377 
(D) in subsection (c)(1), by striking ‘‘per-
sons furnishing farm-related services to farmers 
and ranchers directly related to their on-farm 
operating needs’’ and inserting ‘‘persons eligible 
under section 1.9(2)’’; and 
(E) by adding at the end the following: 
‘‘(d) AGRIBUSINESS LOANS.—Loans to persons pri-
marily engaged in processing, preparing for market, han-
dling, purchasing, testing, grading, distributing, or mar-
keting farm or aquatic products; or primarily engaged in 
furnishing farm or aquatic business services, or farm or 
aquatic supplies, including inputs such as feed or fertilizer, 
equipment, and other capital goods to farmers, ranchers, 
or producers or harvesters of aquatic products, who are eli-
gible under section 1.9(4) may be made for necessary cap-
ital structures and equipment and initial working capital 
for the activities only to the extent that the activities are 
related to renewable energy.’’. 
(b) SHORT- AND INTERMEDIATE-TERM LOANS.—Sec-
tion 2.4(a) of such Act (12 U.S.C. 2075(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
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‘‘(4) persons primarily engaged in processing, 
preparing for market, handling, purchasing, testing, 
grading, distributing, or marketing farm or aquatic 
products; or primarily engaged in furnishing farm or 
aquatic business services, or farm or aquatic supplies, 
including inputs such as feed or fertilizer, equipment, 
and other capital goods to farmers, ranchers, or pro-
ducers or harvesters of aquatic products, but only to 
the extent that the activities are related to renewable 
energy, except that a direct loan may not be made 
available under this subsection to a person eligible to 
borrow from a bank for cooperatives under section 3.7 
or 3.8 (without regard to subsection (b)(1)(E) or 
(b)(1)(F) thereof).’’. 
(c) BANKS
FOR
COOPERATIVES
LOANS.—Section 
3.8(b)(1) of such Act (12 U.S.C. 2129(b)(1)) is amended by 
adding at the end the following: 
‘‘(E) Persons primarily engaged in proc-
essing, preparing for market, handling, pur-
chasing, testing, grading, distributing, or mar-
keting farm or aquatic products, or primarily 
engaged in furnishing farm or aquatic business 
services, or farm or aquatic supplies, including 
inputs such as feed or fertilizer, equipment, and 
other capital goods to farmers, ranchers, or pro-
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ducers or harvesters of aquatic products, but only 
to the extent that the activities are related to re-
newable energy, except that a direct loan may 
not be made available under this subparagraph 
to a farmer, rancher, or producer or harvester of 
aquatic products eligible to borrow from a farm 
credit institution under section 1.9(1) or 
2.4(a)(1), or to a service provider eligible to bor-
row from a farm credit institution under section 
1.9(2) or 2.4(a)(3) for all the provider’s farm-re-
lated or aquatic-related business activities.’’. 
SEC. 5032. LOAN-TO-ASSET VALUE REQUIREMENTS. 
Section 1.10(a)(1)(C) of the Farm Credit Act of 1971 
(12 U.S.C. 2018(a)(1)(C)) is amended by striking ‘‘as may 
be authorized’’ and inserting ‘‘except as may be provided’’. 
SEC. 5033. POPULATION LIMIT FOR SINGLE-FAMILY HOUS-
ING LOANS. 
(a) FARM CREDIT BANKS.—Section 1.11(b)(3) of the 
Farm Credit Act of 1971 (12 U.S.C. 2019(b)(3)) is amended 
by striking ‘‘2,500’’ and inserting ‘‘6,000’’. 
(b) ASSOCIATIONS.—Section 2.4(b)(3) of such Act (12 
U.S.C. 2075(b)(3)) is amended by striking ‘‘2,500’’ and in-
serting ‘‘6,000’’. 
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SEC. 5034. 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 bor-
row 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. 5035. MAJORITY FARMER CONTROL REQUIREMENT. 
