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Hunger Fellowship Program shall address hun-
ger and poverty in the United States. 
‘‘(B) FOCUS OF MICKEY LELAND HUNGER 
FELLOWSHIP
PROGRAM.—The Mickey Leland 
Hunger Fellowship Program shall address 
international hunger and other humanitarian 
needs. 
‘‘(3) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall offer to enter 
into a contract with the Congressional Hunger 
Center to administer the Fellowship Programs. 
‘‘(B) REQUIREMENT.—As a condition of a 
contract described in subparagraph (A), the 
Congressional Hunger Center shall agree to 
submit to Congress each year the results of an 
independent financial audit that demonstrates 
that the Congressional Hunger Center uses ac-
counting procedures that conform to generally 
accepted accounting principles and auditing 
procedures that conform to chapter 75 of title 
31, United States Code (commonly known as 
the ‘Single Audit Act of 1984’). 
‘‘(e) FELLOWSHIPS.— 
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‘‘(1) IN
GENERAL.—The Administrator shall 
make available Bill Emerson Hunger Fellowships 
and Mickey Leland Hunger Fellowships in accord-
ance with this subsection. 
‘‘(2) CURRICULUM.— 
‘‘(A) IN
GENERAL.—The fellowship pro-
grams shall provide experience and training to 
develop the skills necessary to train fellows to 
carry out the purposes described in subsection 
(d)(1), including— 
‘‘(i) training in direct service pro-
grams for the hungry and other anti-hun-
ger programs in conjunction with commu-
nity-based organizations through a pro-
gram of field placement; and 
‘‘(ii) providing experience in policy de-
velopment through placement in a govern-
mental entity or nongovernmental, non-
profit, or private sector organization. 
‘‘(B) WORK PLAN.—To carry out subpara-
graph (A) and assist in the evaluation of the 
fellowships under paragraph (6), the Adminis-
trator shall, for each fellow, approve a work 
plan that identifies the target objectives for the 
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fellow in the fellowship, including specific duties 
and responsibilities relating to those objectives. 
‘‘(3) PERIOD OF FELLOWSHIP.— 
‘‘(A) EMERSON FELLOW.—A Bill Emerson 
Hunger Fellowship awarded under this sub-
section shall be for not more than 15 months. 
‘‘(B) LELAND FELLOW.—A Mickey Leland 
Hunger Fellowship awarded under this sub-
section shall be for not more than 2 years. 
‘‘(4) SELECTION OF FELLOWS.— 
‘‘(A) IN GENERAL.—Fellowships shall be 
awarded pursuant to a nationwide competition 
established by the Administrator. 
‘‘(B) QUALIFICATIONS.—A successful pro-
gram applicant shall be an individual who has 
demonstrated— 
‘‘(i) an intent to pursue a career in 
humanitarian service and outstanding po-
tential for such a career; 
‘‘(ii) leadership potential or actual 
leadership experience; 
‘‘(iii) diverse life experience; 
‘‘(iv) proficient writing and speaking 
skills; 
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‘‘(v) an ability to live in poor or di-
verse communities; and 
‘‘(vi) such other attributes as are con-
sidered to be appropriate by the Adminis-
trator. 
‘‘(5) AMOUNT OF AWARD.— 
‘‘(A) IN GENERAL.—A fellow shall receive 
a living allowance during the term of the Fel-
lowship and, subject to subparagraph (B), an 
end-of-service award. 
‘‘(B) REQUIREMENT
FOR
SUCCESSFUL 
COMPLETION
OF
FELLOWSHIP.—Each fellow 
shall be entitled to receive an end-of-service 
award at an appropriate rate for each month of 
satisfactory service completed, as determined by 
the Administrator. 
‘‘(C) TERMS
OF
FELLOWSHIP.—A fellow 
shall not be considered an employee of— 
‘‘(i) the Department of Agriculture; 
‘‘(ii) the Congressional Hunger Cen-
ter; or 
‘‘(iii) a host agency in the field or pol-
icy placement of the fellow. 
‘‘(D) 
RECOGNITION
OF
FELLOWSHIP 
AWARD.— 
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‘‘(i) EMERSON
FELLOW.—An indi-
vidual awarded a fellowship from the Bill 
Emerson Hunger Fellowship shall be 
known as an ‘Emerson Fellow’. 
‘‘(ii) LELAND
FELLOW.—An indi-
vidual awarded a fellowship from the Mick-
ey Leland Hunger Fellowship shall be 
known as a ‘Leland Fellow’. 
‘‘(6) EVALUATION.—The Administrator shall 
conduct periodic evaluations of the Fellowship Pro-
grams. 
‘‘(f) AUTHORITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
in carrying out this section, the Administrator may 
solicit, accept, use, and dispose of gifts, bequests, or 
devises of services or property, both real and per-
sonal, for the purpose of facilitating the work of the 
Fellowship Programs. 
