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7 U.S.C. § 1942 — Persons eligible for 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 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
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Source location: Title 7, Chapter 50, § 1942; 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 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 subsection, 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 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 rule** — An entity that is an operator described in paragraph (1) 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) Rural youths in 4–H Clubs, Future Farmers of America, etc.**
(1) Loans may also be made under this subchapter without regard to the requirements of clauses (2) and (3) of subsection (a) to youths to enable them to operate enterprises in connection with their participation in 4–H Clubs, Future Farmers of America, and similar organizations.
(2) A person receiving a loan under this subsection who executes a promissory note therefor shall thereby incur full personal liability for the indebtedness evidenced by such note in accordance with its terms free of any disability of minority.
(3) For loans under this subsection the Secretary may accept the personal liability of a cosigner of the promissory note in addition to the borrowers’ personal liability.
(4) **Youth enterprises not farming or ranching.—** — The operation of an enterprise by a youth under this subsection shall not be considered the operation of a farm or ranch under this chapter.
(5) **Equitable considerations for default.—**
(A) *Debt forgiveness.—*
(i) *In general.—* — The Secretary may, on a case-by-case basis, provide debt forgiveness to a borrower for a loan made under this subsection if the borrower was unable to timely repay the loan due to circumstances beyond the control of the borrower, as determined by the Secretary, including any natural disaster, act of terrorism, or other man-made disaster that results in an inordinate level of damage or disruption severely affecting the borrower.
(ii) *Eligibility for future loans.—* — Notwithstanding any other provision of law, debt forgiveness provided under this subparagraph shall not be used by any Federal agency in determining the eligibility of the borrower for any loan made or guaranteed by the agency.
(B) *Education loans.—* — Notwithstanding any other provision of law, if a borrower becomes delinquent or is provided with debt forgiveness with respect to a youth loan made under this subsection, the borrower shall not become ineligible, as a result of the delinquency or debt forgiveness, to receive loans and loan guarantees from the Federal Government to pay for education expenses of the borrower.
**(c) Direct loans**
(1) **In general** — Subject to paragraphs (3) and (4), the Secretary may make a direct loan under this subchapter only to a farmer or rancher who—
(A) is a qualified beginning farmer or rancher;
(B) has not received a previous direct operating loan made under this subchapter; or
(C) has received a previous direct operating loan made under this subchapter during 6 or fewer years.
(2) **Definition of direct operating loan** — In this subsection, the term “direct operating loan” does not include—
(A) a loan made to a youth under subsection (b); or
(B) a microloan made to a beginning farmer or rancher or a veteran farmer or rancher (as defined in section 2279(e) 11 See References in Text note below. of this title).
(3) **Transition rule** — If, as of April 4, 1996, a farmer or rancher has received a direct operating loan under this subchapter during each of 4 or more previous years, the borrower shall be eligible to receive a direct operating loan under this subchapter during 3 additional years after April 4, 1996.
(4) **Waivers**
(A) *Farm and ranch operations on tribal lands* — The Secretary shall waive the limitation under paragraph (1)(C) or (3) for a direct loan made under this subchapter to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by 1 or more security instruments that are subject to the jurisdiction of an Indian tribe if the Secretary determines that commercial credit is not generally available for such farm or ranch operations.
(B) *Other farm and ranch operations* — On a case-by-case determination not subject to administrative appeal, the Secretary may grant a borrower a waiver, 1 time only for a period of 2 years, of the limitation under paragraph (1)(C) or (3) for a direct operating loan if the borrower demonstrates to the satisfaction of the Secretary that—
(i) the borrower has a viable farm or ranch operation;
(ii) the borrower applied for commercial credit from at least 2 commercial lenders;
(iii) the borrower was unable to obtain a commercial loan (including a loan guaranteed by the Secretary); and
(iv) the borrower successfully has completed, or will complete within 1 year, borrower training under [section 2006a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2006a&num=0&edition=prelim) (from which requirement the Secretary shall not grant a waiver under [section 2006a(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2006a/f&num=0&edition=prelim)).
