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7 U.S.C. § 1923 — Persons eligible for real estate loans
Federal law — U.S. Code and appendices · legal_authorities
**(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, partnerships, joint operations, trusts, limited liability companies, and such other legal entities as the Secretary considers appropriate, that are controlled by farmers and ranchers and engaged primarily and directly in farming or ranching in the United States, subject to the conditions specified in this section. To be eligible for such loans, applicants who are individuals, or, in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, individuals holding a majority interest in such entity, must (A) be citizens of the United States, (B) for direct loans only, have either training or farming experience that the Secretary determines is sufficient 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 between farming experiences, (C) be or will become owner-operators of not larger than family farms (or in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities in which a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary, such individuals must be or will become either owners or operators of not larger than a family farm and at least one such individual 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 related by blood or marriage and all of wh
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Source file: Laws/federal/codes/united-states-code/title-7/section-1923-persons-eligible-for-real-estate-loans--63e6783fdc.md
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Source location: Title 7, Chapter 50, § 1923; chapter-050-agricultural-credit.md
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**(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, partnerships, joint operations, trusts, limited liability companies, and such other legal entities as the Secretary considers appropriate, that are controlled by farmers and ranchers and engaged primarily and directly in farming or ranching in the United States, subject to the conditions specified in this section. To be eligible for such loans, applicants who are individuals, or, in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, individuals holding a majority interest in such entity, must (A) be citizens of the United States, (B) for direct loans only, have either training or farming experience that the Secretary determines is sufficient 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 between farming experiences, (C) be or will become owner-operators of not larger than family farms (or in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities in which a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary, such individuals must be or will become either owners or operators of not larger than a family farm and at least one such individual 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 related by blood or marriage and all of whom are or will become farm operators, the ownership interest of each such holder separately constitutes not larger than a family farm, even if their interests collectively constitute larger than a family farm, as defined by the Secretary), 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 cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time. In addition to the foregoing requirements of this section, in the case of corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities, the family 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 requirement of subparagraph (D) of the preceding sentence shall apply as well to the entity in the case of cooperatives, corporations, partnerships, joint operations, trusts, limited liability companies, and such other legal entities.
(2) **Special rules**
(A) *Eligibility of certain operating-only entities* — 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 described in paragraph (1), or an operator described in subparagraph (A) of this paragraph 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 indirectly 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 ownership 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1941/b&num=0&edition=prelim) 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 direct loan outstanding under this subchapter on April 4, 1996.
(B) *Less than 5 years* — If, as of April 4, 1996, a farmer or rancher has had a direct loan outstanding under this subchapter for less than 5 years, the Secretary shall not make a loan to the farmer or rancher under subparagraph (A) after the date that is 10 years after April 4, 1996.
(C) *5 years or more* — If, as of April 4, 1996, a farmer or rancher has had a direct loan outstanding under this subchapter for 5 years or more, the Secretary shall not make a loan to the farmer or rancher under subparagraph (A) after the date that is 5 years after April 4, 1996.
(D) *Notice* — Beginning with fiscal year 2000 not later than 12 months before a borrower will become ineligible for direct loans under this subchapter by reason of this paragraph, the Secretary shall notify the borrower of such impending ineligibility.
(4) **Waiver authority** — In the case of a qualified beginning farmer or rancher, the Secretary may—
(A) reduce the 3-year requirement in paragraph (1) to 1 or 2 years, if the farmer or rancher has—
(i) not less than 16 credit hours of post-secondary education in a field related to agriculture;
(ii) successfully completed a farm management curriculum offered by a cooperative extension service, a community college, an adult vocational agriculture program, a nonprofit organization, or a land-grant college or university;
(iii) at least 1 year of experience as hired farm labor with substantial management responsibilities;
(iv) successfully completed a farm mentorship, apprenticeship, or internship program with an emphasis on management requirements and day-to-day farm management decisions;
(v) significant business management experience;
(vi) been honorably discharged from the armed forces of the United States;
(vii) successfully repaid a youth loan made under [section 1941(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1941/b&num=0&edition=prelim); or
(viii) an established relationship with an individual who has experience in farming or ranching, or is a retired farmer or rancher, and is participating as a counselor in a Service Corps of Retired Executives program authorized under [section 637(b)(1)(B) of title 15](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637/b/1/B&num=0&edition=prelim), or with a local farm or ranch operator or organization, approved by the Secretary, that is committed to mentoring the farmer or rancher; or
(B) waive the 3-year requirement in paragraph (1) if the farmer or rancher meets the requirements of clauses (iii) and (viii) of subparagraph (A).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary may make loans to eligible entities described in subsection (b) so that the eligible entities may relend the funds to individuals and entities for the purposes described in subsection (c).
