U.S.C. 2009d(d)(3)(B)) is amended by striking 
‘‘310B(a)(1)’’ and inserting ‘‘310B(a)(1)(A)’’. 
(b) LENDING POWER FOR DAIRY PROCESSING CO-
OPERATIVES.—Section 3.7 of the Farm Credit Act of 
1971 (12 U.S.C. 2128) is amended by adding at the end 
the following: 
‘‘(g) DAIRY PROCESSING COOPERATIVES.— 
‘‘(1) IN GENERAL.—The banks for cooperatives 
may use not more than $15,000,000 each fiscal year 
to provide dairy processing cooperatives with work-
ing capital lines of credit and accounts receivable fi-
nancing for the purpose of accessing export mar-
keting opportunities for milk and milk products. 
‘‘(2) LIMITATIONS.—Financing provided by the 
banks for cooperatives for a project under paragraph 
(1) may not exceed the lesser of— 
‘‘(A) $1,000,000; or 
‘‘(B) 75 percent of the costs of carrying 
out the project. 
‘‘(3) TERM.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term of a line of credit 
described in paragraph (1) shall not exceed 24 
months. 
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‘‘(B) REVOLVING
LINES
OF
CREDIT.—A 
revolving line of credit may be used for multiple 
transactions. 
‘‘(4) DUE
DATE.—An accounts receivable fi-
nancing loan under this subsection shall be due on 
the earlier of— 
‘‘(A) the date on which the receivable is 
paid; or 
‘‘(B) 180 days after the date of disburse-
ment. 
‘‘(5) USE OF FINANCING.— 
‘‘(A) WORKING CAPITAL LINE OF CREDIT 
FINANCING.—Working capital line of credit fi-
nancing under this subsection may be used— 
‘‘(i) to acquire inventory for the pro-
duction of milk; 
‘‘(ii) to pay direct and indirect costs 
(such as design, engineering, labor, and 
overhead costs) used for— 
‘‘(I) the manufacture or purchase 
of goods, including work-in-process, 
for the production of milk; or 
‘‘(II) for the provision of services 
for the production of milk; or 
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‘‘(iii) to support standby letters of 
credit used as bid bonds, performance 
bonds, or payment guarantees. 
‘‘(B) ACCOUNTS
RECEIVABLE
FINANC-
ING.—Accounts receivable financing under this 
subsection may be used to finance export ac-
counts receivables for milk and milk products 
sold on payment terms of not more than 180 
days after the date of arrival at the port of im-
portation, if the finance export accounts receiv-
able have been insured by the Commodity Cred-
it Corporation or other guarantor approved by 
the Secretary.’’. 
SEC. 9. FEDERAL LOAN FORGIVENESS PROGRAM. 
The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 
amended by adding at the end the following: 
‘‘Subtitle P—Federal Dairy 
Education Loan Forgiveness 
‘‘SEC. 1495. SHORT TITLE. 
‘‘This subtitle may be cited as the ‘Federal Dairy 
Education Loan Forgiveness Act’. 
‘‘SEC. 1496. DEFINITIONS. 
‘‘In this subtitle: 
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‘‘(1) FAMILY DAIRY FARM.—The term ‘family 
dairy farm’ means the real property of a dairy 
farm— 
‘‘(A) owned by— 
‘‘(i) 1 or more immediate family mem-
bers; or 
‘‘(ii) a family dairy farm corporation; 
and 
‘‘(B) used for the production, for commer-
cial purposes, of milk or milk products. 
‘‘(2) FAMILY DAIRY FARM CORPORATION.—The 
term ‘family dairy farm corporation’ means a cor-
poration— 
‘‘(A) at least 75 percent of the assets of 
which are devoted to active involvement in 
farming; and 
‘‘(B) at least 75 percent of each class of 
stock of which is continuously owned by 1 or 
more immediate family members. 
‘‘(3) IMMEDIATE FAMILY MEMBER.—The term 
‘immediate family member’ means a spouse, child, 
stepchild, parent, stepparent, grandparent, brother, 
stepbrother, sister, stepsister, or similar relative-in- 
law of an owner of real property, as determined by 
the Secretary. 
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‘‘(4) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 101(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1001(a)). 
‘‘(5) PROGRAM.—The term ‘program’ means 
the Federal dairy education loan forgiveness pro-
gram established under section 1497(a). 
‘‘(6) QUALIFIED APPLICANT.—The term ‘quali-
fied applicant’ means a resident of the United States 
who, as determined by the Secretary— 
‘‘(A) holds a 2- or 4-year degree in a field 
related to the production of agricultural prod-
ucts from an institution of higher education; 
‘‘(B) on or after January 1, 2008, has 
commenced the first year of full-time ownership 
or operation of a family dairy farm; and 
‘‘(C) is the borrower of an outstanding 
qualified loan as a result of pursuing a degree 
described in subparagraph (A). 
‘‘(7) QUALIFIED
LOAN.—The term ‘qualified 
loan’ means— 
‘‘(A)(i) a loan made, insured, or guaran-
teed under section 428 or 428H of the Higher 
Education Act of 1965 (20 U.S.C. 1078, 1078– 
8); 
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