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Farm Loan Relief: Payment Deferral, Lower Interest, and Appeals Reform.

This Act provides significant financial relief to distressed farmers by mandating a two-year deferment on principal and interest payments for direct farm loans, setting the interest rate at 0.125% during this period. It also reforms the loan process by limiting the use of a farmer's primary residence as collateral and streamlines the appeals process against adverse decisions by the Farm Service Agency (FSA).
Key points
Two-year deferment of principal and interest payments on direct farm loans for eligible borrowers (financially distressed or delinquent), with interest reduced to 0.125%.
Limits the use of a farmer's principal residence as collateral for direct loans; it must be the last option available to secure the loan.
Shifts the burden of proof in appeals to the USDA agency if the appellant farmer's income is $300,000 or less, requiring the agency to prove its adverse decision was not erroneous.
Removes eligibility restrictions for new loans based on a borrower's previous debt write-down or loss to the Secretary of Agriculture.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6169
Sponsor: Rep. Adams, Alma S. [D-NC-12]
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Fair Credit for Farmers Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6169.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

What are the main provisions?

Key points include:

  • Two-year deferment of principal and interest payments on direct farm loans for eligible borrowers (financially distressed or delinquent), with interest reduced to 0.125%.
  • Limits the use of a farmer's principal residence as collateral for direct loans; it must be the last option available to secure the loan.
  • Shifts the burden of proof in appeals to the USDA agency if the appellant farmer's income is $300,000 or less, requiring the agency to prove its adverse decision was not erroneous.
  • Removes eligibility restrictions for new loans based on a borrower's previous debt write-down or loss to the Secretary of Agriculture.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Adams, Alma S. [D-NC-12].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Agriculture.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Agriculture