COLUMBUS, Ohio (WSYX) — U.S. Sen. Jon Husted (R-Ohio) introduced legislation Monday aimed at lowering financial barriers for the thousands of family-owned farms across Ohio that are currently locked out of federal assistance due to “outdated” eligibility rules.
The USDA Loan Modernization Act, co-sponsored by Sen. Tommy Tuberville (R-Ala.), seeks to update U.S. Department of Agriculture standards to reflect the corporate structures of modern, multi-generational farms.
Under current Farm Service Agency (FSA) rules, loan eligibility often requires a single individual to hold a majority stake and personally manage operations. This frequently disqualifies family farms that use Limited Liability Companies (LLCs) or partnerships to mitigate risk and manage succession planning.
“Ninety-five percent of farms in Ohio are family-owned and operated, and they shouldn’t be penalized by outdated rules for securing their families’ and their farms’ future,” Husted said in a statement. “This bill would modernize USDA loan rules so they reflect how family farms operate today.”
Impact on Agriculture
Ohio is home to approximately 76,500 farms. According to industry advocates, the shift toward legal partnerships is a common tool for protecting assets, but federal policy has failed to keep pace with these business realities.
The proposed changes would expand access to several types of USDA support, including:
- Guaranteed and direct operating loans
- Emergency loans
- Real estate loans
- Industry Support
The legislation has garnered immediate backing from major agricultural stakeholders in the state. The Ohio Farm Bureau Federation praised the move, noting that current rules often make taking over a family operation a “financial impossibility” for the next generation.
“Young and beginning farmers face a number of challenges in getting started or continuing their family legacy,” said Tara Durbin, Chief Lending Officer for Farm Credit Mid-America. “This legislation will provide them with critical tools that will help support the next generation of agriculture.”
If passed, the act would apply to producers nationwide, though its impact would be felt significantly in Ohio’s robust agricultural sector, where family-run businesses remain the industry’s backbone.