Barriers to Access:

One of the primary obstacles embedded in the farm bill is a clause requiring proof of "managerial ability." While intended to ensure responsible lending, this clause can unfairly exclude hardworking farmers and ranchers who may lack formal managerial credentials but possess the practical expertise needed to run their operations. Removing this requirement would vastly increase loan eligibility and allow more farmers to access the funding they need to succeed.

Additionally, the requirement for applicants to prove they have "sufficient credit elsewhere" often disqualifies farmers who could otherwise benefit from the favorable loan rates offered, which range from 1.5% to 5%. This provision effectively locks out many smaller operations and family-owned farms that need competitive financing to grow or recover from financial setbacks.

To make farm loans more accessible and equitable, I propose the following reforms:

Remove the "Managerial Ability" Clause: Shift the focus to the farmer’s practical experience and history of operation rather than formal managerial qualifications.