No CRS summary available for this bill.
This section modifies eligibility requirements for direct farm ownership loans under the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)). (1) In paragraph (1), it changes the threshold for control of eligible entities by farmers and ranchers, and for majority interests held by individuals in such entities who must be owner-operators of family farms, from a majority to at least a 50 percent; and (2) in paragraph (2), it replaces subparagraphs (A) and (B) with new provisions deeming (A) qualified operators, as defined by the Secretary, to meet paragraph (1)'s operator requirement; (B) operating-only applicants to meet owner-operator requirements if one or more farm real estate owners holds at least 50 percent (or other percentage as determined by the Secretary) of the applicant; and (C) certain multi-entity ("embedded") owners to meet direct ownership requirements if at least 75 percent of interests are held directly or indirectly by qualified operators of the farm. (Thus, the changes expand access to these loans, which finance family farm purchases, improvements, and enlargements, for a broader range of individual, entity, and multi-layered applicants.)
This section modifies eligibility requirements for direct and guaranteed farm operating loans to farmers, ranchers, and certain entities under the Consolidated Farm and Rural Development Act. (These Farm Service Agency loans support family-sized operations unable to secure commercial credit for annual expenses such as seed, equipment, feed, and livestock.) Specifically, it (1) reduces the required ownership interest for controlling individuals in eligible entities to at least 50 percent (from a majority interest) in two provisions, and (2) establishes special rules deeming (A) qualified operators, as defined by the Secretary, to meet operator requirements, and (B) operating-only entities owned at least 75 percent, directly or indirectly, by qualified operators of the relevant farm to meet direct ownership requirements.
This section revises eligibility requirements for emergency loans—available to farmers, ranchers (including equine), aquaculturists, and related entities whose operations are substantially affected by federal quarantines, natural disasters, or presidentially declared major disasters or emergencies, and who cannot obtain commercial credit elsewhere—by (1) restructuring the statutory provisions with new headings and subparagraph designations; (2) changing the required interest held by U.S. citizen owners or operators of not larger than family farms from a majority to at least 50 percent; (3) striking the additional eligibility restrictions applicable to farm cooperatives and certain other entities; and (4) adding special rules deeming (A) qualified operators (as defined by the Secretary) to meet operator requirements, (B) certain operating-only entities to meet owner-operator requirements if an owner of the real estate holds at least 50 percent (or other appropriate percentage, as determined by the Secretary) of the applicant, and (C) certain embedded entities to meet direct ownership requirements if at least 75 percent of ownership interests are held directly or indirectly by qualified operators of the relevant farm real estate.