I 
114TH CONGRESS 
2D SESSION 
H. R. 5733 
To amend the Agricultural Act of 1961 to modify the limitations applicable 
to qualified conservation loan guarantees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2016 
Mr. BOST introduced the following bill; which was referred to the Committee 
on Agriculture 
A BILL 
To amend the Agricultural Act of 1961 to modify the limita-
tions applicable to qualified conservation loan guarantees, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Beginning Farmer and 
Rancher Guaranteed Loan Modernization Act of 2016’’. 
SEC. 2. LIMITATIONS APPLICABLE TO QUALIFIED CON-
SERVATION LOAN GUARANTEES. 
(a) LIMITATIONS APPLICABLE TO LOAN GUARAN-
TEES.—Subtitle A of title III of the Agricultural Act of 
1961 (7 U.S.C. 1922 et seq.) is amended— 
VerDate Sep 11 2014 
02:41 Jul 19, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5733.IH
H5733
emcdonald on DSK9F6TC42PROD with BILLS
(1) by amending section 304(e) of such Act (7 
U.S.C. 1924(e)) to read as follows: 
‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARAN-
TEES.— 
‘‘(1) PERCENTAGE
OF
LOAN
GUARANTEED.— 
The portion of a loan that the Secretary may guar-
antee under this section shall— 
‘‘(A) depend on the principal amount of 
the loan; and 
‘‘(B) except as provided in paragraph (2), 
may not exceed the percentage specified for 
that principal amount in the following table: 
‘‘Principal Amount 
More Than 
Principal Amount 
Equal To or 
Less Than 
Maximum 
Percent 
$0 .........................................
$2,500,000 .......................................
90%
$2,500,000 ...........................
$2,600,000 .......................................
89%
$2,600,000 ...........................
$2,700,000 .......................................
88%
$2,700,000 ...........................
$2,800,000 .......................................
87%
$2,800,000 ...........................
$2,900,000 .......................................
86%
$2,900,000 ...........................
$3,000,000 .......................................
85%
$3,000,000 ...........................
$3,100,000 .......................................
84%
$3,100,000 ...........................
$3,200,000 .......................................
83%
$3,200,000 ...........................
$3,300,000 .......................................
82%
$3,300,000 ...........................
$3,400,000 .......................................
81%
$3,400,000 ...........................
$3,500,000 .......................................
80%. 
‘‘(2) EXCEPTION FOR CERTAIN PRODUCERS.— 
In the case of a loan to a producer that is a quali-
fied beginning farmer or rancher or a socially dis-
advantaged farmer or rancher (as the term is de-
fined in section 2501(e)), the portion of the loan the 
Secretary may guarantee under this paragraph may 
VerDate Sep 11 2014 
02:41 Jul 19, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5733.IH
H5733
emcdonald on DSK9F6TC42PROD with BILLS
not exceed the percentage specified for the principal 
amount of the loan in the following table: 
‘‘Principal Amount 
More Than 
Principal Amount 
Equal To or 
Less Than 
Maximum 
Percent 
$0 .........................................
$2,500,000 .......................................
95%
$2,500,000 ...........................
$2,600,000 .......................................
94%
$2,600,000 ...........................
$2,700,000 .......................................
93%
$2,700,000 ...........................
$2,800,000 .......................................
92%
$2,800,000 ...........................
$2,900,000 .......................................
91%
$2,900,000 ...........................
$3,000,000 .......................................
90%
$3,000,000 ...........................
$3,100,000 .......................................
89%
$3,100,000 ...........................
$3,200,000 .......................................
88%
$3,200,000 ...........................
$3,300,000 .......................................
87%
$3,300,000 ...........................
$3,400,000 .......................................
86%
$3,400,000 ...........................
$3,500,000 .......................................
85%. 
‘‘(3) MAXIMUM AMOUNT.—The Secretary may 
not guarantee a loan under this section in an 
amount that exceeds $3,500,000. 
‘‘(4) ANNUAL
INFLATION
ADJUSTMENT.—The 
Secretary shall annually adjust the dollar figures 
under paragraphs (1), (2), and (3) to reflect the 
change in the Prices Paid By Farmers Index (as 
compiled by the National Agricultural Statistics 
Service of the Department of Agriculture).’’; and 
(2) in section 305(a) of such Act (7 U.S.C. 
1925(a)), by striking ‘‘, or, in the case of a loan 
guaranteed by the Secretary, $700,000’’. 
(b) APPLICABILITY.—The amendments made by this 
section shall apply with respect to qualified conservation 
loans entered into by the Secretary of Agriculture under 
VerDate Sep 11 2014 
02:41 Jul 19, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5733.IH
H5733
emcdonald on DSK9F6TC42PROD with BILLS
section 304 of the Agricultural Act of 1961 (7 U.S.C. 
1924) on or after the date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
02:41 Jul 19, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H5733.IH
H5733
emcdonald on DSK9F6TC42PROD with BILLS