Sec. 242. Conservation loan and loan guarantee program
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Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. et seq.) is amended by adding at the end the following new section: The Secretary may make or guarantee qualified conservation loans to eligible borrowers under this section. In this section: The term qualified conservation loan means a loan, the proceeds of which are used to cover the costs to the borrower of carrying out a qualified conservation project. The term qualified conservation project means conservation measures that address provisions of a comprehensive conservation plan of the eligible borrower.
The term conservation loan plan means a plan, approved by the Secretary, that, for a farming or ranching operation, identifies— the conservation activities that will be addressed with loan funds provided under this section, including— the installation of conservation structures to address soil, water, and related resources; the establishment of forest cover for sustained yield timber management, erosion control, or shelterbelt purposes; the installation of water conservation measures; the installation of waste management systems; the establishment or improvement of permanent pasture; or other purposes consistent with the plan, including the adoption of any other emerging or existing conservation practices, techniques, or technologies approved by the Secretary; and how and to what extent the conservation project will support the implementation of a comprehensive conservation plan and improve the conditions of identified priority resource concerns.
The Secretary may make or guarantee qualified conservation loans under this section to— farmers or ranchers engaged primarily and directly in agricultural production in the United States; or farm cooperatives, private domestic corporations, partnerships, joint operations, trusts, or limited liability companies that are— controlled by farmers or ranchers; and engaged primarily and directly in agricultural production in the United States. In order to be eligible to receive a loan or loan guarantee under this section, an entity described in paragraph
(1)shall have a conservation loan plan. In making or guaranteeing qualified conservation loans under this section, the Secretary shall give priority to— qualified beginning farmers or ranchers and socially disadvantaged farmers or ranchers; owners or tenants who use the loans to convert to sustainable or organic agricultural production systems; producers who use the loans to build conservation structures or establish conservation practices to implement a comprehensive conservation plan; projects that will do the most to address priority resource concerns, as specified in a conservation loan plan; and projects that are designed to help producers comply with, or avoid the need for, local, State, or Federal regulation. The portion of a qualified conservation loan that the Secretary may guarantee under this section shall be not more than 90 percent of the principal amount of the loan. The Secretary shall ensure, to the maximum extent practicable, that qualified conservation loans made or guaranteed under this section are distributed across diverse geographic regions, while still prioritizing qualified conservation projects with the greatest conservation or environmental benefit. The Secretary shall ensure proper cooperation between the Natural Resources Conservation Service, which shall review and approve comprehensive loan plans and provide technical assistance for qualified conservation projects, and the Farm Service Agency, which will approve and issue loans and loan guarantees under this section. The Secretary shall ensure that a loan made under this section is made at or below market rate. .