Senators introduce precision ag loan bill

U.S. Senators Deb Fischer (R-Neb.) and Amy Klobuchar (D-Minn.), members of the Senate Agriculture committee, have introduced the Precision Agriculture Loan (PAL) Act. The bipartisan legislation would create a program within the U.S. Department of Agriculture to provide loan financing to farmers and ranchers interested in purchasing precision agriculture equipment. This would involve a wide range of new technologies in farming and ranching that allow producers to reduce their environmental footprint, lower costs and improve productivity.

“Farmers and ranchers take care of our land and resources, and precision agriculture equipment can help them expand on this good work. High upfront costs, however, mean many operations struggle to access these cutting-edge and climate-friendly technologies. Our bipartisan legislation will allow more producers to invest in the equipment they need to make their operations more efficient, environmentally-friendly and productive,” said Senator Fischer.

“America’s economic well-being depends on the health of our farmlands. This legislation will support farmers by helping them invest in precision agriculture tools like soil mapping and aerial imagery technologies that reduce costs and help protect our environment. I’m proud to lead this bipartisan bill with Senator Fischer, and I will continue pushing for policies to strengthen rural communities nationwide,” said Senator Klobuchar.

The PAL Act would establish the Precision Agriculture Loan program within USDA’s Farm Service Agency. The program would offer low-cost and long-term loans to agriculture producers who want to adopt precision agriculture technologies but can’t afford to through traditional financing.

It would be the first federal loan program dedicated entirely to precision agriculture. Instead of paying upwards of 5% in interest, producers would be eligible for interest rates lower than 2% through the new program with loan terms from 3 to 12 years in length. These loans would cover any precision agriculture technology that improves efficiency or reduces inputs.

“The Association of Equipment Manufacturers applauds Senators Deb Fischer and Amy Klobuchar for their steadfast leadership on behalf of rural America and for introducing the Precision Agriculture Loan Program Act of 2021. This important legislation recognizes the critical role that precision agriculture technology, such as machine section control, auto guidance, variable rate technology, telematics and precision irrigation, plays in promoting climate-smart agriculture,” said Dennis Slater, president of the Association of Equipment Manufacturers.

Both Sen. Fischer and Sen. Klobuchar were co-sponsors of the Growing Climate Solutions Act.

Read a one-pager summarizing the PAL Act here.

Read the full text of the PAL Act here.