Federal

BALE Act of 2023

Source: Congress.gov · 689 words in original text

What This Bill Does

This bill changes the rules for how much of a farm loan the federal government can guarantee to help farmers and ranchers borrow money. The bill is called the "Beginning Agriculturalist Lifetime Employment Act of 2023" or the "BALE Act of 2023". It increases the guarantee amounts available to new and disadvantaged farmers and ranchers.

Who It Affects

The Secretary of Agriculture (the federal official who oversees farm programs), qualified beginning farmers or ranchers, and socially disadvantaged farmers or ranchers.

Key Provisions

* The federal government can guarantee up to 90% of loans up to $3,000,000, and this percentage decreases as loan amounts increase, down to 80% for loans between $3,900,000 and $4,000,000 (Sec. 2(a)(1)). * Beginning farmers or ranchers and socially disadvantaged farmers or ranchers can receive higher guarantee percentages: up to 95% for loans up to $3,000,000, decreasing to 85% for loans between $3,900,000 and $4,000,000 (Sec. 2(a)(2)). * The federal government cannot guarantee any loan under this program for more than $4,000,000 (Sec. 2(a)(3)). * The Secretary of Agriculture must adjust all dollar amounts each year based on changes in the Prices Paid By Farmers Index (a measure of what farmers pay for goods) (Sec. 2(a)(4)).

What Changes

These new loan guarantee rules apply to all conservation loans (loans for protecting or improving farmland) that the Secretary enters into after this bill becomes law.

Effective Date

The bill becomes effective on the date Congress passes it, and applies to loans made after that date.

I 118TH CONGRESS 1ST SESSION H. R. 541 To amend the Agricultural Act of 1961 to modify the limitations applicable to qualified conservation loan guarantees, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 26, 2023 Mr. BOST (for himself, Ms. KELLY of Illinois, Mr. NEWHOUSE, Mr. WALBERG, and Mr. LAHOOD) introduced the following bill; which was re- ferred to the Committee on Agriculture A BILL To amend the Agricultural Act of 1961 to modify the limita- tions applicable to qualified conservation loan guarantees, 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, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Beginning 4 Agriculturalist Lifetime Employment Act of 2023’’ or the 5 ‘‘BALE Act of 2023’’. 6 VerDate Sep 11 2014 23:18 Feb 08, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H541.IH H541 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 541 IH SEC. 2. LIMITATIONS APPLICABLE TO QUALIFIED CON- 1 SERVATION LOAN GUARANTEES. 2 (a) LIMITATIONS APPLICABLE TO LOAN GUARAN- 3 TEES.—Section 304(e) of the Agricultural Act of 1961 (7 4 U.S.C. 1924(e)) is amended to read as follows: 5 ‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARAN- 6 TEES.— 7 ‘‘(1) PERCENTAGE OF LOAN GUARANTEED.— 8 The portion of a loan that the Secretary may guar- 9 antee under this section shall— 10 ‘‘(A) depend on the principal amount of 11 the loan; and 12 ‘‘(B) except as provided in paragraph (2), 13 may not exceed the percentage specified for 14 that principal amount in the following table: 15 ‘‘Principal Amount More Than Principal Amount Equal To Or Less Than Maximum Percent $0 ......................................... $3,000,000 ....................................... 90% $3,000,000 ........................... $3,100,000 ....................................... 89% $3,100,000 ........................... $3,200,000 ....................................... 88% $3,200,000 ........................... $3,300,000 ....................................... 87% $3,300,000 ........................... $3,400,000 ....................................... 86% $3,400,000 ........................... $3,500,000 ....................................... 85% $3,500,000 ........................... $3,600,000 ....................................... 84% $3,600,000 ........................... $3,700,000 ....................................... 83% $3,700,000 ........................... $3,800,000 ....................................... 82% $3,800,000 ........................... $3,900,000 ....................................... 81% $3,900,000 ........................... $4,000,000 ....................................... 80%. ‘‘(2) EXCEPTION FOR CERTAIN PRODUCERS.— 16 In the case of a loan to a producer that is a quali- 17 fied beginning farmer or rancher or a socially dis- 18 advantaged farmer or rancher (as the term is de- 19 VerDate Sep 11 2014 23:18 Feb 08, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H541.IH H541 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 541 IH fined in section 355(e)), the portion of the loan the 1 Secretary may guarantee under this paragraph may 2 not exceed the percentage specified for the principal 3 amount of the loan in the following table: 4 ‘‘Principal Amount More Than Principal Amount Equal To Or Less Than Maximum Percent $0 ......................................... $3,000,000 ....................................... 95% $3,000,000 ........................... $3,100,000 ....................................... 94% $3,100,000 ........................... $3,200,000 ....................................... 93% $3,200,000 ........................... $3,300,000 ....................................... 92% $3,300,000 ........................... $3,400,000 ....................................... 91% $3,400,000 ........................... $3,500,000 ....................................... 90% $3,500,000 ........................... $3,600,000 ....................................... 89% $3,600,000 ........................... $3,700,000 ....................................... 88% $3,700,000 ........................... $3,800,000 ....................................... 87% $3,800,000 ........................... $3,900,000 ....................................... 86% $3,900,000 ........................... $4,000,000 ....................................... 85%. ‘‘(3) MAXIMUM AMOUNT.—The Secretary may 5 not guarantee a loan under this section in an 6 amount that exceeds $4,000,000. 7 ‘‘(4) ANNUAL INFLATION ADJUSTMENT.—The 8 Secretary shall annually adjust the dollar figures 9 under paragraphs (1), (2), and (3) to reflect the 10 change in the Prices Paid By Farmers Index (as 11 compiled by the National Agricultural Statistics 12 Service of the Department of Agriculture).’’. 13 (b) APPLICABILITY.—The amendments made by this 14 section shall apply with respect to qualified conservation 15 loans entered into by the Secretary of Agriculture under 16 VerDate Sep 11 2014 23:18 Feb 08, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H541.IH H541 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 541 IH section 304 of the Agricultural Act of 1961 (7 U.S.C. 1 1924) on or after the date of the enactment of this Act. 2 Æ VerDate Sep 11 2014 23:18 Feb 08, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H541.IH H541 kjohnson on DSK79L0C42PROD with BILLS

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