346 
panding the participation of small scale farmers in 
Federal nutrition programs.’’. 
SEC. 4202. NUTRITION INFORMATION AND AWARENESS 
PILOT PROGRAM. 
Section 4403 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107– 
171) is repealed. 
SEC. 4203. FRESH FRUIT AND VEGETABLE PROGRAM. 
Section 19 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769a) is amended— 
(1) in the section heading, by striking 
‘‘FRESH’’; 
(2) in subsection (a), by striking ‘‘fresh’’; 
(3) in subsection (b), by striking ‘‘fresh’’; and 
(4) in subsection (e), by striking ‘‘fresh’’. 
SEC. 4204. ADDITIONAL AUTHORITY FOR PURCHASE OF 
FRESH FRUITS, VEGETABLES, AND OTHER 
SPECIALTY FOOD CROPS. 
Section 10603 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 612c–4) is amended— 
(1) in subsection (b), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; 
(2) by redesignating subsection (c) as sub-
section (d); and 
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(3) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) PILOT GRANT PROGRAM FOR PURCHASE OF 
FRESH FRUITS AND VEGETABLES.— 
‘‘(1) IN GENERAL.—Using amounts made avail-
able to carry out subsection (b), the Secretary of Ag-
riculture shall conduct a pilot program under which 
the Secretary will give not more than five partici-
pating States the option of receiving a grant in an 
amount equal to the value of the commodities that 
the participating State would otherwise receive 
under this section for each of fiscal years 2014 
through 2018. 
‘‘(2) USE OF GRANT FUNDS.—A participating 
State receiving a grant under this subsection may 
use the grant funds solely to purchase fresh fruits 
and vegetables for distribution to schools and service 
institutions in the State that participate in the food 
service programs under the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1751 et seq.) 
and the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.). 
‘‘(3) SELECTION OF PARTICIPATING STATES.— 
The Secretary shall select participating States from 
applications submitted by the States. 
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‘‘(4) REPORTING REQUIREMENTS.— 
‘‘(A) SCHOOL AND SERVICE INSTITUTION 
REQUIREMENT.—Schools and service institu-
tions in a participating State shall keep records 
of purchases of fresh fruits and vegetables 
made using the grant funds and report such 
records to the State. 
‘‘(B) STATE
REQUIREMENT.—Each par-
ticipating State shall submit to the Secretary a 
report on the success of the pilot program in 
the State, including information on— 
‘‘(i) the amount and value of each 
type of fresh fruit and vegetable purchased 
by the State; and 
‘‘(ii) the benefit provided by such pur-
chases in conducting the school food serv-
ice in the State, including meeting school 
meal requirements.’’. 
SEC. 4205. ENCOURAGING LOCALLY AND REGIONALLY 
GROWN AND RAISED FOOD. 
(a) COMMODITY PURCHASE STREAMLINING.—The 
Secretary may permit each school food authority with a 
low annual commodity entitlement value, as determined by 
the Secretary, to elect to substitute locally and regionally 
grown and raised food for the authority’s allotment, in 
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349 
whole or in part, of commodity assistance for the school 
meal programs under the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et seq.) and the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), if— 
(1) the election is requested by the school food 
authority; 
(2) the Secretary determines that the election 
will reduce State and Federal administrative costs; 
and 
(3) the election will provide the school food au-
thority with greater flexibility to purchase locally 
and regionally grown and raised foods. 
(b) 
FARM-TO-SCHOOL
DEMONSTRATION
PRO-
GRAMS.— 
(1) IN GENERAL.—The Secretary may establish 
farm-to-school demonstration programs under which 
school food authorities, agricultural producers pro-
ducing for local and regional markets, and other 
farm-to-school stakeholders will collaborate with the 
Agriculture Marketing Service to, on a cost neutral 
basis, source food for the school meal programs 
under the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1751 et seq.) and the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.) from local 
farmers and ranchers in lieu of the commodity as-
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350 
sistance provided to the school food authorities for 
the school meal programs. 
(2) REQUIREMENTS.— 
(A) IN
GENERAL.—Each demonstration 
program carried out under this subsection 
shall— 
(i) facilitate and increase the purchase 
of unprocessed and minimally processed lo-
cally and regionally grown and raised agri-
cultural products to be served under the 
school meal programs; 
(ii) test methods to improve procure-
ment, transportation, and meal preparation 
processes for the school meal programs; 
(iii) assess whether administrative 
costs can be saved through increased 
school food authority flexibility to source 
locally and regionally produced foods for 
the school meal programs; and 
(iv) undertake rigorous evaluation and 
share information about results of the 
demonstration program, including cost sav-
ings, with the Secretary, other school food 
authorities, agricultural producers pro-
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351 
ducing for the local and regional market, 
and the general public. 
