7 U.S.C. § 1983b — Beginning farmer and rancher indi-

Page 1134 TITLE 7—AGRICULTURE § 1983b (ii) the form minimizes the documenta- tion required to accompany the form; (iii) the cost of completing and proc- essing the form is minimal; and (iv) the form can be completed and proc- essed in an expeditious manner. (h) Simplified application forms Except as provided in subsection (g)(2), the Secretary shall, to the maximum extent prac- ticable, develop a simplified application process, including a single page application if prac- ticable, for grants and relending authorized under sections 1926, 1926c, 1926d, 1926e, 1932(b), 1932(c), 1932(e), 1936b, 2008p, and 2008s of this title. (Pub. L. 87–128, title III, § 333A, as added Pub. L. 99–198, title XIII, § 1312(a), Dec. 23, 1985, 99 Stat. 1524; amended Pub. L. 101–624, title XVIII, § 1811, title XXIII, § 2388(f), Nov. 28, 1990, 104 Stat. 3821, 4053; Pub. L. 102–554, §§ 13–15, Oct. 28, 1992, 106 Stat. 4152, 4153; Pub. L. 104–127, title VI, § 637, Apr. 4, 1996, 110 Stat. 1093; Pub. L. 107–171, title V, § 5307, title VI, § 6019, May 13, 2002, 116 Stat. 345, 362; Pub. L. 110–234, title VI, § 6012(b)(3), May 22, 2008, 122 Stat. 1165; Pub. L. 110–246, § 4(a), title VI, § 6012(b)(3), June 18, 2008, 122 Stat. 1664, 1927; Pub. L. 113–79, title VI, § 6020(a), Feb. 7, 2014, 128 Stat. 847; Pub. L. 115–334, title V, § 5401(c)(1), title VI, § 6601(a)(2), Dec. 20, 2018, 132 Stat. 4674, 4776.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a), (b)(1), (c), (f)(1)(B), and (g)(1), was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Devel- opment Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2018—Subsec. (f)(1)(A). Pub. L. 115–334, § 5401(c)(1), made technical amendment to reference in original act which appears in text as reference to section 1989 of this title. Subsec. (h). Pub. L. 115–334, § 6601(a)(2), struck out ‘‘1932(f),’’ after ‘‘1932(e),’’. 2014—Subsec. (h). Pub. L. 113–79 added subsec. (h). 2008—Subsec. (g)(1)(B). Pub. L. 110–246, § 6012(b)(3), substituted ‘‘1932(a)(2)(A)’’ for ‘‘1932(a)(1)’’ in introduc- tory provisions. 2002—Subsec. (g). Pub. L. 107–171, § 6019, added subsec. (g) and struck out former subsec. (g) which read as fol- lows: ‘‘(1) The Secretary shall provide to lenders a short, simplified application form for guarantees under this chapter of loans the principal amount of which is $125,000 or less. ‘‘(2) In developing the application, the Secretary shall— ‘‘(A) consult with commercial and cooperative lend- ers; and ‘‘(B) ensure that— ‘‘(i) the form can be completed manually or elec- tronically, at the option of the lender; ‘‘(ii) the form minimizes the documentation re- quired to accompany the form; ‘‘(iii) the cost of completing and processing the form is minimal; and ‘‘(iv) the form can be completed and processed in an expeditious manner.’’ Subsec. (g)(1). Pub. L. 107–171, § 5307, substituted ‘‘$125,000’’ for ‘‘$50,000’’. 1996—Subsec. (f)(4). Pub. L. 104–127, § 637(1), inserted heading. Subsec. (f)(4)(A). Pub. L. 104–127, § 637(1), designated first sentence of par. (4) as subpar. (A), inserted head- ing, and directed the substitution of ‘‘The Secretary shall provide a prospectus of a seasoned’’ for ‘‘With’’ and all that follows through ‘‘seasoned’’, which was ex- ecuted by making the substitution for all that follows through ‘‘seasoned’’ the first place appearing resulting in making the substitution for ‘‘With the approval of the borrower, the Secretary shall provide the pro- spectus of the seasoned’’, to reflect the probable intent of Congress. Subsec. (f)(4)(B), (C). Pub. L. 104–127, § 637(2), added subpar. (B), designated second sentence of par. (4) as subpar. (C), and inserted heading. 1992—Subsec. (a)(2). Pub. L. 102–554, § 13, designated existing provisions as subpar. (A), inserted ‘‘(other than under subchapter II of this chapter)’’ after ‘‘under this chapter’’, and added subpar. (B). Subsec. (f). Pub. L. 102–554, § 14, added subsec. (f). Subsec. (g). Pub. L. 102–554, § 15, added subsec. (g). 1990—Subsec. (a)(4). Pub. L. 101–624, § 1811, added par. (4). Subsec. (c). Pub. L. 101–624, § 2388(f), substituted ‘‘If’’ for ‘‘In’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–334, title V, § 5401(c)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: ‘‘The amendment made by this subsection [amending this section] shall take ef- fect as if included in the enactment of section 14 of the Agricultural Credit Improvement Act of 1992 (Public Law 102–554).’’ 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 Effective Date note under section 8701 of this title. EFFECTIVE DATE Pub. L. 99–198, title XIII, § 1312(b), Dec. 23, 1985, 99 Stat. 1525, provided that: ‘‘The amendment made by subsection (a) [enacting this section] shall be effective with respect to applications for loans or loan guaran- tees under the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1921 et seq.) received by the Sec- retary of Agriculture after the date of enactment of this Act [Dec. 23, 1985].’’ § 1983b. Beginning farmer and rancher indi- vidual development accounts pilot program (a) Definitions In this section: (1) Demonstration program The term ‘‘demonstration program’’ means a demonstration program carried out by a quali- fied entity under the pilot program estab- lished in subsection (b)(1). (2) Eligible participant The term ‘‘eligible participant’’ means a qualified beginning farmer or rancher that— (A) lacks significant financial resources or assets; and Page 1135 TITLE 7—AGRICULTURE § 1983b (B) has an income that is less than— (i) 80 percent of the median income of the State in which the farmer or rancher resides; or (ii) 200 percent of the most recent annual Federal Poverty Income Guidelines pub- lished by the Department of Health and Human Services for the State. (3) Individual development account The term ‘‘individual development account’’ means a savings account described in sub- section (b)(4)(A). (4) Qualified entity (A) In general The term ‘‘qualified entity’’ means— (i) 1 or more organizations— (I) described in section 501(c)(3) of title 26; and (II) exempt from taxation under sec- tion 501(a) of such title; or (ii) a State, local, or tribal government submitting an application jointly with an organization described in clause (i). (B) No prohibition on collaboration An organization described in subparagraph (A)(i) may collaborate with a financial insti- tution or for-profit community development corporation to carry out the purposes of this section. (b) Pilot program (1) In general The Secretary shall establish a pilot pro- gram to be known as the ‘‘New Farmer Indi- vidual Development Accounts Pilot Program’’ under which the Secretary shall work through qualified entities to establish demonstration programs— (A) of at least 5 years in duration; and (B) in at least 15 States. (2) Coordination The Secretary shall operate the pilot pro- gram through, and in coordination with the farm loan programs of, the Farm Service Agency. (3) Reserve funds (A) In general A qualified entity carrying out a dem- onstration program under this section shall establish a reserve fund consisting of a non- Federal match of 50 percent of the total amount of the grant awarded to the dem- onstration program under this section. (B) Federal funds After the qualified entity has deposited the non-Federal matching funds described in subparagraph (A) in the reserve fund, the Secretary shall provide the total amount of the grant awarded under this section to the demonstration program for deposit in the re- serve fund. (C) Use of funds Of the funds deposited under subparagraph (B) in the reserve fund established for a dem- onstration program, the qualified entity car- rying out the demonstration program— (i) may use up to 10 percent for adminis- trative expenses; and (ii) shall use the remainder in making matching awards described in paragraph (4)(B)(ii)(I). (D) Interest Any interest earned on amounts in a re- serve fund established under subparagraph (A) may be used by the qualified entity as additional matching funds for, or to admin- ister, the demonstration program. (E) Guidance The Secretary shall issue guidance regard- ing the investment requirements of reserve funds established under this paragraph. (F) Reversion On the date on which all funds remaining in any individual development account es- tablished by a qualified entity have reverted under paragraph (5)(B)(ii) to the reserve fund established by the qualified entity, there shall revert to the Treasury of the United States a percentage of the amount (if any) in the reserve fund equal to— (i) the amount of Federal funds deposited in the reserve fund under subparagraph (B) that were not used for administrative ex- penses; divided by (ii) the total amount of funds deposited in the reserve fund. (4) Individual development accounts (A) In general A qualified entity receiving a grant under this section shall establish and administer individual development accounts for eligible participants. (B) Contract requirements To be eligible to receive funds under this section from a qualified entity, an eligible participant shall enter into a contract with only 1 qualified entity under which— (i) the eligible participant agrees— (I) to deposit a certain amount of funds of the eligible participant in a personal savings account, as prescribed by the contractual agreement between the eli- gible participant and the qualified enti- ty; (II) to use the funds described in sub- clause (I) only for 1 or more eligible ex- penditures described in paragraph (5)(A); and (III) to complete financial training; and (ii) the qualified entity agrees— (I) to deposit, not later than 1 month after an amount is deposited pursuant to clause (i)(I), at least a 100-percent, and up to a 200-percent, match of that amount into the individual development account established for the eligible par- ticipant; and (II) with uses of funds proposed by the eligible participant. (C) Limitation (i) In general A qualified entity administering a dem- onstration program under this section may Page 1136 TITLE 7—AGRICULTURE § 1983b provide not more than $6,000 for each fiscal year in matching funds to the individual development account established by the qualified entity for an eligible participant. (ii) Treatment of amount An amount provided under clause (i) shall not be considered to be a gift or loan for mortgage purposes. (5) Eligible expenditures (A) In general An eligible expenditure described in this subparagraph is an expenditure— (i) to purchase farmland or make a down payment on an accepted purchase offer for farmland; (ii) to make mortgage payments on farmland purchased pursuant to clause (i), for up to 180 days after the date of the pur- chase; (iii) to purchase breeding stock, fruit or nut trees, or trees to harvest for timber; and (iv) for other similar expenditures, as de- termined by the Secretary. (B) Timing (i) In general An eligible participant may make an eli- gible expenditure at any time during the 2- year period beginning on the date on which the last matching funds are provided under paragraph (4)(B)(ii)(I) to the individual de- velopment account established for the eli- gible participant. (ii) Unexpended funds At the end of the period described in clause (i), any funds remaining in an indi- vidual development account established for an eligible participant shall revert to the reserve fund of the demonstration pro- gram under which the account was estab- lished. (c) Applications (1) In general A qualified entity that seeks to carry out a demonstration program under this section may submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may prescribe. (2) Criteria In considering whether to approve an appli- cation to carry out a demonstration program under this section, the Secretary shall assess— (A) the degree to which the demonstration program described in the application is like- ly to aid eligible participants in successfully pursuing new farming opportunities; (B) the experience and ability of the quali- fied entity to responsibly administer the demonstration program; (C) the experience and ability of the quali- fied entity in recruiting, educating, and as- sisting eligible participants to increase eco- nomic independence and pursue or advance farming opportunities; (D) the aggregate amount of direct funds from non-Federal public sector and private sources that are formally committed to the demonstration program as matching con- tributions; (E) the adequacy of the plan of the quali- fied entity to provide information relevant to an evaluation of the demonstration pro- gram; and (F) such other factors as the Secretary considers to be appropriate. (3) Preferences In considering an application to conduct a demonstration program under this section, the Secretary shall give preference to an applica- tion from a qualified entity that dem- onstrates— (A) a track record of serving clients tar- geted by the program, including, as appro- priate, socially disadvantaged farmers or ranchers (as defined in section 2003(e)(2) of this title); and (B) expertise in dealing with financial management aspects of farming. (4) Approval Not later than 1 year after the date of enact- ment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary con- siders appropriate. (5) Term of authority If the Secretary approves an application to carry out a demonstration program, the Sec- retary shall authorize the applicant to carry out the project for a period of 5 years, plus an additional 2 years to make eligible expendi- tures in accordance with subsection (b)(5)(B). (d) Grant authority (1) In general The Secretary shall make a grant to a quali- fied entity authorized to carry out a dem- onstration program under this section. (2) Maximum amount of grants The aggregate amount of grant funds pro- vided to a demonstration program carried out under this section shall not exceed $250,000. (3) Timing of grant payments The Secretary shall pay the amounts award- ed under a grant made under this section— (A) on the awarding of the grant; or (B) pursuant to such payment plan as the qualified entity may specify. (e) Reports (1) Annual progress reports (A) In general Not later than 60 days after the end of the calendar year in which the Secretary au- thorizes a qualified entity to carry out a demonstration program under this section, and annually thereafter until the conclusion of the