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119th Congress

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119th Congress

Title 7 — Agriculture

Chapter 50 — Agricultural Credit

§ 1935. Down payment loan program

Statutory text

(a)

In general

(1)

Establishment

Notwithstanding any other section of this subchapter, the Secretary shall establish, within the farm ownership loan program established under this subchapter, a program under which loans shall be made under this section to eligible farmers or ranchers for down payments on farm ownership loans.

(2)

Administration

The Secretary shall be the primary coordinator of credit supervision for the down payment loan program established under this section, in consultation with the commercial or cooperative lender and, if applicable, the contracting credit counseling service selected under section 2006b(c) of this title.

(b)

Loan terms

(1)

Principal

Each loan made under this section shall be in an amount that does not exceed 45 percent of the least of—

(A)

the purchase price of the farm or ranch to be acquired;

(B)

the appraised value of the farm or ranch to be acquired; or

(C)

$667,000.

(2)

Interest rate

The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of—

(A)

the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subchapter; or

(B)

1.5 percent.

(3)

Duration

Each loan under this section shall be made for a period of 20 years or less, at the option of the borrower.

(4)

Repayment

Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments.

(5)

Nature of retained security interest

The Secretary shall retain an interest in each farm or ranch acquired with a loan made under this section that shall—

(A)

be secured by the farm or ranch;

(B)

be junior only to such interests in the farm or ranch as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtained a loan used to acquire the farm or ranch; and

(C)

require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm or ranch.

(c)

Limitations

(1)

Borrowers required to make minimum down payment

The Secretary shall not make a loan under this section to any borrower with respect to a farm or ranch if the contribution of the borrower to the down payment on the farm or ranch will be less than 5 percent of the purchase price of the farm or ranch.

(2)

Prohibited types of financing

The Secretary shall not make a loan under this section with respect to a farm or ranch if the farm or ranch is to be acquired with other financing that contains any of the following conditions:

(A)

The financing is to be amortized over a period of less than 30 years.

(B)

A balloon payment will be due on the financing during the 20-year period beginning on the date the loan is to be made by the Secretary.

(d)

Administration

In carrying out this section, the Secretary shall, to the maximum extent practicable—

(1)

facilitate the transfer of farms and ranches from retiring farmers and ranchers to persons eligible for insured loans under this subchapter;

(2)

make efforts to widely publicize the availability of loans under this section among—

(A)

potentially eligible farmers or ranchers;

(B)

retiring farmers and ranchers; and

(C)

applicants for farm ownership loans under this subchapter;

(3)

encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to eligible farmers or ranchers by providing seller financing;

(4)

coordinate the loan program established by this section with State programs that provide farm ownership or operating loans for—

(A)

beginning farmers or ranchers;

(B)

socially disadvantaged farmers or ranchers, as defined in section 2003(e) of this title; or

(C)

veteran farmers or ranchers, as defined in section 2279(a) of this title; and; and 1

(5)

establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to an eligible farmer or rancher.

(e)

Definition of eligible farmer or rancher

In this section, the term “eligible farmer or rancher” means—

(1)

a qualified beginning farmer or rancher;

(2)

a socially disadvantaged farmer or rancher, as defined in section 2003(e) of this title; and

(3)

a veteran farmer or rancher, as defined in section 2279(a) of this title.

Footnotes

  1. 1 So in original.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Agricultural Act of 1961

    Pub. L. 87–128 title III § 310E · 75 Stat. 294

    Enacted · 7 U.S.C. § 1935

    Pub. L. 87–128, title III, § 310E, as added Pub. L. 102–554, § 7(a), Oct. 28, 1992, 106 Stat. 4144

    Source evidence

    Code source credit
    Pub. L. 87–128, title III, § 310E, as added Pub. L. 102–554, § 7(a), Oct. 28, 1992, 106 Stat. 4144

  2. Pub. L. 107–171 § 5005(1)(A) · 116 Stat. 134

    Substituted · 7 U.S.C. § 1935(b)(1)

    Pub. L. 107–171, § 5005(1)(A), substituted “40 percent” for “30 percent”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 107–171, § 5005(1)(A), substituted “40 percent” for “30 percent”.

