356 
ly for national nutrition monitoring and related research 
activities carried out as of the date of enactment of this 
section— 
‘‘(1) to collect continuous dietary, health, phys-
ical activity, and diet and health knowledge data on 
a nationally representative sample; 
‘‘(2) to periodically collect data on special at- 
risk populations, as identified by the Secretaries; 
‘‘(3) to distribute information on health, nutri-
tion, the environment, and physical activity to the 
public in a timely fashion; 
‘‘(4) to analyze new data that becomes available; 
‘‘(5) to continuously update food composition ta-
bles; and 
‘‘(6) to research and develop data collection 
methods and standards.’’. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Conservation loan guarantee program. 
Sec. 5002. Limitations on amount of ownership loans. 
Sec. 5003. Down payment loan program. 
Sec. 5004. Beginning farmer and rancher contract land sales program. 
Subtitle B—Operating Loans 
Sec. 5011. Limitations on amount of operating loans. 
Sec. 5012. Suspension of limitation on period for which borrowers are eligible for 
guaranteed assistance. 
Subtitle C—Administrative Provisions 
Sec. 5021. Inventory sales preferences. 
Sec. 5022. Loan fund set-asides. 
Sec. 5023. Transition to private commercial or other sources of credit. 
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Sec. 5024. Extension of the right of first refusal to reacquire homestead property 
to immediate family members of borrower-owner. 
Sec. 5025. Rural development and farm loan program activities. 
Subtitle D—Farm Credit 
Sec. 5031. Agribusiness loan eligibility. 
Sec. 5032. Loan-to-asset value requirements. 
Sec. 5033. Population limit for single-family housing loans. 
Sec. 5034. Bank for cooperatives voting stock. 
Sec. 5035. Majority farmer control requirement. 
Sec. 5036. Borrower stock requirement. 
Sec. 5037. Rural utility loans. 
Sec. 5038. Farm Credit System Insurance Corporation. 
Sec. 5039. Risk-based capital levels. 
Sec. 5040. Loans to purchasers of highly fractioned lands. 
Subtitle A—Farm Ownership Loans 
SEC. 5001. CONSERVATION LOAN GUARANTEE PROGRAM. 
Section 304 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1924) is amended to read as fol-
lows: 
‘‘SEC. 304. CONSERVATION LOAN GUARANTEE PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may provide a loan 
guarantee, an interest subsidy, or both, to enable an eligible 
borrower to obtain a qualified conservation loan. 
‘‘(b) PRIORITY.—In providing loan guarantees under 
this section, the Secretary shall give priority to— 
‘‘(1) qualified beginning farmers or ranchers; 
‘‘(2) socially disadvantaged farmers or ranchers 
(as defined in section 355(e)(2)); 
‘‘(3) owners or tenants who use the loans to cov-
ert to sustainable or organic agricultural production 
systems; and 
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‘‘(4) producers who use the loans to build con-
servation structures or establish conservation practices 
to comply with section 1212 of the Food Security Act 
of 1985. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE BORROWER.—The term ‘eligible 
borrower’ means a farmer, rancher, farm cooperative, 
private domestic corporation, partnership, joint oper-
ation, trust, or limited liability company, that is en-
gaged primarily and directly in agricultural produc-
tion in the United States. 
‘‘(2) QUALIFIED
CONSERVATION
LOAN.—The 
term ‘qualified conservation loan’ means a loan that 
meets the following requirements: 
‘‘(A) PURPOSE.—The loan proceeds are re-
quired to be used to cover the costs to the bor-
rower of carrying out a qualified conservation 
project. 
‘‘(B) PRINCIPAL
AMOUNT.—The principal 
amount of the loan is not more than $1,000,000. 
‘‘(C) REPAYMENT
PERIOD.—The loan re-
payment period shall not exceed 10 years. 
‘‘(D) LIMITED PROCESSING FEE.—The total 
of all processing fees charged with respect to the 
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359 
loan does not exceed such amount as shall be pre-
scribed by the Secretary. 
‘‘(3) QUALIFIED CONSERVATION PROJECT.—The 
term ‘qualified conservation project’ means, with re-
spect to an eligible borrower, conservation measures 
that address provisions of a conservation plan of the 
borrower. 