(B) PLANS.—In order to be selected to 
carry out a demonstration program under this 
subsection, a school food authority shall submit 
to the Secretary a plan at such time and in 
such manner as the Secretary may require, and 
containing information with respect to the re-
quirements described in clauses (i) through (iv) 
of subparagraph (A). 
(3) TECHNICAL
ASSISTANCE.—The Secretary 
shall provide technical assistance to demonstration 
program participants to assist such participants to 
acquire bids from potential vendors in a timely and 
cost-effective manner. 
(4) LENGTH.—The Secretary shall determine 
the appropriate length of time for each demonstra-
tion program under this subsection. 
(5) COORDINATION.—The Secretary shall co-
ordinate among relevant agencies of the Department 
of Agriculture and non-governmental organizations 
with appropriate expertise to facilitate the provision 
of training and technical assistance necessary to suc-
cessfully carry out demonstration programs under 
this subsection. 
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(6) NUMBER.—Subject to the availability of 
funds to carry out this subsection, the Secretary 
shall select at least 10 demonstration programs to 
be carried out under this subsection. 
(7) DIVERSITY
AND
BALANCE.—In selecting 
demonstration programs to be carried out under this 
subsection, the Secretary shall, to the maximum ex-
tent practicable, ensure— 
(A) geographical diversity; 
(B) that at least half of the demonstration 
programs are completed in collaboration with 
school food authorities with small annual com-
modity entitlements, as determined by the Sec-
retary; 
(C) that at least half of the demonstration 
programs are completed in rural or tribal com-
munities; 
(D) equitable treatment of school food au-
thorities with a high percentage of students eli-
gible for free or reduced price lunches, as deter-
mined by the Secretary; and 
(E) that at least one of the demonstration 
programs is completed on a military installation 
as defined in section 2687(e)(1) of title 10, 
United States Code. 
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353 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS. 
(a) IN GENERAL.—Section 302(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1922(a)) is amended— 
(1) by striking ‘‘(a) IN GENERAL.—The’’ and 
inserting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 
(2) in the 1st sentence, by inserting after ‘‘lim-
ited liability companies’’ the following: ‘‘, and such 
other legal entities as the Secretary deems appro-
priate,’’; 
(3) in the 2nd sentence, by redesignating 
clauses (1) through (4) as clauses (A) through (D), 
respectively; 
(4) in each of the 2nd and 3rd sentences, by 
striking ‘‘and limited liability companies’’ each place 
it appears and inserting ‘‘limited liability companies, 
and such other legal entities’’; 
(5) in the 3rd sentence, by striking ‘‘(3)’’ and 
‘‘(4)’’ and inserting ‘‘(C)’’ and ‘‘(D)’’, respectively; 
and 
(6) by adding at the end the following: 
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354 
‘‘(2) SPECIAL DEEMING RULES.— 
‘‘(A) ELIGIBILITY
OF
CERTAIN
OPER-
ATING-ONLY
ENTITIES.—An entity that is or 
will become only the operator of a family farm 
is deemed to meet the owner-operator require-
ments of paragraph (1) if the individuals that 
are the owners of the family farm own more 
than 50 percent (or such other percentage as 
the Secretary determines is appropriate) of the 
entity. 
‘‘(B) ELIGIBILITY OF CERTAIN EMBEDDED 
ENTITIES.—An entity that is an owner-operator 
described in paragraph (1), or an operator de-
scribed in subparagraph (A) of this paragraph 
that is owned, in whole or in part, by other en-
tities, is deemed to meet the direct ownership 
requirement imposed under paragraph (1) if at 
least 75 percent of the ownership interests of 
each embedded entity of such entity is owned 
directly or indirectly by the individuals that own 
the family farm.’’. 
(b) DIRECT FARM OWNERSHIP EXPERIENCE RE-
QUIREMENT.—Section 302(b)(1) of such Act (7 U.S.C. 
1922(b)(1)) is amended by inserting ‘‘or has other accept-
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355 
able experience for a period of time, as determined by the 
Secretary,’’ after ‘‘3 years’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 304(c)(2) of such Act (7 U.S.C. 
1924(c)(2)) by striking ‘‘paragraphs (1) and (2) of 
section 302(a)’’ and inserting ‘‘clauses (A) and (B) 
of section 302(a)(1)’’. 
(2) Section 310D of such Act (7 U.S.C. 1934) 
is amended— 
(A) by inserting after ‘‘partnership’’ the 
following: ‘‘, or such other legal entities as the 
Secretary deems appropriate,’’; and 
(B) by striking ‘‘or partners’’ each place it 
appears and inserting ‘‘partners, or owners’’. 
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE 
PROGRAM. 
(a) ELIGIBILITY.—Section 304(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1924(c)) is 
amended by inserting after ‘‘limited liability companies’’ 
the following: ‘‘, or such other legal entities as the Sec-
retary deems appropriate,’’. 
