Aggie bond bill reintroduced

Congress is back at work as the Senate has passed a reconciliation bill to fund immigration agencies while Aggie advocates in the House are taking another swing at advancing a bipartisan bond bill.

"The Modernizing Agricultural and Manufacturing Bonds Act will provide entrepreneurs and first-time farmers with the financing tools they need to grow, creating good-paying jobs and bolstering our economy," said Rep. Darin LaHood R - Ill.

LaHood sits on the influential House Ways and Means Committee, along with MAMBA co-sponsors Reps. Randy Feenstra R- Iowa, Terri Sewell D- Ala., and Dwight Evans, D-Pa.

Renditions of MAMBA have been circulating through Congress since 2017. Passing it remains a point of emphasis for the Council of Development Finance Agencies.

"By updating the 40-year-old rules around agricultural and manufacturing bonds, MAMBA allows for the innovative financing tools necessary to invest in local communities by expanding and growing American manufacturing and farming," said Toby Rittner, president and CEO of CDFA.

Aggie bonds are usually tax-exempt, and flow from agricultural banks utilizing state development agencies as conduits. Proceeds are used to finance land, buildings, livestock, machinery, and refinancing existing debt.

MAMBA would expand the definition of manufacturing facility and increase the cap on industrial development bonds to $30 million from $10 million.

It would Increase the limitation on small issue bond proceeds for first-time farmers to $1 million, repeal the separate dollar limitation on the use of bond proceeds for depreciable property and modify the definition of "substantial farmland" to allow for more low-cost bond financing for first-time farmers.

"Aggie bonds are one of the most effective federal tools for helping beginning farmers access affordable capital, lowering borrowing costs and bridging the gap between aspiration and ownership at the most critical stage of a farmer's career," said Tammy Nebola, treasurer and Aggie bond program specialist at the National Council of State Agricultural Finance Programs.

The bill has a bipartisan companion in the Senate as all parties concerned are looking to catch a ride on a major farm bill.

In late April the House passed a skinny version of the Farm, Food, and National Security Act of 2026 which so far does not contain any of the items from the MAMBA wish list.

At the time, Sen. John Boozman R-Ark., chairman of Senate Agriculture Committee said, "I remain committed to working with my colleagues in the Senate to continue this momentum and deliver Farm Bill 2.0 to the president's desk to be signed into law. I look forward to releasing legislative text in the coming weeks."

The Senate side mark-up is now expected to happen sometime this month.

Congress is charged with writing a new farm bill on five-year cycles with the last one launched in 2018. It's been extended year-by-year since 2023. The current extension is set to expire Sept. 30.

The Trump administration has complicated bringing a major farm bill across the finish line by changing the rules on the Supplemental Nutrition Assistance Program and shifting more funding onto the states.

Past versions of the farm bill typically relied on support from the agricultural community and SNAP supporters as the two factions worked on similar goals.