Sec. 104. Increase in limitation on amount of direct farm ownership loans; inflation indexation of limit
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Section 305 of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1925 ) is amended to read as follows: The Secretary shall make or insure no loan under section 302, 303, 304, 310D, or 310E of this title that would cause the unpaid indebtedness under such sections of any 1 borrower to exceed the smaller of— the value of the farm or other security; or in the case of a loan other than a loan guaranteed by the Secretary, $500,000 (increased, beginning with the fiscal year 2019, by the regional farm real estate inflation percentage applicable to the region where the farm involved is located for the fiscal year in which the loan is made, and decreased by the amount of any unpaid indebtedness of the borrower on direct loans under subtitle B); or in the case of a loan guaranteed by the Secretary, $700,000 (increased, beginning with fiscal year 2000, by the cost inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subtitle B that are guaranteed by the Secretary).
In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary. For purposes of this section, the cost inflation percentage applicable to a fiscal year is the percentage (if any) by which— the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds the average of such index (as so defined) for the 12-month period ending on August 31, 1996.
For purposes of this section, the regional farm real estate inflation percentage applicable to a farm for a fiscal year is the percentage (if any) by which— the regional farm real estate inflation index developed under paragraph
(2)for the region in which the farm is located, for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds the average of the index (as so defined) for the 12-month period ending on August 31, 2018. The Secretary shall develop a regional farm real estate inflation index for measuring periodic changes in the price of farm real estate in each geographic region of the United States, using data from the National Agricultural Statistics Service. Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans. The Secretary shall not make or guarantee a microloan under this subsection that would cause the total principal indebtedness outstanding at any 1 time for microloans made under this subtitle to any 1 borrower to exceed $50,000. To the maximum extent practicable, the Secretary shall limit the administrative burdens and streamline the application and approval process for microloans under this subsection. .
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Sec. 104
Increase in limitation on amount of direct farm ownership loans; inflation indexation of limit
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