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PACE Act to expand loan limits reintroduced

Legislation to expand federal loan limits for ag producers has been reintroduced in both the U.S. House and Senate.

Minnesota Congressman Brad Finstad says the Producer and Agricultural Credit Enhancement, or PACE Act, addresses concerns about the increasing cost of farming.

“And some of our traditional farm programs that USDA offers haven’t kept up with the times, so specifically it takes a look at the Guaranteed Ownership Loans, increasing the limits for that. Increasing the Guaranteed Operating Loans, the Direct Operating Loans, and then also the Direct Ownership Loans.”

North Dakota U.S. Senator John Hoeven tells Brownfield the bipartisan and bicameral PACE Act includes a loan pre-approval process.

“So that particularly for some of our young farmers and ranchers, they can get pre-approved so then if they are going to an estate sale for land or equipment at auction or something like that, they can get pre-approved so they have access to credit to buy whatever they need to get going on their farm enterprise.”

Finstad says 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.