H.R. 6169: Fair Credit for Farmers Act

This bill, known as the Fair Credit for Farmers Act, aims to reform certain aspects of farm loans and the appeal processes associated with them. Here are the main provisions of the bill:

1. Deferment of Payments for Farm Loans

The bill allows eligible borrowers to defer payments on direct farm loans for a two-year period. The key points include:

• **Eligibility**: Eligible borrowers include limited resource farmers, socially disadvantaged farmers, beginning farmers, and veteran farmers who are either delinquent or financially distressed.
• **Interest Rate Reduction**: During the deferment period, the interest rate on these farm loans will be reduced to 0.125%.
• **Extension of Loan Terms**: The maturity date and repayment period of the loans will be extended by two years for those who take advantage of the deferment.
• **Waiver of Fees**: Lenders are required to waive guarantee fees for covered producers on guaranteed farm loans during the deferment period.

2. Farm Loan Reform

The bill proposes several reforms to farm loan regulations, including provisions that affect:

• **Definitions & Eligible Borrowers**: Defines various types of borrowers and amends eligibility requirements so those with certain previous disadvantages can have better access to loans.
• **Collateral Requirements**: Sets strict rules on how loans can be secured, allowing primary residences to be used as collateral only when other assets are insufficient.
• **Equitable Relief**: Establishes criteria for obtaining equitable relief for farmers who are incorrectly denied loans or who face adverse decisions from the Farm Service Agency, ensuring they are not penalized due to procedural errors or delays.

3. National Appeals Division Reform

This part of the bill focuses on improving the process through which borrowers can appeal decisions made by the Department of Agriculture. It includes:

• **Burden of Proof**: For appellants with adjusted gross income below a certain threshold, the burden of proof shifts to the agency, requiring them to prove that the adverse decision was correct.
• **Implementation of Decisions**: Mandates that agencies use the same information that was used during the appeals process to implement final decisions, preventing the need for additional requirements that could delay or complicate the process.

4. Loan Eligibility and Restrictions

The bill aims to ease the process of obtaining loans by removing previous restrictions that penalized farmers who had received debt write-downs or other losses in the past. This changes the landscape for borrowers who have struggled financially but are seeking to restart their agricultural operations.

Relevant Companies

• DE (Deere & Company) - Deere may be impacted due to potential changes in demand for agricultural equipment as farmers modify their loan repayment strategies.
• BAYRY (Bayer AG) - As a supplier of agricultural inputs, Bayer might see changes in sales patterns influenced by farmers' access to credit.
• CXYE (Corteva, Inc.) - Corteva, as an agricultural company, may experience shifts in sales of their products due to the changing financial landscape for farmers receiving loans.