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US SB3936
Bill
AI Summary
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Lowers the ownership threshold for USDA farm loan eligibility from "a majority" to "at least 50 percent" interest for individuals or entity members seeking farm ownership, operating, or emergency loans
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Allows "qualified operators" as defined by the Secretary of Agriculture to meet operator requirements for all three loan types without needing to meet traditional owner-operator standards
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Permits operating-only entities to qualify for loans if at least one individual who owns the farm real estate holds at least 50 percent ownership of the applicant entity
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Establishes eligibility for "embedded entities" (entities owned by other entities) if at least 75 percent of total ownership interests are held directly or indirectly by qualified operators of the farm
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Amends Sections 302, 311, and 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922, 1941, and 1961) governing real estate loans, operating loans, and emergency loans respectively
Legislative Description
A bill to amend the Consolidated Farm and Rural Development Act to expand eligibility for guaranteed and direct loans to individuals or entity members that hold at least a 50 percent interest and that are or will become qualified operators of the farm real estate acquired, improved, or supported with farm ownership, operating, or emergency loans, and for other purposes.
Last Action
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
2/26/2026