Section 3.8(b)(1) of the Farm Credit Act of 1971 (12 
U.S.C. 2129(b)(1)), as amended by section 531(c) of this 
Act, is amended by adding at the end the following: 
‘‘(F) Any association of farmers, or of pro-
ducers or harvesters of aquatic products, or any 
federation of such associations, which has pro-
ducer and investor classes of membership, but 
only if— 
‘‘(i) more than 50 percent of the voting 
control of the association is held by farmers, 
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381 
or producers or harvesters of aquatic prod-
ucts; and 
‘‘(ii) the producer class, if treated as a 
separate entity, operates on a cooperative 
basis.’’. 
SEC. 5036. BORROWER STOCK REQUIREMENT. 
Section 4.3A(c)(1)(E)(i) of the Farm Credit Act of 
1971 (12 U.S.C. 2154a(c)(1)(E)(i)) is amended by striking 
‘‘not less than $1,000 or 2 percent of the amount of the 
loan, whichever is less’’ and inserting ‘‘determined by the 
institution’’. 
SEC. 5037. 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); 
(2) by striking the period at the end of subpara-
graph (B) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(C) that is a loan or interest in a loan for 
electric or telephone facilities by a cooperative 
lender to a borrower who has received or is eligi-
ble to receive a loan under the Rural Electrifica-
tion Act (7 U.S.C. 901 et seq.), except that— 
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382 
‘‘(i) subsections (c) and (d) of section 
8.6, and sections 8.8 and 8.9 shall not 
apply to the loan or interest in the loan or 
to an obligation backed by a pool of obliga-
tions relating to the loan or interest in the 
loan; and 
‘‘(ii) the loan or interest in the loan 
shall be considered to meet all standards for 
qualified loans for all purposes under this 
Act, subject to reasonable underwriting, se-
curity appraisal, and repayment standards 
established by the Corporation.’’. 
SEC. 5038. FARM CREDIT SYSTEM INSURANCE CORPORA-
TION. 
(a) AUTHORITY TO PASS ALONG COST OF INSURANCE 
PREMIUMS.—Section 1.12(b) of the Farm Credit Act of 
1971 (12 U.S.C. 2020(b)) is amended by striking the last 
sentence and inserting ‘‘The assessment on any such asso-
ciation or other financing institution for any period shall 
be computed in an equitable manner.’’. 
(b) PREMIUMS; AMOUNT IN FUND NOT EXCEEDING 
SECURE BASE AMOUNT.—Section 5.55(a) of such Act (12 
U.S.C. 2277a-4(a)) is amended— 
(1) in paragraph (1)— 
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(A) in the matter preceding subparagraph 
(A), by striking ‘‘(2), the annual’’ and inserting 
‘‘(3), the’’; 
(B) by striking subparagraphs (A) through 
(D) and inserting the following: 
‘‘(A) the average outstanding insured obli-
gations issued by the bank for the calendar year, 
after deducting therefrom the percentages of the 
guaranteed portions of loans and investments de-
scribed in paragraph (2), multiplied by 0.0020; 
‘‘(B) the average principal outstanding for 
the calendar year on loans made by the bank 
that are in nonaccrual status, multiplied by 
0.0010; and 
‘‘(C) the average amount outstanding for 
the calendar year of other-than-temporarily im-
paired investments made by the bank, multiplied 
by 0.0010.’’; 
(2) in paragraph (2), by striking ‘‘annual’’; 
(3) in paragraph (3), in the matter preceding 
subparagraph (A), by striking ‘‘As used’’ and all that 
follows through ‘‘that’’ and inserting ‘‘As used in this 
section, the term ‘government-guaranteed’ when ap-
plied to loans or investments, means loans, credits, or 
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384 
investments, or portions of loans, credits, or invest-
ments, that’’; and 
(4) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively, and inserting 
after paragraph (1) the following: 
‘‘(2) DEDUCTIONS FROM AVERAGE OUTSTANDING 
INSURED OBLIGATIONS.—The average outstanding in-
sured obligations issued by the bank for the calendar 
year referred to in subsection (a)(1)(A) of this section 
shall be reduced by deducting therefrom the sum of— 
‘‘(A) 90 percent of the sum of— 
‘‘(i) the average principal outstanding 
for such calendar year on the guaranteed 
portions of Federal government-guaranteed 
loans made by the bank that are in accrual 
status; and 
‘‘(ii) the average amount outstanding 
for the calendar year of the guaranteed por-
tions of Federal government-guaranteed in-
vestments made by the bank that are not 
permanently impaired, as determined by 
the Corporation; and 
‘‘(B) 80 percent of the sum of— 
‘‘(i) the average principal outstanding 
for the calendar year on the guaranteed por-
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385 
tions of State government-guaranteed loans 
made by the bank that are in accrual sta-
tus; and 
‘‘(ii) the average amount outstanding 
for the calendar year of the guaranteed por-
tions of State government-guaranteed in-
vestments made by the bank that are not 
permanently impaired, as determined by 
the Corporation.’’. 
