---
kind: "section"
citation: "7 U.S.C. § 1936c"
title: "7"
title_heading: "Agriculture"
number: "1936c"
heading: "Relending program to resolve ownership and succession on farmland"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/1936c"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter I — Real Estate Loans"
---

# §1936c. Relending program to resolve ownership and succession on farmland

- (a) **In general—** The [Secretary](/usc/7/499a.md?p=b-2) may make loans to eligible entities described in [subsection (b)](#b) so that the eligible entities may relend the funds to individuals and entities for the purposes described in [subsection (c)](#c).
- (b) **Eligible entities—** Entities eligible for loans described in [subsection (a)](#a) are cooperatives, credit unions, and nonprofit organizations with—
  - (1) certification under section 1805.201 of title 12, Code of Federal Regulations (or successor regulations), to operate as a lender;
  - (2) experience assisting socially disadvantaged [farmers](/usc/7/1991.md?p=a-1) and ranchers (as defined in subsection (a) of [section 2279 of this title](/usc/7/2279.md)) or limited resource or new and beginning [farmers](/usc/7/1991.md?p=a-1) and ranchers, [rural](/usc/7/1991.md?p=a-13-A) businesses, cooperatives, or credit unions, including experience in making and servicing agricultural and commercial loans; and
  - (3) the ability to provide adequate assurance of the repayment of a loan.
- (c) **Eligible purposes—** The proceeds from loans made by the [Secretary](/usc/7/499a.md?p=b-2) pursuant to [subsection (a)](#a) shall be re-lent by eligible entities for projects that assist heirs with undivided ownership interests to resolve ownership and succession on farmland that has multiple owners.
- (d) **Preference—** In making loans under [subsection (a)](#a), the [Secretary](/usc/7/499a.md?p=b-2) shall give preference to eligible entities—
  - (1) with not less than 10 years of experience serving socially disadvantaged [farmers](/usc/7/1991.md?p=a-1) and ranchers; and
  - (2) in [States](/usc/7/1991.md?p=a-6) that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act, as approved and recommended for enactment in all [States](/usc/7/1991.md?p=a-6) by the National Conference of Commissioners on Uniform [State](/usc/7/1991.md?p=a-6) Laws in 2010, that relend to owners of heirs property (as defined in that Act).
- (e) **Loan terms and conditions—** The following terms and conditions shall apply to loans made under this section:
  - (1) The interest rate at which intermediaries may borrow funds under this section shall be determined by the [Secretary](/usc/7/499a.md?p=b-2).
  - (2) The rates, terms, and payment structure for [borrowers](/usc/7/1991.md?p=b-1) to which intermediaries lend shall be—
    - (A) determined by the intermediary in an amount sufficient to cover the cost of operating and sustaining the revolving loan fund; and
    - (B) clearly and publicly disclosed to qualified ultimate [borrowers](/usc/7/1991.md?p=b-1).
  - (3) [Borrowers](/usc/7/1991.md?p=b-1) to which intermediaries lend shall be—
    - (A) required to complete a succession plan as a condition of the loan; and
    - (B) be offered the opportunity to borrow sufficient funds to cover costs associated with the succession plan under [subparagraph (A)](#e-3-A) and other associated legal and closing costs.
- (f) **Report—** Not later than 1 year after December 20, 2018, the [Secretary](/usc/7/499a.md?p=b-2) shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the operation and outcomes of the program under this section, with recommendations on how to strengthen the program.
- (g) **Authorization of appropriations—** There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2019 through 2023.

## Source credit

(Pub. L. 87–128, title III, § 310I, as added Pub. L. 115–334, title V, § 5104, Dec. 20, 2018, 132 Stat. 4669.)