U.S. Rep. Mike Bost (R-IL) on Jan. 26 sponsored a bipartisan bill to increase federal loans for new and existing agricultural producers who want to expand or diversify their operations.
Rep. Bost introduced the Beginning Agriculturist Lifetime Employment (BALE) Act, H.R. 541, with four original cosponsors, including U.S. Reps. Dan Newhouse (R-WA), Darin LaHood (R-IL), and Robin Kelly (D-IL), to amend the Agricultural Act of 1961 to modify the caps on qualified conservation loan guarantees, according to the congressional record bill summary.
“Sky-high inflation and supply chain challenges have made it even more expensive for our southern Illinois farmers to build their businesses, especially those just starting out,” Rep. Bost said. “I was proud to lead this effort in the 2018 Farm Bill and will continue fighting to help ensure that the farmers who feed our nation can access the financing they need.”
If enacted, H.R. 541 would build upon a provision sponsored by Rep. Bost in the 2018 Farm Bill to increase limits on conservation, ownership, and operator loans through the U.S. Department of Agriculture (USDA)’s Guaranteed and Direct Loan Programs.
Specifically, the measure would increase lending caps on conservation, ownership, and operator loans from $1.75 million to $3 million, according to a bill summary provided by Rep. Bost’s office, and the maximum loan would be set at $4 million with an 85 percent guarantee for qualified beginning farmers and ranchers, and an 80 percent guarantee for all other guaranteed loans.
Among other provisions, the bill also would ensure that qualified farmers and ranchers who are just starting out see a 95 percent loan guarantee, with all other guaranteed loans having a 90 percent guarantee, the summary says.
The legislation has been referred for consideration to the U.S. House Agriculture Committee.