Feenstra Helps Introduce Legislation to Restore Long-Standing FAFSA Exemption for Iowa Family Farms and Small Businesses

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) helped introduce the Family Farm and Small Business Exemption Act – led by Rep. Tracey Mann (R-KS), U.S. House Agriculture Committee Chairman G.T. Thompson (R-PA), Rep. Jimmy Panetta (D-CA), and Rep. Angie Craig (D-MN) – to restore the decades-old standard that exempts the value of assets found on family farms and at small businesses from being assessed as part of a family’s net worth when Iowa families submit the Federal Application For Student Aid (FAFSA) for college aid purposes.

U.S. Senators Joni Ernst (R-IA) and Michael Bennet (D-CO) introduced companion legislation in the U.S. Senate.

“Over the last few years, our farmers and producers have faced significant declines in net farm income, low commodity prices, inflation, and restricted export markets,” said Rep. Feenstra. “Counting assets — like farmland and equipment that cannot be easily liquidated — against farm families when applying for FAFSA only adds fuel to the fire. I’m glad to work with House Agriculture Committee Chairman G.T. Thompson, Senator Joni Ernst, and my colleague from Kansas, Rep. Tracey Mann, to introduce legislation to exempt the value of farm and business assets and equipment — a long-standing policy. Representing the second largest ag-producing district in the nation, I’ll always be a strong voice for our farmers, producers, and their families in Congress."

“Across Kansas’ Big First District and the country, net farm income has decreased by nearly 25% since 2022,” said Rep. Mann. “Between navigating record-levels of inflation and skyrocketing input costs, our family farmers, ranchers, agricultural producers, and small business owners are doing their best to make an honest living. 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. Congress should work to make life easier, not harder, for these dedicated families and students. My bill evens the playing field for these students and families, while protecting the American dream for every student regardless of their parents’ career ventures.”

“Farming tends to be an asset-rich but cash-poor industry, and America's hardworking farm families should not be unfairly burdened when pursuing higher education," said Chairman Thompson. "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 and the world." 

“No one should have to sell off the farm – or their small business – to afford college. As a farm kid myself, I know the enormous impacts grants and financial aid have on rural students’ decision to go to college,” said Sen. Ernst. “I’m fighting for Iowa families, so unfair policies don’t hold them back from investing in their child’s education.”

Full legislative text can be found HERE.

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