    Enacted provision · exact public law section
    (A) in paragraph (1), by striking “30 percent” and inserting “40 percent”; and

  3. Pub. L. 107–171 § 5005(1)(B) · 116 Stat. 134

    Substituted · 7 U.S.C. § 1935(b)(3)

    Pub. L. 107–171, § 5005(1)(B), substituted “15 years” for “10 years”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 107–171, § 5005(1)(B), substituted “15 years” for “10 years”.

    Enacted provision · exact public law section
    (B) in paragraph (3), by striking “10 years” and inserting “15 years”; and

  4. Pub. L. 107–171 § 5005(2) · 116 Stat. 134

    Substituted · 7 U.S.C. § 1935(c)(3)(B)

    Pub. L. 107–171, § 5005(2), substituted “15-year” for “10-year”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B). Pub. L. 107–171, § 5005(2), substituted “15-year” for “10-year”.

    Enacted provision · exact public law section
    (2) in subsection (c)(3)(b), by striking “10-year” and inserting “15-year”.

  5. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(1) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1935(a)(1)

    Pub. L. 110–246, § 5004(1), substituted “or ranchers and socially disadvantaged farmers or ranchers” for “and ranchers”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 110–246, § 5004(1), substituted “or ranchers and socially disadvantaged farmers or ranchers” for “and ranchers”.

    Enacted provision · exact public law section
    (1) in subsection (a)(1), by striking “and ranchers” and inserting “or ranchers and socially disadvantaged farmers or ranchers”;

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  6. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(2)(A) · 122 Stat. 1651

    1. Added · 7 U.S.C. § 1935(b)(1); 7 U.S.C. § 1935(b)(2)

      Pub. L. 110–246, § 5004(2)(A), added par. (1) and par. (2) consisting of subpars. (A) and (B)

    2. Struck · 7 U.S.C. § 1935(b)(1); 7 U.S.C. § 1935(b)(2)

      Pub. L. 110–246, § 5004(2)(A), struck out former par. (1). Prior to amendment, text of par. (1) read as follows: “Each loan made under this section shall be in an amount equal to 40 percent of the purchase price or appraisal value, whichever is lower, of the farm or ranch to be acquired, unless the borrower requests a lesser amount.”

    Source evidence

    Code amendment note
    Subsec. (b)(1), (2). Pub. L. 110–246, § 5004(2)(A), added par. (1) and par. (2) consisting of subpars. (A) and (B) and struck out former par. (1). Prior to amendment, text of par. (1) read as follows: “Each loan made under this section shall be in an amount equal to 40 percent of the purchase price or appraisal value, whichever is lower, of the farm or ranch to be acquired, unless the borrower requests a lesser amount.”

    Enacted provision · exact public law section
    (A) by striking paragraph (1) and inserting the following; “(1) Principal.— Each loan made under this section shall be in an amount that does not exceed 45 percent of the least of— “(A) the purchase price of the farm or ranch to be acquired; “(B) the appraised value of the farm or ranch to be acquired; or “(C) $500,000. “(2) Interest rate.— The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of— “(A) the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subtitle; or “(B) 1.5 percent.” ; and

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  7. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(2)(B) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1935(b)(3)

    Pub. L. 110–246, § 5004(2)(B), substituted “20” for “15”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 110–246, § 5004(2)(B), substituted “20” for “15”.

    Enacted provision · exact public law section
    (B) in paragraph (3), by striking “15” and inserting “20”;

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  8. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(3)(A) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1935(c)(1)

    Pub. L. 110–246, § 5004(3)(A), substituted “5” for “10”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 110–246, § 5004(3)(A), substituted “5” for “10”.

