What This Bill Does
This bill creates a new loan program for farmers and ranchers to help them buy precision agriculture equipment (technology that reduces waste and improves farming efficiency). The bill changes the Food, Conservation, and Energy Act of 2008 to add this new program. The federal government will provide these loans through the Farm Service Agency (the agency that handles farm programs for the U.S. Department of Agriculture).
Who It Affects
Crop and livestock producers (farmers and ranchers) who meet certain requirements. The Farm Service Agency and its Deputy Administrator for Farm Programs. Congress committees that oversee agriculture and spending. Members of the public who will receive reports about how the program works.
Key Provisions
• The Secretary of Agriculture must establish the precision agriculture loan program as soon as practicable (reasonable timing) after the bill becomes law to help producers buy precision agriculture equipment (Sec. 1614A(b))
• Eligible producers must have a satisfactory credit history, will use the loan to buy precision agriculture equipment, and can show they can repay the loan (Sec. 1614A(d))
• Loans can last a maximum of 12 years and cannot exceed $500,000 per producer (Sec. 1614A(e) and (f))
• Borrowers must give the government security (a claim on the equipment being purchased or other acceptable security) to get approved for a loan (Sec. 1614A(g))
• The Secretary must prepare an annual report including the age, experience, farm size, race, ethnicity, and gender of loan recipients; the types of equipment purchased; amounts loaned; estimated environmental benefits; and loan default rates, and must submit this report to four congressional committees and make it public within 90 days (Sec. 1614A(h))
What Changes
A new section (Section 1614A) gets added to the Food, Conservation, and Energy Act of 2008. This creates the actual loan program with rules about who can borrow, how much they can borrow, how long they have to repay, and what collateral (security) they must provide. The bill also requires the government to track and report detailed information about who uses the program and what results it produces.
Important Definitions
• Precision agriculture: managing, tracking, or reducing crop or livestock production inputs (seed, feed, fertilizer, chemicals, water, and time) at a detailed level to improve efficiency, reduce waste, and protect the environment
• Precision agriculture equipment: any equipment or technology that directly reduces or improves efficiency of farming inputs, including GPS-based mapping, satellite or aerial imagery, yield monitors, soil mapping, data sensors, internet-connected farm technology, data management software, GPS guidance systems, variable rate technology (applying different amounts of inputs in different areas), and any other technology the Secretary determines improves farming efficiency
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1495
To amend the Food, Conservation, and Energy Act of 2008 to establish
a precision agriculture loan program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 2023
Mr. FEENSTRA (for himself, Mr. PANETTA, Ms. TOKUDA, Mr. THOMPSON of
California, and Mr. GUEST) introduced the following bill; which was re-
ferred to the Committee on Agriculture
A BILL
To amend the Food, Conservation, and Energy Act of 2008
to establish a precision agriculture loan program, and
for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Precision Agriculture
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Loan Program Act of 2023’’.
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SEC. 2. PRECISION AGRICULTURE LOAN PROGRAM.
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Subtitle F of title I of the Food, Conservation, and
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Energy Act of 2008 is amended by inserting after section
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1614 (7 U.S.C. 8789) the following:
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‘‘SEC. 1614A. PRECISION AGRICULTURE LOAN PROGRAM.
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‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) PRECISION
AGRICULTURE.—The term
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‘precision agriculture’ means managing, tracking, or
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reducing crop or livestock production inputs, includ-
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ing seed, feed, fertilizer, chemicals, water, and time,
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at a heightened level of spatial and temporal granu-
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larity to improve efficiencies, reduce waste, and
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maintain environmental quality.
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‘‘(2) PRECISION AGRICULTURE EQUIPMENT.—
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The term ‘precision agriculture equipment’ means
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any equipment or technology that directly contrib-
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utes to a reduction in, or improved efficiency of, in-
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puts used in crop or livestock production, includ-
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ing—
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‘‘(A) Global Positioning System-based or
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geospatial mapping;
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‘‘(B) satellite or aerial imagery;
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‘‘(C) yield monitors;
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‘‘(D) soil mapping;
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‘‘(E) sensors for gathering data on crop,
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soil, or livestock conditions;
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‘‘(F) Internet of Things and telematics
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technologies;
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‘‘(G) data management software and ad-
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vanced analytics;
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‘‘(H) network connectivity products and
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solutions;
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‘‘(I) Global Positioning System guidance or
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auto-steer systems;
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‘‘(J) variable rate technology for applying
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inputs, such as section control; and
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‘‘(K) any other technology, as determined
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by the Secretary, that leads to a reduction in,
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or improves efficiency of, crop and livestock
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production inputs, which may include seed,
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feed, fertilizer, chemicals, water, and time.
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‘‘(b) PROGRAM.—As soon as practicable after the
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date of enactment of this section, the Secretary shall es-
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tablish a precision agriculture loan program to encourage
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the adoption of precision agriculture by providing funds
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to producers engaged in livestock or crop production for
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the purchase of precision agriculture equipment.
