WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.), Ranking Member of the Senate Agriculture Subcommittee on Rural Development, Energy, and Credit, today joined Senators John Hoeven (R-N.D.) and Tina Smith (D-Minn.) in reintroducing the bipartisan Farm Ownership Improvement Act. This bill will help producers compete in the farm real estate market by launching a pilot program for a pre-approval or pre-qualification process for U.S. Department of Agriculture (USDA) Direct Farm Ownership loans.
“Access to land is too expensive and out of reach for too many folks who want to start farming. USDA loans can help lower costs and expand opportunities for new and young farmers, but rising land values and an increasingly fast-paced real estate market often leave farmers unable to compete. Our bipartisan bill will help ensure the lending programs offered by USDA meet the needs of America’s future farmers,” said Senator Welch.
“This legislation will help make farm loans more accessible and timely for producers, preventing costly delays and helping young and beginning farmers secure needed capital on a quicker basis,” said Senator Hoeven. “This comes as part of our broader efforts to ensure USDA programs work for farmers and ranchers, supporting a stronger and more resilient ag economy.”
“Farmers and producers are the backbone of Minnesota’s economy,” said Senator Smith. “This legislation would reduce red tape for purchasing land, repairing current operations, and building capital. Meeting farmers where they are and tearing down barriers that impede their success will keep our agricultural economy thriving in Minnesota and across the country.”
The Farm Ownership Improvement Act requires USDA to provide Congress with an annual report on the pilot program’s performance outcomes and coordinate outreach with stakeholder organizations to spread awareness about the program. By offering a pre-qualification or pre-approval process to direct farm ownership applicants, FSA will help level the playing field for applicants seeking land, particularly among the next generation of farmers and ranchers.
The Farm Ownership Improvement Act is endorsed by Farm Aid, the National Young Farmers Coalition, National Farmers Union, National Sustainable Agriculture Coalition, National Family Farm Coalition, and Rural Coalition.
“Farm Aid is proud to support the Farm Ownership Improvement Act, which would streamline the farm loan process to make it more possible for new and young farmers to become farmland owners,” said Jennifer Fahy, Co-Executive Director, Farm Aid. “Dismantling the barriers that new and beginning farmers face creates more certainty for the next generation of farmers and more resilience in our farm and food system.”
“Access to affordable, quality farmland is a foundational need of young producers across the country, and is closely linked to access to capital – another top challenge. For young and beginning farmers and ranchers seeking financing through FSA Direct Farm Ownership loans, these challenges are compounded by when there is strong competition for available land, particularly with other buyers who have greater access to capital and credit and can close a deal quickly – even as the value of farmland continues to skyrocket,” said Amanda Koehler, Land Policy Associate Director for the National Young Farmers Coalition. “The Farm Ownership Improvement Act, if included in the next Farm Bill, will make young producers more competitive in the real estate market, improve the timeliness and customer service of FSA loan services, and help level the playing field for farmers and ranchers seeking land, particularly among this new generation.”
“This bill presents a crucial opportunity to fortify USDA’s partnerships with organizations already supporting beginning farmers and ranchers. For agrarian entrepreneurs, access to land and credit remain the top priorities. By leveraging the trust and expertise of established service organizations, we can ensure the success of this pilot program,” said Antonio Tovar, Senior Policy Associate for the National Family Farm Coalition.
“Access to affordable land is essential for the success of all farmers, and it’s an especially pressing challenge for young and beginning farmers,” said Rob Larew, President of National Farmers Union. “NFU appreciates Senators Welch, Hoeven, and Smith for introducing the Farm Ownership Improvement Act. By piloting a new process for the USDA Farm Service Agency’s direct ownership loan program, this bill would help make the dream of owning farmland a reality for more of the next generation of family farmers and ranchers.”
“I’ve built a viable business from the ground up on rented land, but my partner and I don’t have access to generational wealth or high-income careers to pivot from and pursue farming full-time,” said Michelle Week of Xast Sqit (Good Rain) Farm, greater Portland Oregon. “Traditional lenders don’t recognize our lifestyle or business model, so we don’t qualify for standard loans. In the Portland, Oregon metro area and SW Washington counties, land prices are increasing, and while retiring farmers want to pass their land to people like us, they can’t afford to wait. Several farmers have approached me, but I can’t access the capital fast enough to meet their financial needs to address health and relocation costs. With FSA Pre-Approval we’d be better positioned to make offers and purchase our forever farmland, supporting retiring farmers, continuing to nourish our communities and to better stabilize and grow our farm operations. It’s a win all around.”
Learn more about the Farm Ownership Improvement Act.
Read the full text of the bill.
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