    Enacted provision · exact public law section
    (A) in paragraph (1), by striking “10” and inserting “5”;

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  9. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(3)(B) · 122 Stat. 1651

    1. Redesignated · 7 U.S.C. § 1935(c)(2); 7 U.S.C. § 1935(c)(3)

      Pub. L. 110–246, § 5004(3)(B), (C), redesignated par. (3) as (2), in subpar. (B)

    2. Substituted · 7 U.S.C. § 1935(c)(2); 7 U.S.C. § 1935(c)(3)

      Pub. L. 110–246, § 5004(3)(B), (C), substituted “20-year” for “15-year”

    3. Struck · 7 U.S.C. § 1935(c)(2); 7 U.S.C. § 1935(c)(3)

      Pub. L. 110–246, § 5004(3)(B), (C), struck out former par. (2). Prior to amendment, text read as follows: “The Secretary shall not make a loan under this section with respect to a farm or ranch for which the purchase price or appraisal value, whichever is lower, exceeds $250,000.”

    Source evidence

    Code amendment note
    Subsec. (c)(2), (3). Pub. L. 110–246, § 5004(3)(B), (C), redesignated par. (3) as (2), in subpar. (B), substituted “20-year” for “15-year”, and struck out former par. (2). Prior to amendment, text read as follows: “The Secretary shall not make a loan under this section with respect to a farm or ranch for which the purchase price or appraisal value, whichever is lower, exceeds $250,000.”

    Enacted provision · exact public law section
    (B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  10. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(4)(A)(ii) · 122 Stat. 1651

    Struck · 7 U.S.C. § 1935(d)(3)

    Pub. L. 110–246, § 5004(4)(A)(ii), struck out “and” at end

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 110–246, § 5004(4)(A)(ii), struck out “and” at end.

    Enacted provision · exact public law section
    (ii) by striking “and” at the end;

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  11. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(4)(A)(i) · 122 Stat. 1651

    Changed · 7 U.S.C. § 1935(d)(3)

    Pub. L. 110–246, § 5004(4)(A)(i), which directed the insertion of “and socially disadvantaged farmers or ranchers” after “ranchers”, was executed by making the insertion after “ranchers” the second place it appeared to reflect the probable intent of Congress

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 110–246, § 5004(4)(A)(i), which directed the insertion of “and socially disadvantaged farmers or ranchers” after “ranchers”, was executed by making the insertion after “ranchers” the second place it appeared to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (i) by inserting “and socially disadvantaged farmers or ranchers” after “ranchers”; and

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  12. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(4)(B) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1935(d)(4)

    Pub. L. 110–246, § 5004(4)(B), substituted “or ranchers or socially disadvantaged farmers or ranchers; and” for “and ranchers.”

    Source evidence

    Code amendment note
    Subsec. (d)(4). Pub. L. 110–246, § 5004(4)(B), substituted “or ranchers or socially disadvantaged farmers or ranchers; and” for “and ranchers.”

    Enacted provision · exact public law section
    (B) in paragraph (4), by striking “and ranchers.” and inserting “ or ranchers or socially disadvantaged farmers or ranchers; and”; and

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  13. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(4)(C) · 122 Stat. 1651

    Added · 7 U.S.C. § 1935(d)(5)

    Pub. L. 110–246, § 5004(4)(C), added par. (5)

    Source evidence

    Code amendment note
    Subsec. (d)(5). Pub. L. 110–246, § 5004(4)(C), added par. (5).

    Enacted provision · exact public law section
    (C) by adding at the end the following: “(5) establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher.” ; and

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  14. Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5004(5) · 122 Stat. 1651

    Added · 7 U.S.C. § 1935(e)

    Pub. L. 110–246, § 5004(5), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 110–246, § 5004(5), added subsec. (e).

    Enacted provision · exact public law section
    (5) by adding at the end the following: “(e) Socially Disadvantaged Farmer or Rancher Defined.— In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 355(e)(2).” .

