Bill would ease ownership rule for USDA farm loan eligibility
In committeeS. 3936Latest action
Sponsor: Tommy Tuberville · Senator · AL
AIDecoded by AI · checked against the recordRead the official text
Official title: USDA Loan Modernization Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
The plain-language version comes first. The official text is always the reference.
The bill lowers the USDA farm loan ownership threshold from "majority" to "at least 50 percent."
45-second read · 4 questions answered below
What does this do?
This bill changes eligibility rules for USDA farm ownership, operating, and emergency loans, lowering the required ownership stake from more than 50% to at least 50%. It also sets clearer standards for layered or "embedded" farm business structures, including a rule that entities qualify if at least 75% of ownership traces back to qualified farm operators, and gives the USDA Secretary authority to define "qualified operator" and adjust ownership thresholds.
Who does it affect?
Farmers, ranchers, and agricultural businesses that use USDA-backed loans for land purchases, operating costs, or disaster recovery, particularly co-owners, partnerships, and multi-generational farm businesses with split ownership.
Why does it matter?
The change could allow some co-owners and complex farm business structures that previously failed strict majority-ownership rules to qualify for these loans, since it is a technical and administrative update rather than a new program.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedFeb 26, 2026
- Senate committeeYou are here · Feb 26, 2026
- Senate vote
- House
- The president's desk
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.
Latest action: — Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.