(5) **Annual report on term limits on direct operating loans**
(A) *In general* — The Secretary shall prepare a report annually that describes—
(i) the status of the direct operating loan program of the Department of Agriculture; and
(ii) the impact of term limits on direct loan borrowers.
(B) *Demographic information*
(i) *In general* — The report shall provide a demographic breakdown, on a State-by-State basis, of—
(I) all direct loan borrowers; and
(II) borrowers that have reached the eligibility limit for direct lending programs during the previous calendar year.
(ii) *Demographic information* — The available demographic information shall include, to the maximum extent practicable, a description of race or ethnicity, gender, age, type of farm or ranch, financial classification, number of years of indebtedness, veteran status, and other similar information, as determined by the Secretary.
(C) *Additional content* — In addition to information described in subparagraph (B), the report shall provide—
(i) a demographic analysis of the borrowers impacted by term limits;
(ii) information on the conditions impacting the direct lending portfolio of the Department of Agriculture, including impacts by region and agriculture sector, and credit availability within those regions and sectors;
(iii) to the maximum extent practicable, information on the status of borrower operations impacted by term limits; and
(iv) recommendations, if appropriate, to address any identifiable unmet credit needs.
(D) *Submission* — The Secretary shall—
(i) annually submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a copy of the report; and
(ii) make the report available to the public, including posting the report on the website of the Department of Agriculture.
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Federal law — U.S. Code and appendices · legal_authorities
The Secretary may not make, insure, or guarantee any farmer program loan to a farm borrower on the condition that the borrower waive any right under the mediation program of any State.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 2006a
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Federal law — U.S. Code and appendices · legal_authorities
The Congress finds that the statutory authority 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.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1922
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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
### Statutory Notes
Section 2009ee, Pub. L. 107–171, title VI, § 6301, May 13, 2002, 116 Stat. 421, defined terms.
Section 2009ee–1, Pub. L. 107–171, title VI, § 6302, May 13, 2002, 116 Stat. 422, related to SEARCH grant program. See [section 1926 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1926&num=0&edition=prelim).
Section 2009ee–2, Pub. L. 107–171, title VI, § 6303, May 13, 2002, 116 Stat. 424, related to annual report on projects.
Section 2009ee–3, Pub. L. 107–171, title VI, § 6304, May 13, 2002, 116 Stat. 424, related to funding.
#### Codification
Pub. L. 110–234 and Pub. L. 110–246 repealed this subchapter. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.
#### Effective Date of Repeal
Repeal of this subchapter 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 Effective Date note under [section 8701 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8701&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1921
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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
The Secretary shall establish a plan, in coordination with activities under sections 2006a, 2006b, 2006c, and 2006d of this title, to encourage each borrower with an outstanding loan under this subchapter or with respect to whom there is an outstanding guarantee under this subchapter to graduate to private commercial or other sources of credit.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1961
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Loans to private business enterprises**
(1) **Definitions** — In this subsection:
(A) *Aquaculture* — The term “aquaculture” means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes including the culture and growing of fish by private industry for the purpose of creating or augmenting publicly owned and regulated stocks of fish.
(B) *Solar energy* — The term “solar energy” means energy derived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974, as amended [[42 U.S.C. 5901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5901&num=0&edition=prelim) et seq.].
(2) **Loan purposes** — The Secretary may make and insure loans to public, private, or cooperative organizations organized for profit or nonprofit and private investment funds that invest primarily in cooperative organizations, to Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups, or to individuals for the purposes of—
(A) improving, developing, or financing business, industry, and employment (including through the financing of working capital) and improving the economic and environmental climate in rural communities, including pollution abatement and control;
(B) the conservation, development, and use of water for aquaculture purposes in rural areas;
(C) reducing the reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems (including wind energy systems and anaerobic digestors for the purpose of energy generation), including the modification of existing systems, in rural areas; and
(D) to facilita
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1933
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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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