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

  15. Agricultural Act of 2014

    Pub. L. 113–79 § 5005(a) · 128 Stat. 649

    Substituted · 7 U.S.C. § 1935(b)(1)(C)

    Pub. L. 113–79, § 5005(a), substituted “$667,000” for “$500,000”

    Source evidence

    Code amendment note
    Subsec. (b)(1)(C). Pub. L. 113–79, § 5005(a), substituted “$667,000” for “$500,000”.

    Enacted provision · exact public law section
    (a) In General.— Section 310E(b)(1)(C) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking “$500,000” and inserting “$667,000”.

  16. Agricultural Act of 2014

    Pub. L. 113–79 § 5005(b) · 128 Stat. 649

    Struck · 7 U.S.C. § 1935(b)(2)

    Pub. L. 113–79, § 5005(b), struck out second par. (2) which read as follows: “The interest rate on any loan made by the Secretary under this section shall be 4 percent.”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 113–79, § 5005(b), struck out second par. (2) which read as follows: “The interest rate on any loan made by the Secretary under this section shall be 4 percent.”

    Enacted provision · exact public law section
    (b) Technical Correction.— Section 310E(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)) is amended by striking paragraph (2) (as added by section 7(a) of Public Law 102–554; 106 Stat. 4145).

  17. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(1) · 132 Stat. 4490

    Substituted · 7 U.S.C. § 1935(a)(1)

    Pub. L. 115–334, § 12306(c)(1), substituted “eligible farmers or ranchers” for “qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 115–334, § 12306(c)(1), substituted “eligible farmers or ranchers” for “qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers”.

    Enacted provision · exact public law section
    (1) in subsection (a)(1), by striking “qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers” and inserting “eligible farmers or ranchers”;

  18. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(2)(A) · 132 Stat. 4490

    Substituted · 7 U.S.C. § 1935(d)(2)(A)

    Pub. L. 115–334, § 12306(c)(2)(A), substituted “farmers or ranchers” for “recipients of the loans”

    Source evidence

    Code amendment note
    Subsec. (d)(2)(A). Pub. L. 115–334, § 12306(c)(2)(A), substituted “farmers or ranchers” for “recipients of the loans”.

    Enacted provision · exact public law section
    (A) in paragraph (2)(A), by striking “recipients of the loans” and inserting “farmers or ranchers”;

  19. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(2)(B) · 132 Stat. 4490

    1. Added · 7 U.S.C. § 1935(d)(3)

      Pub. L. 115–334, § 12306(c)(2)(B), added par. (3)

    2. Struck · 7 U.S.C. § 1935(d)(3)

      Pub. L. 115–334, § 12306(c)(2)(B), struck out former par. (3) which read as follows: “encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to qualified beginning farmers and ranchers and socially disadvantaged farmers or ranchers by providing seller financing;”

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 115–334, § 12306(c)(2)(B), added par. (3) and struck out former par. (3) which read as follows: “encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to qualified beginning farmers and ranchers and socially disadvantaged farmers or ranchers by providing seller financing;”.

    Enacted provision · exact public law section
    (B) by striking paragraph (3) and inserting the following: “(3) encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to eligible farmers or ranchers by providing seller financing;” ;

  20. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(2)(C) · 132 Stat. 4490

    1. Substituted · 7 U.S.C. § 1935(d)(4)

      Pub. L. 115–334, § 12306(c)(2)(C), substituted “for—” for “for beginning farmers or ranchers or socially disadvantaged farmers or ranchers”

    2. Added · 7 U.S.C. § 1935(d)(4)

      Pub. L. 115–334, § 12306(c)(2)(C), added subpars. (A) and (B) and subpar. (C) designation

    3. Inserted · 7 U.S.C. § 1935(d)(4)

      Pub. L. 115–334, § 12306(c)(2)(C), inserted “veteran farmers or ranchers, as defined in section 2279(a) of this title; and” before “; and” in subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (d)(4). Pub. L. 115–334, § 12306(c)(2)(C), substituted “for—” for “for beginning farmers or ranchers or socially disadvantaged farmers or ranchers”, added subpars. (A) and (B) and subpar. (C) designation, and inserted “veteran farmers or ranchers, as defined in section 2279(a) of this title; and” before “; and” in subpar. (C).