‘‘(4) CONSERVATION PLAN.—The term ‘conserva-
tion plan’ means a plan, approved by the Secretary, 
that, for a farming or ranching operation, identifies 
the conservation activities that will be addressed with 
guaranteed loan funds provided under this section, 
including— 
‘‘(A) the installation of conservation struc-
tures; 
‘‘(B) the establishment of forest cover for 
sustained yield timber management, erosion con-
trol, or shelter belt purposes; 
‘‘(C) the installation of water conservation 
measures; 
‘‘(D) the installation of waste management 
systems; 
‘‘(E) the establishment or improvement of 
permanent pasture; 
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‘‘(F) compliance with section 1212 of the 
Food Security Act of 1985; 
‘‘(G) other purposes consistent with the 
plan; and 
‘‘(H) any other emerging or existing con-
servation practices, techniques, or technologies 
approved by the Secretary. 
‘‘(d) LIMITATIONS APPLICABLE
TO LOAN GUARAN-
TEES.— 
‘‘(1) LIMITATION ON AMOUNT OF GUARANTEE.— 
The portion of a loan that the Secretary may guar-
antee under this section shall be not less than 80 per-
cent and not more than 90 percent of the principal 
amount of the loan. 
‘‘(2) LIMITATION
ON
TOTAL
AMOUNT
OUT-
STANDING.—The aggregate principal amount of out-
standing loans guaranteed by the Secretary under 
this section shall not exceed $1,000,000. 
‘‘(e) LIMITATION
ON AMOUNT
OF INTEREST SUB-
SIDY.—The interest subsidy which the Secretary may pro-
vide under this section with respect to a loan shall result 
in a reduction of the interest rate agreed upon by the bor-
rower and the lender (but to not less than zero) by— 
‘‘(1) 500 basis points, if the principal amount of 
the loan is less than $100,000; 
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‘‘(2) 400 basis points, if the principal amount of 
the loan is not less than $100,000 and is less than 
$500,000; and 
‘‘(3) 300 basis points, in any other case. 
‘‘(f) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) AUTHORITY
TO
COLLECT
PROCESSING 
FEE.—The Secretary may assess a fee to cover the 
cost of processing an application under this section 
equal to not more than 1 percent of the principal 
amount of the loan sought by the applicant, as de-
scribed in the application. 
‘‘(2) APPROVAL OF APPLICATION.—The Secretary 
shall not approve an application submitted pursuant 
to this section, unless the Secretary has determined 
that— 
‘‘(A) the loan sought by the applicant, as 
described in the application, would be a quali-
fied conservation loan; and 
‘‘(B) the project for which the loan is sought 
is likely to result in a net benefit to the environ-
ment. 
‘‘(3) EQUITABLE DISTRIBUTION OF LOAN GUAR-
ANTEES
AND
INTEREST
SUBSIDIES.—The Secretary 
shall ensure that loan guarantees and interest sub-
sidies under this section are equitably distributed 
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362 
among agricultural producers according to the scale 
of the operations. 
‘‘(g) RELATIONSHIP WITH OTHER CONSERVATION 
PROGRAMS.—Neither the application for, nor the receipt of, 
a loan guarantee or an interest subsidy under this section 
shall affect the eligibility of the recipient for assistance 
under title XII of the Food Security Act of 1985 or the Wa-
tershed Protection and Flood Prevention Act. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For each 
of fiscal years 2008 through 2012, there are authorized to 
be appropriated to the Secretary such funds as are nec-
essary to carry out this section.’’. 
SEC. 5002. LIMITATIONS ON AMOUNT OF OWNERSHIP 
LOANS. 
Section 305 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1925) is amended— 
(1) in subsection (a)(2), by striking ‘‘$200,000’’ 
and inserting ‘‘$300,000’’; and 
(2) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively, and inserting 
after subsection (a) the following: 
‘‘(b) GRADUATION PLAN.—The Secretary shall estab-
lish a plan, in coordination with activities under sections 
359, 360, 361, and 362, to encourage each borrower with 
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363 
an outstanding loan under this subtitle to graduate to pri-
vate commercial or other sources of credit.’’. 
SEC. 5003. DOWN PAYMENT LOAN PROGRAM. 
Section 310E of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1935) is amended— 
(1) in subsection (a)(1), by striking ‘‘and ranch-
ers’’ and inserting ‘‘or ranchers and socially dis-
advantaged farmers or ranchers’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1) and inserting 
the following; 
‘‘(1) PRINCIPAL.—Each loan made under this 
section shall be in an amount that does not exceed 45 
percent of the least of— 
‘‘(A) the purchase price of the farm or 
ranch to be acquired; 
‘‘(B) the appraised value of the farm or 
ranch to be acquired; or 
‘‘(C) $500,000. 
