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USDA Loan Modernization: Easier Access for Farmers and Complex Entities.

This Act updates rules for USDA direct loans (farm ownership, operating, and emergency) to better suit modern farming structures. It lowers the required ownership interest in an applicant entity from "a majority" to "at least 50 percent," making 50/50 partnerships eligible. Crucially, it clarifies and expands eligibility for entities that only operate the farm and for those with complex, layered ownership structures, ensuring more working farmers can access necessary federal financing.
Key points
The minimum required ownership interest for loan eligibility is reduced from "a majority" (over 50%) to "at least 50 percent."
Eligibility is expanded to include entities that only operate the farm, provided the real estate owners hold at least 50% interest in the operating entity.
Complex ownership structures (embedded entities) can now qualify if 75% of the total ownership interests are held by qualified farm operators.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6779
Sponsor: Rep. Bost, Mike [R-IL-12]
Process start date: 2025-12-17
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

USDA Loan Modernization Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6779.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-12-17.

What are the main provisions?

Key points include:

  • The minimum required ownership interest for loan eligibility is reduced from "a majority" (over 50%) to "at least 50 percent."
  • Eligibility is expanded to include entities that only operate the farm, provided the real estate owners hold at least 50% interest in the operating entity.
  • Complex ownership structures (embedded entities) can now qualify if 75% of the total ownership interests are held by qualified farm operators.
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. Bost, Mike [R-IL-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 2026-01-21.

CATEGORIES

Agriculture