To amend the Consolidated Farm and Rural Development Act to improve the agricultural credit programs of the Department of Agriculture, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agricultural Credit Act of 2001''.

SEC. 2. DEFINITION OF DEBT FORGIVENESS.

    Section 343(a)(12)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as 
follows:
                    ``(B) Exceptions.--The term `debt forgiveness' does 
                not include--
                            ``(i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan;
                            ``(ii) a write-down during the lifetime of 
                        the borrower that is due to a financial problem 
                        of the borrower relating to a natural disaster 
                        or a medical condition of the borrower or an 
                        immediate family member of the borrower (or, in 
                        the case of a borrower that is an entity, a 
                        principal owner of the borrower or an immediate 
                        family member of such an owner); or
                            ``(iii) any write-down provided as a part 
                        of a resolution of a discrimination complaint 
                        against the Secretary.''.

SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

    Section 373(b) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008h(b)) is amended to read as follows:
    ``(b) Loans Prohibited for Certain Borrowers Who Have Received Debt 
Forgiveness.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may not make or guarantee a loan under subtitle A or 
        B to a borrower who, on more than 2 occasions, received debt 
        forgiveness on a loan made or guaranteed under this title.
            ``(2) Exceptions.--The Secretary may make a direct or 
        guaranteed farm operating loan for paying annual farm or ranch 
        operating expenses of a borrower who--
                    ``(A) was restructured with a write-down under 
                section 353; or
                    ``(B) is current on payments under a confirmed 
                reorganization plan under chapter 11, 12, or 13 of 
                title 11, United States Code.''.

SEC. 4. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS 
              AND RANCHERS.

    Section 355(c)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2003(c)(2)) is amended by striking ``shall be reallocated 
within such State'' and inserting ``in the first 10 months of the 
fiscal year may be pooled and rcated for use of socially disadvantaged 
farmers and ranchers in other States as determined by the Secretary, in 
excess of the funds otherwise allocated in accordance with this 
section''.

SEC. 5. EXCEPTION TO TERM LIMITS ON OPERATING LOANS ONLY FOR DISASTERS 
              OR EMERGENCIES.

    (a) Direct Operating Loans.--Section 311(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Subject to paragraph (3), the'' 
                and inserting ``The'';
                    (B) in subparagraph (B), by striking ``or'';
                    (C) in subparagraph (C), by striking the period and 
                inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(D) is operating in an area which, during the 
                previous or current crop year--
                            ``(i) the Secretary finds has been affected 
                        by a natural disaster in the United States or 
                        by a major disaster or emergency designated by 
                        the President under the Disaster Relief and 
                        Emergency Assistance Act; or
                            ``(ii) has suffered from an economic 
                        emergency, as determined by the Secretary.''; 
                        and
            (2) by striking paragraph (3).
    (b) Guaranteed Operating Loans.--Section 319(b)(2) of such Act (7 
U.S.C. 1949(b)(2)) is amended to read as follows:
            ``(2) Disasters and emergencies.--A farmer or rancher shall 
        be eligible to receive a guaranteed operating loan under this 
        subtitle if the borrower is operating in an area which, during 
        the preceding or current crop year--
                    ``(A) the Secretary finds has been affected by a 
                natural disaster in the United States or by a major 
                disaster or emergency designated by the President under 
                the Disaster Relief and Emergency Assistance Act; or
                    ``(B) has suffered from an economic emergency, as 
                determined by the Secretary.''.

SEC. 6. PERCENTAGE OF RECAPTURE FOR SHARED APPRECIATION ARRANGEMENT.

    (a) In General.--Section 353(e)(3) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2001(e)(3)) is amended by striking ``, 
and 50'' and inserting ``, 50 percent if the recapture occurs after 4 
years and within 8 years after the restructuring, and 35''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to shared appreciation arrangements with respect to which 
recapture has not occurred, regardless of whether the arrangements were 
entered into before, on, or after the date of the enactment of this 
Act.

SEC. 7. TECHNICAL CORRECTION.

    Section 353 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2001) is amended--
            (1) by striking subsection (m); and
            (2) by redesignating subsections (n) and (o) as subsections 
        (m) and (n), respectively.

Summary: Agricultural Credit Act of 2001 - Amends the Consolidated Farm and Rural Development Act to exclude from "debt forgiveness": (1) loan rescheduling, consolidation, deferral, or reamortization; (2) a write-down due to natural disaster or family medical condition; or (3) a write-down as part of the resolution of a discrimination complaint against the Secretary of Agriculture.Increases the number of occasions of permitted loan or loan guarantee debt forgiveness per borrower from one to two. Includes as an exception to such limitation an operating loan or loan guarantee to an individual whose payments are current under a specified reorganization plan.Permits excess funds obligated for socially disadvantaged farmers to be reallocated for such use in another State (currently limited to intrastate reallocation).Permits direct operating loans and loan guarantees to be made to persons in areas: (1) affected by a natural disaster or designated emergency; or (2) determined to be suffering from an economic emergency.Revises (shared appreciation arrangement) recapture percentage provisions.