‘‘(2) LIMITATION.—Gifts, bequests, or devises 
of money and proceeds from sales of other property 
received as gifts, bequests, or devises shall be used 
exclusively for the purposes of the Fellowship Pro-
grams. 
‘‘(g) REPORT.—Each year, the Administrator shall 
submit to the Committee on Agriculture of the House of 
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Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes 
the activities and expenditures of the Fellowship Programs 
during the preceding fiscal year. 
‘‘(h) FUNDING.—There is authorized to be appro-
priated to the Secretary to carry out this section 
$3,000,000 for each of the fiscal years 2008 through 
2012.’’. 
SEC. 4403. JOINT NUTRITION MONITORING AND RELATED 
RESEARCH ACTIVITIES. 
Subtitle D of title IV of the Farm Security and Rural 
Investment Act of 2002 (Public Law 107–171; 116 Stat. 
333) is amended— 
(1) by redesignating section 4405 (2 U.S.C. 
1161 note; Public Law 107–171) as section 4406; 
and 
(2) by inserting after section 4404 the fol-
lowing: 
‘‘SEC. 4405. JOINT NUTRITION MONITORING AND RELATED 
RESEARCH ACTIVITIES. 
‘‘The Secretary of Agriculture and the Secretary of 
Health and Human Services shall continue to provide 
jointly for national nutrition monitoring and related re-
search activities carried out as of the date of enactment 
of this section— 
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‘‘(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 avail-
able; 
‘‘(5) to continuously update food composition 
tables; and 
‘‘(6) to research and develop data collection 
methods and standards.’’. 
SEC. 4404 SENSE OF THE CONGRESS. 
It is the sense of the Congress that food items pro-
vided pursuant to the Federal school breakfast and school 
lunch program should be selected so as to reduce the inci-
dence of juvenile obesity and to maximize nutritional 
value. 
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. 
Sec. 5005. Loans to purchasers of highly fractioned lands. 
Subtitle B—Operating Loans 
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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. 
Sec. 5024. Extension of the right of first refusal to reacquire homestead prop-
erty to immediate family members of borrower-owner. 
Sec. 5025. Rural development and farm loan program activities. 
Subtitle D—Farm Credit 
Sec. 5031. Bank for cooperatives voting stock. 
Sec. 5032. Rural utility loans. 
Sec. 5033. Farm Credit System Insurance Corporation. 
Sec. 5034. Risk-based capital levels. 
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 
covert to sustainable or organic agricultural produc-
tion systems; and 
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‘‘(4) producers who use the loans to build con-
servation structures or establish conservation prac-
tices to comply with section 1212 of the Food Secu-
rity Act of 1985. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE BORROWER.—The term ‘eligible 
borrower’ means a farmer, rancher, farm coopera-
tive, private domestic corporation, partnership, joint 
operation, trust, or limited liability company, that is 
engaged primarily and directly in agricultural pro-
duction 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 
$1,000,000,000. 
‘‘(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 
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to the loan does not exceed such amount as 
shall be prescribed by the Secretary. 
‘‘(3) QUALIFIED
CONSERVATION
PROJECT.— 
The term ‘qualified conservation project’ means, 
with respect to an eligible borrower, conservation 
measures that address provisions of a conservation 
plan of the borrower. 
‘‘(4) CONSERVATION
PLAN.—The term ‘con-
servation plan’ means a plan, approved by the Sec-
retary, that, for a farming or ranching operation, 
identifies the conservation activities that will be ad-
dressed 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 
control, 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
GUAR-
ANTEE.—The portion of a loan that the Secretary 
may guarantee under this section shall be not less 
than 80 percent 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 Sec-
retary 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 
environment. 
‘‘(3) EQUITABLE
DISTRIBUTION
OF
LOAN 
GUARANTEES AND INTEREST SUBSIDIES.—The Sec-
retary shall ensure that loan guarantees and interest 
subsidies under this section are equitably distributed 
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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 sec-
tion shall affect the eligibility of the recipient for assist-
ance under title XII of the Food Security Act of 1985 
or the Watershed Protection and Flood Prevention Act. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—For 
each of fiscal years 2008 through 2012, there are author-
ized to be appropriated to the Secretary such funds as are 
necessary 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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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 
Development Act (7 U.S.C. 1935) is amended— 
(1) in subsection (a)(1), by striking ‘‘and 
ranchers’’ and inserting ‘‘or ranchers and socially 
disadvantaged farmers or ranchers’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1) and insert-
ing 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 own-
ership loans under this subtitle; or 
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‘‘(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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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 ranch-
er or socially disadvantaged farmer or rancher (as so 
defined).’’. 
SEC. 5004. BEGINNING FARMER AND RANCHER CONTRACT 
LAND SALES PROGRAM. 
