By Scout Nelson
Lawmakers have reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act, a bipartisan initiative aimed at updating loan limits under the Farm Service Agency (FSA). Representatives from both parties, including Rep. Brad Finstad and Rep. Angie Craig, are leading the effort in the House, while Senators Amy Klobuchar and John Hoeven have introduced a companion bill in the Senate.
“Farmers across southern Minnesota, especially those who are just starting out, rely on dependable financing options to grow and maintain their operations,” said Rep. Finstad, who farms in Brown County and represents Minnesota’s First District . “It is imperative that the limits on FSA loans align with the current challenges farmers and producers face today. I’m proud to reintroduce the PACE Act, which will provide farmers with certainty and make it easier to obtain the loans they need.”
The bill has garnered support from key agricultural organizations, such as the Minnesota Soybean Growers Association (MSGA) and the American Soybean Association. MSGA President Darin Johnson stressed that securing financial stability is critical, especially amid economic uncertainties and trade disruptions. He expressed appreciation for lawmakers addressing these concerns through bipartisan cooperation.
The PACE Act builds upon previous legislative efforts, with some provisions already included in a Farm Bill passed by the House Agriculture Committee. This bill proposes significant increases in FSA loan limits to enhance credit availability for farmers. Specifically, it seeks to raise Guaranteed Operating Loans from $2.25 million to $3 million, Guaranteed Ownership Loans from $2.25 million to $3.5 million, Direct Operating Loans from $400,000 to $750,000, and Direct Ownership Loans from $600,000 to $850,000. These adjustments aim to provide farmers with greater financial flexibility to invest in their operations, restructure debt, or expand their businesses.
“Too many American farmers and producers operate on razor-thin margins. Having access to credit can often mean the difference between economic viability and financial hardship. By expanding credit opportunities for producers and farmers, this legislation will strengthen the rural economy across Minnesota and the country,” said Sen. Klobuchar, Ranking Member of the Senate Agriculture Committee.
This legislation represents a collective effort to address the evolving needs of farmers, ensuring they have the necessary financial tools to succeed in an ever-changing agricultural landscape.
Categories: Minnesota, Business