Central ND News

U.S. Senators John Hoeven and Amy Klobuchar have reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act, aiming to update loan limits for U.S. Department of Agriculture (USDA) programs to improve credit access for farmers and ranchers. The senators presented their case during a Senate Agriculture Committee hearing, advocating for its inclusion in the next farm bill.

Senator Hoeven emphasized the importance of aligning loan limits with real-world costs faced by agricultural producers. "Our legislation makes needed updates to these loans so they can properly meet the needs of farmers," he stated.

Senator Klobuchar highlighted the challenges faced by American farmers operating on thin margins, noting that expanded credit opportunities could bolster rural economies. "This legislation will strengthen the rural economy across Minnesota and the country," she said.

The PACE Act proposes several changes:

- Increases loan limitations for Farm Service Agency’s (FSA) Direct and Guaranteed Loan Programs.

- Adjusts inflation benchmarks for certain loans.

- Indexes the Direct Farm Ownership Down Payment Program to current loan limits.

- Doubles loan limitations for FSA microloan programs.

- Allows distressed borrowers to refinance guaranteed loans into direct loans.

The bill has garnered support from various agricultural organizations, including the American Farm Bureau Federation and National Farmers Union. Representative Brad Finstad introduced a companion bill in the House, stressing its importance for new farmers in southern Minnesota. "It is imperative that the limits on FSA loans align with current challenges," he remarked.

Representative Angie Craig echoed this sentiment, emphasizing bipartisan efforts to support family farmers facing volatile conditions. She believes this legislation will provide necessary resources for both established and new farmers.

Christy Seyfert of Farm Credit Council expressed gratitude towards Senators Hoeven and Klobuchar, highlighting that accessible capital is crucial for young farmers. Rob Larew from National Farmers Union also welcomed the introduction of this act as a means to modernize FSA loan programs amid high land values and input costs.