USDA Loan Modernization Act

HR6779, titled the USDA Loan Modernization Act, was introduced in the House of Representatives on December 17, 2025, by Representative Bost (R-IL-12) and referred to the House Committee on Agriculture. The bill's current status is early stage, having only been referred to committee. The bill proposes to amend sections 302(a) and 311(a) of the Consolidated Farm and Rural Development Act. The primary mechanism of this bill is to modify the eligibility criteria for USDA direct loans, including farm ownership, operating, and emergency loans. Specifically, it changes the required ownership interest from 'a majority' to 'at least a 50 percent' for individuals or entity members who are or will become bona fide operators of farm real estate. It also introduces new eligibility for 'qualified operators' and 'certain operating-only entities' and 'embedded entities' under specific ownership conditions. The bill itself does not authorize or appropriate new funding; rather, it modifies the eligibility for existing USDA loan programs. Structural winners, if this bill were to pass, would be individuals and entities involved in agriculture who previously did not meet the 'majority' ownership requirement for USDA direct loans but would now qualify under the 'at least 50 percent' threshold. This could broaden the pool of eligible borrowers for farm real estate and operating loans, potentially increasing access to capital for certain agricultural operations. As the bill modifies eligibility for existing loan programs rather than creating new ones, there are no direct financial beneficiaries in terms of new contracts or grants. The bill does not name specific companies or provide for direct procurement. Given the nature of USDA loans, which are typically for individual farmers or small to medium-sized agricultural businesses, there are no immediate public company tickers directly impacted. The legislative path ahead for HR6779 involves consideration by the House Committee on Agriculture. As of April 26, 2026, the bill remains in committee, indicating it is in the early stages of the legislative process. Further action would require committee markup, a vote in committee, and then potentially a vote by the full House. The existence of a related bill, HR7567 (Farm, Food, and National Security Act of 2026), suggests broader legislative activity in the agriculture policy area, but HR6779's specific provisions would need to be incorporated or passed independently.