H.R. 5367

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5367 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5367

To amend the Consolidated Farm and Rural Development Act to provide for 
a pilot program under which development loans and loan guarantees may 
be made to beginning farmers and ranchers, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 15, 2025

Ms. Strickland (for herself, Ms. Adams, Mr. Panetta, Ms. Sewell, Mr. 
Figures, and Mr. Carter of Louisiana) introduced the following bill; 
which was referred to the Committee on Agriculture

_______________________________________________________________________

A BILL

To amend the Consolidated Farm and Rural Development Act to provide for 
a pilot program under which development loans and loan guarantees may 
be made to beginning farmers and ranchers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Capital for Beginning Farmers and 
Ranchers Act of 2025''.

SEC. 2. FINDINGS.

Congress finds that--
(1) beginning farmers and ranchers often pursue business 
models featuring diverse and specialized production and 
marketing strategies;
(2) diverse and specialized agricultural businesses 
typically require substantial early-stage investments which 
will benefit the operation for years to come; and
(3) programs in effect as of 2025 often finance those 
multi-year investments as annual operating loans, resulting in 
beginning farmers and ranchers under-investing in critical 
start-up capacities, limiting the ability of beginning farmers 
and ranchers to accumulate working capital, and increasing the 
difficulties faced by beginning farmers and ranchers in meeting 
the terms of those loans.

SEC. 3. BEGINNING FARMER AND RANCHER DEVELOPMENT LOAN PILOT PROGRAM.

Subtitle B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941 et seq.) is amended by adding at the end the following:

``SEC. 320. BEGINNING FARMER AND RANCHER DEVELOPMENT LOAN PILOT 
PROGRAM.

``(a) Definition of Development Expenditure.--
``(1) In general.--In this section, the term `development 
expenditure' means a capital investment that benefits a farming 
or ranching business of a qualified beginning farmer or rancher 
for more than 1 year.
``(2) Inclusions.--In this section, the term `development 
expenditure' includes an expenditure--
``(A) for the acquisition or development of--
``(i) initial assets; or
``(ii) intangible infrastructure;
``(B) to increase long-term soil fertility, 
establish perennials, or develop breeding stock;
``(C) to establish an appropriate foundation of 
small equipment, tools, or supplies;
``(D) to develop branding and reputation, establish 
commercial relationships with suppliers and key service 
providers, access new markets, or refine product 
offerings;
``(E) to establish a bookkeeping system sufficient 
to support invoicing multiple clients and managing 
profitability with respect to diverse crops and 
livestock;
``(F) to establish payroll and implement legally 
compliant labor practices;
``(G) to establish other business management 
practices relating to food safety, environmental, or 
other regulatory compliance; or
``(H) for such other items as the Secretary 
determines appropriate.
``(b) Establishment.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall establish a pilot 
program to make or guarantee development loans to qualified beginning 
farmers and ranchers to finance development expenditures.
``(c) Terms and Conditions.--
``(1) In general.--Notwithstanding any other provision of 
law, a development loan made or guaranteed under this section--
``(A) shall have a repayment term of--
``(i) not less than 3 years; and
``(ii) not more than 10 years;
``(B) may be used only to cover development 
expenditures;
``(C) shall not exceed $100,000;
``(D) shall have a collateral requirement of not 
more than 100 percent loan-to-value, subject to 
paragraph (2);
``(E) shall have an interest rate, determined by 
the Secretary, of--
``(i) not less than zero percent; and
``(ii) not more than 3 percent;
``(F) shall require the participating qualified 
beginning farmer or rancher to make annual interest 
payments for the full amount of interest due; and
``(G) shall include flexible principal repayment, 
subject to the condition that not less than 1 percent 
of the remaining balance shall be due annually on a 
date determined by the Secretary.
``(2) Collateral requirement.--The collateral requirement 
described in paragraph (1)(D) may be reduced by the lender 
based on the farming or ranching experience and expertise of 
the borrower.
``(3) Treatment.--A development loan made or guaranteed 
under this section--
``(A) shall not count toward the limitations 
described in subparagraphs (B) and (C) of section 
311(c)(1);
``(B) shall be considered to be--
``(i) a direct operating loan or a 
guaranteed operating loan, as applicable, for 
purposes of section 346(b)(2); and
``(ii) an operating loan under section 312 
for purposes of section 343(a)(10); and
``(C) except as otherwise provided in this section, 
shall be subject to all applicable provisions of law 
relating to, as applicable--
``(i) direct operating loans under this 
title;
``(ii) guaranteed operating loans under 
this title; or
``(iii) farmer program loans.
``(d) Borrower Training.--
``(1) In general.--The Secretary shall provide to borrowers 
of development loans made or guaranteed under this section 
comprehensive training and support addressing farm and ranch 
management issues.
``(2) Requirements.--The training and support provided 
under paragraph (1) shall address, to the maximum extent 
practicable--
``(A) bookkeeping, taxation, credit, and regulatory 
compliance; and
``(B) cash flow, profitability, and risk 
management.
``(3) Provision.--The Secretary shall provide training and 
support under paragraph (1) through--
``(A) entities with which the Secretary has entered 
into a contract under section 359;
``(B) entities that receive funding through the 
beginning farmer and rancher development grant program 
established under section 2501(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(d));
``(C) entities that receive funding through the 
risk management education program established under 
section 524(a)(2) of the Federal Crop Insurance Act (7 
U.S.C. 1524(a)(2)); or
``(D) other relevant programs, as determined by the 
Secretary, including qualified programs that request 
such a determination.
``(e) Evaluation and Reports.--The Secretary shall--
``(1) evaluate the pilot program established under 
subsection (b) on an ongoing basis; and
``(2) biennially submit to the Committee on Agriculture, 
Nutrition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives a written report 
describing the operation and outcomes of the pilot program.''.
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