U.S. Sen. Tommy Tuberville, R-Alabama, and U.S. Sen. Jon Husted, R-Ohio, have introduced legislation aimed at expanding federal loan access for family farms by updating long-standing eligibility rules.

The proposal, known as the U.S. Department of Agriculture Loan Modernization Act, seeks to remove barriers that lawmakers say no longer reflect how modern farms are owned and operated, a news release said. The effort comes as family-run operations continue to dominate agriculture in states like Alabama, where more than 37,000 farms operate and 95% are family-owned or structured as partnerships.

“Family farms are the backbone of America’s agriculture industry, and Alabama’s family farms play a huge part in our national food security,” Tuberville said in the release. “The system is outdated and does nothing to serve these hardworking farmers. This bill goes to great lengths to update the loan programs that currently hold these farms back. Supporting those who put food on our tables is the least we can do here in Congress — I hope my colleagues join Sen. Husted and I in empowering family farms across the country.”

Under current Farm Service Agency rules, loan eligibility often requires a single individual to hold a majority stake in a farm and manage daily operations. Lawmakers argue that requirement can exclude many multi-generational or jointly operated farms that share ownership and management responsibilities.

The legislation would revise those standards to better align with today’s agricultural landscape, where farms are frequently operated by extended families or partnerships. If enacted, the bill would broaden access to USDA guaranteed and direct operating loans as well as emergency and real estate financing.

Husted emphasized the impact on family farms beyond Alabama, noting similar conditions in his home state.

“95% of farms in Ohio are family-owned and operated, and they shouldn’t be penalized by outdated rules for securing their families’ and their farms’ future. This bill would modernize USDA loan rules so they reflect how family farms operate today and ensure they can continue to grow and pass their legacy on to the next generation,” Husted said.

Supporters say the measure is part of a broader push to strengthen rural economies and ensure long-term stability in the nation’s food supply chain. By easing access to capital, lawmakers argue, farms will be better positioned to invest in equipment, recover from natural disasters and transition operations to future generations.

The full text of the legislation is available at www.tuberville.senate.gov.