**(b) Eligible entities** Entities eligible for loans described in subsection (a) are cooperatives, credit unions, and nonprofit organizations with—
(1) certification under section 1805.201 of title 12, Code of Federal Regulations (or successor regulations), to operate as a lender;
(2) experience assisting socially disadvantaged farmers and ranchers (as defined in subsection (a) of [section 2279 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2279&num=0&edition=prelim)) or limited resource or new and beginning farmers and ranchers, rural businesses, cooperatives, or credit unions, including experience in making and servicing agricultural and commercial loans; and
(3) the ability to provide adequate assurance of the repayment of a loan.
**(c) Eligible purposes** The proceeds from loans made by the Secretary pursuant to subsection (a) shall be re-lent by eligible entities for projects that assist heirs with undivided ownership interests to resolve ownership and succession on farmland that has multiple owners.
**(d) Preference** In making loans under subsection (a), the Secretary shall give preference to eligible entities—
(1) with not less than 10 years of experience serving socially disadvantaged farmers and ranchers; and
(2) in States that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act, as approved and recommended for enactment in all States by the National Conference of Commissioners on Uniform State Laws in 2010, that relend to owners of he
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1941
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Federal law — U.S. Code and appendices · legal_authorities
Notwithstanding any other provision of this chapter, the Secretary shall ensure that farm loan guarantee programs carried out under this chapter are designed so as to be responsive to borrower and lender needs and to include provisions under reasonable terms and conditions for advances, before completion of the liquidation process, of guarantee proceeds on loans in default.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1999
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** In this section:
(1) **Agricultural commodity** — The term “agricultural commodity” has the meaning given the term in [section 5602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section5602&num=0&edition=prelim).
(2) **Geographically disadvantaged farmer or rancher** — The term “geographically disadvantaged farmer or rancher” has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 ([7 U.S.C. 2204](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2204&num=0&edition=prelim) note; Public Law 107–171).
**(b) Authorization** Subject to the availability of funds under subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).
**(c) Transportation**
(1) **In general** — Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) **Proof of eligibility** — To be eligible to receive assistance under paragraph (1), a geographically disadvantaged farmer or rancher shall demonstrate to the Secretary that transportation of the agricultural commodity or inputs occurred over a distance of more than 30 miles, as determined by the Secretary.
(3) **Amount**
(A) *In general* — Subject to paragraph (2), the amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under this section for a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically di
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 8701
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Federal law — U.S. Code and appendices · legal_authorities
Flowers and plants are an integral part of American life, contributing a natural and beautiful element, especially in urban areas, to what is increasingly a manmade, artificial environment for this country’s citizens. Providing comfort and pleasure for many special occasions as well as for everyday living, flowers and plants work against visual pollution and, in the case of green plants, generate oxygen within their environment. The flowers and plants to which this chapter refers are cut flowers, potted flowering plants, and foliage plants. These flowers and plants are produced by many individual producers throughout the United States and in foreign countries. These products move in interstate and foreign commerce, and those that do not move in such channels of commerce directly burden or affect interstate commerce of these products. The maintenance and expansion of existing markets and the development of new or improved markets and uses are vital to the welfare of flower and plant producers, brokers, wholesalers, and retailers throughout the Nation. The floral industry within the United States is comprised mainly of small- and medium-sized businesses. The producers are primarily agriculturally-oriented companies rather than promotion-oriented companies. The development and implementation of coordinated programs of research and promotion necessary for the maintenance of markets and the development of new markets have been inadequate. Without cooperative action in providing for and financing such programs, individual flower and plant producers, wholesalers, and retailers are unable to implement programs of research, consumer and producer information, and promotion necessary to maintain and improve markets for these products. It is widely recognized that it is in the publ
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 4301
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Preservation and protection of security, lien, or priority of lien securing loan** The Secretary is authorized and empowered to make advances, without regard to any loan or total indebtedness limitation, to preserve and protect the security for or the lien or priority of the lien securing any loan or other indebtedness owing to, insured by, or acquired by the Secretary under this chapter or under any other programs administered by the Farmers Home Administration or the Rural Development Administration; to bid for and purchase at any execution, foreclosure, or other sale or otherwise to acquire property upon which the United States has a lien by reason of a judgment or execution arising from, or which is pledged, mortgaged, conveyed, attached, or levied upon to secure the payment of, any such indebtedness whether or not such property is subject to other liens, to accept title to any property so purchased or acquired; and to sell, manage, or otherwise dispose of such property as hereinafter provided.
