A bill to amend the Consolidated Farm and Rural Development Act.
PL 94-68 (S.555), enacted 08/05/1975

PUBLIC LAW 94-68—AUG. 5, 1975 
89 STAT. 381 
Public Law 94-68 
94th Congress 
An Act 
To amend the Consolidated Farm and Rural Development Act. 
Be it e7iacted J)y the Senate and House of Representatwes 
of the 
United States of America 
in Congress assenibled^ That the Consoli-
dated Farm and Eural Development Act (the Act) is amended as 
follows: 
SEC. 2. Subsection (a) of section 321 of the Act is amended to read: 
"The Secretary shall desi^ate any area in the United States, Puerto 
Rico, and the Virgin Islands as an emergency area if he finds that a 
natural disaster has occurred in said area which substantiallj^ affected 
farming, ranching, or aquaculture operations. For purposes of this 
subtitle 'aquaculture' means husbandry of aquatic organisms under a 
controlled or selected environment.". 
SEC. 3. Subsection (b) of section 321 of the Act is amended as 
follows: 
(a) in the first sentence after the words "major disaster" insert 
"or emergency", strike the words "oyster planters" and "oyster 
planting" and insert in lieu thereof ttie words "persons engaged 
in aquaculture" and "aquaculture", respectively; and 
(b) delete everything after the first sentence, strike the period, 
and insert: "and are unable to obtain sufficient credit elsewhere 
to finance their actual needs at reasonable rates and terms, taking 
into consideration prevailing private and cooperative rates and 
terms in the community in or near which the applicant resides 
for loans for similar purposes and periods of time. The pro-
visions of this subsection shall not be applicable to loan applica-
tions filed prior to July 9,1975.". 
SEC. 4. Section 322 of the Act is amended to read: "Loans may be 
made under this subtitle for any of the purposes authorized for loans 
under subtitle A or B of this title, as well as for crop or livestock 
changes deemed desirable by the applicant: Provided^ 
That such 
loans may include, but are not limited to, the amount of the actual loss 
sustained as a result of the disaster.". 
SEC. 5. Section 324 of the Act is amended to read: "Loans made or 
insured under this Act shall be (1) at a rate of interest not in excess of 
5 per centum per annum on loans up to the amount of the actual loss 
caused by the disaster, and (2) for any loans or portions of loans in 
excess of that amoimt, the interest rate will be that prevailing in the 
private market for similar loans, as determined by the Secretary. All 
such loans shall be repayable at such times as the Secretary may deter-
mine, taking into account the purposes of the loan and the nature and 
effect of the disaster, but not later than provided for loans for similar 
purposes under subtitles A and B of this title, and upon the full per-
sonal liability of the borrower and upon the best security available, as 
the Secretary may prescribe: Provided^ That the security is adequate 
to assure repayment of the loans; except that if such security is not 
available because of the disaster, the Secretary shall (i) accept as 
security such collateral as is available, a portion or all of which may 
have depreciated in value due to the disaster and which in the opinion 
of the Secretary, together with his confidence in the repayment ability 
Aug. 5, 1975 
[S. 555] 
Emergency farm 
loans. 
7 use 1921 note. 
7 use 1961. 
'Aquaculture." 
7 use 1962. 
Interest rate. 
7 use 1964. 
Liability and 
security. 
7 use 1922, 
1941. 
89 STAT. 382 
PUBLIC LAW 94-68—AUG. 5, 1975 
of the applicant, is adequate security for the loan, and (ii) make such 
loan repayable at such times as he may determine, not later than that 
IQA?^ ^^^^' 
provided under subtitles A and B of this title, as justified by the needs 
of the applicant: Provided further^ That for any disaster occurring 
after January 1, 1975, the Secretary, if the loan is for a purpose 
described in subtitle B of this title, may make the loan repayable at the 
end of a period of more than seven years, but not more than twenty 
years, if the Secretary determines that the need of the loan applicant 
justifies such a longer repayment period: Provided further^ That not-
withstanding the provisions of any other law, any loan made by the 
Small Business Administration in connection with a disaster occur-
ring on or after the date of enactment of this amendment under sec-
15 use 636. 
tion 7(b) (1), (2), or (4) of the Small Business Act shall bear interest 
at the rate determined in the first paragraph following section 7(b) 
(8) of such Act for loans under paragraphs (3), (5), (6), (7), or (8) 
of section 7(b).". 
7 use 1965. 
SEC. 6. Section 325 of the Act is amended to read as follows: "The 
Secretary may delegate authority to any State director of the Farmers 
Home Administration to make emergency loans in any area within 
a State of the United States, Puerto Rico, or the Virgin Islands on the 
7 use 1961. 
same terms and conditions set out in section 321(a) without any for-
mal area designation being made: Provided^ That the State director 
finds that a natural disaster has substantially affected twenty-five or 
less farming, ranching, or aquaculture operations in the area.", 
7 use 1970. 
SEC. 7. At the end of subtitle C of the Act, add a new section 329 
stating: "An applicant seeking financial assistance based on produc-
tion losses must show that a single enterprise which constitutes a basic 
part of his farming, ranching, or aquaculture operation has sustained 
at least a 20 per centum loss of normal per acre or per animal produc-
tion as a result of the disaster.". 
7 use 1971. 
SEC. 8. At the end of subtitle C of the Act, add a new section 330 
stating: "Subsequent loans, to continue the farming, ranching, or 
aquaculture operation may be made under this subtitle on an annual 
basis, for not to exceed five additional years, to eligible borrowers, at 
the prevailing rate of interest in the private market for similar loans 
as determined by the Secretary, when the financial situation of the 
farming, ranching, or aquaculture operation has not improved suffi-
ciently to permit the borrower to obtain such financing from other 
sources.". 
7 use 1993. 
SEC. 9. At the end of subtitle D of the Act, add a new section 345 
to read as follows: 
PUBLIC LAW 94-68—AUG. 5, 1975 
89 STAT. 383 
"SEC. 345. On or before February 15 of each calendar year begin- Testimony before 
ning with calendar year 1976, or such other date as may be specified congressional 
by the appropriate Committeej the Secretary of Agriculture shall tes- ^°???Ji"®®*' 
tify before the Senate Committee on Agriculture and Forestry and 
^ ^^^^• 
the House Committee on Agriculture and provide justification in 
detail of the amount requested in the budget to be appropriated for the 
next fiscal year for the purposes authorized in the Consolidated Farm 
and Rural Development Act, as amended, and of the amounts esti- 7 USC1921 note, 
mated to be utilized during such fiscal year from the Agricultural 
•Credit Insurance Fund and the Rural Development Insurance Fund.". 
Approved August 5, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-211 (Coram, on Agriculture) and No. 94-378 (Coram, of 
Conference). 
SENATE REPORTS: No. 94-59 (Comra. on Agriculture and Forestry) and No. 94-290 
(Corara. of Conference). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
Mar. 26, considered and passed Senate. 
July 9, considered and passed House, araended. 
July 21, Senate agreed to conference report. 
July 25, House agreed to conference report.