USDA opens $500K farm-tech loan program with broad equipment definitions
H.R. 3211 — Precision Agriculture Loan Program Act of 2025 · Filed by Randy Feenstra (R-IA) · 2 cosponsors · Introduced May 6, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill creates a new federal loan program through the USDA to help farmers and ranchers buy precision agriculture equipment—GPS systems, soil sensors, drones, data software, and similar technology that reduces input waste and improves efficiency. Eligible producers with good credit can borrow up to $500,000 over 12 years to purchase this equipment, and the USDA must report annually on loan recipients, equipment purchased, environmental benefits, and default rates.
Why we flagged it
The bill establishes a federal loan program subsidizing the adoption of precision agriculture technology by farmers. While framed as a loan (not a grant), the below-market terms and broad eligibility effectively constitute a subsidy to agricultural producers and the technology vendors who supply them.
What the text implies
- The broad definition of 'precision agriculture equipment' (including 'any other technology, as determined by Sec.') gives the USDA Secretary discretionary power to expand eligible equipment categories without congressional approval, potentially capturing unintended sectors.
- Loan security can be 'such other security as is acceptable to Sec.,' creating administrative flexibility that may lower barriers for politically favored borrowers or regions.
The full analysis lists 5 implications of this text.
Who stands to gain
precision agriculture equipment manufacturers; agricultural technology vendors (GPS, drone, sensor, software companies); large-scale farming operations