A bill to amend the Consolidated Farm and Rural Development Act to expand eligibility for Farm Service Agency loans.

SECTION 1. SHORT TITLE.

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

SEC. 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)''.

SEC. 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.''.

SEC. 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).

Summary: Agricultural Credit Expansion Act - Amends the Consolidated Farm and Rural Development Act to expand eligibility for Farm Service Agency operating loans, farm ownership loans, conservation loans, and emergency loans. Deems specified embedded entities eligible for farm ownership and operating loans. Deems specified operating-only entities eligible for farm ownership loans. Directs the Secretary of Agriculture (USDA) to determine that an entity that is an owner-operator or operator meets the direct ownership loan requirement if it is owned in whole or in part by other entities and each individual that is an owner of the family farm involved has an ownership interest in each of the other entities. Permits direct loans to be used to refinance Farm Service Agency loans or guaranteed loans. Eliminates the 15-year limitation on the period operating loan borrowers are eligible for guaranteed assistance.