Beginning Farmer and Rancher Guaranteed Loan Modernization Act of 2016

Bill: 114-hr-5733
Sponsor: full_name: Rep. Bost, Mike [R-IL-12]
Introduced: 2016-07-12
Policy area: Agriculture and Food
Subjects: Agricultural conservation and pollution

Agricultural prices, subsidies, credit

Government lending and loan guarantees

Minority and disadvantaged businesses
Latest action: action_date: 2016-08-30
text: Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.

Summaries:
action_date: 2016-07-12
action_desc: Introduced in House
text: <p><b>Beginning Farmer and Rancher Guaranteed Loan Modernization Act of 2016</b></p> <p> This bill amends the Agricultural Act of 1961 to revise the limits for the Department of Agriculture's (USDA's) conservation loan guarantee program. </p> <p>The bill replaces the existing 80% limit on the portion of a loan that USDA may guarantee with limits that range from 80%-90%, depending on the principal amount of the loan. For socially disadvantaged or beginning farmers or ranchers, the bill replaces the existing 90% limit with limits that range from 85%-95%, depending on the principal amount of the loan.</p> <p>USDA may not guarantee a loan under the program that exceeds $3.5 million. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5733 IN THE HOUSE OF REPRESENTATIVES July 12, 2016 Mr. Bost introduced the following bill; which was referred to the Committee on Agriculture A BILL To amend the Agricultural Act of 1961 to modify the limitations applicable to qualified conservation loan guarantees, and for other purposes.

1. Short title This Act may be cited as the Beginning Farmer and Rancher Guaranteed Loan Modernization Act of 2016 . 2. Limitations applicable to qualified conservation loan guarantees (a) Limitations applicable to loan guarantees Subtitle A of title III of the Agricultural Act of 1961 ( 7 U.S.C. 1922 et seq. ) is amended— (1) by amending section 304(e) of such Act ( 7 U.S.C. 1924(e) ) to read as follows: (e) Limitations applicable to loan guarantees (1) Percentage of loan guaranteed The portion of a loan that the Secretary may guarantee under this section shall— (A) depend on the principal amount of the loan; and (B) except as provided in paragraph (2), may not exceed the percentage specified for that principal amount in the following table: Principal Amount More Than Principal Amount Equal To or Less Than Maximum Percent $0 $2,500,000 90% $2,500,000 $2,600,000 89% $2,600,000 $2,700,000 88% $2,700,000 $2,800,000 87% $2,800,000 $2,900,000 86% $2,900,000 $3,000,000 85% $3,000,000 $3,100,000 84% $3,100,000 $3,200,000 83% $3,200,000 $3,300,000 82% $3,300,000 $3,400,000 81% $3,400,000 $3,500,000 80%. (2) Exception for certain producers In the case of a loan to a producer that is a qualified beginning farmer or rancher or a socially disadvantaged farmer or rancher (as the term is defined in section 2501(e)), the portion of the loan the Secretary may guarantee under this paragraph may not exceed the percentage specified for the principal amount of the loan in the following table: Principal Amount More Than Principal Amount Equal To or Less Than Maximum Percent $0 $2,500,000 95% $2,500,000 $2,600,000 94% $2,600,000 $2,700,000 93% $2,700,000 $2,800,000 92% $2,800,000 $2,900,000 91% $2,900,000 $3,000,000 90% $3,000,000 $3,100,000 89% $3,100,000 $3,200,000 88% $3,200,000 $3,300,000 87% $3,300,000 $3,400,000 86% $3,400,000 $3,500,000 85%. (3) Maximum amount The Secretary may not guarantee a loan under this section in an amount that exceeds $3,500,000. (4) Annual inflation adjustment The Secretary shall annually adjust the dollar figures under paragraphs (1), (2), and (3) to reflect the change in the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture). ; and (2) in section 305(a) of such Act ( 7 U.S.C. 1925(a) ), by striking , or, in the case of a loan guaranteed by the Secretary, $700,000 . (b) Applicability The amendments made by this section shall apply with respect to qualified conservation loans entered into by the Secretary of Agriculture under section 304 of the Agricultural Act of 1961 ( 7 U.S.C. 1924 ) on or after the date of the enactment of this Act.