(c) PREMIUMS; AMOUNT IN FUND EXCEEDING SECURE 
BASE AMOUNT.—Section 5.55(b) of such Act (12 U.S.C. 
2277a-4(b)) is amended by striking ‘‘annual’’. 
(d) SECURE BASE AMOUNT.—Section 5.55(c) of such 
Act (12 U.S.C. 2277a-4(c)) is amended by striking the par-
enthetical phrase and inserting ‘‘(adjusted downward to ex-
clude an amount equal to the sum of (1) 90 percent of (A) 
the guaranteed portions of principal outstanding on Fed-
eral government-guaranteed loans in accrual status made 
by the banks, and (B) the guaranteed portions of the 
amount of Federal government-guaranteed investments 
made by the banks that are not permanently impaired; and 
(2) 80 percent of (A) the guaranteed portions of principal 
outstanding on State government-guaranteed loans in ac-
crual status made by the banks, and (B) the guaranteed 
portions of the amount of State government-guaranteed in-
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vestments made by the banks that are not permanently im-
paired, as determined by the Corporation)’’. 
(e) DETERMINATION
OF
LOAN
AND
INVESTMENT 
AMOUNTS.—Section 5.55(d) of such Act (12 U.S.C. 2277a- 
4(d)) is amended— 
(1) in the subsection heading, by striking ‘‘PRIN-
CIPAL OUTSTANDING’’ and inserting ‘‘LOAN AND IN-
VESTMENT AMOUNTS’’; 
(2) in the matter preceding paragraph (1), by 
striking ‘‘For’’ and all that follows through ‘‘—’’ and 
inserting ‘‘For the purpose of subsections (a) and (c) 
of this section, the principal outstanding on all loans 
made by an insured System bank or the amount out-
standing on all investments made by an insured Sys-
tem bank shall be determined based on all loans or in-
vestments made—’’; and 
(3) in each of paragraphs (1) and (2), by insert-
ing ‘‘or investments’’ before ‘‘because’’. 
