I
103D CONGRESS
1ST SESSION
H. R. 2211
To amend the Consolidated Farm and Rural Development Act to provide
greater access to credit for family farmers who grow specialty crops
or operate in high land cost areas, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 20, 1993
Mr. DOOLEY (for himself and Mr. POMBO) introduced the following bill; which
was referred to the Committee on Agriculture
A BILL
To amend the Consolidated Farm and Rural Development
Act to provide greater access to credit for family farmers
who grow specialty crops or operate in high land cost
areas, 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 ‘‘Agricultural Credit
Equity Act of 1993’’.
SEC. 2. INDEXATION OF GUARANTEED LOAN LIMITS IN
COUNTIES 
WITH 
ABOVE 
AVERAGE 
LAND
COSTS.
(a) GUARANTEED REAL ESTATE LOANS.—Section
305 of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1925) is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The Secretary
shall make’’;
(2) by inserting ‘‘multiplied by the adjustment
factor calculated under subsection (b) for the area in
which the borrower is located’’ after ‘‘$300,000’’;
and
(3) by adding at the end the following:
‘‘(b)(1) Upon the enactment of this subsection, and
not later than the date any Census of Agriculture is com-
pleted, the Secretary shall calculate—
‘‘(A) the average value of land and buildings in
each defined area in the United States; and
‘‘(B) the adjustment factor for each such area
in accordance with paragraph (2).
‘‘(2) The adjustment factor for any defined area shall
be 1.00, plus an amount that is directly proportional to
the percentage (if any) by which the average value of land
and buildings in the defined area exceeds the average
value of land and buildings in the United States. The Sec-
retary shall determine the proportion to be used in cal-
culating adjustment factors under this subsection.
‘‘(3) As used in paragraph (1), the term ‘defined
area’ means—
‘‘(A) a county; and
‘‘(B) any other area if the Secretary deems it
appropriate to calculate a separate adjustment fac-
tor for the area to better serve the credit needs of
family farms in the area.’’.
(b) GUARANTEED OPERATING LOANS.—Section 313
of such Act (7 U.S.C. 1943) is amended—
(1) by inserting ‘‘(a)’’ before ‘‘The Secretary
shall make’’;
(2) by inserting ‘‘multiplied by the adjustment
factor calculated under subsection (b) for the area in
which the borrower is located’’ after ‘‘$400,000’’;
and
(3) by adding at the end the following:
‘‘(b)(1) Upon the enactment of this subsection, and
not later than the date any Census of Agriculture is com-
pleted, the Secretary shall calculate—
‘‘(A) the average value of land and buildings in
each defined area in the United States; and
‘‘(B) the adjustment factor for each such area
in accordance with paragraph (2).
‘‘(2) The adjustment factor for any defined area shall
be 1.00, plus an amount that is directly proportional to
the percentage (if any) by which the average value of land
and buildings in the defined area exceeds the average
value of land and buildings in the United States. The Sec-
retary shall determine the proportion to be used in cal-
culating adjustment factors under this subsection.
‘‘(3) As used in paragraph (1), the term ‘defined
area’ means—
‘‘(A) a county; and
‘‘(B) any other area if the Secretary deems it
appropriate to calculate a separate adjustment fac-
tor for the area to better serve the credit needs of
family farms in the area.’’.
(c) ELIMINATION OF CEILING ON PRICE OF PROP-
ERTY WHICH MAY BE ACQUIRED UNDER THE DOWN
PAYMENT LOAN PROGRAM.—Section 310E of such Act (7
U.S.C. 1935) is amended—
(1) in subsection (b)(1), by inserting ‘‘the lesser
of $75,000, or’’ before ‘‘30’’; and
(2) in subection (c), by striking paragraph (2)
and redesignating paragraph (3) as paragraph (2).
SEC. 3. HIRED LABOR LIMITS.
(a) REAL ESTATE LOANS.—Section 302 of the Con-
solidated Farm and Rural Development Act (7 U.S.C.
