Capital for Beginning Farmers and Ranchers Act of 2025

This bill establishes a new pilot program under the Consolidated Farm and Rural Development Act to provide development loans and loan guarantees to qualified beginning farmers and ranchers. The program aims to address the challenge faced by new farmers in securing financing for long-term capital investments , defined as "development expenditures" that benefit the business for over a year. These expenditures can include initial assets, infrastructure, soil fertility improvements, equipment, branding, and business management systems. Loans under this pilot program will have specific terms, including repayment periods of 3 to 10 years, a maximum amount of $100,000, and interest rates ranging from zero to three percent. Borrowers will be required to make annual interest payments and flexible principal repayments, with a minimum of one percent of the remaining balance due annually. Additionally, the Secretary of Agriculture must provide comprehensive training and support to borrowers on critical farm and ranch management issues, such as bookkeeping, taxation, credit, and risk management, utilizing existing agricultural support programs. The Secretary is also mandated to evaluate the program continuously and submit biennial reports to Congress on its operation and outcomes.