(f) ALLOCATION TO SYSTEM INSTITUTIONS OF EXCESS 
RESERVES.—Section 5.55(e) of such Act (12 U.S.C. 2277a- 
4(e)) is amended— 
(1) in paragraph (3), by striking ‘‘the average 
secure base amount for the calendar year (as cal-
culated on an average daily balance basis)’’ and in-
serting ‘‘the secure base amount’’; 
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387 
(2) in paragraph (4), by striking subparagraph 
(B) and inserting the following: 
‘‘(B) there shall be credited to the Allocated 
Insurance Reserves Account of each insured Sys-
tem bank an amount that bears the same ratio 
to the total amount (less any amount credited 
under subparagraph (A) of this paragraph) as 
the average principal outstanding for the cal-
endar year on insured obligations issued by the 
bank (after deducting therefrom the percentages 
of the guaranteed portions of loans and invest-
ments described in subsection (a)(2) of this sec-
tion), bears to the average principal outstanding 
for the calendar year on insured obligations 
issued by all insured System banks (after deduct-
ing therefrom the percentages of the guaranteed 
portions of loans and investments so described).’’; 
and 
(3) in paragraph (6)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘beginning’’ and all that follows 
through ‘‘2005’’; 
(ii) by striking clause (i) and inserting 
the following: 
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388 
‘‘(i) subject to subparagraph (D), pay 
to each insured System bank, in a manner 
determined by the Corporation, an amount 
equal to the balance in its Allocated Insur-
ance Reserves Account; and’’; and 
(iii) in clause (ii)— 
(I) by striking ‘‘(C), (E), and 
(F)’’ and inserting ‘‘(C) and (E)’’; and 
(II) by striking ‘‘outstanding,’’ 
and all that follows and inserting ‘‘at 
the time of the termination of the Fi-
nancial Assistance Corporation, of the 
balance in the Allocated Insurance Re-
serves Account established under sub-
paragraph (1)(B).’’; 
(B) in subparagraph (C)— 
(i) in clause (i), by striking ‘‘(in addi-
tion to the amounts described in subpara-
graph (F)(ii))’’; and 
(ii) by striking clause (ii) and insert-
ing the following: 
‘‘(ii) TERMINATION OF ACCOUNT.—On 
disbursement of $56,000,000, the Corpora-
tion shall close the Account established 
under paragraph (1)(B) and transfer any 
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389 
remaining funds in the Account to the re-
maining Allocated Insurance Reserves Ac-
counts in accordance with paragraph (4)(B) 
for the calendar year in which the transfer 
occurs.’’; and 
(C) by striking subparagraph (F). 
(g) CERTIFICATION OF PREMIUMS.— 
(1) FILING
CERTIFIED
STATEMENT.—Section 
5.56(a) of such Act (12 U.S.C. 2277a-5(a)) is amend-
ed to read as follows: 
‘‘(a) FILING CERTIFIED STATEMENT.—On a date to 
be determined in the sole discretion of the Corporation’s 
Board of Directors, each insured System bank that became 
insured before the beginning of the period for which pre-
miums are being assessed (in this section referred to as the 
‘period’) shall file with the Corporation a certified state-
ment showing— 
‘‘(1) the average outstanding insured obligations 
for the period issued by the bank; 
‘‘(2) the average principal outstanding for the 
period on the guaranteed portion of Federal govern-
ment-guaranteed loans that are in accrual status and 
the average amount outstanding for the period of Fed-
eral government-guaranteed investments that are not 
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390 
permanently 
impaired 
(as 
defined 
in 
section 
5.55(a)(4)); 
‘‘(3) the average principal outstanding for the 
period on State government-guaranteed loans that are 
in accrual status and the average amount out-
standing for the period of State government-guaran-
teed investments that are not permanently impaired 
(as defined in section 5.55(a)(4)); 
‘‘(4) the average principal outstanding for the 
period on loans that are in nonaccrual status and the 
average amount outstanding for the period of other- 
than-temporarily impaired investments; and 
‘‘(5) the amount of the premium due the Cor-
poration from the bank for the period.’’. 
(2) PREMIUM
PAYMENTS.—Section 5.56(c) of 
such Act (12 U.S.C. 2277a-5(c)) is amended to read 
as follows: 
‘‘(c) PREMIUM PAYMENTS.—Each insured System 
bank shall pay to the Corporation the premium payments 
required under subsection (a), not more frequently than 
once in each calendar quarter, in such manner and at such 
time or times as the Board of Directors shall prescribe, ex-
cept that the amount of the premium shall be established 
not later than 60 days after filing the certified statement 
setting forth the amount of the premium.’’. 
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391 
(3) CONFORMING AMENDMENTS.—Section 5.56 of 
such Act (12 U.S.C. 2277a-5) is amended by striking 
subsection (d) and redesignating subsection (e) as sub-
section (d). 
(h) RULES AND REGULATIONS.—Section 5.58(10) of 
such Act (12 U.S.C. 2277a-7(10)) is amended by inserting 
‘‘and section 1.12(b)’’ after ‘‘part’’. 
