Reps. Craig and Finstad Introduce Bill to Improve Access to Capital for Ag Producers
WASHINGTON, DC – This week, Representatives Angie Craig (MN-02) and Brad Finstad (MN-01) introduced the bipartisan Producer and Agricultural Credit Enhancement (PACE) Act to improve agricultural producers’ access to credit.This legislation would modernize current limits on the Farm Service Agency’s (FSA) Ownership and Operating loans, enacted through the 2018 Farm Bill.
The Producer and Agricultural Credit Enhancement Act would increase FSA Guaranteed Operating Loans from $2.04 million to $3 million, increase Guaranteed Ownership Loans from $2.04 million to $3.5 million, increase Direct Operating Loans from $400,000 to $750,000 and increase Direct Ownership Loans from $600,000 to $850,000.
FSA’s Operating and Ownership Loans are critical tools to ensure farmers have access to the financing needed to get started, expand their family’s operation or restructure. They can be used to purchase livestock, seed, crop protection tools, and farm equipment, among additional farm operating costs. They can also be used to purchase farmland, as well as to assist with closing costs, construct or improve buildings on the farm or assist soil and water conservation practices.
“Farming is volatile work, and our family farmers are often tasked with navigating uncertain conditions, whether that’s periods of low commodity prices or extreme weather events,” said Rep. Craig. “That’s why I’m working across the aisle with Rep. Finstad to help give Minnesota’s farmers and producers the certainty they need to continue operating through challenging times. This bipartisan bill will bolster generational operations, while ensuring that new and beginning farmers have access to the resources they need to get their businesses up and running.”
“Farmers across southern Minnesota, especially those who are just starting out, rely on dependable financing options to grow and maintain their operations,” said Rep. Finstad. “It is imperative that the limits on FSA loans align with the current challenges farmers and producers face today. I’m proud to reintroduce the PACE Act, which will provide farmers with certainty and make it easier to obtain the loans they need.”
"Farm Credit extends its thanks to Representatives Finstad and Craig for reintroducing the Producer and Agricultural Credit Enhancement (PACE) Act, which would expand the Farm Service Agency's direct and guaranteed loan limits to match the rising costs of agricultural production. Agricultural producers depend on access to capital to grow and maintain their operations. For young and beginning farmers, in particular, accessible capital may be the difference between launching an operation or not. We look forward to collaborating with both representatives to include this essential legislation in the Farm Bill for the benefit of farmers and ranchers across the nation," said Farm Credit Council President and CEO Christy Seyfert.
Senators Amy Klobuchar (D-MN) and John Hoeven (R-ND) introduced companion legislation in the Senate.
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