The bill
Fair Credit for Farmers Act of 2025
S. 3126, 119th Congress — read as touching Agribusiness.
Sponsored by
Sen. Welch, Peter [D-VT]
ID: W000800
Follow the money
The bill
S. 3126, 119th Congress — read as touching Agribusiness.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
22 itemised contributions to this sponsor, pulled from FEC filings.
The alignment
This bill's text tracks the "Department of Agriculture" section, p. 344-346 of the Mandate for Leadership.
Track this bill's progress through the legislative process
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Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Another masterpiece of legislative theater, brought to you by the esteemed members of Congress. Let's dissect this farce and expose its true intentions.
**Main Purpose & Objectives:** The Fair Credit for Farmers Act of 2025 is a cleverly crafted bill that claims to reform farm loans and provide relief to struggling farmers. But don't be fooled – its primary objective is to massage the egos of politicians, appease special interest groups, and create a smokescreen for their own incompetence.
**Key Provisions & Changes to Existing Law:** The bill proposes several changes, including:
1. Deferment of payments on direct farm loans for eligible borrowers (read: those who are already delinquent or financially distressed). 2. Extension of loan maturity dates and repayment periods. 3. Reduction of interest rates on outstanding principal during the deferral period. 4. Waiver of guaranteed farm loan fees for covered producers.
These provisions are nothing more than a Band-Aid on a bullet wound, designed to temporarily alleviate symptoms rather than address the underlying disease: a broken agricultural system that perpetuates debt and inefficiency.
**Affected Parties & Stakeholders:** The usual suspects will benefit from this bill:
1. Farmers who are already struggling (and likely to remain so). 2. Lenders who will receive guaranteed fees and interest payments. 3. Politicians who can claim credit for "helping" farmers while lining their own pockets with campaign contributions.
Meanwhile, the real stakeholders – taxpayers and consumers – will foot the bill for this legislative largesse.
**Potential Impact & Implications:** This bill is a classic case of treating the symptoms rather than the disease. By kicking the can down the road, Congress is:
1. Perpetuating a culture of dependency among farmers. 2. Encouraging lenders to engage in reckless behavior, knowing that the government will bail them out. 3. Ignoring the root causes of agricultural inefficiency and debt.
The long-term implications are dire: increased debt, decreased competitiveness, and a further erosion of trust in our already dysfunctional system.
In conclusion, this bill is a textbook example of legislative malpractice – a cynical attempt to buy votes and curry favor with special interest groups while ignoring the real problems facing American agriculture. It's time to call out these charlatans for what they are: masters of spin, servants of greed, and enemies of true reform.
Sen. Welch, Peter [D-VT]
Congress 119 • 2024 Election Cycle
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Which industries are materially affected by specific provisions in this bill. 4 helped.
Section 2 provides payment deferment and interest rate reduction for eligible borrowers (farmers/ranchers) on direct farm loans, which benefits agribusinesses involved in farming operations by reducing financial strain and improving cash flow.
Section 2's deferment of payments and 0.125% interest rate during the 2-year period directly aids crop producers (farmers/ranchers) by alleviating debt burdens and improving loan terms.
Section 2's loan relief provisions apply to farmers and ranchers, which includes livestock producers supplying meat and dairy processors, thereby indirectly supporting the meat and dairy processing industry through stabilized farm income.
Section 3(g) expands equitable relief eligibility for applicants denied loans based on feasibility or eligibility, which could benefit farm laborers and related unions by improving access to credit for farm operations that employ workers.
This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.
AI Analysis:
"The bill shares Project 2025's interest in improving USDA loan program transparency and efficiency, but its debt relief and fee waivers expand federal assistance, which contrasts with the likely Project 2025 goal of reducing USDA spending and subsidy reliance."