demonstration program, the qualified entity shall prepare an annual report that includes, for the period covered by the re- port— (i) an evaluation of the progress of the demonstration program; Page 1137 TITLE 7—AGRICULTURE § 1984 (ii) information about the demonstration program, including the eligible partici- pants and the individual development ac- counts that have been established; and (iii) such other information as the Sec- retary may require. (B) Submission of reports A qualified entity shall submit each report required under subparagraph (A) to the Sec- retary. (2) Reports by the Secretary Not later than 1 year after the date on which all demonstration programs under this section are concluded, the Secretary shall submit to Congress a final report that describes the re- sults and findings of all reports and evalua- tions carried out under this section. (f) Annual review The Secretary may conduct an annual review of the financial records of a qualified entity— (1) to assess the financial soundness of the qualified entity; and (2) to determine the use of grant funds made available to the qualified entity under this section. (g) Regulations In carrying out this section, the Secretary may promulgate regulations to ensure that the program includes provisions for— (1) the termination of demonstration pro- grams; (2) control of the reserve funds in the case of such a termination; (3) transfer of demonstration programs to other qualified entities; and (4) remissions from a reserve fund to the Secretary in a case in which a demonstration program is terminated without transfer to a new qualified entity. (h) Authorization of appropriations There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2023. (Pub. L. 87–128, title III, § 333B, as added Pub. L. 110–234, title V, § 5301, May 22, 2008, 122 Stat. 1147, and Pub. L. 110–246, § 4(a), title V, § 5301, June 18, 2008, 122 Stat. 1664, 1908; amended Pub. L. 113–79, title V, § 5301, Feb. 7, 2014, 128 Stat. 839; Pub. L. 115–334, title V, § 5301, Dec. 20, 2018, 132 Stat. 4671.) Editorial Notes REFERENCES IN TEXT The date of enactment of this section, referred to in subsec. (c)(4), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. PRIOR PROVISIONS A prior section 1983b, Pub. L. 87–128, title III, § 333B, as added Pub. L. 99–198, title XIII, § 1313(a), Dec. 23, 1985, 99 Stat. 1525; amended Pub. L. 100–233, title VI, § 608, Jan. 6, 1988, 101 Stat. 1667; Pub. L. 101–624, title XVIII, § 1812, Nov. 28, 1990, 104 Stat. 3821, related to appeals from adverse decisions under the Consolidated Farm and Rural Development Act, prior to repeal by Pub. L. 103–354, title II, § 281(c), Oct. 13, 1994, 108 Stat. 3233. See section 6991 et seq. of this title. AMENDMENTS 2018—Subsec. (h). Pub. L. 115–334 substituted ‘‘2023’’ for ‘‘2018’’. 2014—Subsec. (h). Pub. L. 113–79 substituted ‘‘2018’’ for ‘‘2012’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Enactment 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 a note under section 8701 of this title. § 1983c. Provision of information to borrowers (a) In general On request of a farm borrower of a farmer pro- gram loan, the Secretary shall make available to the borrower the following: (1) One copy of each document signed by the borrower. (2) One copy of each appraisal performed with respect to the loan. (3) All documents that the Secretary other- wise is required to provide to the borrower under any law or rule of law in effect on the date of such request. (b) Construction of section Subsection (a) shall not be construed to super- sede any duty imposed on the Secretary by any law or rule of law in effect immediately before January 6, 1988, unless such duty is in direct conflict with any duty imposed by subsection (a). (Pub. L. 87–128, title III, § 333C, as added Pub. L. 100–233, title VI, § 609, Jan. 6, 1988, 101 Stat. 1668.) § 1983d. Farmer loan pilot projects (a) In general The Secretary may conduct pilot projects of limited scope and duration that are consistent with subchapter I through this subchapter to evaluate processes and techniques that may im- prove the efficiency and effectiveness of the pro- grams carried out under subchapter I through this subchapter. (b) Notification The Secretary shall— (1) not less than 60 days before the date on which the Secretary initiates a pilot project under subsection (a), submit notice of the pro- posed pilot project to the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate; and (2) consider any recommendations or feed- back provided to the Secretary in response to the notice provided under paragraph (1). (Pub. L. 87–128, title III, § 333D, as added Pub. L. 113–79, title V, § 5302, Feb. 7, 2014, 128 Stat. 839.) § 1984. Taxation All property subject to a lien held by the United States or the title to which is acquired