On April 2, Sens. Adam Schiff (D-Calif.), a member of the Agriculture Committee, Peter Welch (D-Vt.), Jim Justice (R-W.Va.) and Cindy Hyde-Smith (R-Miss.) introduced the “Fostering the Availability in Rural Markets of (FARM) Home Loans Act,” bipartisan legislation designed to support rural economic growth by helping more homebuyers qualify for rural housing assistance.  

Farm credit institutions like The Farm Credit Council provide flexible lending assistance for rural homebuyers. However, under the Farm Credit Act of 1971, farm credit institutions are unable to issue loans to homebuyers living in areas with a population over 2,500.  

“Our country is facing a severe housing crisis, and it’s time for Congress to act. I’m proud to join Sens. Welch and Justice to introduce this bipartisan legislation to help more rural communities obtain the financial support they need to buy a home,” Schiff said.    

“Making farm credit loans more accessible is vital to addressing this crisis and will help millions of rural families experience the joy of homeownership for the first time,” Welch added. “Congress must pass our bipartisan legislation to expand rural housing assistance and make homeownership a reality for rural communities in Vermont, West Virginia and across America.”  

“All over rural America, folks just want to own a home, raise their families and build something that lasts. This bill helps increase competition for credit and opens the door for over 230,000 West Virginians to do just that,” Justice said. “The Farm Credit System is ingrained in our farming communities and has a big role to play in continuing to create opportunities for the next generation in rural America.”    

“It is too hard for too many people to land a home mortgage by coming up with traditional down payments, especially in rural communities,” Hyde-Smith said. “The FARM Home Loans Act would change that by allowing the Farm Credit System to broaden the use of its flexible lending assistance.”

Reps. Kristen McDonald Rivet (D-Mich.) and Bill Huizenga (R-Mich.) introduced companion legislation in the House.

“Whether it’s a farm operating loan or a home loan, having access to capital through the Farm Credit System is critical for communities across rural areas of Southwest Michigan. Huizenga said. “The FARM Home Loans Act modernizes outdated financing options for Michiganders who proudly fuel and depend on agricultural production. Updating this one-size-fits-all statute will spur economic growth and job creation in rural areas, while improving housing options in agricultural communities.”  

The legislation would update the Farm Credit System by increasing the Rural Home Loan lending authority population limit from 2,500 to 10,000. This change aligns the Farm Credit System’s population limits closer to the U.S. Department of Agriculture’s rural housing program lending eligibility requirements, which permit home loans in certain areas with a population of 20,000 or more.  

The FARM Home Loans Act is supported by the American Farm Bureau Federation; Farm Credit Council; Housing Assistance Council; National Cooperative Business Association; National Council of Farmer Cooperatives; and National Farmers Union.  

For more stories on this topic, visit our sister publicationThe Title Report's Housing Inventory & Attainability Watch library.