— 311 — Department of Agriculture ENDNOTES 1. U.S. Department of Agriculture, Fiscal Year 2023 Budget Summary, p.1, https://www.usda.gov/sites/default/ files/documents/2023-usda-budget-summary.pdf (accessed December 14, 2022). 2. See, for example, U.S. Department of Agriculture, “Transforming the U.S. Food System,” https://www.usda. gov/fst (accessed December 14, 2022). 3. U.S. Department of Agriculture, Fiscal Year 2023 Budget Summary, p.1. 4. U.S. Department of Agriculture, “USDA Celebrates 150 Years,” https://www.usda.gov/our-agency/about-usda/ history (accessed December 16, 2022). 5. The law stated, “[T]here is hereby established at the seat of government of the United States a Department of Agriculture, the general designs and duties of which shall be to acquire and to diffuse among the people of the United States useful information on subjects connected with agriculture in the most general and comprehensive sense of that word, and to procure, propagate, and distribute among the people new and valuable seeds and plants.” Gladys L. Baker et al., Century of Service: The First 100 Years of the United States Department of Agriculture, (Washington, DC: U.S. Government Printing Office, 1963) p. 13, https://babel. hathitrust.org/cgi/pt?id=uc1.b4254098&view=1up&seq=33 (accessed December 16, 2022). 6. U.S. Department of Agriculture, Fiscal Year 2023 Budget Summary, p. 2. 7. Ibid., p. 2. 8. U.S. Department of Agriculture, Strategic Plan: Fiscal Years 2022–2026, p. 3, https://www.usda.gov/sites/ default/files/documents/usda-fy-2022-2026-strategic-plan.pdf (accessed December 14, 2022). 9. News release, “USDA Announces Framework for Shoring Up the Food Supply Chain and Transforming the Food System to Be Fairer, More Competitive, More Resilient,” U.S. Department of Agriculture, June 1, 2022, https://www.usda.gov/media/press-releases/2022/06/01/usda-announces-framework-shoring-food-supply- chain-and-transforming (accessed December 14, 2022). 10. U.S. Department of Agriculture, “Transforming the U.S. Food System.” 11. U.S. Department of Agriculture, Strategic Plan: Fiscal Years 2022–2026, pp. 1–2. 12. U.S. Department of Agriculture, “Background on the U.S. Approach to the 2021 UN Food Systems Summit,” August 4, 2021, https://www.usda.gov/sites/default/files/documents/Background-on-US-approach-2021-UN- Food-Systems-Summit.pdf (accessed December 14, 2022). 13. U.S. Department of Agriculture, “UN Food Systems Summit,” https://www.usda.gov/oce/sustainability/un- summit (accessed December 14, 2022). 14. Mark Bittman et al., “How a National Food Policy Could Save Millions of American Lives,” The Washington Post, November 7, 2014, https://www.washingtonpost.com/opinions/how-a-national-food-policy-could- save-millions-of-american-lives/2014/11/07/89c55e16-637f-11e4-836c-83bc4f26eb67_story.html (accessed December 14, 2022); Daren Bakst and Gabriella Beaumont-Smith, “No, We Don’t Need to Transform the American Food System,” The Daily Signal, February 26, 2021, https://www.dailysignal.com/2021/02/26/ no-we-dont-need-to-transform-the-american-food-system/ (accessed December 14, 2022); and Daren Bakst, “Biden’s Food Conference Should Put People First, Not Environmental Extremism,” The Daily Signal, September 22, 2022, https://www.dailysignal.com/2022/09/22/bidens-food-conference-should-put-people- first-not-environmental-extremism/ (accessed December 14, 2022). 15. News release, “USDA to Invest Up to $300 Million in New Organic Transition Initiative,” U.S. Department of Agriculture, August 22, 2022, https://www.usda.gov/media/press-releases/2022/08/22/usda-invest-300- million-new-organic-transition-initiative (accessed December 14, 2022). 16. Gary Baise, “Sri Lanka’s Green New Deal Was a Disaster,” Farm Futures, November 14, 2022, https://www. farmprogress.com/commentary/sri-lankas-green-new-deal-was-disaster (accessed December 16, 2022). 17. See, for example, Catherine Greene et al., “Growing Organic Demand Provides High-Value Opportunities for Many Types of Producers,” Economic Research Service, U.S. Department of Agriculture, February 6, 2017, https://www. ers.usda.gov/amber-waves/2017/januaryfebruary/growing-organic-demand-provides-high-value-opportunities- for-many-types-of-producers/#:~:text=ERS%20research%20shows%20that%20many,flavor%20desired%20 by%20the%20consumer (accessed December 14, 2022), and Andrea Carlson, “Investigating Retail Price Premiums for Organic Foods,” Economic Research Service, U.S. Department of Agriculture, May 24, 2016, https://www.ers. usda.gov/amber-waves/2016/may/investigating-retail-price-premiums-for-organic-foods/ (accessed December 16, 2022). Further, there are many myths, such as those regarding the alleged health benefit of organic food. One — 312 — Mandate for Leadership: The Conservative Promise meta study found that “[t]he published literature lacks strong evidence that organic foods are significantly more nutritious than conventional foods.” Crystal Smith-Spangler et al., “Are Organic Foods Safer or Healthier Than Conventional Alternatives,” Annals of Internal Medicine, Vol. 157, No. 5 (September 4, 2012), pp. 348–366, https:// www.acpjournals.org/doi/epdf/10.7326/0003-4819-157-5-201209040-00007 (accessed December 16, 2022). 