571 
‘‘(ii) TREATMENT
OF
AMOUNT.—An 
amount provided under clause (i) shall not 
be considered to be a gift or loan for mort-
gage purposes. 
‘‘(5) ELIGIBLE EXPENDITURES.— 
‘‘(A) IN
GENERAL.—An eligible expendi-
ture described in this subparagraph is an ex-
penditure— 
‘‘(i) to purchase farmland or make a 
down payment on an accepted purchase 
offer for farmland; 
‘‘(ii) to make mortgage payments on 
farmland purchased pursuant to clause (i), 
for up to 180 days after the date of the 
purchase; 
‘‘(iii) to purchase breeding stock, fruit 
or nut trees, or trees to harvest for timber; 
and 
‘‘(iv) for other similar expenditures, 
as determined by the Secretary. 
‘‘(B) TIMING.— 
‘‘(i) IN GENERAL.—An eligible partici-
pant may make an eligible expenditure at 
any time during the 2-year period begin-
ning on the date on which the last match-
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572 
ing funds are provided under paragraph 
(4)(B)(ii)(I) to the individual development 
account established for the eligible partici-
pant. 
‘‘(ii) UNEXPENDED
FUNDS.—At the 
end of the period described in clause (i), 
any funds remaining in an individual devel-
opment account established for an eligible 
participant shall revert to the reserve fund 
of the demonstration program under which 
the account was established. 
‘‘(c) APPLICATIONS.— 
‘‘(1) IN
GENERAL.—A qualified entity that 
seeks to carry out a demonstration program under 
this section may submit to the Secretary an applica-
tion at such time, in such form, and containing such 
information as the Secretary may prescribe. 
‘‘(2) CRITERIA.—In considering whether to ap-
prove an application to carry out a demonstration 
program under this section, the Secretary shall as-
sess— 
‘‘(A) the degree to which the demonstra-
tion program described in the application is 
likely to aid eligible participants in successfully 
pursuing new farming opportunities; 
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‘‘(B) the experience and ability of the 
qualified entity to responsibly administer the 
demonstration program; 
‘‘(C) the experience and ability of the 
qualified entity in recruiting, educating, and as-
sisting eligible participants to increase economic 
independence and pursue or advance farming 
opportunities; 
‘‘(D) the aggregate amount of direct funds 
from non-Federal public sector and private 
sources that are formally committed to the 
demonstration program as matching contribu-
tions; 
‘‘(E) the adequacy of the plan of the quali-
fied entity to provide information relevant to an 
evaluation of the demonstration program; and 
‘‘(F) such other factors as the Secretary 
considers to be appropriate. 
‘‘(3) PREFERENCES.—In considering an appli-
cation to conduct a demonstration program under 
this section, the Secretary shall give preference to an 
application from a qualified entity that dem-
onstrates— 
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