By Andi Anderson
U.S. Senators John Hoeven and Amy Klobuchar have reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act, a bipartisan bill aimed at improving farmers’ and ranchers’ access to credit.
The legislation seeks to modernize U.S. Department of Agriculture (USDA) loan programs by increasing loan limits to match rising production costs. The senators are working to include the bill in the next farm bill.
The PACE Act would raise loan limits for Farm Service Agency (FSA) Direct and Guaranteed Loan Programs. Key changes include:
- Direct Operating Loans: Increase from $400,000 to $750,000
- Guaranteed Operating Loans: Increase from $2.25 million to $2.6 million
- Direct Ownership Loans: Increase from $600,000 to $850,000
- Guaranteed Ownership Loans: Increase from $2.25 million to $3 million
- Microloan Program: Increase from $50,000 to $100,000
Additionally, the bill adjusts inflation benchmarks for guaranteed loans and creates pathways for distressed borrowers to refinance loans. It also aligns the Direct Farm Ownership Down Payment Program with updated loan limits to assist new farmers in purchasing family farms.
The legislation has strong backing from key agricultural organizations, including the American Farm Bureau Federation, National Farmers Union, and Farm Credit Council. Supporters emphasize that the bill will help farmers navigate financial challenges, ensuring greater access to capital for new and existing producers.
Lawmakers stress that the PACE Act is vital for sustaining the agricultural economy, particularly as farmers face increasing input costs and market uncertainties. The bill aims to provide financial security and strengthen generational farming operations.
If passed, it will offer critical support to farmers across the country, helping them maintain and grow their businesses.
Photo Credit: usda
Categories: North Dakota, Government & Policy