WASHINGTON, D.C. – Representatives Brad Finstad (MN-01) and Angie Craig (MN-02) reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act, bipartisan legislation that would modernize the current limits on the Farm Service Agency’s (FSA) Ownership and Operating loans. Senators John Hoeven (R-ND) and Amy Klobuchar (D-MN) have introduced companion legislation in the U.S. 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. “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.”

“Farming is volatile work, and our family farmers are often tasked with navigating uncertain conditions, whether that’s periods of low commodity prices or extreme weather events,” said Rep. Craig. “That’s why I’m working across the aisle with Rep. Finstad to help give Minnesota’s farmers and producers the certainty they need to continue operating through challenging times. This bipartisan bill will bolster generational operations, while ensuring that new and beginning farmers have access to the resources they need to get their businesses up and running.” 

“It’s essential that the loan limits in these programs reflect the real-world costs faced by our ag producers. Our legislation makes needed updates to these loans so they can properly meet the needs of farmers, and we will continue our efforts to pass it as part of the next farm bill,” said Senator Hoeven, Chairman of the Senate Agriculture Appropriations Committee and a senior member of the Senate Agriculture Committee. 

“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 Senator Klobuchar, Ranking Member of the Senate Agriculture Committee.

The PACE Act is supported by the Farm Credit Council, American Bankers Association, American Farm Bureau, American Soybean Association, American Sugarbeet Growers Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Cotton Council, National Pork Producers Council, National Sorghum Producers, National Sunflower Association, U.S. Canola Association, U.S. Beet Sugar Association, USA Dry Pea and Lentil Council, U.S. Peanut Federation, USA Rice, Western Peanut Growers Association, Southwest Council of Agribusiness, National Pecan Federation, Midwest Council on Agriculture, Minnesota Farm Bureau, Minnesota Corn Growers Association, Minnesota Soybean Growers Association, and Minnesota Association of Wheat Growers.

“Ensuring farmers have access to capital that reflects today’s cost of production is critical to keeping agriculture strong. The PACE Act is a commonsense update that will help producers secure the financing they need to grow and succeed. We fully support this effort and appreciate the bipartisan leadership driving it forward,” said Dan Glessing, President of Minnesota Farm Bureau.

"Farm Credit extends its thanks to Representatives Finstad and Craig for reintroducing the Producer and Agricultural Credit Enhancement (PACE) Act, which would expand the Farm Service Agency's direct and guaranteed loan limits to match the rising costs of agricultural production. Agricultural producers depend on access to capital to grow and maintain their operations. For young and beginning farmers, in particular, accessible capital may be the difference between launching an operation or not. We look forward to collaborating with both representatives to include this essential legislation in the Farm Bill for the benefit of farmers and ranchers across the nation," said Farm Credit Council President and CEO Christy Seyfert.

Background:

Congressman Finstad and Congresswoman Craig introduced the Producer and Agricultural Credit Enhancement (PACE) Act during the 118^th Congress, and several of its provisions were included in the House Agriculture Committee-passed Farm Bill.

Specifically, the PACE Act would increase FSA Guaranteed Operating Loans from $2.25 million to $3 million, increase Guaranteed Ownership Loans from $2.25 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.