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‘‘(c) ADMINISTRATION.—The precision agriculture
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loan program under this section shall be administered by
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the Secretary, acting through the Deputy Administrator
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for Farm Programs of the Farm Service Agency.
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‘‘(d) ELIGIBLE PRODUCERS.—A precision agriculture
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loan under this section shall be made available to any pro-
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ducer described in subsection (b) that, as determined by
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the Secretary—
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‘‘(1) has a satisfactory credit history;
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‘‘(2) will use the loan funds to purchase preci-
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sion agriculture equipment; and
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‘‘(3) demonstrates an ability to repay the loan.
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‘‘(e) TERM OF LOANS.—A precision agriculture loan
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under this section shall have a maximum term of 12 years.
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‘‘(f) LOAN AMOUNT.—The maximum aggregate loan
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amount of a precision agriculture loan under this section
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shall be $500,000.
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‘‘(g) LOAN SECURITY.—Approval of a precision agri-
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culture loan under this section shall require the borrower
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to provide loan security to the Secretary, in the form of—
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‘‘(1) a lien on the precision agriculture equip-
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ment being purchased; or
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‘‘(2) such other security as is acceptable to the
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Secretary.
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‘‘(h) REPORTING.—
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‘‘(1) DEFINITION OF RECIPIENT PRODUCER.—
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In this subsection, the term ‘recipient producer’
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means an eligible producer described in subsection
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(d) that received a precision agriculture loan under
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this section during the fiscal year covered by the ap-
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plicable report prepared under paragraph (2).
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‘‘(2) PREPARATION OF REPORT.—For each fis-
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cal year, the Secretary shall prepare a report that
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includes—
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‘‘(A) aggregate data based on a review of
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each outstanding loan made by the Secretary
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under this section; and
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‘‘(B) a description of—
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‘‘(i) for the United States and for
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each State and county (or equivalent juris-
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diction) in the United States—
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‘‘(I) the age of each recipient
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producer;
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‘‘(II) the duration during which
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each recipient producer has engaged
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in agricultural production;
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‘‘(III) the size of the farm or
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ranch of each recipient producer;
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‘‘(IV) the total amount provided
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as loans under this section for each
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category of equipment or technology
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described
in
subparagraphs
(A)
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through (K) of subsection (a)(2) dur-
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ing the fiscal year covered by the re-
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port; and
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‘‘(V) the estimated input reduced
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or environmental benefits received per
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category of equipment or technology
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described in those subparagraphs with
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respect to which a loan was provided
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under this section during the fiscal
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year covered by the report or any
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prior fiscal year, including the esti-
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mated input reduced or environmental
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benefits received per category—
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‘‘(aa) during the fiscal year
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covered by the report with re-
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spect to—
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‘‘(AA) loans provided
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under this section during
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that fiscal year; and
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‘‘(BB) loans provided
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under this section during
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that fiscal year or any prior
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fiscal year; and
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‘‘(bb) in the aggregate with
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respect to all loans provided
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under this section during or prior
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to the fiscal year covered by the
24
report;
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‘‘(VI) the race, ethnicity, and
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gender of each recipient producer;
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‘‘(VII) the 1 or more agricultural
3
commodities or types of enterprise for
4
which each loan provided under this
5
section during the fiscal year was pro-
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vided;
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‘‘(VIII) the amount of each loan
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provided under this section during the
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fiscal year; and
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‘‘(IX) the default rate of the
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loans made under this section dur-
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ing—
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‘‘(aa) the fiscal year covered
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by the report;
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‘‘(bb) each preceding fiscal
16
year; and
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‘‘(cc) in the aggregate with
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respect to all loans provided
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under this section during or prior
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to the fiscal year covered by the
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report; and
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‘‘(ii) for each State and county (or
23
equivalent jurisdiction) in the United
24
States, the number of outstanding loans
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made under this section, according to the
1
loan size cohort.
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‘‘(3) SUBMISSION OF REPORT.—The Secretary
3
shall—
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‘‘(A) not later than 1 year after the date
5
of enactment of this Act, and annually there-
6
after, submit the report described in paragraph
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(2) to—
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‘‘(i) the Committee on Agriculture,
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Nutrition, and Forestry of the Senate;
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‘‘(ii) the Committee on Appropriations
11
of the Senate;
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‘‘(iii) the Committee on Agriculture of
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the House of Representatives; and
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‘‘(iv) the Committee on Appropria-
15
tions of the House of Representatives; and
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‘‘(B) not later than 90 days after the date
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on which the report is submitted under sub-
18
paragraph (A), make the report publicly avail-
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able.
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‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There
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are authorized to be appropriated to the Secretary such
22
sums as are necessary to carry out this section.’’.
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Æ
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