(b) LIMITATION ON LOAN GUARANTEE AMOUNT.— 
Section 304(e) of such Act (7 U.S.C. 1924(e)) is amended 
by striking ‘‘75 percent’’ and inserting ‘‘90 percent’’. 
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356 
(c) EXTENSION OF PROGRAM.—Section 304(h) of 
such Act (7 U.S.C. 1924(h)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 5003. DOWN PAYMENT LOAN PROGRAM. 
(a) IN GENERAL.—Section 310E(b)(1)(C) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1935(b)(1)(C)) is amended by striking ‘‘$500,000’’ and 
inserting ‘‘$667,000’’. 
(b) TECHNICAL CORRECTION.—Section 310E(b) of 
such Act (7 U.S.C. 1935(b)) is amended by striking the 
2nd paragraph (2). 
SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL 
REQUIREMENT. 
Section 307 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1927) is amended by striking 
subsection (d) and redesignating subsection (e) as sub-
section (d). 
Subtitle B—Operating Loans 
SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS. 
Section 311(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(a)) is amended— 
(1) by striking ‘‘(a) IN GENERAL.—The’’ and 
inserting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 
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(2) in the 1st sentence, by inserting after ‘‘lim-
ited liability companies’’ the following: ‘‘, and such 
other legal entities as the Secretary deems appro-
priate,’’; 
(3) in the 2nd sentence, by redesignating 
clauses (1) through (4) as clauses (A) through (D), 
respectively; 
(4) in each of the 2nd and 3rd sentences, by 
striking ‘‘and limited liability companies’’ each place 
it appears and inserting ‘‘limited liability companies, 
and such other legal entities’’; 
(5) in the 3rd sentence, by striking ‘‘(3)’’ and 
‘‘(4)’’ and inserting ‘‘(C)’’ and ‘‘(D)’’, respectively; 
and 
(6) by adding at the end the following: 
‘‘(2) SPECIAL DEEMING RULE.—An entity that 
is an operator described in paragraph (1) that is 
owned, in whole or in part, by other entities, is 
deemed to meet the direct ownership requirement 
imposed under paragraph (1) if at least 75 percent 
of the ownership interests of each embedded entity 
of such entity is owned directly or indirectly by the 
individuals that own the family farm.’’. 
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358 
SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIRE-
MENT FOR OPERATING LOANS TO YOUTH. 
Section 311(b)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1941(b)(1)) is amended 
by striking ‘‘who are rural residents’’. 
SEC. 5103. AUTHORITY TO WAIVE PERSONAL LIABILITY 
FOR YOUTH LOANS DUE TO CIRCUMSTANCES 
BEYOND BORROWER CONTROL. 
Section 311(b) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)) is amended by add-
ing at the end the following: 
‘‘(5) The Secretary may, on a case by case basis, 
waive the personal liability of a borrower for a loan made 
under this subsection if any default on the loan was due 
to circumstances beyond the control of the borrower.’’. 
SEC. 5104. MICROLOANS. 
(a) IN GENERAL.—Section 313 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1943) is 
amended by adding at the end the following: 
‘‘(c) MICROLOANS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may establish a program to make or 
guarantee microloans. 
‘‘(2) LIMITATION.—The Secretary shall not 
make or guarantee a microloan under this sub-
section that exceeds $35,000 or that would cause the 
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total principal indebtedness outstanding at any 1 
time for microloans made under this chapter to any 
1 borrower to exceed $70,000. 
‘‘(3) APPLICATIONS.—To the maximum extent 
practicable, the Secretary shall limit the administra-
tive burdens and streamline the application and ap-
proval process for microloans under this subsection. 
‘‘(4) COOPERATIVE LENDING PROJECTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary may contract with 
community-based and nongovernmental organi-
zations, State entities, or other intermediaries, 
as the Secretary determines appropriate— 
‘‘(i) to make or guarantee a microloan 
under this subsection; and 
‘‘(ii) to provide business, financial, 
marketing, and credit management services 
to borrowers. 
‘‘(B) REQUIREMENTS.—Before contracting 
with an entity described in subparagraph (A), 
the Secretary— 
‘‘(i) shall review and approve— 
‘‘(I) the loan loss reserve fund 
for microloans established by the enti-
ty; and 
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‘‘(II) the underwriting standards 
for microloans of the entity; and 
‘‘(ii) establish such other requirements 
for contracting with the entity as the Sec-
retary determines necessary.’’. 
(b) EXCEPTIONS
FOR
DIRECT
LOANS.—Section 
311(c)(2) of such Act (7 U.S.C. 1941(c)(2)) is amended 
to read as follows: 
‘‘(2) EXCEPTIONS.—In this subsection, the 
term ‘direct operating loan’ shall not include— 
‘‘(A) a loan made to a youth under sub-
section (b); or 
‘‘(B) a microloan made to a beginning 
farmer or rancher or a veteran farmer or ranch-
er (as defined in section 2501(e) of the Food, 
Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 2279(e)).’’. 