Section 310F of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1936) is amended to read as 
follows: 
‘‘SEC. 310F. BEGINNING FARMER AND RANCHER AND SO-
CIALLY 
DISADVANTAGED 
FARMER 
AND 
RANCHER CONTRACT LAND SALES PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in accord-
ance 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 
defined 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 
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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)— 
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(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 
beginning 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: 
‘‘(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 
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(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: 
‘‘(7) In this subsection, the term ‘socially dis-
advantaged farmer or rancher’ has the meaning 
given in section 355(e)(2).’’. 
SEC. 5022. LOAN FUND SET-ASIDES. 
Section 346(b)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(2)) is amend-
ed— 
(1) in subparagraph (A)— 
(A) in clause (i)— 
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(i) in subclause (I), by striking ‘‘70 
percent’’ and inserting ‘‘not less than 75 
percent of the total amount made available 
under paragraph (1)’’; and 
(ii) in subclause (II)— 
(I) in the subclause heading, by 
inserting ‘‘; PARTICIPATION
LOANS’’ 
after ‘‘PAYMENT LOANS’’; 
(II) by striking ‘‘60 percent’’ and 
inserting ‘‘not less than 2⁄3 of the 
amount reserved under subclause (I)’’; 
and 
(III) by inserting ‘‘and participa-
tion loans’’ after ‘‘section 310E’’; and 
(B) in clause (ii)(III), by striking ‘‘2003 
through 2007, 35 percent’’ and inserting ‘‘2008 
through 2012, not less than 50 percent of the 
total amount made available under paragraph 
(1)’’; and 
(2) in subparagraph (B)(i), by striking ‘‘25 per-
cent’’ and inserting ‘‘not less than 40 percent of the 
total amount made available under paragraph (1)’’. 
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SEC. 5023. TRANSITION TO PRIVATE COMMERCIAL OR 
OTHER SOURCES OF CREDIT. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981–2008r) is amended by in-
serting after section 344 the following: 
‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR 
OTHER SOURCES OF CREDIT. 
‘‘(a) IN GENERAL.—In making or insuring a farm 
loan under subtitle A or B, the Secretary shall establish 
a plan and promulgate regulations (including performance 
criteria) that promote the goal of transitioning borrowers 
to private commercial credit and other sources of credit 
in the shortest practicable period of time. 
‘‘(b) COORDINATION.—In carrying out this section, 
the Secretary shall integrate and coordinate the transition 
policy described in subsection (a) with— 
‘‘(1) the borrower training program established 
by section 359; 
‘‘(2) the loan assessment process established by 
section 360; 
‘‘(3) the supervised credit requirement estab-
lished by section 361; 
‘‘(4) the market placement program established 
by section 362; and 
‘‘(5) other appropriate programs and authori-
ties, as determined by the Secretary.’’. 
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SEC. 5024. EXTENSION OF THE RIGHT OF FIRST REFUSAL 
TO REACQUIRE HOMESTEAD PROPERTY TO 
IMMEDIATE 
FAMILY 
MEMBERS 
OF 
BOR-
ROWER-OWNER. 
Section 352(c)(4)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2000(c)(4)(B)) is 
amended— 
(1) in the 1st sentence, by striking ‘‘, the bor-
rower-owner’’ inserting ‘‘of a borrower-owner who is 
a socially disadvantaged farmer or rancher (as de-
fined in section 355(e)(2)), the borrower-owner or a 
member of the immediate family of the borrower- 
owner’’; and 
(2) in the 2nd sentence, by inserting ‘‘or imme-
diate family member, as the case may be,’’ before 
‘‘from’’. 
SEC. 5025. RURAL DEVELOPMENT AND FARM LOAN PRO-
GRAM ACTIVITIES. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1981–2008r) is amended by in-
serting after section 364 the following: 
‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PRO-
GRAM ACTIVITIES. 
‘‘The Secretary may not complete a study of, or enter 
into a contract with a private party to carry out, without 
specific authorization in a subsequent Act of Congress, a 
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competitive sourcing activity of the Secretary, including 
support personnel of the Department of Agriculture, relat-
ing to rural development or farm loan programs.’’. 
Subtitle D—Farm Credit 
SEC. 5031. BANK FOR COOPERATIVES VOTING STOCK. 
(a) IN GENERAL.—Section 3.3(c) of the Farm Credit 
Act of 1971 (12 U.S.C. 2124(c)) is amended by striking 
‘‘and (ii)’’ and inserting ‘‘(ii) other categories of persons 
and entities described in sections 3.7 and 3.8 eligible to 
borrow from the bank, as determined by the bank’s board 
of directors; and (iii)’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
4.3A(c)(1)(D) of such Act (12 U.S.C. 2154a(c)(1)(D)) is 
amended by redesignating clauses (ii) and (iii) as clauses 
(iii) and (iv), respectively, and inserting after clause (i) 
the following: 
‘‘(ii) persons and entities eligible to 
borrow from the banks for cooperatives, as 
described in section 3.3(c)(ii);’’. 
SEC. 5032. RURAL UTILITY LOANS. 
Section 8.0(9) of the Farm Credit Act of 1971 (12 
U.S.C. 2279aa(9)) is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(A)(iii); 
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