SEC. 5039. RISK-BASED CAPITAL LEVELS. 
Section 8.32(a)(1) of the Farm Credit Act of 1971 (12 
U.S.C. 2279bb-1(a)(1)) is amended by striking all through 
‘‘a pool of’’ and inserting the following: 
‘‘(1) CREDIT RISK.— 
‘‘(A) With respect to securities representing 
an interest in, or obligations backed by, a pool 
of qualified loans (as defined in section 
8.0(9)(C)), owned or guaranteed by the Corpora-
tion, losses occur at a rate of default and severity 
reasonably related to risks in electric and tele-
phone facility loans, respectively, as determined 
by the Director. 
‘‘(B) With respect to securities representing 
an interest in, or obligations backed by, a pool 
of other’’. 
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392 
SEC. 
5040. 
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 Secretary 
of Agriculture may make and insure loans as provided in 
section 309 of the Consolidated Farm and Rural Develop-
ment Act to eligible purchasers of highly fractionated land 
pursuant to section 204(c) of the Indian Land Consolida-
tion Act. Section 4 of this Act shall not apply to trust or 
restricted tribal or tribal corporation property mortgaged 
pursuant to the preceding sentence.’’. 
TITLE VI—RURAL DEVELOPMENT 
Sec. 6001. Definition of rural. 
Sec. 6002. Water, waste disposal, and wastewater facility grants. 
Sec. 6003. Rural business opportunity grants. 
Sec. 6004. Rural water and wastewater circuit rider program. 
Sec. 6005. Tribal college and university essential community facilities. 
Sec. 6006.
Emergency and imminent community water assistance grant pro-
gram. 
Sec. 6007. Water systems for rural and native villages in Alaska. 
Sec. 6008. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water 
well systems in rural areas for individuals with low or moderate 
incomes. 
Sec. 6009. Rural cooperative development grants. 
Sec. 6010. Criteria to be applied in
providing loans and loan guarantees under 
the business and industry loan program. 
Sec. 6011. Appropriate technology transfer for rural areas program. 
Sec. 6012. Grants to improve technical infrastructure and improve quality of 
rural health care facilities. 
Sec. 6013. Rural entrepreneur and microenterprise assistance program. 
Sec. 6014. Criteria to be applied in considering applications for rural develop-
ment projects. 
Sec. 6015. National sheep industry improvement center. 
Sec. 6016. National rural development partnership. 
Sec. 6017. Historic barn preservation. 
Sec. 6018. Grants for NOAA weather radio transmitters. 
Sec. 6019. Delta regional authority. 
Sec. 6020. Northern great plains regional authority. 
Sec. 6021. Rural strategic investment program. 
Sec. 6022. Expansion of 911 access. 
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393 
Sec. 6023. Access to broadband telecommunications services in rural areas. 
Sec. 6024. Community connect grant program. 
Sec. 6025. Agriculture innovation center demonstration program. 
Sec. 6026. Rural firefighters and emergency medical service assistance program. 
Sec. 6027. Value-added agricultural market development program. 
Sec. 6028. Assistance for rural public television stations. 
Sec. 6029. Telemedicine and distance learning services in rural areas. 
Sec. 6030. Guarantees for bonds and notes issued for electrification or telephone 
purposes. 
Sec. 6031. Comprehensive rural broadband strategy. 
Sec. 6032. Study of railroad issues. 
SEC. 6001. DEFINITION OF RURAL. 
Not later than 60 days after the date of the enactment 
of this Act, the Secretary of Agriculture shall prepare and 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that— 
(1) assesses the varying definitions of ‘‘rural’’ 
used by the Department of Agriculture; 
(2) describes the effects those varying definitions 
have on the programs administered by the Depart-
ment of Agriculture; and 
(3) makes recommendations for ways to better 
target funds provided through rural development pro-
grams. 
SEC. 6002. WATER, WASTE DISPOSAL, AND WASTEWATER FA-
CILITY GRANTS. 
