Section 1 Short title
This Act may be cited as the “Debt Relief and Farm Credit Access Act”.
Debt Relief and Farm Credit Access Act
A BILL
To amend the Consolidated Farm and Rural Development Act to modify the experience requirement for direct farm ownership loans, eliminate the 10-year limitation on direct farm ownership loans, allow direct loans to be used for refinancing indebtedness, increase the lifetime limitation on debt forgiveness per borrower, and provide flexibility with respect to loan fund set asides for beginning farmers and ranchers, and for other purposes.
Sec. 2 Persons eligible for direct farm ownership loans
Section 302(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(b)) is amended—
by striking paragraph (1) and inserting the following:
“(1) In general—The Secretary may make a direct loan under this subtitle only to a farmer or rancher who has at least 1 year of experience substantially participating in the management and business operations of a farm or ranch, as determined by the Secretary.”
by striking paragraphs (3) and (4) and inserting the following:
“(3) Waiver authority—In the case of a qualified beginning farmer or rancher, the Secretary may waive the 1-year requirement described in paragraph (1) if the qualified beginning farmer or rancher—
“(A) has an established relationship with an individual who has experience in farming or ranching, or with a local farm or ranch operator or organization, approved by the Secretary, that is committed to mentoring the qualified beginning farmer or rancher; or
“(B) has other acceptable education or experience for an appropriate period of time, as determined by the Secretary.”
Sec. 3 Improvements to certain provisions of the Consolidated Farm and Rural Development Act
Allowed purposes of direct loans— Section 303(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended by striking subparagraph (E) and inserting the following:
“(E) refinancing the indebtedness of the farmer or rancher, if the farmer or rancher—
“(i) has used a direct loan under this subtitle to refinance indebtedness not more than 4 times previously; and
“(ii) is refinancing a debt obtained from a creditor other than the Secretary.”
Effect of preferred lender certification— Section 339(d)(4)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1989(d)(4)(B)) is amended—
by striking “institutions to” and inserting the following:
“(i) to”
in clause (i) (as so designated)—
by striking “subsection relating” and inserting “subsection, relating”;
by striking “worthiness, the” and inserting “worthiness or the”; and
by striking “collection and liquidation of loans, and to” and inserting the following:
“(ii) to”
Lifetime limitation on debt forgiveness per borrower— Section 353(o) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(o)) is amended by striking “$300,000” and inserting “$600,000”.
Sec. 4 Loan fund set-asides for beginning farmers and ranchers
Section 346(b)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(2)) is amended—
in subparagraph (A)—
in clause (i)(II), by inserting “, to the extent practicable” after “April 1 of the fiscal year”; and
in clause (iii), by inserting “, to the extent practicable” after “September 1 of the fiscal year”; and
in subparagraph (B)(iii), by inserting “, to the extent practicable” after “April 1 of the fiscal year”.