Debt Relief and Farm Credit Access Act of 2024
Bill Number: S. 5338 (IS)
Sponsor: Sen. Debbie Stabenow (D-MI)
Status: Introduced on November 28, 2024; referred to the Committee on Agriculture, Nutrition, and Forestry
Summary:
The Debt Relief and Farm Credit Access Act of 2024 is legislation designed to provide debt relief and support farm credit access for farmers and ranchers affected by natural disasters, market fluctuations, and other economic challenges.
Key Provisions:
- Disaster Relief: Authorizes the Secretary of Agriculture to provide up to $250,000 in debt relief to farmers and ranchers who have suffered losses due to natural disasters.
- Farm Credit Access: Establishes a new farm credit access program to provide low-interest loans and other financial assistance to farmers and ranchers who have difficulty obtaining credit from traditional lenders.
- Debt Refinancing: Allows farmers and ranchers to refinance existing debt with lower interest rates and more flexible repayment terms.
- Extension of Farm Service Agency Loan Forgiveness: Extends the period of eligibility for loan forgiveness under the Farm Service Agency’s farm loan programs.
- Strengthening Risk Management Tools: Directs the Secretary of Agriculture to develop and implement new risk management tools to help farmers and ranchers manage financial risks.
Background:
The Debt Relief and Farm Credit Access Act of 2024 is a response to the ongoing challenges faced by farmers and ranchers in the United States. Extreme weather events, declining commodity prices, and rising production costs have put many agricultural producers in financial distress.
Impact:
If enacted, the Debt Relief and Farm Credit Access Act of 2024 would provide much-needed financial assistance to farmers and ranchers struggling under the weight of debt. It would also make it easier for these producers to access credit, manage risk, and invest in their operations.
Next Steps:
The bill has been referred to the Senate Committee on Agriculture, Nutrition, and Forestry, which will hold hearings and consider amendments before voting on whether to recommend its passage to the full Senate.
Support and Opposition:
The bill has received support from farm organizations and agricultural advocacy groups. However, there are concerns that the debt relief provisions may be too costly and that the credit access program could create a moral hazard, encouraging farmers to take on excessive debt.
S. 5338 (IS) – Debt Relief and Farm Credit Access Act
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