H.B. 984 Summary

• Reduces credit denial requirement from two to one for agricultural loans, with waivers for new farmer loans of $100,000 or less and emergency loans.

• Lowers and fixes interest rates to 4% per year for Classes A, B, C, E, G, and J loans, and maintains 3% per year for Classes D, F, H, I, and K loans.

• Increases loan limits across multiple classes: Class A and C from $800,000 to $1,500,000; Class B from $35,000 to $750,000; Class E from $500,000 to $1,500,000; Class G from $25,000 to $750,000; and Class F from $250,000 to $750,000.

• Establishes Class J loans as secured lines of credit for farm operational expenses, with limits of $100,000 (chattel/equipment) or $250,000 (real property).

• Creates Class K loans for import replacement crops and farm-to-state program crops at up to $2,500,000 with 3% interest, and adds food hubs as eligible entities for Class E loans.

• Effective date: July 1, 2025.