Little Apple Times

U.S. Representatives Tracey Mann and Jimmy Panetta, with House Agriculture Committee Chairman G.T. Thompson and Ranking Member Angie Craig, have reintroduced the Family Farm and Small Business Exemption Act. The legislation aims to reverse changes from the FAFSA Simplification Act of July 2024 that affect how student aid is calculated by exempting assets on family farms and small businesses from being included in a family's net worth.

Rep. Mann emphasized the challenges faced by family farmers, ranchers, agricultural producers, and small business owners due to decreasing net farm income since 2022. "When young people from these families are applying for higher education financial aid, the assets tied up in the family farm or the small business should not count against them," said Mann.

Rep. Panetta highlighted that students from these backgrounds should not be unfairly burdened when seeking federal student aid. He stated, "The Family Farm and Small Business Exemption Act would restore long-standing exemptions."

House Agriculture Committee Chairman Thompson pointed out that farming is an asset-rich but cash-poor industry. He added, "We need to ensure that family farms and small business owners are no longer penalized for owning the tools required to feed, fuel, and clothe America."

Rep. Craig noted her efforts in crafting bipartisan legislation to support farm families seeking college education opportunities for their children.

In the Senate, Senator Joni Ernst introduced similar legislation with Sen. Michael Bennet supporting it. Ernst remarked on her personal connection as a farm kid aware of financial aid's impact on rural students' college decisions.

Senator Bennet commented on federal financial aid's role in making college affordable for students from essential farm families.

The bill has garnered wide support across party lines with several representatives joining as cosponsors.

Organizations such as the Kansas Farm Bureau, American Farm Bureau Federation, and others have endorsed the bill, citing its importance in maintaining fair access to higher education for children of farmers and small business owners.

Kansas Farm Bureau President Joe Newland supported the initiative stating it continues a longstanding practice crucial for those engaged in capital-intensive agriculture.

Ryan Yates of the American Farm Bureau Federation applauded efforts to address issues arising from FAFSA Simplification Act changes impacting asset calculations for student aid eligibility.