CBAI thanks Illinois Congressman Mike Bost (R-12) for introducing The Beginning Farmer and Rancher Guaranteed Loan Modernization Act of 2016 (H.R. 5733). This legislation amends the Agricultural Act of 1961 to modify the limitations applicable to qualified conservation loan guarantees.
Specifically, the legislation increases USDA guaranteed farm operating and guaranteed real estate loan limits from $1.39 million to $2.5 million while maintaining the existing 90% guarantee against default. Additionally, it allows higher loan limits in $100,000 increments up to $3.5 million while stepping down the guarantee percentages in 1% increments (90% to 80%). The legislation also includes an exception for certain producers (i.e., qualified beginning or socially disadvantaged farmers or ranchers) with a higher guarantee limit of 95% and stepping down to 85%. An annual inflation adjustment is also included so the guarantee amounts need not be revisited to keep them current. Read Legislation.
In a September 12, 2016 letter, ICBA President Cam Fine thanked Congressman Bost for introducing this legislation and stated that the higher loan limits will benefit family farmers and ranchers. Read ICBA Letter of Support.
CBAI strongly supports H.R. 5733.
September 21, 2016