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Senate committee advances bill raising single‑lien loan cap for at‑risk farmers to $1 million
Summary
The committee approved House Bill 1541 to increase the maximum single‑lien loan for an at‑risk farm or ranch operation to $1,000,000, citing inflation and higher input costs; lenders would retain full default risk, sponsor said.
House Bill 1541, carried in the Senate by Senator Kern, cleared committee after a brief presentation and roll call vote. The measure raises the maximum single‑lien loan that may be made to an identified "at‑risk" farmer or ranch operation to $1,000,000.
Senator Kern, speaking to members, said the program has existed "since the 1980s to help promote economic growth in the ag sector" and that the bill "is increasing the amount the lenders can loan to adjust for inflation, higher input costs, and removing a requirement for specific finance program that is no longer offered." The senator yielded to questions but there was no extended debate.
Committee members asked for clarification about who bears loss if a borrower defaults. Senator Kern responded that "the local banks assume 100% of the risk, so it's not on the state treasurer." No further fiscal analysis was provided on the committee floor during the presentation.
The clerk called the roll after Senator Kern waved debate. The recorded tally was 11 ayes, 0 nays; the chairman declared the measure passed in committee and moved it along in the legislative process.
The bill’s passage in committee does not itself change law; it advances the measure for further consideration by the full Senate or additional committees as required by the chamber’s rules.
