§ 1936. Beginning farmer or rancher and socially disadvantaged farmer or rancher contract land sales program
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/usc/title-7/section-1936A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)In general The Secretary shall, in accordance with this section, guarantee a loan made by a private seller of a farm or ranch to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher (as defined in section 2003(e)(2) of this title) on a contract land sales basis.
(b)Eligibility In order to be eligible for a loan guarantee under subsection (a)—
(1)the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher shall—
(A)on the date the contract land sale that is subject of the loan is complete, own and operate the farm or ranch that is the subject of the contract land sale;
(B)have a credit history that—
(i)includes a record of satisfactory debt repayment, as determined by the Secretary; and
(ii)is acceptable to the Secretary; and
(C)demonstrate to the Secretary that the farmer or rancher, as the case may be, is unable to obtain sufficient credit without a guarantee to finance any actual need of the farmer or rancher, as the case may be, at a reasonable rate or term; and
(2)the loan shall meet applicable underwriting criteria, as determined by the Secretary.
(c)Limitations
(1)Down payment The Secretary shall not provide a loan guarantee under subsection
(a)if the contribution of the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher to the down payment for the farm or ranch that is the subject of the contract land sale would be less than 5 percent of the purchase price of the farm or ranch.
(2)Maximum purchase price The Secretary shall not provide a loan guarantee under subsection
(a)if the purchase price or the appraisal value of the farm or ranch that is the subject of the contract land sale is greater than $500,000.
(d)Period of guarantee The period during which a loan guarantee under this section is in effect shall be the 10-year period beginning with the date the guarantee is provided.
(e)Guarantee plan
(1)Selection of plan A private seller of a farm or ranch who makes a loan that is guaranteed by the Secretary under subsection
(a)may select—
(A)a prompt payment guarantee plan, which shall cover—
(i)3 amortized annual installments; or
(ii)an amount equal to 3 annual installments (including an amount equal to the total cost of any tax and insurance incurred during the period covered by the annual installments); or
(B)a standard guarantee plan, which shall cover an amount equal to 90 percent of the outstanding principal of the loan.
(2)Eligiblity 11 So in original. Probably should be “Eligibility”. for standard guarantee plan In order for a private seller to be eligible for a standard guarantee plan referred to in paragraph (1)(B), the private seller shall—
(A)secure a commercial lending institution or similar entity, as determined by the Secretary, to serve as an escrow agent; or
(B)in cooperation with the farmer or rancher, use an appropriate alternate arrangement, as determined by the Secretary.
(f)Transition from pilot program
(1)In general The Secretary may phase-in the implementation of the changes to the Beginning Farmer and Rancher and Socially Disadvantaged Farmer or Rancher Contract Land Sales Program provided for in this section.
(2)Limitation All changes to the Beginning Farmer and Rancher and Socially Disadvantaged Farmer or Rancher Contract Land Sales Program must be implemented for the 2011 Fiscal Year.
(Pub. L. 87–128, title III, § 310F, as added Pub. L. 107–171, title V, § 5006, May 13, 2002, 116 Stat. 342; amended Pub. L. 110–234, title V, § 5005, May 22, 2008, 122 Stat. 1145; Pub. L. 110–246, § 4(a), title V, § 5005, June 18, 2008, 122 Stat. 1664, 1906.)
Connections17 cite this · traces to 2
Cited by 17 sections
statutes-at-large
- Public Law 110–234To provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes
- Public Law 110–246To provide for the continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2012, and for other purposes
- Public Law 107–171To provide for the continuation of agricultural programs through fiscal year 2007, and for other purposes
- Public Law 102–554To amend the Consolidated Farm and Rural Development Act to establish a program to aid beginning farmers and ranchers and to improve the operation of the Farmers Home Administration, and to amend the Farm Credit Act of 1971, and for other purposes
- Public Law 104–127To modify the operation of certain agricultural programs
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- Pub. L. 87–128, title III, § 310F
- Pub. L. 107–171, title V, § 5006
- 116 Stat. 342
- Pub. L. 110–234, title V, § 5005
- 122 Stat. 1145
- Pub. L. 110–246, § 4(a)
- 122 Stat. 1664
- Pub. L. 110–234
- Pub. L. 110–246
- section 4(a) of Pub. L. 110–246
- Pub. L. 102–554, § 7(b)
- 106 Stat. 4146
- Pub. L. 104–127, title VI, § 616(b)
- 110 Stat. 1090
- Pub. L. 110–246, § 5005
- section 4 of Pub. L. 110–246
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§ 1936
Beginning farmer or rancher and socially disadvantaged farmer or rancher contract land sales program
Fed. Reg.×6
Bills×5
Stat.×5
Stat. Comp.×1
Pub. L.Pub. L. 87–128, title III, § 310F
Pub. L.Pub. L. 107–171, title V, § 5006
Stat.116 Stat. 342
Pub. L.Pub. L. 110–234, title V, § 5005
Stat.122 Stat. 1145
Cites 18 · showing 7Cited by 17 across 4 sources