    Enacted provision · exact public law section
    (C) in paragraph (4), by striking “for beginning farmers or ranchers or socially disadvantaged farmers or ranchers” and inserting the following: “for— “(A) beginning farmers or ranchers; “(B) socially disadvantaged farmers or ranchers, as defined in section 355(e); or “(C) veteran farmers or ranchers, as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)); and” ; and

  21. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(2)(D) · 132 Stat. 4490

    Substituted · 7 U.S.C. § 1935(d)(5)

    Pub. L. 115–334, § 12306(c)(2)(D), substituted “an eligible farmer or rancher” for “a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher”

    Source evidence

    Code amendment note
    Subsec. (d)(5). Pub. L. 115–334, § 12306(c)(2)(D), substituted “an eligible farmer or rancher” for “a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher”.

    Enacted provision · exact public law section
    (D) in paragraph (5), by striking “a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher” and inserting “an eligible farmer or rancher”; and

  22. Agriculture Improvement Act of 2018

    Pub. L. 115–334 § 12306(c)(3) · 132 Stat. 4490

    1. Added · 7 U.S.C. § 1935(e)

      Pub. L. 115–334, § 12306(c)(3), added subsec. (e)

    2. Struck · 7 U.S.C. § 1935(e)

      Pub. L. 115–334, § 12306(c)(3), struck out former subsec. (e). Prior to amendment, text read as follows: “In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 2003(e)(2) of this title.”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 115–334, § 12306(c)(3), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 2003(e)(2) of this title.”

    Enacted provision · exact public law section
    (3) by striking subsection (e) and inserting the following: “(e) Definition of Eligible Farmer or Rancher.— In this section, the term ‘eligible farmer or rancher’ means— “(1) a qualified beginning farmer or rancher; “(2) a socially disadvantaged farmer or rancher, as defined in section 355(e); and “(3) a veteran farmer or rancher, as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)).” .

28 of 29 references resolved to an enrolled provision · 1 partial

Editorial Notes

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments2002–2018 · 4 rounds

2018

Subsec. (a)(1). Pub. L. 115–334, § 12306(c)(1), substituted “eligible farmers or ranchers” for “qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers”.

Subsec. (d)(2)(A). Pub. L. 115–334, § 12306(c)(2)(A), substituted “farmers or ranchers” for “recipients of the loans”.

Subsec. (d)(3). Pub. L. 115–334, § 12306(c)(2)(B), added par. (3) and struck out former par. (3) which read as follows: “encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to qualified beginning farmers and ranchers and socially disadvantaged farmers or ranchers by providing seller financing;”.

Subsec. (d)(4). Pub. L. 115–334, § 12306(c)(2)(C), substituted “for—” for “for beginning farmers or ranchers or socially disadvantaged farmers or ranchers”, added subpars. (A) and (B) and subpar. (C) designation, and inserted “veteran farmers or ranchers, as defined in section 2279(a) of this title; and” before “; and” in subpar. (C).

Subsec. (d)(5). Pub. L. 115–334, § 12306(c)(2)(D), substituted “an eligible farmer or rancher” for “a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher”.

Subsec. (e). Pub. L. 115–334, § 12306(c)(3), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “In this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 2003(e)(2) of this title.”

2014

Subsec. (b)(1)(C). Pub. L. 113–79, § 5005(a), substituted “$667,000” for “$500,000”.