(c) Section 312(a) of such Act (7 U.S.C. 1942(a)) 
is amended by inserting ‘‘(including a microloan, as de-
fined by the Secretary)’’ after ‘‘A direct loan’’. 
(d) Section 316(a)(2) of such Act (7 U.S.C. 
1946(a)(2)) is amended by inserting ‘‘a microloan to a be-
ginning farmer or rancher or veteran farmer or rancher 
(as defined in section 2501(e) of the Food, Agriculture, 
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361 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)) 
or’’ after ‘‘The interest rate on’’. 
Subtitle C—Emergency Loans 
SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS. 
Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended— 
(1) by striking ‘‘owner-operators (in the case of 
loans for a purpose under subtitle A) or operators 
(in the case of loans for a purpose under subtitle 
B)’’ each place it appears and inserting ‘‘(in the 
case of farm ownership loans in accordance with 
subtitle A) owner-operators or operators, or (in the 
case of loans for a purpose under subtitle B) opera-
tors’’; 
(2) by inserting after ‘‘limited liability compa-
nies’’ the 1st place it appears the following: ‘‘, or 
such other legal entities as the Secretary deems ap-
propriate’’; and 
(3) by inserting after ‘‘limited liability compa-
nies’’ the 2nd place it appears the following: ‘‘, or 
other legal entities’’; 
(4) by striking ‘‘and limited liability compa-
nies,’’ and inserting ‘‘limited liability companies, and 
such other legal entities’’; 
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362 
(5) by striking ‘‘ownership and operator’’ and 
inserting ‘‘ownership or operator’’; and 
(6) by adding at the end the following: ‘‘An en-
tity that is an owner-operator or operator described 
in this subsection is deemed to meet the direct own-
ership requirement imposed under this subsection if 
at least 75 percent of the ownership interests of 
each embedded entity of such entity is owned di-
rectly or indirectly by the individuals that own the 
family farm.’’. 
Subtitle D—Administrative 
Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
Section 333B(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b(h)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 5302. ELIGIBLE BEGINNING FARMERS AND RANCH-
ERS. 
(a) CONFORMING
AMENDMENTS
RELATING
TO 
CHANGES IN ELIGIBILITY RULES.—Section 343(a)(11) of 
such Act (7 U.S.C. 1991(a)(11)) is amended— 
(1) by inserting after ‘‘joint operation,’’ the 1st 
place it appears the following: ‘‘or such other legal 
entity as the Secretary deems appropriate,’’; 
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363 
(2) by striking ‘‘or joint operators’’ each place 
it appears and inserting ‘‘joint operators, or own-
ers’’; and 
(3) by inserting after ‘‘joint operation,’’ the 2nd 
and 3rd place it appears the following: ‘‘or such 
other legal entity,’’. 
(b) MODIFICATION OF ACREAGE OWNERSHIP LIMI-
TATION.—Section 343(a)(11)(F) of such Act (7 U.S.C. 
1991(a)(11)(F)) is amended by striking ‘‘median acreage’’ 
and inserting ‘‘average acreage’’. 
SEC. 5303. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(1)) is amended 
in the matter preceding subparagraph (A) by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 5304. PRIORITY FOR PARTICIPATION LOANS. 
Section 346(b)(2)(A)(i) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1994(b)(2)(A)(i)) 
is amended by adding at the end the following: 
‘‘(III) PRIORITY.—In order to 
maximize the number of borrowers 
served under this clause, the Sec-
retary— 
‘‘(aa) shall give priority to 
applicants who apply under the 
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364 
down 
payment 
loan 
program 
under section 310E or joint fi-
nancing arrangements under sec-
tion 307(a)(3)(D); and 
‘‘(bb) may offer other fi-
nancing options under this sub-
title to applicants only if the Sec-
retary determines that down pay-
ment or other participation loan 
options are not a viable approach 
for the applicants.’’. 
SEC. 5305. LOAN FUND SET-ASIDES. 
Section 346(b)(2)(A)(ii)(III) of the Consolidated 
Farm 
and 
Rural 
Development 
Act 
(7 
U.S.C. 
1994(b)(2)(A)(ii)(III)) is amended— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘of the total amount’’. 
SEC. 5306. CONFORMING AMENDMENT TO BORROWER 
TRAINING PROVISION, RELATING TO ELIGI-
BILITY CHANGES. 
Section 359(c)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2006a(c)(2)) is amend-
ed by striking ‘‘section 302(a)(2) or 311(a)(2)’’ and in-
serting ‘‘section 302(a)(1)(B) or 311(a)(1)(B)’’. 
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