S. 3936In committeeJobs & the economy
Bill would ease ownership rule for USDA farm loan eligibility
Data as of July 12, 2026
The bill lowers the USDA farm loan ownership threshold from "majority" to "at least 50 percent."45-second read · 4 questions answered below
Decoded
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.
Where does it stand?
- Introduced
- Senate committee — You are here
- Senate vote
- House
- 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.
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Official title
USDA Loan Modernization Act
- Introduced:
- February 26, 2026
- Latest action:
- February 26, 2026
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.