II 112th CONGRESS 1st Session S. 1592 IN THE SENATE OF THE UNITED STATES September 21, 2011 Mrs. Gillibrand introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Consolidated Farm and Rural Development Act to expand eligibility for Farm Service Agency loans.

1.

Short title

This Act may be cited as the Agricultural Credit Expansion Act.

2.

Eligibility for farm loans

(a)

Farm ownership loans

Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended— (1)by striking (a) In general.—The and inserting the following: (a)

In general

(1)

Eligibility requirements

The ; (2)in paragraph (1) (as designated by paragraph (1))— (A)in the first sentence, by striking and limited liability companies and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate,; and (B)in the second sentence— (i)by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate; (ii)by striking (1) and inserting (A); (iii)by striking (2) and inserting (B); (iv)by striking (3) and inserting (C); and (v)by striking (4) and inserting (D); (3)in the third sentence— (A)by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate; (B)by striking (3) and inserting (C); and (C)by striking (4) and inserting (D); and (4)by adding at the end the following: (2)

Special rules regarding determinations

(A)

Eligibility of certain operating-only entities

An entity that is, or will become, only the operator of a family farm shall be determined by the Secretary to meet each owner-operator requirement described in paragraph (1) if the 1 or more individuals who are the owners of the family farm own— (i)a percentage of the family farm that exceeds 50 percent; or (ii)such other percentage that the Secretary determines to be appropriate. (B)

Eligibility of certain embedded entities

An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph (A), that is owned, in whole or in part, by 1 or more other entities, shall be determined by the Secretary to meet the direct ownership requirement described in paragraph (1) if not less than 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the 1 or more individuals who own the family farm. . (b)

Conservation loans

Section 304(c)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(c)(1)) is amended by striking or limited liability companies and inserting limited liability companies, or such other legal entities that the Secretary determines to be appropriate,. (c)

Farm operating loans

Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(a)) is amended— (1)by striking (a) In general.—The and inserting the following: (a)

In general

(1)

Eligibility requirements

The ; (2)in paragraph (1) (as designated by paragraph (1))— (A)in the first sentence, by striking and limited liability companies and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate,; and (B)in the second sentence— (i)by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate; (ii)by striking (1) and inserting (A); (iii)by striking (2) and inserting (B); (iv)by striking (3) and inserting (C); and (v)by striking (4) and inserting (D); (3)in the third sentence— (A)by striking and limited liability companies each place it appears and inserting limited liability companies, and such other legal entities that the Secretary determines to be appropriate; (B)by striking (3) and inserting (C); and (C)by striking (4) and inserting (D); and (4)by adding at the end the following: (2)

Special rules regarding determinations

An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by 1 or more other entities, shall be determined by the Secretary to meet the direct ownership requirement described in paragraph (1) if not less than 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the 1 or more individuals who own the family farm. . (d)

Emergency loans

Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended— (1)in the first sentence, in the matter preceding the proviso— (A)by striking owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for a purpose under subtitle B) each place it appears and inserting (in the case of farm ownership loans in accordance with subtitle A) owner-operators or operators, or (in the case of loans for a purpose under subtitle B) operators; (B)by striking or limited liability companies the first place it appears and inserting limited liability companies, or such other legal entities that the Secretary determines to be appropriate; and (C)by striking or limited liability companies the second place it appears and inserting limited liability companies, or such other legal entities; (2)in the second sentence of the proviso— (A)by striking and limited liability companies and inserting limited liability companies, and such other legal entities; and (B)by striking ownership and operator and inserting ownership or operator; and (3)by adding at the end the following: An entity that is an owner-operator or operator described in this subsection shall be determined by the Secretary to meet the direct ownership requirement described in this subsection if the entity is owned, in whole or in part, by 1 or more other entities and each individual who is an owner of the family farm involved has a direct or indirect ownership interest in each of the other entities.. (e)

Conforming amendments

(1)Section 304(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(c)(2)) is amended by striking paragraphs (1) and (2) of section 302(a) and inserting clauses (A) and (B) of section 302(a)(1). (2)Section 310D(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1934(a)) is amended— (A)in the first sentence, by striking paragraphs (2) through (4) of section 302 and inserting clauses (B) through (D) of section 302(a)(1); and (B)in the second sentence— (i)by striking farm cooperative or private domestic corporation or partnership and inserting farm cooperative, private domestic corporation, partnership, or such other legal entity that the Secretary determines to be appropriate,; and (ii)by striking or partners and inserting partners, or owners. (3)Section 343(a)(11) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)) is amended— (A)in subparagraph (C)— (i)by striking or joint operation and inserting joint operation, or such other legal entity that the Secretary determines to be appropriate; and (ii)by striking or joint operators and inserting joint operators, or owners; and (B)in subparagraph (D)— (i)in clause (i)(II)(aa)— (I)by striking or joint operation and inserting joint operation, or such other legal entity; and (II)by striking or joint operators and inserting joint operators, or owners; and (ii)in clause (ii)(II)(aa)— (I)by striking or joint operation and inserting joint operation, or such other legal entity; and (II)by striking or joint operators and inserting joint operators, or owners. (4)Section 359(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006a(c)(2)) is amended by striking section 302(a)(2) or 311(a)(2) and inserting clause (B) of section 302(a)(1) or clause (B) of section 311(a)(1).

3.

Purposes of certain direct loans

Section 303(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended— (1)in subparagraph (D), by striking or at the end; (2)in subparagraph (E)(ii), by striking the period at the end and inserting ; or; and (3)by adding at the end the following: (F)refinancing 1 or more loans made or guaranteed under this subtitle. .

4.

Repeal of certain loan term limits

(a)

Direct loans

Section 311 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941) is amended by striking subsection (c). (b)

Limitation on period borrowers are eligible for guaranteed assistance

Section 319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1949) is amended— (1)by striking (a) Graduation Plan.—The Secretary and inserting The Secretary; and (2)by striking subsection (b).