**(b) Operation or lease of realty** Except as provided in subsections (c) and (e), real property administered under the provisions of this chapter may be operated or leased by the Secretary for such period or periods as the Secretary may deem necessary to protect the Government’s investment therein.
**(c) Sale of property**
(1) **In general** — Subject to this subsection and subsection (e)(1)(A), the Secretary shall offer to sell real property that is acquired by the Secretary under this chapter using the following order and method of sale:
(A) *Advertisement* — Not later than 15 days after acquiring real property, the Secretary shall publicly advertise the property for sale.
(B) *Beginning farmer or rancher; socially disadvantaged farmer or rancher*
(i)
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1986
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** As used in this chapter:
(1) The term “farmer” includes a person who is engaged in, or who, with assistance afforded under this chapter, intends to engage in, fish farming.
(2) The term “farming” shall be deemed to include fish farming.
(3) The term “owner-operator” shall include in the State of Hawaii the lessee-operator of real property in any case in which the Secretary determines that such real property cannot be acquired in fee simple by such lessee-operator, that adequate security is provided for the loan with respect to such real property for which such lessee-operator applies under this chapter, and that there is a reasonable probability of accomplishing the objectives and repayment of such loan.
(4) The word “insure” as used in this chapter includes guarantee, which means to guarantee the payment of a loan originated, held, and serviced by a private financial agency or other lender approved by the Secretary.
(5) The term “contract of insurance” includes a contract of guarantee.
(6) The terms “United States” and “State” shall include each of the several States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and, to the extent the Secretary determines it to be feasible and appropriate, the Trust Territory of the Pacific Islands.
(7) The term “joint operation” means a joint farming operation in which two or more farmers work together sharing equally or unequally land, labor, equipment, expenses, and income.
(8) The term “beginning farmer or rancher” means such term as defined by the Secretary.
(9) The term “direct loan” means a loan made or insured from funds in the account created by [section 1929 of this title](https://uscode.house.gov/view.xhtml?r
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1992
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** As a condition of obtaining any benefit (including a direct loan, loan guarantee, or payment) described in subsection (b), a borrower must obtain at least catastrophic risk protection insurance coverage under [section 1508 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1508&num=0&edition=prelim) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Corporation.
**(b) Applicable benefits** Subsection (a) shall apply to—
(1) a farm ownership loan (FO) under [section 1923 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1923&num=0&edition=prelim);
(2) an operating loan (OL) under [section 1942 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1942&num=0&edition=prelim); and
(3) an emergency loan (EM) under [section 1961 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1961&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 2008g
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Federal law — U.S. Code and appendices · legal_authorities
Page 1060
TITLE 7—AGRICULTURE
§ 1923
(2) ‘‘, partnerships, and joint operations’’ for ‘‘, and
partnerships’’ wherever appearing after ‘‘corpora-
tions’’; and
(3) ‘‘individuals’’ for ‘‘members, stockholders, or
partners, as applicable,’’ wherever appearing.
Pub. L. 99–198, § 1303, in cl. (3) parenthetical, inserted
provision treating blood or marriage related owner-op-
erators of the entire farm interest as separate interest
holders of not larger than family farms though collec-
tive ownership constitutes a larger than a family farm.
Subsec. (b). Pub. L. 99–198, § 1302(a)(2), added subsec.
(b).
1981—Pub. L. 97–98 substituted ‘‘corporations and
partnerships, the family farm’’ for ‘‘cooperatives, cor-
porations, and partnerships, the family farm’’, and in-
serted ‘‘in the case of cooperatives, corporations, and
partnerships’’ at end.
1978—Pub. L. 95–334 substituted provisions setting
forth eligibility criteria for loans to farmers and ranch-
ers in the United States, and to farm cooperatives and
private domestic corporations and partnerships con-
trolled by farmers and ranchers and engaged primarily
and directly in farming or ranching in the United
States, for provisions setting forth eligibility criteria
for loans to farmers and ranchers in the United States,
Puerto Rico, and the Virgin Islands.
1970—Pub. L. 91–620 provided that with respect to vet-
erans as defined in section 1983(e) of this title, a farm
background shall not be required as a condition prece-
dent to obtaining any loan.
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 May 22, 2008, the
date of enactment of Pub. L. 110–234, see section 4 of
Pub. L. 110–246, set out as an E
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 1923
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