H.R.4156 - Support for Ownership and Investment in Land Act (119th Congress)
Summary
H.R. 4156, also known as the Support for Ownership and Investment in Land Act (SOIL Act), aims to streamline the application process for direct farm ownership loans under the Consolidated Farm and Rural Development Act. The bill directs the Secretary of Agriculture to establish a pilot program for pre-approval or pre-qualification of these loans. This program seeks to provide greater certainty to borrowers and reduce administrative burdens.
The bill also requires the Secretary to submit annual reports to the House and Senate Agriculture Committees on the program's progress and results. The authority for this pilot program will terminate on September 30, 2030.
Ultimately, the goal is to make it easier for farmers to access loans and invest in their land.
Expected Effects
The bill, if enacted, will likely lead to a more efficient loan application process for farmers seeking direct farm ownership loans. This could result in increased access to capital for farmers, particularly those who may have been discouraged by the previous application process.
It could also lead to more investment in agricultural land and increased agricultural production. The pilot program will allow the Secretary of Agriculture to test alternative eligibility requirements, which could further expand access to loans.
The reporting requirements will provide oversight and allow for adjustments to the program as needed.
Potential Benefits
- Streamlined loan application process for farmers.
- Increased access to capital for farm ownership.
- Greater certainty for borrowers regarding loan eligibility.
- Potential for increased investment in agricultural land and production.
- Improved efficiency in the administration of farm ownership loans.
Potential Disadvantages
- Potential for unintended consequences from altered eligibility requirements.
- Administrative costs associated with implementing and managing the pilot program.
- Risk that the streamlined process could lead to less thorough vetting of loan applicants.
- Limited duration of the pilot program (until September 30, 2030) may not provide sufficient data for long-term evaluation.
- The program's effectiveness depends on the Secretary of Agriculture's implementation and oversight.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the General Welfare Clause (Preamble), as it aims to support farmers and promote agricultural viability. Congress has the power to regulate commerce and provide for the general welfare, which includes supporting agricultural activities through loan programs.
Article I, Section 8 grants Congress the power to collect taxes and provide for the general welfare of the United States. This bill falls under that purview as it relates to the allocation of resources to support a specific sector of the economy.
There are no apparent infringements on individual liberties or states' rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).