Bill · S. 2797· Senate(119-S-2797)
Capital for Beginning Farmers and Ranchers Act of 2025
- Introduced
- 9/15/2025
- Last activity
- 9/15/2025 — Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Sponsored by
- Peter Welch
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "Capital for Beginning Farmers and Ranchers Act of 2025," aims to amend the Consolidated Farm and Rural Development Act. It seeks to establish a pilot program that provides development loans and loan guarantees specifically for qualified beginning farmers and ranchers. These loans are intended to fund "development expenditures," which are capital investments that benefit a business for more than one year. The program includes specific terms regarding loan amounts, interest rates, and repayment schedules. Additionally, the Secretary is tasked with providing comprehensive training and support to borrowers. The Secretary must also evaluate the program and submit biennial reports to Congress.
Yes· 3 of 10
Would farmers be better off under this?+8
The bill provides essential low-interest capital and training for those starting farming and ranching operations.
Would business owners be better off under this?+7
The bill provides specific financial tools and training to assist in starting and managing agricultural businesses.
Does this make it easier to run a small business?+7
The bill provides low-interest loans and comprehensive management training specifically for beginning farmers and ranchers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Access to Capital for Long-Term Growth: The bill creates a way for beginning farmers and ranchers to fund substantial early-stage investments that benefit them for years, rather than just using annual operating loans (Section 2).
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Diverse Funding Uses: The definition of "development expenditure" allows for many types of positive business investments, such as acquiring initial assets, increasing soil fertility, establishing equipment, developing branding, and setting up bookkeeping or payroll systems (Section 3(a)).
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Affordable Loan Terms: Loans under this program can have interest rates as low as 0 percent and up to 3 percent (Section 3(c)(1)(E)).
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Flexible Repayment: The program allows for flexible principal repayment, which can help borrowers manage their finances (Section 3(c)(1)(G)).
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Lower Collateral Barriers: The collateral requirement may be reduced based on the actual farming or ranching experience and expertise of the borrower (Section 3(c)(2)).
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Educational Support: Borrowers will receive comprehensive training and support covering essential business topics like bookkeeping, taxation, cash flow, and risk management (Section 3(d)).
Potential Negative Impacts for People
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Loan Limitations: Loans made under this pilot program are capped at a maximum of $100,000 (Section 3(c)(1)(C)).
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Repayment Obligations: Borrowers are required to make annual interest payments for the full amount of interest due (Section s3(c)(1)(F)).
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Mandatory Principal Payments: Even with flexible terms, borrowers must pay at least 1 percent of the remaining loan balance annually (Section 3(c)(1)(G)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Farmers+8Good For Business Owners+7Good For Rural Residents+5Good For Young Adults+5Good For Low Income Households+2
- Economy And Finance
- Improves Small Business Support+7Increases Job Creation+3
- Environment Energy And Infrastructure
- Improves Rural Development+6Improves Environmental Protections+2
- Social Issues And Justice
- Improves Poverty Reduction+2
- 9/15/2025
- Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.