561 
contracting entity shall determine the cause of, and 
action necessary to correct, the delinquency. 
‘‘(e) GUIDELINES.—The Secretary shall issue regula-
tions providing guidelines for loan assessments conducted 
under this section. 
‘‘SEC. 3421. SUPERVISED CREDIT. 
‘‘The Secretary shall provide adequate training to 
employees of the Farm Service Agency on credit analysis 
and financial and farm management— 
‘‘(1) to better acquaint the employees with what 
constitutes adequate financial data on which to base 
a direct or guaranteed loan approval decision; and 
‘‘(2) to ensure proper supervision of farmer 
program loans. 
‘‘SEC. 3422. MARKET PLACEMENT. 
‘‘The Secretary shall establish a market placement 
program for a qualified beginning farmer and any other 
borrower of farmer program loans that the Secretary be-
lieves has a reasonable chance of qualifying for commercial 
credit with a guarantee provided under this subtitle. 
‘‘SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF 
BORROWER. 
‘‘The Secretary shall classify, by gender, records of 
applicants for loans and loan guarantees under this sub-
title. 
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‘‘SEC. 3424. CROP INSURANCE REQUIREMENT. 
‘‘(a) IN GENERAL.—As a condition of obtaining any 
benefit (including a direct loan, loan guarantee, or pay-
ment) described in subsection (b), a borrower shall be re-
quired to obtain at least catastrophic risk protection insur-
ance coverage under section 508 of the Federal Crop In-
surance Act (7 U.S.C. 1508) for the crop and crop year 
for which the benefit is sought, if the coverage is offered 
by the Federal Crop Insurance Corporation. 
‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall 
apply to— 
‘‘(1) a farm ownership loan under section 3102; 
‘‘(2) an operating loan under section 3202; and 
‘‘(3) an emergency loan under section 3301. 
‘‘SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS. 
‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM 
OBTAINING DIRECT OPERATING LOANS.—The Secretary 
may not make a direct operating loan under chapter 2 
to a borrower who is delinquent on any loan made or guar-
anteed under this subtitle. 
‘‘(b) LOANS PROHIBITED FOR BORROWERS THAT 
HAVE RECEIVED DEBT FORGIVENESS.— 
‘‘(1) PROHIBITIONS.—Except as provided in 
paragraph (2)— 
‘‘(A) the Secretary may not make a loan 
under this subtitle to a borrower that has re-
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ceived debt forgiveness on a loan made or guar-
anteed under this subtitle; and 
‘‘(B) the Secretary may not guarantee a 
loan under this subtitle to a borrower that has 
received— 
‘‘(i) debt forgiveness after April 4, 
1996, on a loan made or guaranteed under 
this subtitle; or 
‘‘(ii) received debt forgiveness on more 
than 3 occasions on or before April 4, 
1996. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
make a direct or guaranteed farm operating 
loan for paying annual farm operating expenses 
of a borrower who— 
‘‘(i) was restructured with a write- 
down under section 3411; 
‘‘(ii) is current on payments under a 
confirmed reorganization plan under chap-
ters 11, 12, or 13 of title 11 of the United 
States Code; or 
‘‘(iii) received debt forgiveness on not 
more than 1 occasion resulting directly and 
primarily from a major disaster or emer-
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