Subsec. (b)(2). Pub. L. 113–79, § 5005(b), struck out second par. (2) which read as follows: “The interest rate on any loan made by the Secretary under this section shall be 4 percent.”

2008

Subsec. (a)(1). Pub. L. 110–246, § 5004(1), substituted “or ranchers and socially disadvantaged farmers or ranchers” for “and ranchers”.

Subsec. (b)(1), (2). Pub. L. 110–246, § 5004(2)(A), added par. (1) and par. (2) consisting of subpars. (A) and (B) and struck out former par. (1). Prior to amendment, text of par. (1) read as follows: “Each loan made under this section shall be in an amount equal to 40 percent of the purchase price or appraisal value, whichever is lower, of the farm or ranch to be acquired, unless the borrower requests a lesser amount.”

Subsec. (b)(3). Pub. L. 110–246, § 5004(2)(B), substituted “20” for “15”.

Subsec. (c)(1). Pub. L. 110–246, § 5004(3)(A), substituted “5” for “10”.

Subsec. (c)(2), (3). Pub. L. 110–246, § 5004(3)(B), (C), redesignated par. (3) as (2), in subpar. (B), substituted “20-year” for “15-year”, and struck out former par. (2). Prior to amendment, text read as follows: “The Secretary shall not make a loan under this section with respect to a farm or ranch for which the purchase price or appraisal value, whichever is lower, exceeds $250,000.”

Subsec. (d)(3). Pub. L. 110–246, § 5004(4)(A)(ii), struck out “and” at end.

Pub. L. 110–246, § 5004(4)(A)(i), which directed the insertion of “and socially disadvantaged farmers or ranchers” after “ranchers”, was executed by making the insertion after “ranchers” the second place it appeared to reflect the probable intent of Congress.

Subsec. (d)(4). Pub. L. 110–246, § 5004(4)(B), substituted “or ranchers or socially disadvantaged farmers or ranchers; and” for “and ranchers.”

Subsec. (d)(5). Pub. L. 110–246, § 5004(4)(C), added par. (5).

Subsec. (e). Pub. L. 110–246, § 5004(5), added subsec. (e).

2002

Subsec. (b)(1). Pub. L. 107–171, § 5005(1)(A), substituted “40 percent” for “30 percent”.

Subsec. (b)(3). Pub. L. 107–171, § 5005(1)(B), substituted “15 years” for “10 years”.

Subsec. (c)(3)(B). Pub. L. 107–171, § 5005(2), substituted “15-year” for “10-year”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective , the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Credits

1992–2018 · 6 acts
  1. 1992Pub. L. 87–128, title III, § 310E, as added Pub. L. 102–554, § 7(a), , 106 Stat. 4144
  2. 2002amended Pub. L. 107–171, title V, § 5005, , 116 Stat. 342
  3. 2008Pub. L. 110–234, title V, § 5004, , 122 Stat. 1144
  4. 2008Pub. L. 110–246, § 4(a), title V, § 5004, , 122 Stat. 1664, 1905
  5. 2014Pub. L. 113–79, title V, § 5005, , 128 Stat. 834
  6. 2018Pub. L. 115–334, title XII, § 12306(c), , 132 Stat. 4969.
Show as published

(Pub. L. 87–128, title III, § 310E, as added Pub. L. 102–554, § 7(a), , 106 Stat. 4144; amended Pub. L. 107–171, title V, § 5005, , 116 Stat. 342; Pub. L. 110–234, title V, § 5004, , 122 Stat. 1144; Pub. L. 110–246, § 4(a), title V, § 5004, , 122 Stat. 1664, 1905; Pub. L. 113–79, title V, § 5005, , 128 Stat. 834; Pub. L. 115–334, title XII, § 12306(c), , 132 Stat. 4969.)

Parsed from the official OLRC USLM XML in data/usc_all/usc07.xml · release point 119-108 · OLRC build 2026-09-09

USLM identifier /us/usc/t7/s1935