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operate the farm or ranch that is the subject of 
the contract land sale; 
‘‘(B) have a credit history that— 
‘‘(i) includes a record of satisfactory 
debt repayment, as determined by the Sec-
retary; and 
‘‘(ii) is acceptable to the Secretary; 
and 
‘‘(C) demonstrate to the Secretary that the 
farmer or rancher, as the case may be, is un-
able to obtain sufficient credit without a guar-
antee to finance any actual need of the farmer 
or rancher, as the case may be, at a reasonable 
rate or term; 
‘‘(2) the loan shall meet applicable underwriting 
criteria, as determined by the Secretary; and 
‘‘(3) to carry out the loan— 
‘‘(A) a commercial lending institution shall 
agree to serve as an escrow agent; or 
‘‘(B) the private seller, in cooperation with 
the farmer or rancher, shall use an appropriate 
alternate arrangement, as determined by the 
Secretary. 
‘‘(c) LIMITATIONS.—
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‘‘(1) DOWN PAYMENT.—The Secretary shall not 
provide a loan guarantee under subsection (a) if the 
contribution of the qualified beginning farmer or 
rancher or socially disadvantaged farmer or rancher 
to the down payment for the farm or ranch that is 
the subject of the contract land sale would be less 
than 5 percent of the purchase price of the farm or 
ranch. 
‘‘(2) MAXIMUM
PURCHASE
PRICE.—The Sec-
retary shall not provide a loan guarantee under sub-
section (a) if the purchase price or the appraisal 
value of the farm or ranch that is the subject of the 
contract land sale is greater than $500,000. 
‘‘(d) PERIOD OF GUARANTEE.—The period during 
which a loan guarantee under this section is in effect shall 
be the 10-year period beginning with the date the guar-
antee is provided. 
‘‘(e) GUARANTEE PLAN.—A private seller of a farm 
or ranch who makes a loan that is guaranteed by the Sec-
retary under subsection (a) may select— 
‘‘(1) a prompt payment guarantee plan, which 
shall cover— 
‘‘(A) 3 amortized annual installments; or 
‘‘(B) an amount equal to 3 annual install-
ments (including an amount equal to the total
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cost of any tax and insurance incurred during 
the period covered by the annual installments); 
or 
‘‘(2) a standard guarantee plan, which shall 
cover an amount equal to 90 percent of the out-
standing principal of the loan.’’. 
SEC. 
5005. 
LOANS 
TO 
PURCHASERS 
OF 
HIGHLY 
FRACTIONED LANDS. 
Section 1 of Public Law 91–229 (25 U.S.C. 488) is 
amended by adding at the end the following: ‘‘The Sec-
retary of Agriculture may make and insure loans as pro-
vided in section 309 of the Consolidated Farm and Rural 
Development Act to eligible purchasers of highly 
fractionated land pursuant to section 204(c) of the Indian 
Land Consolidation Act. Section 4 of this Act shall not 
apply to trust or restricted tribal or tribal corporation 
property mortgaged pursuant to the preceding sentence.’’. 
Subtitle B—Operating Loans 
SEC. 5011. LIMITATIONS ON AMOUNT OF OPERATING 
LOANS. 
Section 313(a)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1943(a)(1)) is amended 
by striking ‘‘$200,000’’ and inserting ‘‘$300,000’’.
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SEC. 5012. SUSPENSION OF LIMITATION ON PERIOD FOR 
WHICH 
BORROWERS 
ARE 
ELIGIBLE 
FOR 
GUARANTEED ASSISTANCE. 
Section 5102 of the Farm Security And Rural Invest-
ment Act of 2002 (7 U.S.C. 1949 note; Public Law 107– 
171) is amended by striking ‘‘September 30, 2007’’ and 
inserting ‘‘January 1, 2008’’. 
Subtitle C—Administrative 
Provisions 
SEC. 5021. INVENTORY SALES PREFERENCES. 
Section 335(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1985(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)— 
(i) in the subparagraph heading, by 
inserting ‘‘; 
SOCIALLY
DISADVANTAGED 
FARMER OR RANCHER’’ after ‘‘OR RANCH-
ER’’; 
(ii) in clause (i), by inserting ‘‘or a so-
cially disadvantaged farmer or rancher’’ 
after ‘‘or rancher’’; 
(iii) by redesignating clauses (ii) 
through (iv) as clauses (iii) through (v), re-
spectively; 
(iv) by inserting after clause (i) the 
following:
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‘‘(ii) PRIORITY TO BE GIVEN TO SO-
CIALLY
DISADVANTAGED
FARMERS
AND 
RANCHERS.—In carrying out this subpara-
graph, the Secretary shall give priority to 
socially disadvantaged farmers and ranch-
ers.’’; 
(v) in clause (iii) (as so redesig-
nated)— 
(I) by inserting ‘‘or socially dis-
advantaged farmer or rancher’’ after 
‘‘or rancher’’; and 
(II) by inserting ‘‘, subject to 
clause (ii)’’ before the period; 
(vi) in clause (iv) (as so redesignated), 
by inserting ‘‘or a socially disadvantaged 
farmer or rancher’’ after ‘‘or rancher’’; and 
(vii) in clause (v) (as so redesignated), 
by inserting ‘‘and socially disadvantaged 
farmers and ranchers’’ after ‘‘and ranch-
ers’’; and 
(B) in subparagraph (C), by inserting ‘‘or 
a socially disadvantaged farmer or rancher’’ 
after ‘‘or rancher’’; 
(2) in paragraph (5)(B)— 
(A) in clause (i)—