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HR 2419 EAS
(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’’; and
(B) in clause (ii)—
(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’’; and
(3) in paragraph (6)—
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(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’’.
(b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1994(b)(2)) is amended—
(1) in subparagraph (A)—
(A) in clause (i)—
(i) in subclause (I), by striking ‘‘70
percent’’ and inserting ‘‘an amount that is
not less than 75 percent of the total
amount’’; and
(ii) in subclause (II)—
(I) in the subclause heading, by
inserting ‘‘; 
JOINT
FINANCING
AR-
RANGEMENTS’’ 
after 
‘‘PAYMENT
LOANS’’;
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(II) by striking ‘‘60 percent’’ and
inserting ‘‘an amount not less than 2⁄3
of the amount’’; and
(III) by inserting ‘‘and joint fi-
nancing arrangements under section
307(a)(3)(D)’’ after ‘‘section 310E’’;
and
(B) in clause (ii)(III), by striking ‘‘2003
through 2007, 35 percent’’ and inserting ‘‘2008
through 2012, an amount that is not less than
50 percent of the total amount’’; and
(2) in subparagraph (B)(i), by striking ‘‘25 per-
cent’’ and inserting ‘‘an amount that is not less than
40 percent of the total amount’’.
SEC. 5203. TRANSITION TO PRIVATE COMMERCIAL OR
OTHER SOURCES OF CREDIT.
Subtitle D of the Consolidated Farm and Rural Devel-
opment Act is amended by inserting after section 344 (7
U.S.C. 1992) 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
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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 pol-
icy 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 established
by section 361;
‘‘(4) the market placement program established
by section 362; and
‘‘(5) other appropriate programs and authorities,
as determined by the Secretary.’’.
SEC. 5204. LOAN AUTHORIZATION LEVELS.
Section 346(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1994(b)(1)) is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘$3,796,000,000 for each of fiscal years
2003 through 2007’’ and inserting ‘‘$4,226,000,000
for each of fiscal years 2008 through 2012’’; and
(2) in subparagraph (A)—
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(A) in the matter preceding clause (i), by
striking 
‘‘$770,000,000’’ 
and 
inserting
‘‘$1,200,000,000’’;
(B) 
in 
clause 
(i), 
by 
striking
‘‘$205,000,000’’ and inserting ‘‘$350,000,000’’;
and
(C) 
in 
clause 
(ii), 
by 
striking
‘‘$565,000,000’’ and inserting ‘‘$850,000,000’’.
SEC. 5205. INTEREST RATE REDUCTION PROGRAM.
Section 351(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1999(a)) is amended—
(1) in the subsection heading, by inserting ‘‘AND
AVAILABILITY’’ after ‘‘ESTABLISHMENT’’;
(2) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) ESTABLISHMENT.—The Secretary’’; and
(3) by adding at the end the following:
‘‘(2) AVAILABILITY.—The program established
under paragraph (1) shall be available with respect to
new guaranteed operating loans or guaranteed oper-
ating loans restructured under this title after the date
of enactment of this paragraph that meet the require-
ments of subsection (b).’’.