II

105TH CONGRESS

2D SESSION S. 1774

To amend the Consolidated Farm and Rural Development Act to authorize

the Secretary of Agriculture to make guaranteed farm ownership loans

and guaranteed farm operating loans of up to $600,000, and to increase

the maximum loan amounts with inflation.

IN THE SENATE OF THE UNITED STATES

MARCH 17, 1998

Mr. LOTT (for himself and Mr. COCHRAN) 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 authorize the Secretary of Agriculture to make

guaranteed farm ownership loans and guaranteed farm

operating loans of up to $600,000, and to increase the

maximum loan amounts with inflation.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. INCREASE IN MAXIMUM AMOUNT OF GUARAN4 TEED FARM OWNERSHIP LOANS; INDEXATION

5 TO INFLATION.

6 Section 305 of the Consolidated Farm and Rural De7 velopment Act (7 U.S.C. 1925) is amended—
2

•S 1774 IS

1 (1) by striking ‘‘SEC. 305. The’’ and inserting:

2 ‘‘SEC. 305. MAXIMUM AMOUNT OF FARM OWNERSHIP

3 LOANS.

4 ‘‘(a) IN GENERAL.—The’’;

5 (2) by striking ‘‘of (1) the’’ and inserting ‘‘of—

6 ‘‘(1) the’’;

7 (3) by striking ‘‘security, or (2) in’’ and insert8 ing ‘‘security; or

9 ‘‘(2) in’’;

10 (4) by striking ‘‘$300,000’’ and inserting

11 ‘‘$600,000 (increased, beginning with fiscal year

12 1998, by the inflation percentage applicable to the

13 fiscal year in which the loan is made or insured)’’;

14 (5) by striking ‘‘In determining’’ and inserting

15 the following:

16 ‘‘(b) VALUE OF FARMS.—In determining’’; and

17 (6) by adding at the end the following:

18 ‘‘(c) INFLATION PERCENTAGE.—For purposes of

19 subsection (a)(2), the inflation percentage applicable to a

20 fiscal year is the percentage (if any) by which—

21 ‘‘(1) the average of the Consumer Price Index

22 (as defined in section 1(f)(5) of the Internal Reve23 nue Code of 1986) for the 12-month period ending

24 on August 31 of the preceding fiscal year; exceeds
3

•S 1774 IS

1 ‘‘(2) the average of the Consumer Price Index

2 for the 12-month period ending on August 31,

3 1996.’’.

4 SEC. 2. INCREASE IN MAXIMUM AMOUNT OF GUARANTEED

5 FARM OPERATING LOANS; INDEXATION TO

6 INFLATION.

7 Section 313 of the Consolidated Farm and Rural De8 velopment Act (7 U.S.C. 1943) is amended—

9 (1) by striking ‘‘SEC. 313. The’’ and inserting:

10 ‘‘SEC. 313. MAXIMUM AMOUNT OF FARM OPERATING

11 LOANS.

12 ‘‘(a) IN GENERAL.—The’’;

13 (2) by striking ‘‘subtitle (1) that’’ and inserting

14 ‘‘subtitle—

15 ‘‘(1) that’’;

16 (3) by striking ‘‘$400,000; or (2) for’’ and in17 serting ‘‘$600,000 (increased, beginning with fiscal

18 year 1998, by the inflation percentage applicable to

19 the fiscal year in which the loan is made or insured);

20 or

21 ‘‘(2) for’’; and

22 (4) by adding at the end the following:

23 ‘‘(b) INFLATION PERCENTAGE.—For purposes of

24 subsection (a)(1), the inflation percentage applicable to a

25 fiscal year is the percentage (if any) by which—
4

•S 1774 IS

1 ‘‘(1) the average of the Consumer Price Index

2 (as defined in section 1(f)(5) of the Internal Reve3 nue Code of 1986) for the 12-month period ending

4 on August 31 of the preceding fiscal year; exceeds

5 ‘‘(2) the average of the Consumer Price Index

6 for the 12-month period ending on August 31,

7 1996.’’.

Æ