Senator Jon Husted (R-Ohio) and Senator Tommy Tuberville (R-Ala.) introduced the USDA Loan Modernization Act on March 16. The proposed legislation aims to remove outdated eligibility barriers that prevent modern family farms from accessing U.S. Department of Agriculture loan programs.
The issue is significant because, according to Husted, “Ninety-five percent of farms in Ohio are family-owned and operated, and they shouldn’t be penalized by outdated rules for securing their families’ and their farms’ future.” The bill seeks to update USDA loan rules so they better reflect how family farms operate today, allowing them to continue growing and passing their legacy on to future generations.
Supporters of the bill include the Ohio Farm Bureau Federation, which said, “We appreciate Sens. Jon Husted and Tommy Tuberville for their leadership in introducing the USDA Loan Modernization Act. For too long, outdated eligibility rules have created unnecessary barriers for families working to pass their farms down to the next generation. By expanding loan access, this legislation will ensure that taking over the family farm remains a reachable reality rather than a financial impossibility.”
Tara Durbin, Chief Lending Officer for Agriculture at Farm Credit Mid-America, also voiced support: “Farm Credit Mid-America thanks Senators Husted and Tuberville for recognizing the challenges some farming operators face in gaining access to important USDA loan programs. Young and beginning farmers face a number of challenges in getting started or continuing their family legacy in agriculture. This legislation will provide them with critical tools that will help support the next generation of agriculture.”
There are about 76,500 farms in Ohio, with most being family-owned and operated. Many use limited liability companies or partnerships to protect assets and plan for succession; however, current Farm Service Agency loan rules require one person to hold a majority stake and personally run the farm—criteria that can disqualify well-run operations based solely on structure.
The USDA Loan Modernization Act would update eligibility standards for guaranteed and direct operating loans as well as emergency and real estate loans nationwide. The full text of the bill is available online.
