Agricultural Credit Equity Act of 1993

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 completed, 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 Secretary shall determine the proportion to be used in calculating 
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 factor 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 completed, 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 Secretary shall determine the proportion to be used in calculating 
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 factor for the area to 
        better serve the credit needs of family farms in the area.''.
    (c) Elimination of Ceiling on Price of Property 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 Consolidated 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 determining 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 employed 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 following:
    ``(d)(1) The primary factor to be considered in determining 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 employed 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 following:
    ``(e)(1) The primary factor to be considered in determining 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 employed 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 
period.

SEC. 5. GROWER-SHIPPER AGREEMENTS.

    (a) Real Estate Loans.--Section 302 of the Consolidated 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.''.

SEC. 6. ELIGIBILITY FOR EMERGENCY LOANS.

    Section 321(a)(2)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922(a)(2)(B)) is amended by inserting ``or, in the case 
of holders of the entire interest who are related by blood or marriage 
and all of whom are or will become farm operators, the ownership 
interest of each such holder separately constitutes not larger than a 
family farm, even if their interests collectively constitute larger 
than a family farm, as defined by the Secretary'' after ``operator of 
not larger than a family farm''.

Summary: Agricultural Credit Equity Act of 1993 - Amends the Consolidated Farm and Rural Development Act to provide for indexing of guaranteed agricultural real estate and operating loan limits in high cost areas. 
Eliminates maximum property limits in the down payment loan program. 
Prohibits the denial of agricultural real estate, operating, or emergency loans based upon:  (1) a farm's having more than two full-time employees; or (2) certain grower-shipper agreements.