7 U.S.C. § 1921 — Congressional findings

Page 1056 TITLE 7—AGRICULTURE § 1921 Sec. 2008u. Health care services. 2008v. Strategic economic and community develop- ment. 2008w. Rural Innovation Stronger Economy Grant Program. 2008x. Reporting. SUBCHAPTER V—RURAL COMMUNITY ADVANCEMENT PROGRAM 2009. Definitions. 2009a. Establishment. 2009b. National objectives. 2009c. Strategic plans. 2009d. Rural Development Trust Fund. 2009e. Transfers of funds. 2009f. Grants to States. 2009g. Guarantee and commitment to guarantee loans. 2009h. Local involvement. 2009i. Interstate collaboration. 2009j. Annual report. 2009k. Rural development interagency working group. 2009l. Duties of Rural Economic and Community Development State Offices. 2009m. Electronic transfer. 2009n. Repealed. SUBCHAPTER VI—DELTA REGIONAL AUTHORITY 2009aa. Definitions. 2009aa–1. Delta Regional Authority. 2009aa–2. Economic and community development grants. 2009aa–3. Supplements to Federal grant programs. 2009aa–4. Local development districts; certification and administrative expenses. 2009aa–5. Distressed counties and areas and nondis- tressed counties. 2009aa–6. Development planning process. 2009aa–7. Program development criteria. 2009aa–8. Approval of development plans and projects. 2009aa–9. Consent of States. 2009aa–10. Records. 2009aa–11. Annual report. 2009aa–12. Authorization of appropriations. 2009aa–13. Repealed. SUBCHAPTER VII—NORTHERN GREAT PLAINS REGIONAL AUTHORITY 2009bb. Definitions. 2009bb–1. Northern Great Plains Regional Authority. 2009bb–1a. Interstate cooperation for economic oppor- tunity and efficiency. 2009bb–2. Economic and community development grants. 2009bb–3. Supplements to Federal grant programs. 2009bb–4. Multistate and local development districts and organizations and Northern Great Plains Inc. 2009bb–5. Distressed counties and areas and nondis- tressed counties. 2009bb–6. Development planning process. 2009bb–7. Program development criteria. 2009bb–8. Approval of development plans and projects. 2009bb–9. Consent of States. 2009bb–10. Records. 2009bb–11. Annual report. 2009bb–12. Authorization of appropriations. 2009bb–13. Repealed. SUBCHAPTER VIII—RURAL BUSINESS INVESTMENT PROGRAM 2009cc. Definitions. 2009cc–1. Purposes. 2009cc–2. Establishment. 2009cc–3. Selection of rural business investment com- panies. 2009cc–4. Debentures. 2009cc–5. Issuance and guarantee of trust certificates. Sec. 2009cc–6. Fees. 2009cc–7. Operational assistance grants. 2009cc–8. Rural business investment companies. 2009cc–9. Financial institution investments. 2009cc–10. Reporting requirements. 2009cc–11. Examinations. 2009cc–12. Injunctions and other orders. 2009cc–13. Additional penalties for noncompliance. 2009cc–14. Unlawful acts and omissions; breach of fidu- ciary duty. 2009cc–15. Removal or suspension of directors or offi- cers. 2009cc–16. Repealed. 2009cc–17. Regulations. 2009cc–18. Authorization of appropriations. SUBCHAPTER IX—RURAL COLLABORATIVE INVESTMENT PROGRAM 2009dd to 2009dd–7. Repealed. SUBCHAPTER X—SEARCH GRANTS FOR SMALL COMMUNITIES 2009ee to 2009ee–3. Repealed. § 1921. Congressional findings The Congress finds that the statutory author- ity of the Secretary of Agriculture, hereinafter referred to in this chapter as the ‘‘Secretary,’’ for making and insuring loans to farmers and ranchers should be revised and consolidated to provide for more effective credit services to farmers. (Pub. L. 87–128, title III, § 301(b), Aug. 8, 1961, 75 Stat. 307.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out below and Ta- bles. CODIFICATION Section is comprised of subsec. (b) of section 301 of Pub. L. 87–128. Subsec. (a) of such section 301 is set out as a Short Title note below. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Former section 300.1 of Title 6, Code of Federal Regu- lations, promulgated on Oct. 15, 1961, by the Adminis- trator of the Farmers Home Administration, published in 26 F.R. 10031, provided: ‘‘The Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1921) [this chapter], is hereby made effective on October 15, 1961, except (a) as to its authorizations to make and sell in- sured loans with 41⁄2 percent yield to the lender and a three-year repurchase agreement which was made ef- fective by regulations issued on September 13, 1961 (26 F.R. 9307), pursuant to assignment of functions con- tained in 26 F.R. 7888, and (b) that the provisions of Title IV of the Bankhead-Jones Farm Tenant Act which requires mineral reservations in lands disposed of under Title III of that Act [sections 1010 to 1012 and 1013a of this title] shall not become effective until De- cember 7, 1961.’’ See section 341(a) of Pub. L. 87–128, set out as a note under this section. SHORT TITLE OF 2000 AMENDMENT Pub. L. 106–554, § 1(a)(4) [div. B, title V, § 501], Dec. 21, 2000, 114 Stat. 2763, 2763A–268, provided that: ‘‘This title Page 1057 TITLE 7—AGRICULTURE § 1921 [enacting subchapter VI of this chapter and amending provisions set out as a note under section 3121 of Title 42, The Public Health and Welfare] may be cited as the ‘Delta Regional Authority Act of 2000’.’’ SHORT TITLE OF 1994 AMENDMENT Pub. L. 103–248, § 1, May 11, 1994, 108 Stat. 619, provided that: ‘‘This Act [amending section 1981 of this title] may be cited as the ‘Farmers Home Administration Im- provement Act of 1994’.’’ SHORT TITLE OF 1992 AMENDMENT Pub. L. 102–554, § 1(a), Oct. 28, 1992, 106 Stat. 4142, pro- vided that: ‘‘This Act [enacting sections 1935, 1936, 1948, 1949, and 2008d of this title, amending sections 1925, 1926c, 1929, 1932, 1981d, 1982, 1983, 1983a, 1985, 1989, 1991, 1994, 2003, and 5102 of this title, and enacting provisions set out as notes under sections 1929 and 1989 of this title] may be cited as the ‘Agricultural Credit Improve- ment Act of 1992’.’’ SHORT TITLE OF 1990 AMENDMENT Pub. L. 101–624, title XXIII, § 2301, Nov. 28, 1990, 104 Stat. 3979, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Rural Economic De- velopment Act of 1990’.’’ SHORT TITLE OF 1986 AMENDMENT Pub. L. 99–409, § 1, Aug. 28, 1986, 100 Stat. 923, provided: ‘‘That this Act [amending section 1932 of this title and enacting provisions set out as a note under section 1932 of this title] may be cited as the ‘Rural Industrial As- sistance Act of 1986’.’’ SHORT TITLE OF 1984 AMENDMENT Pub. L. 98–258, title VI, § 601, Apr. 10, 1984, 98 Stat. 138, provided that: ‘‘This title [enacting section 1981b of this title, amending sections 1943, 1946, 1961, 1964, 1986, and 1994 of this title, enacting provisions set out as notes under sections 1961 and 1981 of this title, and amending provisions set out as a note preceding section 1961 of this title] may be cited as the ‘Emergency Agri- cultural Credit Act of 1984’.’’ SHORT TITLE OF 1978 AMENDMENT Pub. L. 95–334, § 1, Aug. 4, 1978, 92 Stat. 420, provided: ‘‘That this Act [enacting sections 1929b, 1934, 1981a, 1994, and 1995 of this title and sections 2201 to 2205 of Title 16, Conservation, amending sections 1309, 1922, 1924 to 1927, 1929, 1929a, 1932, 1941 to 1943, 1946, 1961, 1964, 1968, 1981, 1983, 1991, and 2908 of this title, repealing sec- tion 1965 of this title, and enacting provisions set out as notes under this section and sections 1309, 1926, pre- ceding 1961, and 1964 of this title and section 2201 of Title 16] may be cited as the ‘Agricultural Credit Act of 1978’.’’ SHORT TITLE OF 1972 AMENDMENT Pub. L. 92–419, § 1, Aug. 30, 1972, 86 Stat. 657, provided: ‘‘That this Act [enacting sections 1010a, 1929a, 1931 to 1933, 1947, 1992, 2204a, 2212a, 2651 to 2654, and 2661 to 2668 of this title, amending sections 1006a, 1011, 1924 to 1927, 1929, 1941 to 1943, 1981, 1983, 1985, 1991, 2201, and 2204 of this title, section 5315 of Title 5, Government Organiza- tion and Employees, sections 590g, 590h, 590o, and 1001 to 1005 of Title 16, Conservation, and section 3122 of Title 42, The Public Health and Welfare, and amending provisions set out as a note under this section] may be cited as the ‘Rural Development Act of 1972’.’’ SHORT TITLE Pub. L. 87–128, title III, § 301(a), Aug. 8, 1961, 75 Stat. 307, as amended by Pub. L. 92–419, title I, § 101, Aug. 30, 1972, 86 Stat. 657, provided that: ‘‘This title [enacting this section and sections 1013a, 1922 to 1933, 1941 to 1947, 1961 to 1968, 1969, 1970, 1971, and 1981 to 1993 of this title, amending sections 1924 to 1927, 1929, 1941 to 1943, 1981, 1983, 1985, and 1991 of this title, repealing sections 1001 to 1005d, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1027 to 1029 of this title, sections 1148a–1 to 1148a–3 of Title 12, Banks and Banking, and sections 590r to 590x–4 of Title 16, Conservation, and enacting provisions set out as a note under this section] may be cited as the ‘Con- solidated Farm and Rural Development Act’.’’ FARM LOAN ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS AND RANCHERS Pub. L. 117–2, title I, § 1005, Mar. 11, 2021, 135 Stat. 12, which related to loan modifications and payments for socially disadvantaged farmers and ranchers, was re- pealed by Pub. L. 117–169, title II, § 22008, Aug. 16, 2022, 136 Stat. 2023. REGULATIONS Pub. L. 101–624, title XXIII, § 2396, Nov. 28, 1990, 104 Stat. 4058, provided that: ‘‘Except as otherwise provided in this title [see Short Title of 1990 Amendment note set out above], no later than 180 days after the date of the enactment of this Act [Nov. 28, 1990], the Secretary shall promulgate such regulations as may be necessary to carry out this title and the amendments made by this title.’’ PRESERVATION OF ELIGIBILITY FOR CREDIT ASSISTANCE UNDER FEDERAL LAW Pub. L. 101–624, title XXIII, § 2395, Nov. 28, 1990, 104 Stat. 4058, provided that: ‘‘Notwithstanding any other provision of law, this title [see Short Title of 1990 Amendment note set out above] shall not be construed to adversely affect the eligibility, as it existed on the date of enactment of this Act [Nov. 28, 1990], of coopera- tives and other entities for any other credit assistance under Federal law.’’ USE OF QUALIFIED PERSONNEL BY THE DEPARTMENT OF AGRICULTURE Pub. L. 95–334, title I, § 126, Aug. 4, 1978, 92 Stat. 429, provided that: ‘‘It is the sense of Congress that, in car- rying out the provisions of the Consolidated Farm and Rural Development Act [see Short Title note set out above], the Secretary of Agriculture should ensure that— ‘‘(1) only officers and employees of the Department of Agriculture who are adequately prepared to under- stand the particular needs and problems of farmers in an area are assigned to such area; and ‘‘(2) a high priority is placed on keeping existing farm operations operating.’’ REFERENCES IN OTHER LAWS TO BANKHEAD-JONES FARM TENANT ACT OR WATER FACILITIES ACT; RE- PEALS; SAVINGS AND SEPARABILITY PROVISIONS Pub. L. 87–128, title III, § 341, Aug. 8, 1961, 75 Stat. 318, provided that: ‘‘(a) Reference to any provisions of the Bankhead- Jones Farm Tenant Act [see section 1000 of this title] or the Act of August 28, 1937 (50 Stat. 869), as amended, superseded by any provision of this title [this chapter] shall be construed as referring to the appropriate provi- sion of this title [this chapter]. Titles I, II, and IV of the Bankhead-Jones Farm Tenant Act, as amended, and the Act of August 28, 1937 (50 Stat. 869), as amend- ed, the Act of April 6, 1949 (63 Stat. 43), as amended, and the Act of August 31, 1954 (68 Stat. 999), as amended, are hereby repealed effective one hundred and twenty days after enactment hereof [Aug. 8, 1961], or such earlier date as the provisions of this title [this chapter] are made effective by the Secretary’s regulations except that the repeal of section 2(c) of the Act of April 6, 1949, shall not be effective prior to January 1, 1962. The fore- going provisions shall not have the effect of repealing the amendments to section 24, chapter 6 of the Federal Reserve Act [section 371 of Title 12], as amended, sec- tion 5200 of the Revised Statutes [section 84 of Title 12], section 35 of chapter III of the Act approved June 19, 1934 (D.C. Code, title 35, section 535), enacted by section 15 of the Bankhead-Jones Farm Tenant Act, as amend- Page 1058 TITLE 7—AGRICULTURE § 1922 ed, and by section 10(f) of the Act of August 28, 1937 (50 Stat. 869), as amended. ‘‘(b) The repeal of any provision of law by this title [this chapter] shall not— ‘‘(1) affect the validity of any action taken or obli- gation entered into pursuant to the authority of any of said Acts, or ‘‘(2) prejudice the application of any person with re- spect to receiving assistance under the provisions of this title [this chapter], solely because such person is obligated to the Secretary under authorization con- tained in any such repealed provision. ‘‘(c) If any provision of this title [this chapter] or the application thereof to any person or circumstances is held invalid, the remainder of the title [this chapter] and the application of such provision to other persons or circumstances shall not be affected thereby.’’ SUBCHAPTER I—REAL ESTATE LOANS § 1922. Persons eligible for real estate loans (a) In general (1) Eligibility requirements The Secretary may make and insure loans under this subchapter to farmers and ranchers in the United States, and to farm cooperatives and private domestic corporations, partner- ships, joint operations, trusts, limited liabil- ity companies, and such other legal entities as the Secretary considers appropriate, that are controlled by farmers and ranchers and en- gaged primarily and directly in farming or ranching in the United States, subject to the conditions specified in this section. To be eli- gible for such loans, applicants who are indi- viduals, or, in the case of cooperatives, cor- porations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, individuals holding a ma- jority interest in such entity, must (A) be citi- zens of the United States, (B) for direct loans only, have either training or farming experi- ence that the Secretary determines is suffi- cient to assure reasonable prospects of success in the proposed farming operations, taking into consideration all farming experience of the applicant, without regard to any lapse be- tween farming experiences, (C) be or will be- come owner-operators of not larger than fam- ily farms (or in the case of cooperatives, cor- porations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities in which a majority inter- est is held by individuals who are related by blood or marriage, as defined by the Sec- retary, such individuals must be or will be- come either owners or operators of not larger than a family farm and at least one such indi- vidual must be or will become an operator of not larger than a family farm or, in the case of holders of the entire interest who are re- lated by blood or marriage and all of whom are or will become farm operators, the ownership interest of each such holder separately con- stitutes not larger than a family farm, even if their interests collectively constitute larger than a family farm, as defined by the Sec- retary), and (D) be unable to obtain sufficient credit elsewhere to finance their actual needs at reasonable rates and terms, taking into consideration prevailing private and coopera- tive rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time. In addi- tion to the foregoing requirements of this sec- tion, in the case of corporations, partnerships, joint operations, trusts, limited liability com- panies, and such other legal entities, the fam- ily farm requirement of subparagraph (C) of the preceding sentence shall apply as well to the farm or farms in which the entity has an ownership and operator interest and the re- quirement of subparagraph (D) of the pre- ceding sentence shall apply as well to the enti- ty in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal enti- ties. (2) Special rules (A) Eligibility of certain operating-only enti- ties An entity that is or will become only the operator of a family farm shall be considered to meet the owner-operator requirements of paragraph (1) if the individuals that are the owners of the family farm own more than 50 percent (or such other percentage as the Secretary determines is appropriate) of the entity. (B) Eligibility of certain embedded entities An entity that is an owner-operator de- scribed in paragraph (1), or an operator de- scribed in subparagraph (A) of this para- graph that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or in- directly by the individuals that own the family farm. (b) Direct loans (1) In general Subject to paragraph (3), the Secretary may make a direct loan under this subchapter only to a farmer or rancher who has participated in the business operations of a farm or ranch for not less than 3 years or has other acceptable experience for a period of time, as determined by the Secretary, and— (A) is a qualified beginning farmer or rancher; (B) has not received a previous direct farm ownership loan made under this subchapter; or (C) has not received a direct farm owner- ship loan under this subchapter more than 10 years before the date the new loan would be made. (2) Youth loans The operation of an enterprise by a youth under section 1941(b) of this title shall not be considered the operation of a farm or ranch for purposes of paragraph (1). (3) Transition rule (A) In general Subject to subparagraphs (B) and (C), the Secretary may make a direct loan under this subchapter to a farmer or rancher who has a