1922) is amended by adding at the end the following:
‘‘(c)(1) The primary factor to be considered in deter-
mining whether an applicant for a loan under this subtitle
is engaged primarily and directly in farming or ranching
shall be whether the applicant is participating in routine,
ongoing farm activities, and in overall decisionmaking with
regard to the farm or ranch.
‘‘(2) The Secretary may not deny a loan under this
subtitle solely because more than 2 individuals are em-
ployed full-time in the farming operation for which the
loan is sought.’’.
(b) OPERATING LOANS.—Section 311 of such Act (7
U.S.C. 1941) is amended by adding at the end the follow-
ing:
‘‘(d)(1) The primary factor to be considered in deter-
mining whether an applicant for a loan under this subtitle
is engaged primarily and directly in farming or ranching
shall be whether the applicant is participating in routine,
ongoing farm activities, and in overall decisionmaking with
regard to the farm or ranch.
‘‘(2) The Secretary may not deny a loan under this
subtitle solely because more than 2 individuals are em-
ployed full-time in the farming operation for which the
loan is sought.’’.
(c) EMERGENCY LOANS.—Section 321 of such Act (7
U.S.C. 1961) is amended by adding at the end the follow-
ing:
‘‘(e)(1) The primary factor to be considered in deter-
mining whether an applicant for a loan under this subtitle
is engaged primarily and directly in farming or ranching
shall be whether the applicant is participating in routine,
ongoing farm activities, and in overall decisionmaking with
regard to the farm or ranch.
‘‘(2) The Secretary may not deny a loan under this
subtitle solely because more than 2 individuals are em-
ployed full-time in the farming operation for which the
loan is sought.’’.
SEC. 4. AVAILABILITY OF CREDIT ELSEWHERE.
Sections 302(a)(4) and 311(a)(4) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1922(a)(4)
and 1941(a)(4)) are each amended by inserting ‘‘and the
availability of conventional sources of funds for lending to
agricultural producers in the community’’ before the pe-
riod.
SEC. 5. GROWER-SHIPPER AGREEMENTS.
(a) REAL ESTATE LOANS.—Section 302 of the Con-
solidated Farm and Rural Development Act (7 U.S.C.
1922) is amended by adding after the subsection added
by section 3(a) of this Act the following:
‘‘(d) This section shall not be construed to prohibit
the Secretary from making a loan under this subtitle to
an applicant therefor who has entered into an agreement
with a shipper of perishable commodities under which the
applicant and the shipper share in the proceeds of the sale
of an agricultural commodity if—
‘‘(1) in the absence of such an agreement, the
applicant could not easily market the agricultural
commodity, or could not market the agricultural
commodity without incurring significant additional
risk; and
‘‘(2) the agreement is clearly beneficial to the
applicant.’’.
(b) OPERATING LOANS.—Section 311 of such Act (7
U.S.C. 1941) is amended by adding after the subsection
added by section 3(b) of this Act the following:
‘‘(e) This section shall not be construed to prohibit
the Secretary from making a loan under this subtitle to
an applicant therefor who has entered into an agreement
with a shipper of perishable commodities under which the
applicant and the shipper share in the proceeds of the sale
of an agricultural commodity if—
‘‘(1) in the absence of such an agreement, the
applicant could not easily market the agricultural
commodity, or could not market the agricultural
commodity without incurring significant additional
risk; and
‘‘(2) the agreement is clearly beneficial to the
applicant.’’.
(c) EMERGENCY LOANS.—Section 321 of such Act (7
U.S.C. 1961) is amended by adding after the subsection
added by section 3(c) of this Act the following:
‘‘(f) This section shall not be construed to prohibit
the Secretary from making a loan under this subtitle to
an applicant therefor who has entered into an agreement
with a shipper of perishable commodities under which the
applicant and the shipper share in the proceeds of the sale
of an agricultural commodity if—
‘‘(1) in the absence of such an agreement, the
applicant could not easily market the agricultural
commodity, or could not market the agricultural
commodity without incurring significant additional
risk; and
‘‘(2) the agreement is clearly beneficial to the
applicant.’’.