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S 1618119th CongressIntroduced

Precision Agriculture Loan Act of 2025

Introduced: May 6, 2025
Agriculture & FoodEnvironment & Climate
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Precision Agriculture Loan Act of 2025 would expand the existing conservation loan and loan guarantee program to explicitly cover precision agriculture. Specifically, it adds "the adoption of precision agriculture practices" and "the acquisition of precision agriculture technologies" as eligible activities under the program. The bill also authorizes loans for producers to use toward precision agriculture in connection with the Environmental Quality Incentives Program (EQIP) and makes administrative changes intended to improve efficiency and geographic diversity in administering the program. It also extends the authorization window to 2029. In short, if enacted, more farmers could finance the adoption of precision farming tools and practices through federal loan programs, with closer alignment to EQIP.

Key Points

  • 1Expands eligibility: The conservation loan and loan guarantee program now covers adopting precision agriculture practices and acquiring precision agriculture technologies.
  • 2Alignment with EQIP: Loans may be used for precision agriculture activities including those tied to participation in the Environmental Quality Incentives Program.
  • 3Administrative improvements: Adds emphasis on geographic diversity and creates processes to improve efficiency, including potential delegation of authority to the Deputy Administrator for Farm Programs and streamlined approvals with the NRCS.
  • 4Scope/branding change: Section heading changed from “conservation” to “precision agriculture and conservation” to reflect the broadened scope.
  • 5Sunset/authorization extension: The statute’s reference year is changed from 2023 to 2029, effectively extending the program’s current authorization timeframe.

Impact Areas

Primary group/area affected- Farmers and ranchers who want to adopt precision agriculture practices or acquire precision agriculture technologies and who seek financing through the USDA’s conservation loan/loan guarantee program or via EQIP-linked activities.Secondary group/area affected- The Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS), which administer the loan program and interact with EQIP, respectively; lenders participating in USDA loan programs.Additional impacts- Potential boost to suppliers of precision agriculture tech (sensors, variable-rate systems, drones, data platforms) due to increased loan-backed demand.- Environmental and resource-use implications from broader adoption of precision ag, such as improved input efficiency and water/soil conservation.- Budgetary and policy implications contingent on appropriations and the rate at which precision ag projects are funded under the expanded program.
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