467 
‘‘(B) the borrower will reduce the line-of- 
credit balance to the scheduled level at the end 
of— 
‘‘(i) the production cycle; or 
‘‘(ii) the marketing of the agricultural 
products of the borrower. 
‘‘(5) AGRICULTURAL COMMODITIES.—A line-of- 
credit loan may be used to finance the production or 
marketing of an agricultural commodity that is eligi-
ble for a price support program of the Department. 
‘‘CHAPTER 3—EMERGENCY LOANS 
‘‘SEC. 3301. EMERGENCY LOANS. 
‘‘(a) IN GENERAL.—The Secretary shall make or 
guarantee an emergency loan under this chapter to an eli-
gible farmer (including a commercial fisherman) only to 
the extent and in such amounts as provided in advance 
in appropriation Acts. 
‘‘(b) ELIGIBILITY.—An established farmer shall be 
eligible under subsection (a) only— 
‘‘(1) if the farmer or an individual holding a 
majority interest in the farmer— 
‘‘(A) is a citizen of the United States; and 
‘‘(B) has experience and resources that the 
Secretary determines are sufficient to ensure a 
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reasonable prospect of success in the farming 
operation proposed by the farmer; 
‘‘(2) in the case of a farmer that is an indi-
vidual, if the farmer is— 
‘‘(A) in the case of a loan for a purpose 
under chapter 1, an owner, operator, or lessee- 
operator described in section 3101(b)(2); and 
‘‘(B) in the case of a loan for a purpose 
under chapter 2, an operator of a farm that is 
not larger than a family farm; 
‘‘(3) in the case of a farmer that is a coopera-
tive, corporation, partnership, trust, limited liability 
company, joint operation, or such other legal entity 
as the Secretary determines to be appropriate, with 
respect to the entity and each farm in which the en-
tity has an ownership or operator interest— 
‘‘(A) if— 
‘‘(i) a majority interest is held by in-
dividuals who are related by blood or mar-
riage, as defined by the Secretary; 
‘‘(ii) at least 1 of the individuals is or 
will be the operator of the farm; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(B) if— 
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‘‘(i) all of the individuals who are or 
propose to become owners or operators of 
a farm are related by blood or marriage; 
‘‘(ii) all of the individuals are or pro-
pose to become operators of the farm; and 
‘‘(iii) each of the interests of the indi-
viduals separately constitutes not larger 
than a family farm even if the ownership 
interests of the individuals collectively con-
stitute larger than a family farm; or 
‘‘(C) if— 
‘‘(i) the entire interest is not held by 
individuals who are related by blood or 
marriage, as defined by the Secretary; 
‘‘(ii) all of the individuals are or pro-
pose to become farm operators; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(4) if the entity is owned, in whole or in part, 
by 1 or more other entities and each individual who 
is an owner of the family farm involved has a direct 
or indirect ownership interest in each of the other 
entities; 
‘‘(5) if the farmer (or in the case of a farmer 
that is an entity, the 1 or more individuals that hold 
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a majority interest in the entity) is unable to obtain 
credit elsewhere; and 
‘‘(6)(A) if the Secretary finds that the oper-
ations of the farmer have been substantially affected 
by— 
‘‘(i) a natural or major disaster or emer-
gency designated by the President under the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.); 
or 
‘‘(ii) a quarantine imposed by the Sec-
retary under the Plant Protection Act (7 U.S.C. 
7701 et seq.) or the Animal Health Protection 
Act (7 U.S.C. 8301 et seq.); or 
‘‘(B) if the farmer conducts farming operations 
in a county or a county contiguous to a county in 
which the Secretary has found that farming oper-
ations have been substantially affected by a natural 
or major disaster or emergency. 
‘‘(c) TIME FOR ACCEPTING AN APPLICATION.—The 
Secretary shall accept an application for a loan under this 
chapter from a farmer at any time during the 8-month 
period beginning on the date that— 
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‘‘(1) the Secretary determines that farming op-
erations of the farmer have been substantially af-
fected by— 
‘‘(A) a quarantine imposed by the Sec-
retary under the Plant Protection Act (7 U.S.C. 
7701 et seq.) or the Animal Health Protection 
Act (7 U.S.C. 8301 et seq.); or 
‘‘(B) a natural disaster; or 
‘‘(2) the President makes a major disaster or 
emergency designation with respect to the affected 
county of the farmer referred to in subsection 
(b)(5)(B). 
‘‘(d) HAZARD INSURANCE REQUIREMENT.—The Sec-
retary may not make a loan to a farmer under this chapter 
to cover a property loss unless the farmer had hazard in-
surance that insured the property at the time of the loss. 
‘‘(e) FAMILY FARM.—The Secretary shall conduct 
the loan program under this chapter in a manner that will 
foster and encourage the family farm system of agri-
culture, consistent with the reaffirmation of policy and 
declaration of the intent of Congress contained in section 
102(a) of the Food and Agriculture Act of 1977 (7 U.S.C. 
2266(a)). 
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