FARM Home Loans Act of 2025
- Sponsor
- Rep. McDonald Rivet, Kristen [D-MI-8]
- Committees
- Agriculture Committee (primary)
- Last action
- Jan 13, 2026
Bottom line
This bill updates the definition of eligible rural housing and expands the population threshold for communities considered 'rural' under the Farm Credit Act, potentially making more housing options and communities eligible for financing.
What it actually does
This bill expands eligibility for rural housing financing under the Farm Credit Act of 1971 by explicitly allowing loans for accessory dwelling units (ADUs) and by increasing the maximum population size of eligible rural areas from 2,500 to 10,000 residents. These changes aim to broaden the scope of housing types and geographic areas that can receive federal farm credit system support for housing.
Proponents argue
Supporters argue this bill will increase the availability of affordable and flexible housing options in rural areas by recognizing modern housing trends like ADUs and by expanding the geographic reach of the Farm Credit System's housing programs to slightly larger, yet still rural, communities. This could stimulate rural development, address housing shortages, and support multi-generational living.
Opponents contend
Critics might contend that expanding the definition of 'rural' to include areas up to 10,000 residents dilutes the original intent of the Farm Credit Act, which was to serve genuinely remote and sparsely populated agricultural communities. They might also argue that including ADUs could strain existing resources or divert funds from primary housing needs in the most underserved areas.
The bill is exceptionally short and clear, allowing for quick comprehension and evaluation.
Section 2(1), amending 12 U.S.C. 2019(b)(2)
Expansion of 'Appurtenances' to Include Accessory Dwelling Units
This provision modifies the Farm Credit Act of 1971 to explicitly include 'accessory dwelling units' (ADUs) within the definition of 'appurtenances' for which rural housing financing can be provided. This means that loans from the Farm Credit System can now be used to finance the construction or purchase of ADUs, such as granny flats or detached cottages, alongside primary residences in eligible rural areas, thereby offering more flexible housing solutions.
Supporters argue
Supporters argue that explicitly including ADUs in rural housing financing will provide more flexible and affordable housing solutions, support multi-generational living, and allow property owners to generate rental income, thereby strengthening rural economies and addressing housing shortages.
Critics contend
Some might argue that focusing on ADUs could divert resources from financing primary residences, which are often the most pressing housing need in rural areas. Concerns could also be raised about potential impacts on rural character or infrastructure if ADU development is not managed carefully.
Tradeoffs
The provision balances the need for diverse housing options and affordability with potential concerns about resource allocation and maintaining the traditional character of rural communities.
Section 2(2), amending 12 U.S.C. 2019(b)(3)
Expansion of Eligible Rural Area Population Threshold
This provision raises the maximum population size for communities to be considered 'rural' for the purpose of housing financing under the Farm Credit Act of 1971. It changes the limit from 2,500 residents to 10,000 residents. This means that towns and communities with populations between 2,501 and 10,000 that were previously ineligible for Farm Credit System housing loans will now qualify, significantly expanding the geographic reach of the program.