Section 306(a)(2)(B)(vii) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) 
is amended by striking ‘‘2002 through 2007’’ and inserting 
‘‘2008 through 2012’’. 
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394 
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS. 
Section 306(a)(11)(D) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is 
amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT 
RIDER PROGRAM. 
Section 306(a)(22)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(22)(C)) is 
amended by striking ‘‘$15,000,000 for fiscal year 2003’’ and 
inserting ‘‘$25,000,000 for fiscal year 2008’’. 
SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL 
COMMUNITY FACILITIES. 
Section 306(a)(25) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(25)) is amend-
ed— 
(1) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) FEDERAL
SHARE.—The Secretary 
shall establish the maximum percentage of the 
cost of the facility that may be covered by a 
grant under this paragraph, except that the Sec-
retary may not require non-Federal financial 
support in an amount that is greater than 5 per-
cent of the total cost.’’; and 
(2) in subparagraph (C), by striking ‘‘2003 
through 2007’’ and inserting ‘‘2008 through 2012’’. 
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395 
SEC. 6006. EMERGENCY AND IMMINENT COMMUNITY WATER 
ASSISTANCE GRANT PROGRAM. 
Section 306A(i)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended 
by striking ‘‘2003 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
SEC. 6007. WATER SYSTEMS FOR RURAL AND NATIVE VIL-
LAGES IN ALASKA. 
Section 306D(d)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended 
by striking ‘‘2001 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
SEC. 6008. GRANTS TO NONPROFIT ORGANIZATIONS TO FI-
NANCE THE CONSTRUCTION, REFURBISHING, 
AND SERVICING OF INDIVIDUALLY-OWNED 
HOUSEHOLD 
WATER 
WELL 
SYSTEMS 
IN 
RURAL AREAS FOR INDIVIDUALS WITH LOW 
OR MODERATE INCOMES. 
Section 306E(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926e(d)) is amended by strik-
ing ‘‘2003 through 2007’’ and inserting ‘‘2008 through 
2012’’. 
SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS. 
(a) ELIGIBILITY.—Section 310B(e)(5) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1932(e)(5)) is amended— 
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(1) in subparagraph (A), by striking ‘‘a nation-
ally coordinated, regionally or State-wide operated 
project’’ and inserting ‘‘activities to promote and as-
sist the development of cooperatively and mutually 
owned businesses’’; 
(2) in subparagraph (B), by inserting ‘‘to pro-
mote and assist the development of cooperatively and 
mutually owned businesses’’ before the semicolon; 
(3) by striking subparagraphs (D) and (F) and 
redesignating subparagraph (E) as subparagraph 
(D); and 
(4) adding at the end the following: 
‘‘(E) demonstrate a commitment to— 
‘‘(i) networking with and sharing the 
results of its efforts with other cooperative 
development centers and other organizations 
involved in rural economic development ef-
forts; and 
‘‘(ii) 
developing 
multi-organization 
and multi-State approaches to addressing 
the cooperative and economic development 
needs of rural areas.’’. 
(b) AUTHORITY TO AWARD MULTI-YEAR GRANTS.— 
Section 310(B)(e)(6) of such Act (7 U.S.C. 1932(e)(6)) is 
amended to read as follows: 
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397 
‘‘(6) Grants awarded to centers that have re-
ceived no prior funding under this subsection shall be 
made for a period of 1 year. The Secretary shall 
evaluate programs receiving assistance under this 
subsection. The Secretary may award grants for a pe-
riod of more than 1 year, but not more than 3 years, 
to centers that have successfully met the criteria 
under paragraph (5).’’. 
(c) AUTHORITY TO EXTEND GRANT PERIOD FOR 1 
YEAR.—Section 310B(e) of such Act (7 U.S.C. 1932(e)) is 
amended by redesignating paragraphs (7) through (9) as 
paragraphs (8) through (10), respectively, and inserting 
after paragraph (6) the following: 
‘‘(7) The Secretary may extend for only 1 addi-
tional 12-month period the period in which a grantee 
may use a grant made under this subsection.’’. 
