Bill Overview
Title: Young Farmer Success Act
Description: This bill makes certain farmers or ranchers eligible for student loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. Under the PSLF program, the Department of Education must cancel the balance of interest and principal due on a borrower's Federal Direct Loans after the borrower makes 120 monthly loan payments while employed in a public service job. This bill broadens the definition of public service job to include a full-time job engaged in farm work as an employee or manager of a qualified farm or ranch.
Sponsors: Rep. Courtney, Joe [D-CT-2]
Target Audience
Population: Farmers and ranchers eligible for student loan forgiveness under the Public Service Loan Forgiveness program
Estimated Size: 75000
- The population of young farmers eligible for student loans is relevant due to the bill's focus on loan forgiveness.
- There are around 2.1 million farms in the United States and it is estimated that young farmers (those under 35) make up about 8% of the farmers, rounding to about 168,000 individuals.
- Globally, the proportion of young farmers might be smaller in developing countries, but the global population involved in agriculture is significantly larger.
- Considering global employment in agriculture, which employs around 27% of the world's workforce, many of them may benefit if similar legislation were passed globally.
Reasoning
- The target population for this policy is young farmers under 35 years with student loans. The estimate suggests approximately 75,000 young farmers are eligible in the US.
- Since the policy provides loan forgiveness, it is likely to have a significant positive financial impact on this group, potentially improving their wellbeing scores.
- The Cantril wellbeing scale is a self-reported measure from 0 to 10, assessing life satisfaction. This policy can impact it by relieving financial burden.
- However, not all farmers might be directly affected as those without loans or older farmers outside the age bracket will not benefit.
- The policy needs to balance coverage versus cost, aiming to maximize impact within the budget constraints of $225 million in year 1.
Simulated Interviews
Farmer (Iowa)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy would significantly reduce my financial stress.
- As a young farmer, loan payments are a huge part of my expenses.
- Forgiveness would allow me to invest more in my farm.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Ranch Manager (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- I'm nearing the eligibility limit age-wise, so this is critical for me.
- Loan forgiveness would ease financial tension a lot.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Farmer (Texas)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- This policy doesn't directly impact me but I'm happy for younger farmers.
- It might indirectly benefit the farming community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Ranch Owner (Kansas)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Student loans are a heavy burden on my family's budget.
- This policy could allow us to expand our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Farm Worker (Oregon)
Age: 23 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- I'm new to the farming sector, so any help is appreciated.
- This policy would let me focus on sustainable farming rather than debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Agricultural Consultant (Alabama)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I assist many young farmers who would benefit from this.
- This policy could lead to better farm management practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Farmer (North Dakota)
Age: 26 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- The loan forgiveness offers peace of mind as I manage the farm.
- I could invest more in farm innovations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Farm Worker (Florida)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This policy would allow me to save up for starting my own venture.
- Horticulture appreciates such governmental support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Dairy Farmer (Vermont)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Student loan burden is a significant challenge in dairy farming.
- This policy makes it easier to maintain and improve operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Urban Farmer (New York)
Age: 33 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 12.0 years
Commonness: 4/20
Statement of Opinion:
- Urban farming has its set of challenges, and this policy might spark further growth.
- Student loan forgiveness would enhance sustainability efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $225000000 (Low: $180000000, High: $270000000)
Year 2: $250000000 (Low: $200000000, High: $300000000)
Year 3: $275000000 (Low: $220000000, High: $330000000)
Year 5: $300000000 (Low: $240000000, High: $360000000)
Year 10: $350000000 (Low: $280000000, High: $420000000)
Year 100: $400000000 (Low: $320000000, High: $480000000)
Key Considerations
- The fiscal impact heavily depends on enrollment and participation rates in the PSLF program by eligible young farmers.
- Impacts on rural economies could be significant, potentially stabilizing or even revitalizing local agricultural communities.
- Potential increased interest and participation in farming by younger demographics due to reduced financial barriers.