Bill Overview
Title: Student Loan Forgiveness for Farmers and Ranchers Act
Description: This bill establishes a student loan forgiveness program for certain farmers or ranchers. Specifically, to receive loan forgiveness under this bill, a borrower must (1) make 120 monthly loan payments under a specified repayment plan while employed full-time at a qualified farm or ranch; and (2) fall within certain categories of individuals such as a beginner farmer or rancher, an individual underrepresented in the agricultural profession, or a veteran farmer or rancher.
Sponsors: Sen. Murphy, Christopher [D-CT]
Target Audience
Population: Farmers and Ranchers with Student Loans
Estimated Size: 50000
- The global population of farmers and ranchers includes individuals involved in agricultural activities worldwide.
- Many countries have programs to support beginner farmers and underrepresented groups, but the criteria and definitions vary significantly.
- The program specified in the bill provides relief to those who have student loans, meaning not all global farmers or ranchers will qualify.
- There are countries with substantial populations of farmers and ranchers like India, China, and Brazil, but this bill specifically targets those with student loans, which might be a smaller fraction.
Reasoning
- The target population of approximately 50,000 farmers and ranchers eligible for this policy comprises primarily recent agricultural graduates burdened with student debt and beginner farmers meeting specific criteria.
- The policy focuses on beginner farmers, veterans, and those from underrepresented backgrounds, thus narrowing the eligible pool and making the budget constraints manageable.
- Many existing older and established farmers will likely remain unaffected as they don't carry student loans relevant to this program.
- The direct impact of the policy will predominantly be financial relief, likely improving the mental wellbeing of those within student debt, reflected in incremental increases in Cantril wellbeing scales over time.
- The general population of farmers includes many who won't qualify due to the policy's specific eligibility requirements, hence their wellbeing scores would reflect the broader agricultural market conditions minus this policy's effects.
- Considering the budget, the substantial funding committed over ten years indicates the program can sustain meaningful support for the subset of American farmers who qualify.
Simulated Interviews
Beginner Farmer (Texas)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This policy gives me a light at the end of the tunnel. Paying off loans while starting a farm is tough.
- As a minority in this field, it's encouraging to have some targeted support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Veteran Farmer (Iowa)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I'm happy to see such initiatives. Financial burdens have been one of my biggest struggles post-service.
- I can see my farm sustaining better with fewer financial constraints.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Established Farmer (California)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is great for young farmers starting out, not necessarily for someone like me.
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 | 6 | 6 |
Beginner Rancher (Kansas)
Age: 40 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I wasn't sure how I'd manage both loans and starting this ranch. This policy might be exactly what I need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Beginner Farmer (Vermont)
Age: 25 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- The relief on student loans is a huge motivator to continue in agriculture.
- I feel more secure about my financial future and my choice to farm sustainably.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Rancher (North Dakota)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Starting this ranch has been consuming; the student loans are overwhelming.
- This forgiveness would allow focusing more on growth and less on financial strains.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Established Farmer (Ohio)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- This is a needed step to ensure farming continues to attract new, young talent.
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 | 7 | 7 |
Veteran Farmer (Alabama)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- It's encouraging to see support for young and transitioning veterans.
- Such acts ensure veterans considering farming have viable support structures.
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 | 6 | 6 |
Beginner Farmer (Oregon)
Age: 27 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The shift to farming was ambitious; this policy might make it feasible long-term.
- Finally, some breathing room.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Aspiring Farmer (New York)
Age: 23 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Knowing I have this support when I officially begin is a huge relief.
- It makes the idea of taking on my own farm feel more achievable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Cost Estimates
Year 1: $150000000 (Low: $120000000, High: $180000000)
Year 2: $151500000 (Low: $121500000, High: $181500000)
Year 3: $153015000 (Low: $123015000, High: $183015000)
Year 5: $156075450 (Low: $126075450, High: $186075450)
Year 10: $162038846 (Low: $132038846, High: $192038846)
Year 100: $324077692 (Low: $264077692, High: $384077692)
Key Considerations
- Limited applicability to a specific segment of farmers reduces broad effectiveness.
- Important for new, underrepresented, and veteran farmers, could aid in industry diversity and sustainability.
- Monitoring and verification process for qualifying payments can be complex and costly.
- Benefits could attract more diversity into farming, addressing industry sustainability issues long-term.