USDA Loan Modernization Act

This bill, titled the USDA Loan Modernization Act, would expand eligibility for guaranteed and direct farm loans under the Consolidated Farm and Rural Development Act. It allows individuals who own at least 50 percent of a farm and are qualified operators to qualify for farm ownership, operating, and emergency loans, replacing the previous requirement that they own a majority interest. The legislation also permits certain business entities to qualify for loans if at least 75 percent of their ownership is held by qualified farm operators, and it recognizes entities that operate farms without owning them if a majority owner meets the 50 percent threshold. These changes directly affect farmers and agricultural businesses seeking financing from USDA Rural Development programs.