I
106TH CONGRESS
2D SESSION
H. R. 4535
To amend the Consolidated Farm and Rural Development Act to improve
the agricultural credit programs of the Department of Agriculture, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 24, 2000
Mrs. CLAYTON introduced the following bill; which was referred to the
Committee on Agriculture
A BILL
To amend the Consolidated Farm and Rural Development
Act to improve the agricultural credit programs of the
Department of Agriculture, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Safe and Fair Farm
Aid Bill’’.
SEC. 2. DEFINITION OF DEBT FORGIVENESS.
Section 343(a)(12)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is
amended to read as follows:
‘‘(B) EXCEPTIONS.—The term ‘debt for-
giveness’ does not include—
‘‘(i) consolidation, rescheduling, re-
amortization, or deferral of a loan;
‘‘(ii) a write-down during the lifetime
of the borrower that is due to a financial
problem of the borrower relating to a nat-
ural disaster in the United States found by
the Secretary or a major disaster or emer-
gency designated by the President under
the Disaster Relief and Emergency Assist-
ance Act, or a medical condition of the
borrower which incapacitates the borrower
or which is a chronic disease of the bor-
rower or an immediate family member of
the borrower (or, in the case of a borrower
that is an entity, a principal owner of the
borrower or an immediate family member
of such an owner), as certified by a physi-
cian; or
‘‘(iii) any write-down provided as a
part of a resolution of a discrimination
complaint against the Secretary.’’.
SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR
DEBT FORGIVENESS.
Section 373(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008h(b)) is amended to read
as follows:
‘‘(b) LOANS PROHIBITED FOR CERTAIN BORROWERS
WHO HAVE RECEIVED DEBT FORGIVENESS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may not make or guarantee
a loan under subtitle A or B to a borrower who, on
more than 2 occasions, received debt forgiveness on
a loan made or guaranteed under this title.
‘‘(2) EXCEPTIONS.—The Secretary may make a
direct or guaranteed farm operating loan for paying
annual farm or ranch operating expenses of a bor-
rower who—
‘‘(A) was restructured with a write-down
under section 353; or
‘‘(B) is current on payments under a con-
firmed reorganization plan under chapter 11,
12, or 13 of title 11, United States Code.’’.
SEC. 4. MARGIN REQUIREMENTS.
(a) ELIGIBILITY
FOR
FARMER
PROGRAM
LOAN
GUARANTEES.—Section 339(b)(3) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1989(b)(3))
is amended by striking ‘‘, including expenses of replacing
capital items (determined after taking into account depre-
ciation of the items)’’; and
(b) RESTRUCTURED LOAN VALUATION DETERMINA-
TIONS.—Section 353(c)(3)(C) of such Act (7 U.S.C.
2001(c)(3)(C)) is amended by striking ‘‘100 percent’’ and
inserting ‘‘110 percent’’.
SEC. 5. POOLING OF CERTAIN FUNDS FOR SOCIALLY DIS-
ADVANTAGED FARMERS AND RANCHERS.
Section 355(c)(2) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(c)(2)) is amended
to read as follows:
‘‘(2) RESERVATION
AND
DISTRIBUTION.—At
the beginning of each fiscal year, the Secretary shall
reserve the proportion of each State’s loan funds
made available under subtitle B for the fiscal year
equal to the State’s target participation rate, pool
the total so derived, and, throughout the year, dis-
tribute the total amount so derived on a county-by-
county basis, and on an as-needed basis, for use by
socially 
disadvantaged 
farmers 
and 
ranchers
throughout the United States.’’.
SEC. 6. EXCEPTION TO TERM LIMITS ON OPERATING
LOANS ONLY FOR DISASTERS OR EMER-
GENCIES.
(a) DIRECT OPERATING LOANS.—Section 311(c) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1941(c)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘Subject to paragraph (3),
the’’ and inserting ‘‘The’’;
(B) in subparagraph (B), by striking ‘‘or’’;
(C) in subparagraph (C), by striking the
period and inserting ‘‘; or’’; and
(D) by adding at the end the following:
‘‘(D) is operating in an area which, during
the previous or current crop year—
‘‘(i) the Secretary finds has been af-
fected by a natural disaster in the United
States or by a major disaster or emergency
designated by the President under the Dis-
aster Relief and Emergency Assistance
Act; or
‘‘(ii) has suffered from an economic
emergency, affecting 2 or more States, due
to unusually severe drought, extreme plant
disease which causes significant crop loss,
or severe flooding, as determined by the
Secretary.’’; and
(2) by striking paragraph (3).
(b) GUARANTEED
OPERATING
LOANS.—Section
319(b)(2) of such Act (7 U.S.C. 1949(b)(2)) is amended
to read as follows:
‘‘(2) DISASTERS AND EMERGENCIES.—A farmer
or rancher shall be eligible to receive a guaranteed
operating loan under this subtitle if the borrower is
operating in an area which, during the preceding or
current crop year—
‘‘(A) the Secretary finds has been affected
by a natural disaster in the United States or by
a major disaster or emergency designated by
the President under the Disaster Relief and
Emergency Assistance Act; or
‘‘(B) has suffered from an economic emer-
gency, as determined by the Secretary.’’.
SEC. 7. PERCENTAGE OF RECAPTURE FOR SHARED APPRE-
CIATION ARRANGEMENT.
(a) IN GENERAL.—Section 353(e)(3) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C.
2001(e)(3)) is amended by striking ‘‘, and 50’’ and insert-
ing ‘‘, 50 percent if the recapture occurs after 4 years
and within 8 years after the restructuring, and 35’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to shared appreciation arrange-
ments with respect to which recapture has not occurred,
regardless of whether the arrangements were entered into
before, on, or after the date of the enactment of this Act.
SEC. 8. TECHNICAL CORRECTION.
Section 353 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2001) is amended—
(1) by striking subsection (m); and
(2) by redesignating subsections (n) and (o) as
subsections (m) and (n), respectively.
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