18. Steve Savage, “USDA Data Confirm Organic Yields Significantly Lower Than With Conventional Farming,” Genetic Literacy Project, February 16, 2018, https://geneticliteracyproject.org/2018/02/16/usda-data-confirm- organic-yields-dramatically-lower-conventional-farming/ (accessed December 16, 2022). 19. See, for example, U.S. Department of Agriculture, “Notice: Climate-Smart Agriculture and Forestry Partnership Program, Request for Comments,” USDA–2021–0010, October 21, 2021, https://www.regulations. gov/document/USDA-2021-0010-0001 (accessed December 16, 2022). 20. Inflation Reduction Act of 2022, Public Law 117–169. 21. U.S. Department of Agriculture, Economic Research Service, “Productivity Growth in U.S. Agriculture (1948–2019),” https://www.ers.usda.gov/data-products/agricultural-productivity-in-the-u-s/productivity- growth-in-u-s-agriculture-1948-2019/ (accessed December 14, 2022). 22. U.S. Department of Agriculture, Economic Research Service, “Total Food Budget Share Increased from 9.4 Percent of Disposable Income to 10.3 Percent in 2021,” July 15, 2022, https://www.ers.usda.gov/data-products/ chart-gallery/gallery/chart-detail/?chartId=76967 (accessed December 14, 2022). 23. U.S. Department of Labor, Bureau of Labor Statistics, “Quintiles of Income Before Taxes: Annual Expenditure Means, Shares, and Standard Errors, and Coefficients of Variation, Consumer Expenditure Surveys,” 2021, Table 1101, https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/cu- income-quintiles-before-taxes-2021.pdf (accessed December 16, 2022), and Daren Bakst and Patrick Tyrrell, “Big Government Policies That Hurt the Poor and How to Address Them,” Heritage Foundation Special Report No.176, April 5, 2017, p. 7, https://www.heritage.org/sites/default/files/2017-04/SR176.pdf. 24. Daren Bakst and Joshua Sewell, “Congress Should Stop Abrogating Its Spending Power and Rein in the USDA Slush Fund,” Heritage Foundation Issue Brief No. 6052, February 19, 2021, p. 2, https://www.heritage.org/ budget-and-spending/report/congress-should-stop-abrogating-its-spending-power-and-rein-the-usda. 25. Commodity Credit Corporation Charter Act of 1948, Public Law 80–806. 26. Bakst and Sewall, “Congress Should Stop Abrogating Its Spending Power.” 27. Ibid., p. 3. 28. Daren Bakst, “Comment from Bakst, Darren” on “Notice: Climate-Smart Agriculture and Forestry Partnership Program, Request for Comments,” USDA–2021–0010, October 21, 2021,” November 1, 2021, https://www. regulations.gov/document/USDA-2021-0010-0001/comment?filter=bakst (accessed December 16, 2022). 29. U.S. Department of Agriculture, “Notice: Climate-Smart Agriculture and Forestry Partnership Program.” 30. Megan Stubbs, “The Commodity Credit Corporation (CCC),” Congressional Research Service Report for Congress, updated January 14, 2021, https://crsreports.congress.gov/product/pdf/R/R44606 (accessed December 16, 2022). 31. “Overall, 34 percent of all farms reported receiving some type of Government payment in 2021,” and “[o]verall, 14 percent of U.S. farms participated in Federal crop insurance programs.” Christine Whitt, Noah Miller, and Ryan Olver, “America’s Farms and Ranches at a Glance: 2022 Edition,” U.S. Department of Agriculture, Economic Research Service, pp. 24 and 26, https://www.ers.usda.gov/webdocs/publications/105388/eib-247. pdf?v=527.4 (accessed March 18, 2023). This data, which apparently does not cover crop insurance, included payments beyond just commodity payments, such as conservation payments. 32. Randy Schnepf, “Farm Safety-Net Payments Under the 2014 Farm Bill: Comparison by Program Crop,” Congressional Research Service Report for Congress, August 11, 2017, https://fas.org/sgp/crs/misc/R44914.pdf (accessed December 14, 2022). 33. Although livestock and specialty crop producers do receive some subsidies, former American Farm Bureau Federation President Bob Stallman captured the subsidy issue well. He “dismisse[d] outright the claim that farmers couldn’t survive without subsidy money. ‘Why does the livestock industry survive without subsidies?’ he ask[ed]. ‘Why does the specialty crop [fruit and vegetable] industry survive?’” Tamar Haspel, “Why Do Taxpayers Subsidize Rich Farmers?” The Washington Post, March 15, 2018, https://www.washingtonpost. com/lifestyle/food/why-do-taxpayers-subsidize-rich-farmers/2018/03/15/50e89906-27b6-11e8-b79d- f3d931db7f68_story.html (accessed March 18, 2023).
