Bipartisan legislation recently introduced by U.S. Sen. John Hoeven (R-ND) would increase maximum loan amounts that farmers and ranchers are able to receive through the Farm Service Agency (FSA).
The Capital for Farmers and Ranchers Act, which was introduced by Hoeven and U.S. Sen. Amy Klobuchar (D-MN), would increase maximum loan amounts under the FSA’s Direct and Guaranteed Loan Programs for Farm Operating Loans and Farm Ownerships Loans.
“This legislation will increase the FSA loan amounts for our farmers and ranchers, which is really important for them now so that they can get access to credit during these challenging times with low commodity prices,” Hoeven said. “It will help them to maintain their operations so that they can continue to provide affordable, high quality food to the American people.”
The bill would double the maximum amount that individual farmers and ranchers can receive in Direct Operating and Direct Farm Ownership Loans from $300,000 to $600,000.
Additionally, the bill would increase caps on Guaranteed Operating Loans and Guaranteed Farm Ownership Loans from $1.399 million to $2.5 million.
“Farmers and ranchers strengthen rural communities and form the backbone of our state’s economy,” Klobuchar said. “Our bipartisan legislation would help provide them with the support they need to start or grow their farming operations during tough economic times.”