What does Preamble of Capital for Beginning Farmers and Ranchers Act of 2025 do?

This bill proposes to amend the Consolidated Farm and Rural Development Act. The amendment would establish a pilot program. The pilot program would involve development loans and loan guarantees. These loans and guarantees would be available to beginning farmers and ranchers.

What does SHORT TITLE. of Capital for Beginning Farmers and Ranchers Act of 2025 do?

This bill is formally titled the Capital for Beginning Farmers and Ranchers Act of 2025.

What does FINDINGS. of Capital for Beginning Farmers and Ranchers Act of 2025 do?

This section outlines findings related to beginning farmers and ranchers. It notes that these farmers often use diverse and specialized production and marketing strategies. The text states that these businesses typically require substantial early-stage investments. Current programs often finance these investments as annual operating loans. This financing method may lead to under-investment in start-up capacities and difficulties in meeting loan terms for beginning farmers and ranchers.

What does BEGINNING FARMER AND RANCHER DEVELOPMENT LOAN PILOT PROGRAM. of Capital for Beginning Farmers and Ranchers Act of 2025 do?

This section establishes a Beginning Farmer and Rancher Development Loan Pilot Program within the Consolidated Farm and Rural Development Act. The program provides development loans or guarantees to qualified beginning farmers and ranchers to finance 'development expenditures,' which include investments benefiting their business for over one year. Loans under this program can have repayment terms of 3 to 10 years, with a maximum loan amount of $100,000 and an interest rate between 0% and 3%. The collateral requirement is generally not more than 100 percent loan-to-value, but may be reduced based on borrower experience. Borrowers are required to make annual interest payments and participate in flexible principal repayment. The Secretary is required to provide comprehensive training and support to borrowers, addressing farm and ranch management issues like bookkeeping, taxation, and risk management. The Secretary will evaluate the pilot program and submit biennial reports to Congress describing its operation and outcomes.

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Capital for Beginning Farmers and Ranchers Act of 2025

Last updated: 12/2/2025 · Introduced: 9/15/2025

Author: Marilyn Strickland (D-WA)

TL;DR (AI)

This bill establishes a pilot program to provide development loans and loan guarantees to beginning farmers and ranchers for investments benefiting their businesses for over one year.
The program offers loans with repayment terms of 3 to 10 years, a maximum loan amount of $100,000, and interest rates between 0% and 3%, with required annual interest payments and flexible principal repayment.
The Secretary of Agriculture will provide training and support to borrowers and evaluate the pilot program, submitting biennial reports to Congress.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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