Federal Precision Agriculture Loan Program

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U. S. Representatives Cheri Bustos and Randy Feenstra (IA-04) introduced the Precision Agriculture Loan Program (PAL) Act of 2022. This bipartisan legislation would establish the first Federal Precision Agriculture Loan Program, in the U. S. Department of Agriculture’s Farm Service Agency. Senators Deb Fischer (R-NE) and Amy Klobuchar (D-MN) introduced companion legislation in the U. S. Senate.

The Precision Agriculture Loan Program Act would offer loans up to $500,000 between 3 and 12 years in length, at interest rates of less than 2%, and create a list of acceptable precision agriculture technologies approved by the Farm Service Agency and covered by the USDA. This funding would also allow farmers to retrofit existing equipment with new technologies.

“With rising fertilizer costs and environmental concerns, it’s more important than ever to promote precision agriculture,” said Congresswoman Bustos. “Unfortunately, high costs make this cutting-edge technology out of reach for too many farmers in the Heartland. That’s why I’m proud to join bipartisan legislation with Congressman Randy Feenstra, to help more family farmers access climate-smart technologies, as we work to reduce our impact on the environment and reduce input costs in agriculture.”

“Thanks to cutting-edge research at our Nation’s top universities, like Iowa State, and other scientific advancements, precision agriculture technology has become an important component of modern farming,” said Congressman Feenstra. “From sustainability efforts to improved yields, precision agriculture simultaneously helps Iowa farmers be profitable and successful, protects our environment, and powers our rural economy. I am proud to help introduce the Precision Agriculture Loan Program Act, with my colleague Congresswoman Cheri Bustos, to ensure our agricultural communities can access low-interest loans, to expand their precision agriculture operations.”