(d) COOPERATIVE
RESEARCH
PROGRAM.—Section 
310B(e) of such Act (7 U.S.C. 1932(e)), as amended by sub-
section (c) of this section, is amended by redesignating 
paragraphs (9) and (10) as paragraphs (10) and (11), re-
spectively, and inserting after paragraph (9) the following: 
‘‘(10) The Secretary shall enter into a coopera-
tive research agreement with 1 or more qualified aca-
demic institutions in each fiscal year to conduct re-
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398 
search on the national economic effects of all types of 
cooperatives.’’. 
(e) ADDRESSING
NEEDS
OF
MINORITY
COMMU-
NITIES.—Section 310B(e) of such Act (7 U.S.C. 1932(e)), 
as amended by subsections (c) and (d) of this section, is 
amended by redesignating paragraph (11) as paragraph 
(12) and inserting after paragraph (10) the following: 
‘‘(11)(A) If the total amount appropriated under 
paragraph (12) of this subsection for a fiscal year ex-
ceeds $7,500,000, the Secretary shall reserve an 
amount equal to 20 percent of the amount so appro-
priated for grants for cooperative development centers, 
individual cooperatives, or groups of cooperatives, 
serving socially disadvantaged (within the meaning of 
section 355(e)) communities, a majority of the boards 
of directors or governing boards of which are com-
prised of socially disadvantaged (withing such mean-
ing) individuals. 
‘‘(B) To the extent that the Secretary determines 
that funds reserved under subparagraph (A) will not 
be used for grants described in subparagraph (A) be-
cause of insufficient applications for the grants, the 
Secretary shall use the funds as otherwise authorized 
by this subsection.’’. 
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399 
(f) AUTHORIZATION
OF APPROPRIATIONS.—Section 
310B(e)(12) of such Act (7 U.S.C. 1932(e)(12)), as so redes-
ignated by subsections (c) through (e) of this section, is 
amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 6010. CRITERIA TO BE APPLIED IN
PROVIDING LOANS 
AND LOAN GUARANTEES UNDER THE BUSI-
NESS AND INDUSTRY LOAN PROGRAM. 
Section 310B(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)) is amended by adding 
at the end the following: 
‘‘(9)(A) In providing loans and loan guarantees under 
this section, the Secretary shall consider an application 
more favorably when compared to other applications to the 
extent that the project described in the application supports 
community development and farm and ranch income by 
marketing, distributing, storing, aggregating, or processing 
a locally or regionally produced agricultural product. 
‘‘(B) In subparagraph (A), the term ‘locally or region-
ally produced agricultural product’ means an agricultural 
product— 
‘‘(I) which is produced and distributed in the lo-
cality or region where the finished product is mar-
keted; 
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400 
‘‘(ii) which has been shipped a total distance of 
400 or fewer miles, as determined by the Secretary; 
and 
‘‘(iii) about which the distributor has conveyed 
to the end-use consumers information regarding the 
origin of the product or production practices, or other 
valuable information.’’. 
SEC. 6011. APPROPRIATE TECHNOLOGY TRANSFER FOR 
RURAL AREAS PROGRAM. 
Section 310B of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1932) is amended by adding at 
the end the following: 
‘‘(i) APPROPRIATE
TECHNOLOGY
TRANSFER
FOR 
RURAL AREAS PROGRAM.— 
‘‘(1) DEFINITION OF NATIONAL NONPROFIT AGRI-
CULTURAL
ASSISTANCE
INSTITUTION.—In this sub-
section, the term ‘national nonprofit agricultural as-
sistance institution’ means an organization that— 
‘‘(A) is described in section 501(c)(3) of the 
Internal Revenue Code of 1986 and exempt from 
taxation under 501(a) of that Code; 
‘‘(B) has staff and offices in multiple re-
gions; 
‘‘(C) operates national sustainable agri-
culture technical assistance programs; and 
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