‘‘(2) INTEREST RATE.—The interest rate on any 
loan made by the Secretary under this section shall 
be a rate equal to the greater of— 
‘‘(A) the difference obtained by subtracting 
4 percent from the interest rate for farm owner-
ship loans under this subtitle; or 
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364 
‘‘(B) 1 percent.’’; and 
(B) in paragraph (3), by striking ‘‘15’’ and 
inserting ‘‘20’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘10’’ and 
inserting ‘‘5’’; 
(B) by striking paragraph (2) and redesig-
nating paragraph (3) as paragraph (2); and 
(C) in paragraph (2)(B) (as so redesig-
nated), by striking ‘‘15-year’’ and inserting ‘‘20- 
year’’; and 
(4) in subsection (d)— 
(A) in paragraph (3)— 
(i) by inserting ‘‘and socially dis-
advantaged farmers and ranchers (as de-
fined in section 355(e)(2))’’ after ‘‘ranch-
ers’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in paragraph (4), by striking ‘‘ranch-
ers.’’ and inserting ‘‘ranchers and socially dis-
advantaged farmers and ranchers (as defined in 
section 355(e)(2)); and’’; and 
(C) by adding at the end the following: 
‘‘(5) establish annual performance goals to pro-
mote the use of the down payment loan program and 
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365 
other joint financing participation loans as the pre-
ferred choice for direct real estate loans made by any 
lender to a qualified beginning farmer or rancher or 
socially disadvantaged farmer or rancher (as so de-
fined).’’. 
SEC. 5004. BEGINNING FARMER AND RANCHER CONTRACT 
LAND SALES PROGRAM. 
Section 310F of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1936) is amended to read as fol-
lows: 
‘‘SEC. 310F. BEGINNING FARMER AND RANCHER AND SO-
CIALLY 
DISADVANTAGED 
FARMER 
AND 
RANCHER CONTRACT LAND SALES PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in accordance 
with this section, guarantee a loan made by a private seller 
of a farm or ranch to a qualified beginning farmer or 
rancher or socially disadvantaged farmer or rancher (as de-
fined in section 355(e)(2)) on a contract land sales basis. 
‘‘(b) ELIGIBILITY.—In order to be eligible for a loan 
guarantee under subsection (a)— 
‘‘(1) the qualified beginning farmer or rancher or 
socially disadvantaged farmer or rancher shall— 
‘‘(A) on the date the contract land sale that 
is subject of the loan is complete, own or operate 
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366 
the farm or ranch that is the subject of the con-
tract 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 unable 
to obtain sufficient credit without a guarantee to 
finance any actual need of the farmer or ranch-
er, 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 Sec-
retary. 
‘‘(c) LIMITATIONS.— 
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367 
‘‘(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 guarantee 
is provided. 
‘‘(e) GUARANTEE PLAN.—A private seller of a farm or 
ranch who makes a loan that is guaranteed by the Secretary 
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 
cost of any tax and insurance incurred during 
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368 
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.’’. 
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’’. 
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 in-
serting ‘‘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)— 
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369 
(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: 
‘‘(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; 
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(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)— 
(i) in the clause heading, by inserting 
‘‘; SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER’’ after ‘‘OR RANCHER’’; 
(ii) by inserting ‘‘or a socially dis-
advantaged farmer or rancher’’ after ‘‘a be-
ginning farmer or rancher’’; and 
(iii) by inserting ‘‘or the socially dis-
advantaged farmer or rancher’’ after ‘‘the 
beginning farmer or rancher’’; 
(B) by redesignating clauses (ii) and (iii) 
as clauses (iii) and (iv), respectively; 
(C) by inserting after clause (i) the fol-
lowing: 
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371 
‘‘(ii) PRIORITY TO BE GIVEN TO SO-
CIALLY
DISADVANTAGED
FARMERS
AND 
RANCHERS.—In carrying out clause (i), the 
Secretary shall give priority to socially dis-
advantaged farmers and ranchers.’’; and 
(D) in clause (iii) (as so redesignated)— 
(i) in the matter preceding subclause 
(I), by inserting ‘‘or a socially disadvan-
taged farmer or rancher’’ after ‘‘or ranch-
er’’; and 
(ii) in subclause (II), by inserting ‘‘or 
the socially disadvantaged farmer or ranch-
er’’ after ‘‘or rancher’’; 
(3) in paragraph (6)— 
(A) in subparagraph (A), by inserting ‘‘or 
a socially disadvantaged farmer or rancher’’ 
after ‘‘or rancher’’; and 
(B) in subparagraph (C)— 
(i) in clause (i)(I), by inserting ‘‘and 
socially disadvantaged farmers and ranch-
ers’’ after ‘‘and ranchers’’; and 
(ii) in clause (ii), by inserting ‘‘or so-
cially disadvantaged farmers or ranchers’’ 
after ‘‘or ranchers’’; and 
(4) by adding at the end the following: 
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