WASHINGTON, D.C. – Today, Representatives Brad Finstad (MN-01) and Angie Craig (MN-02) introduced the Producer and Agricultural Credit Enhancement (PACE) Act. This legislation would modernize current limits on the Farm Service Agency’s (FSA) Ownership and Operating loans, enacted through the 2018 Farm Bill.

The Producer and Agricultural Credit Enhancement Act would increase FSA Guaranteed Operating Loans from $2.04 million to $3 million, increase Guaranteed Ownership Loans from $2.04 million to $3.5 million, increase Direct Operating Loans from $400,000 to $750,000, and increase Direct Ownership Loans from $600,000 to $850,000. FSA’s Operating and Ownership Loans are critical tools to ensure farmers have access to the financing needed to get started, expand their family’s operation, or restructure with certainty, specifically:

Farm Operating Loans can be used to purchase livestock, seed, crop protection tools, and farm equipment, among additional farm operating costs.

Farm Ownership Loans can be used to purchase farmland, as well as to assist with closing costs, construct or improve buildings on the farm, or assist soil and water conservation practices.

“FSA’s current loan limitations have failed to keep up with the rising land and input costs that have created a highly leveraged financial environment in farm country,” said Rep. Finstad. “I am proud to work with Rep. Craig to introduce the Producer and Agricultural Credit Enhancement Act, which will make it easier for producers, especially beginning farmers, to obtain the loans needed to maintain and improve their operations as they work to feed and fuel the world.”

“I’m working across the aisle with Rep. Finstad to help give Minnesota family farmers the tools they need to operate through challenging times – like periods of low commodity prices and extreme weather events. We’re pushing to pass our bipartisan legislation to give them the flexibility they need,” said Rep. Craig.

The PACE Act is endorsed by: the Minnesota Farm Bureau Federation, Farm Credit Council, American Bankers Association, American Farm Bureau Federation, American Soybean Association, American Sugarbeet Growers Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Cotton Council, National Sorghum Producers, National Sunflower Association, U.S. Canola Association, U.S. Dry Pea & Lentil Association, U.S. Peanut Federation, U.S. Rice, U.S. Beet Sugar Association, National Pork Producers Council, Minnesota Soybean Growers Association, Minnesota Corn Growers Association, and Minnesota Pork Producers Association.

“It is crucial that farmers and ranchers have access to loans that assist them in securing their farmland and agricultural productivity for future generations. The Minnesota Farm Bureau is excited and appreciates the efforts of Rep. Finstad and Rep. Craig to bring forward the Producer and Agricultural Credit Enhancement Act to update current loan limits within FSA programs”. – Dan Glessing, President of Minnesota Farm Bureau Federation

"Access to capital is critical to everyone in production agriculture -- especially beginning farmers and ranchers. Farm Credit thanks Reps. Finstad and Craig for their leadership on the Producer and Agricultural Credit Enhancement Act. It would increase FSA’s direct and guaranteed loan limits to reflect the current costs of farming and ranching, benefitting producers across the country. Farm Credit looks forward to working with Reps. Finstad and Craig to include this important legislation in the Farm Bill.” – Farm Credit Council President and CEO Todd Van Hoose

“FSA Guaranteed Loan Programs play a critical role in expanding access to credit in rural America, and ABA has been a longtime supporter of increasing the limits of the programs. We thank Congressman Finstad for his leadership in this area.” – Ed Elfmann, Senior VP of the American Bankers Association

“Without reliable access to credit each year, our farming operations cannot produce the versatile U.S. soybeans that are ubiquitous in today’s food, feed, fuel and biobased products. And, with increased land values and input costs, it is critical that loan programs are modernized to better reflect farmers’ needs. We appreciate Representatives Finstad and Craig working together to introduce bipartisan, common sense legislation that will help farmers in Minnesota and across the country.” – George Goblish, Minnesota soy grower and Director of American Soybean Association

Full text of the legislation can be found here.