AI Analysis:
"The bill focuses on providing debt relief and improving credit access for farmers, while Project 2025 emphasizes reducing farm subsidies, eliminating duplicate payments, and cutting crop insurance premium subsidies—objectives that are largely opposed to the bill's approach of increasing support."
— 297 — Department of Agriculture losses, which is another way of saying minor dips in expected revenue. This is hardly consistent with the concept of providing a safety net to help farmers when they fall on hard times. The Congressional Budget Office (CBO), in one of its options to reduce the federal deficit, has once again identified repealing all Title I farm programs, including ARC, PLC, and the federal sugar program.46 l Stop paying farmers twice for price and revenue losses during the same year. Farmers can receive support from the ARC or PLC programs and the federal crop insurance program to cover price declines and revenue shortfalls during the same year. Congress should prohibit this duplication by prohibiting farmers from receiving an ARC or PLC payment the same year they receive a crop insurance indemnity. l Reduce the premium subsidy rate for crop insurance. On average, taxpayers cover about 60 percent47 of the premium cost for policies purchased in the federal crop insurance program. One of the most widely supported and bipartisan policy reforms is to reduce the premium subsidy that taxpayers are forced to pay.48 At a minimum, taxpayers should not pay more than 50 percent of the premium. After all, taxpayers should not have to pay more than the farmers who benefit from the crop insurance policies. CBO has found that reducing the premium subsidy to 47 percent would save $8.1 billion over 10 years and have little impact on crop insurance participation or on the number of covered acres.49 In that analysis, there would be a reduction in insured acres of just one-half of 1 percent, and only 1.5 percent of acres would have lower coverage levels. 50 This reform is basically all benefit with little to no cost. In its recently released report identifying options to reduce the federal deficit, CBO found that reducing the premium subsidy to 40 percent would save $20.9 billion over 10 years.51 Beyond these legislative reforms, the next Administration should: l Communicate to Congress the necessity of transparency and a genuine reform process. The White House and the USDA should make it very clear that the farm bill process, including reform of farm subsidies, must be con- ducted through an open process with time for mark-up and the opportunity for changes to be made outside the Agriculture Committee process. The farm bill too often is developed behind closed doors and without any chance for real reform. The White House, given the power of the bully pulpit, — 298 — Mandate for Leadership: The Conservative Promise must demand a genuine reform process and express unwavering support for a USDA that shapes a safety net that considers the interests of farmers, while also remembering the interests of taxpayers and consumers. Any safety net for farmers should be a true safety net—one that helps farmers when they have experienced serious unforeseen losses (preferably when there has been a disaster or unforeseen natural event causing damage) and that exists to help them in unusual situations. l Separate the agricultural provisions of the farm bill from the nutrition provisions. To have genuine reform and proper consideration of the issues, agricultural programs should be considered in separate legislation distinct from food stamps and the nutrition part of the farm bill, and reauthorization of such programs should be fixed on different timelines to ensure this separation. Agricultural and nutritional programs, which are distinct from each other, have been combined together for political reasons, something which is readily admitted by proponents of this logrolling. When it comes to American agriculture and welfare programs, they deserve sound policy debates, not political tactics at the expense of thoughtful discourse. Move the Work of the Food and Nutrition Service. The USDA implements many means-tested federal support programs, including the largest food assis- tance program, Supplemental Nutrition Assistance Program (SNAP, also known as food stamps), and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Food Program. The Food and Nutrition Service (FNS) oversees these programs and other food and nutrition programs, including the Center for Nutrition Policy and Promotion,52 which handles the USDA’s work on the “Dietary Guidelines for Americans” (Dietary Guidelines).53 Food nutrition programs include: SNAP; WIC; the National School Lunch Program (NSLP); the School Breakfast Program (SBP); the Child and Adult Care Food Program; the Nutrition Program for the Elderly; Nutrition Service Incentives; the Summer Food Service Program; the Commodity Supplemental Food Program; the Temporary Emergency Food Program; the Farmer’s Market Nutrition Program; and the Spe- cial Milk Program. The next Administration should: l Move the USDA food and nutrition programs to the Department of Health and Human Services. There are more than 89 current means- tested welfare programs, and total means-tested spending has been estimated to surpass $1.2 trillion between federal and state resources.54 Because means-tested federal programs are siloed and administered in separate agencies, the effectiveness and size of the welfare state remains
AI Analysis:
"The bill focuses on providing debt relief and improving credit access for farmers, while Project 2025's Agriculture section emphasizes reducing federal farm subsidies and crop insurance premiums. There is minimal thematic overlap, as the bill does not address subsidy reform, duplication of benefits, or premium subsidy reductions."
