“Ninety-five percent of farms in Ohio are family-owned and operated, and they shouldn’t be penalized by outdated rules for securing their families’ and their farms’ future.”
WASHINGTON – Sen. Jon Husted (R-Ohio) and Sen. Tommy Tuberville (R-Ala.) introduced the USDA Loan Modernization Act. This bill would remove outdated eligibility barriers that prevent modern family farms from accessing U.S. Department of Agriculture (USDA) loan programs.
“Ninety-five percent of farms in Ohio are family-owned and operated, and they shouldn’t be penalized by outdated rules for securing their families’ and their farms’ future. This bill would modernize USDA loan rules so they reflect how family farms operate today and ensure they can continue to grow and pass their legacy on to the next generation,” said Husted.
Statements of support:
“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 For too long, outdated eligibility rules have created unnecessary barriers for families working to pass their farms down to the next generation.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.” – The Ohio Farm Bureau Federation.
“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,” said Tara Durbin, Chief Lending Officer, Agriculture, Farm Credit Mid-America.
There are around 76,500 farms in Ohio, and 95% of them are family-owned and operated.
Many Ohio family farms use LLCs or partnerships to protect family assets, reduce risk and plan for the future. Current FSA loan rules require one person to hold a majority stake and personally run the farm, which can disqualify well-run farms simply because of how they’re structured.
The USDA Loan Modernization Act would update loan eligibility standards to better reflect the structure of today’s multi-generational, family-owned farms, expanding access to guaranteed and direct operating, emergency and real estate loans for producers across the country.
Full text of the bill is available here.