers and ranchers for direct farm ownership loans under the Consolidated Farm and Rural Development Act. The program aims to streamline the loan application process and assess borrower viability using alternative methods like financial benchmarking. It also prioritizes outreach to organizations working with beginning farmers and ranchers and requires ongoing evaluation and reporting to Congress.
Expected Effects
The Act is likely to result in a more efficient loan application process for farmers and ranchers seeking direct farm ownership loans. This could lead to increased access to capital for new and beginning farmers. The pilot program's evaluation and reporting requirements will provide data to determine the program's effectiveness and potential for permanent implementation.
Potential Benefits
- Streamlined loan application process for farmers and ranchers.
- Increased access to capital, especially for beginning farmers.
- Improved assessment of borrower viability through alternative methods.
- Prioritized outreach to organizations supporting new farmers.
- Data-driven evaluation to inform future policy decisions.
Potential Disadvantages
- Potential for bureaucratic delays in establishing the pilot program.
- Risk that alternative assessment methods may not accurately predict loan repayment.
- Limited scope of the pilot program may not address all barriers to farm ownership.
- Possible unintended consequences from altering existing loan requirements.
- The program is only authorized for 5 years, creating uncertainty for participants.
Constitutional Alignment
The bill aligns with the General Welfare Clause of the Constitution, as it aims to support farmers and ranchers, contributing to the nation's food security and economic stability. Congress has the power to regulate agriculture and provide for the general welfare of the United States under Article I, Section 8. The establishment of a pilot program and the appropriation of funds for its implementation fall within Congress's enumerated powers.
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).