550 
less favorable than those offered by the Secretary or 
Administrator or intended by the Secretary or Ad-
ministrator to be offered to any other buyer. 
‘‘(e) MAXIMUM PAYMENT OF PRINCIPAL.— 
‘‘(1) IN GENERAL.—At the time a reacquisition 
agreement is entered into, the Secretary or the Ad-
ministrator may not demand a total payment of 
principal that is in excess of the value of the home-
stead property. 
‘‘(2) DETERMINATION OF VALUE.—To the max-
imum extent practicable, the value of the homestead 
property shall be determined by an independent ap-
praisal made during the 180-day period beginning 
on the date of receipt of the application of the bor-
rower-owner to retain possession and occupancy of 
the homestead property. 
‘‘(f) TITLE NOT NEEDED TO ENTER INTO CON-
TRACTS.—The Secretary may enter into a contract au-
thorized by this section before the Secretary acquires title 
to the homestead property that is the subject of the con-
tract. 
‘‘(g) STATE LAW PREVAILS.—In the event of a con-
flict between this section and a provision of State law re-
lating to the right of a borrower-owner to designate for 
separate sale or redeem part or all of the real property 
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securing a loan foreclosed on by a lender to the borrower- 
owner, the provision of State law shall prevail. 
‘‘SEC. 3415. TRANSFER OF INVENTORY LAND. 
‘‘(a) IN GENERAL.—Subject to subsection (b), the 
Secretary may transfer to a Federal or State agency, for 
conservation purposes, any real property, or interest in 
real property, administered by the Secretary under this 
subtitle— 
‘‘(1) with respect to which the rights of all prior 
owners and operators have expired; 
‘‘(2) that is eligible to be disposed of in accord-
ance with section 3409; and 
‘‘(3) that— 
‘‘(A) has marginal value for agricultural 
production; 
‘‘(B) is environmentally sensitive; or 
‘‘(C) has special management importance. 
‘‘(b) CONDITIONS.—The Secretary may not transfer 
any property or interest in property under subsection (a) 
unless— 
‘‘(1) at least 2 public notices are given of the 
transfer; 
‘‘(2) if requested, at least 1 public meeting is 
held prior to the transfer; and 
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‘‘(3) the Governor and at least 1 elected county 
official of the State and county in which the prop-
erty is located are consulted prior to the transfer. 
‘‘SEC. 3416. TARGET PARTICIPATION RATES. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish annual target participation rates, on a county- 
wide basis, that shall ensure that members of so-
cially disadvantaged groups shall— 
‘‘(A) receive loans made or guaranteed 
under chapter 1; and 
‘‘(B) have the opportunity to purchase or 
lease farmland acquired by the Secretary under 
this subtitle. 
‘‘(2) GROUP POPULATION.—Except as provided 
in paragraph (3), in establishing the target rates, 
the Secretary shall take into consideration— 
‘‘(A) the portion of the population of the 
county made up of the socially disadvantaged 
groups; and 
‘‘(B) the availability of inventory farmland 
in the county. 
‘‘(3) GENDER.—In the case of gender, target 
participation rates shall take into consideration the 
number of current and potential socially disadvan-
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