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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1774 Introduced in Senate (IS)]

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.

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

SECTION 1. INCREASE IN MAXIMUM AMOUNT OF GUARANTEED FARM OWNERSHIP 
              LOANS; INDEXATION TO INFLATION.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended--
            (1) by striking ``Sec. 305. The'' and inserting:

``SEC. 305. MAXIMUM AMOUNT OF FARM OWNERSHIP LOANS.

    ``(a) In General.--The'';
            (2) by striking ``of (1) the'' and inserting ``of--
            ``(1) the'';
            (3) by striking ``security, or (2) in'' and inserting 
        ``security; or
            ``(2) in'';
            (4) by striking ``$300,000'' and inserting ``$600,000 
        (increased, beginning with fiscal year 1998, by the inflation 
        percentage applicable to the fiscal year in which the loan is 
        made or insured)'';
            (5) by striking ``In determining'' and inserting the 
        following:
    ``(b) Value of Farms.--In determining''; and
            (6) by adding at the end the following:
    ``(c) Inflation Percentage.--For purposes of subsection (a)(2), the 
inflation percentage applicable to a fiscal year is the percentage (if 
any) by which--
            ``(1) the average of the Consumer Price Index (as defined 
        in section 1(f)(5) of the Internal Revenue Code of 1986) for 
        the 12-month period ending on August 31 of the preceding fiscal 
        year; exceeds
            ``(2) the average of the Consumer Price Index for the 12-
        month period ending on August 31, 1996.''.

SEC. 2. INCREASE IN MAXIMUM AMOUNT OF GUARANTEED FARM OPERATING LOANS; 
              INDEXATION TO INFLATION.

    Section 313 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1943) is amended--
            (1) by striking ``Sec. 313. The'' and inserting:

``SEC. 313. MAXIMUM AMOUNT OF FARM OPERATING LOANS.

    ``(a) In General.--The'';
            (2) by striking ``subtitle (1) that'' and inserting 
        ``subtitle--
            ``(1) that'';
            (3) by striking ``$400,000; or (2) for'' and inserting 
        ``$600,000 (increased, beginning with fiscal year 1998, by the 
        inflation percentage applicable to the fiscal year in which the 
        loan is made or insured); or
            ``(2) for''; and
            (4) by adding at the end the following:
    ``(b) Inflation Percentage.--For purposes of subsection (a)(1), the 
inflation percentage applicable to a fiscal year is the percentage (if 
any) by which--
            ``(1) the average of the Consumer Price Index (as defined 
        in section 1(f)(5) of the Internal Revenue Code of 1986) for 
        the 12-month period ending on August 31 of the preceding fiscal 
        year; exceeds
            ``(2) the average of the Consumer Price Index for the 12-
        month period ending on August 31, 1996.''.
                                 <all>
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