SOIL Act Launches Pilot Program to Pre-Approve Farmers for Land Ownership Loans by 2030

The new Support for Ownership and Investment in Land Act (SOIL Act) is setting up a pilot program designed to take some of the headache and guesswork out of getting a direct farm ownership loan. If you’re a farmer looking to buy land, this bill is aiming to get you through the government lending process faster and with more certainty. The Department of Agriculture (USDA) has one year from the bill’s enactment to launch this pilot, which will focus on creating a system for farmers to get pre-approved or pre-qualified for these loans (SEC. 2).

Cutting the Red Tape for Farm Loans

Think of this like getting pre-approved for a mortgage before you start house hunting. Currently, the process for securing a direct farm ownership loan can be long and unpredictable. The SOIL Act’s pilot program aims to change that by letting farmers know upfront if they qualify for the capital they need to buy land. This means less time waiting and more time farming. The bill also tasks the Secretary of Agriculture with looking at ways to simplify the loan assessment process (section 360(b) of the Act), which could translate into clearer, faster decisions for applicants.

The Fine Print on Eligibility

Here’s where it gets interesting, and a little vague: The Secretary is given the authority to set “different eligibility requirements” specifically for applicants going through this pilot program (SEC. 2). While this could mean better-tailored criteria for specific types of farmers (say, first-time or historically underserved farmers), it’s important to note that even with these alternative standards, applicants must still meet all other existing rules for direct farm ownership loans. This dual requirement means the USDA gets flexibility on the front end but must still adhere to the fundamental lending standards.

The Clock is Ticking

This isn't a permanent change to the farm loan system. The authority to run this pilot program has a hard stop, automatically ending on September 30, 2030 (SEC. 2). In the meantime, the USDA is required to report back to Congress annually, detailing what they did and what the results were. For farmers, this pilot could be a significant step toward making land ownership more accessible and less financially stressful, but it’s a temporary measure designed to test whether pre-qualification is the right long-term solution for streamlining agricultural lending.