462 
rowers and potential borrowers engaged in local and 
regional food production. 
‘‘(2) VALUATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop ways to determine unit prices (or other 
appropriate forms of valuation) for crops and 
other agricultural products, the end use of 
which is intended to be in locally or regionally 
produced agricultural food products, to facili-
tate lending to local and regional food pro-
ducers. 
‘‘(B) PRICE
HISTORY.—The Secretary 
shall implement a mechanism for local and re-
gional food producers to establish price history 
for the crops and other agricultural products 
produced by local and regional food producers. 
‘‘(3) OUTREACH.—The Secretary shall develop 
and implement an outreach strategy to engage and 
provide loan services to local and regional food pro-
ducers. 
‘‘SEC. 3203. RESTRICTIONS ON LOANS. 
‘‘(a) REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—The Secretary may not 
make or guarantee a loan under this chapter— 
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‘‘(A) that would cause the total principal 
indebtedness outstanding at any 1 time for 
loans made under this chapter to any 1 bor-
rower to exceed— 
‘‘(i)(I) in the case of a loan made by 
the Secretary, $300,000; or 
‘‘(II) in the case of a loan guaranteed 
by the Secretary, $700,000 (as modified 
under paragraph (2)); or 
‘‘(B) for the purchasing or leasing of land 
other than for cash rent, or for carrying on a 
land leasing or land purchasing program. 
‘‘(2) MODIFICATION.—The amount specified in 
paragraph (1)(A)(ii) shall be— 
‘‘(A) increased, beginning with fiscal year 
2000, by the inflation percentage applicable to 
the fiscal year in which the loan is guaranteed; 
and 
‘‘(B) reduced by the unpaid indebtedness 
of the borrower on loans under sections speci-
fied in section 3104 that are guaranteed by the 
Secretary. 
‘‘(b) INFLATION PERCENTAGE.—For purposes of this 
section, the inflation percentage applicable to a fiscal year 
is the percentage (if any) by which— 
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‘‘(1) the average of the Prices Paid By Farmers 
Index (as compiled by the National Agricultural Sta-
tistics Service of the Department) for the 12-month 
period ending on August 31 of the immediately pre-
ceding fiscal year; exceeds 
‘‘(2) the average of that index (as so defined) 
for the 12-month period ending on August 31, 1996. 
‘‘SEC. 3204. TERMS OF LOANS. 
‘‘(a) PERSONAL LIABILITY.—A borrower of a loan 
made under this chapter shall secure the loan with the 
full personal liability of the borrower and such other secu-
rity as the Secretary may prescribe. 
‘‘(b) INTEREST RATES.— 
‘‘(1) MAXIMUM RATE.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraphs (2) and (3), the interest rate on a 
loan made under this chapter (other than a 
guaranteed loan) shall be determined by the 
Secretary at a rate not to exceed the sum ob-
tained by adding— 
‘‘(i) the current average market yield 
on outstanding marketable obligations of 
the United States with remaining periods 
to maturity comparable to the average ma-
turity of the loan; and 
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