— 296 — Mandate for Leadership: The Conservative Promise support went to just six commodities—corn, cotton, peanuts, rice, soybeans, and wheat—that together account for only 28 percent of farm receipts.32 Although many farmers do not receive much in the way of subsidies, especially those in the areas of livestock and specialty crops (fruit, vegetable, and nuts),33 there are still a sig- nificant number of farmers growing row crops like corn and cotton that do receive significant farm subsidies. The primary subsidy programs include the Agriculture Risk Coverage (ARC) program,34 the Price Loss Coverage (PLC) program,35 and the federal crop insur- ance program.36 Farmers can participate on a crop-by-crop basis in the ARC program or the PLC program. These programs cover about 20 different crops.37 The ARC program protects farmers from what are referred to as “shallow” losses, pro- viding payments when their actual revenues fall below 86 percent of the expected revenues for their crops.38 The PLC program provides payments to farmers when commodity prices fall below a fixed, statutorily established reference price.39 The federal crop insurance program is broader in scope than ARC and PLC, and in crop year 2019 covered 124 commodities.40 Farmers pay a portion of a premium to participate in the program. Taxpayers on average pay about 60 per- cent41 of the premium. As explained by CRS, “Revenue Protection was the most frequently purchased policy type in 2019, accounting for almost 70 [percent] of policies purchased.”42 While there are certainly other subsidy programs besides ARC, PLC, and federal crop insurance, one program that deserves special mention is the federal sugar program. This program, unlike most other subsidy programs, intentionally tries to restrict supply43 and thereby drives up prices. The program costs consumers as much as $3.7 billion a year.44 When it comes to reforming subsidy programs, the next Administration will primarily have to look to legislative solutions. The next Administration should champion legislation that would: l Repeal the federal sugar program. The federal government should not be in the central planning business, and the sugar program is a prime example of harmful central planning. Its very purpose is to limit the sugar supply in order to increase prices. The program has a regressive effect, since lower-income households spend more of their money to meet food needs compared to higher income households.45 l Ideally, repeal the ARC and PLC programs. Farmers eligible to participate in ARC or PLC are generally already able to purchase federal crop insurance, policies that protect against shortfalls in expected revenue whether caused by lower prices or smaller harvests. The ARC program is especially egregious because farmers are being protected from shallow — 297 — Department of Agriculture losses, which is another way of saying minor dips in expected revenue. This is hardly consistent with the concept of providing a safety net to help farmers when they fall on hard times. The Congressional Budget Office (CBO), in one of its options to reduce the federal deficit, has once again identified repealing all Title I farm programs, including ARC, PLC, and the federal sugar program.46 l Stop paying farmers twice for price and revenue losses during the same year. Farmers can receive support from the ARC or PLC programs and the federal crop insurance program to cover price declines and revenue shortfalls during the same year. Congress should prohibit this duplication by prohibiting farmers from receiving an ARC or PLC payment the same year they receive a crop insurance indemnity. l Reduce the premium subsidy rate for crop insurance. On average, taxpayers cover about 60 percent47 of the premium cost for policies purchased in the federal crop insurance program. One of the most widely supported and bipartisan policy reforms is to reduce the premium subsidy that taxpayers are forced to pay.48 At a minimum, taxpayers should not pay more than 50 percent of the premium. After all, taxpayers should not have to pay more than the farmers who benefit from the crop insurance policies. CBO has found that reducing the premium subsidy to 47 percent would save $8.1 billion over 10 years and have little impact on crop insurance participation or on the number of covered acres.49 In that analysis, there would be a reduction in insured acres of just one-half of 1 percent, and only 1.5 percent of acres would have lower coverage levels. 50 This reform is basically all benefit with little to no cost. In its recently released report identifying options to reduce the federal deficit, CBO found that reducing the premium subsidy to 40 percent would save $20.9 billion over 10 years.51 Beyond these legislative reforms, the next Administration should: l Communicate to Congress the necessity of transparency and a genuine reform process. The White House and the USDA should make it very clear that the farm bill process, including reform of farm subsidies, must be con- ducted through an open process with time for mark-up and the opportunity for changes to be made outside the Agriculture Committee process. The farm bill too often is developed behind closed doors and without any chance for real reform. The White House, given the power of the bully pulpit,
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Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.