[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4535 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4535

To amend the Consolidated Farm and Rural Development Act to improve the 
agricultural credit programs of the Department of Agriculture, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2000

 Mrs. Clayton introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To amend the Consolidated Farm and Rural Development Act to improve the 
agricultural credit programs of the Department of Agriculture, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safe and Fair Farm Aid Bill''.

SEC. 2. DEFINITION OF DEBT FORGIVENESS.

    Section 343(a)(12)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as 
follows:
                    ``(B) Exceptions.--The term `debt forgiveness' does 
                not include--
                            ``(i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan;
                            ``(ii) a write-down during the lifetime of 
                        the borrower that is due to a financial problem 
                        of the borrower relating to a natural disaster 
                        in the United States found by the Secretary or 
                        a major disaster or emergency designated by the 
                        President under the Disaster Relief and 
                        Emergency Assistance Act, or a medical 
                        condition of the borrower which incapacitates 
                        the borrower or which is a chronic disease of 
                        the borrower or an immediate family member of 
                        the borrower (or, in the case of a borrower 
                        that is an entity, a principal owner of the 
                        borrower or an immediate family member of such 
                        an owner), as certified by a physician; or
                            ``(iii) any write-down provided as a part 
                        of a resolution of a discrimination complaint 
                        against the Secretary.''.

SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

    Section 373(b) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008h(b)) is amended to read as follows:
    ``(b) Loans Prohibited for Certain Borrowers Who Have Received Debt 
Forgiveness.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may not make or guarantee a loan under subtitle A or 
        B to a borrower who, on more than 2 occasions, received debt 
        forgiveness on a loan made or guaranteed under this title.
            ``(2) Exceptions.--The Secretary may make a direct or 
        guaranteed farm operating loan for paying annual farm or ranch 
        operating expenses of a borrower who--
                    ``(A) was restructured with a write-down under 
                section 353; or
                    ``(B) is current on payments under a confirmed 
                reorganization plan under chapter 11, 12, or 13 of 
                title 11, United States Code.''.

SEC. 4. MARGIN REQUIREMENTS.

    (a) Eligibility for Farmer Program Loan Guarantees.--Section 
339(b)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1989(b)(3)) is amended by striking ``, including expenses of replacing 
capital items (determined after taking into account depreciation of the 
items)''; and
    (b) Restructured Loan Valuation Determinations.--Section 
353(c)(3)(C) of such Act (7 U.S.C. 2001(c)(3)(C)) is amended by 
striking ``100 percent'' and inserting ``110 percent''.

SEC. 5. POOLING OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS AND 
              RANCHERS.

    Section 355(c)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2003(c)(2)) is amended to read as follows:
            ``(2) Reservation and distribution.--At the beginning of 
        each fiscal year, the Secretary shall reserve the proportion of 
        each State's loan funds made available under subtitle B for the 
        fiscal year equal to the State's target participation rate, 
        pool the total so derived, and, throughout the year, distribute 
        the total amount so derived on a county-by-county basis, and on 
        an as-needed basis, for use by socially disadvantaged farmers 
        and ranchers throughout the United States.''.

SEC. 6. EXCEPTION TO TERM LIMITS ON OPERATING LOANS ONLY FOR DISASTERS 
              OR EMERGENCIES.

    (a) Direct Operating Loans.--Section 311(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Subject to paragraph (3), the'' 
                and inserting ``The'';
                    (B) in subparagraph (B), by striking ``or'';
                    (C) in subparagraph (C), by striking the period and 
                inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(D) is operating in an area which, during the 
                previous or current crop year--
                            ``(i) the Secretary finds has been affected 
                        by a natural disaster in the United States or 
                        by a major disaster or emergency designated by 
                        the President under the Disaster Relief and 
                        Emergency Assistance Act; or
                            ``(ii) has suffered from an economic 
                        emergency, affecting 2 or more States, due to 
                        unusually severe drought, extreme plant disease 
                        which causes significant crop loss, or severe 
flooding, as determined by the Secretary.''; and
            (2) by striking paragraph (3).
    (b) Guaranteed Operating Loans.--Section 319(b)(2) of such Act (7 
U.S.C. 1949(b)(2)) is amended to read as follows:
            ``(2) Disasters and emergencies.--A farmer or rancher shall 
        be eligible to receive a guaranteed operating loan under this 
        subtitle if the borrower is operating in an area which, during 
        the preceding or current crop year--
                    ``(A) the Secretary finds has been affected by a 
                natural disaster in the United States or by a major 
                disaster or emergency designated by the President under 
                the Disaster Relief and Emergency Assistance Act; or
                    ``(B) has suffered from an economic emergency, as 
                determined by the Secretary.''.

SEC. 7. PERCENTAGE OF RECAPTURE FOR SHARED APPRECIATION ARRANGEMENT.

    (a) In General.--Section 353(e)(3) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2001(e)(3)) is amended by striking ``, 
and 50'' and inserting ``, 50 percent if the recapture occurs after 4 
years and within 8 years after the restructuring, and 35''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to shared appreciation arrangements with respect to which 
recapture has not occurred, regardless of whether the arrangements were 
entered into before, on, or after the date of the enactment of this 
Act.

SEC. 8. TECHNICAL CORRECTION.

    Section 353 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2001) is amended--
            (1) by striking subsection (m); and
            (2) by redesignating subsections (n) and (o) as subsections 
        (m) and (n), respectively.
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