7 U.S.C. § 1942
A direct loan (including a microloan, as defined by the Secretary) may be made under this subchapter only for-
A loan may be guaranteed under this subchapter only for-
After the Secretary makes the determination required by paragraph (2), the Secretary may not make a loan to a farmer or rancher under this subchapter unless the farmer or rancher has, or agrees to obtain, hazard insurance on the property to be acquired with the loan.
Not later than 180 days after April 4, 1996, the Secretary shall determine the appropriate level of insurance to be required by paragraph (1).
Notwithstanding any other provision of this chapter, the Secretary may reserve a portion of any loan made under this subchapter to be placed in an unsupervised bank account that may be used at the discretion of the borrower for the basic family needs of the borrower and the immediate family of the borrower.
The size of the reserve shall not exceed the least of-
The Secretary shall develop ways to determine unit prices (or other appropriate forms of valuation) for crops and other agricultural products, the end use of which is intended to be in locally or regionally produced agricultural food products, to facilitate lending to local and regional food producers.
The Secretary shall implement a mechanism for local and regional food producers to establish price history for the crops and other agricultural products produced by local and regional food producers.
7 U.S.C. § 1942
EDITORIAL NOTES
REFERENCES IN TEXTThis chapter, referred to in subsecs. (a)(9)(B)(i) and (d)(1), was in the original "this title", meaning title III of Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables.The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (a)(9)(B)(i), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
AMENDMENTS2014-Subsec. (a). Pub. L. 113-79, §5106(b)(2), inserted "(including a microloan, as defined by the Secretary)" after "A direct loan" in introductory provisions. Subsec. (e). Pub. L. 113-79, §5105, added subsec. (e). 1996- Pub. L. 104-127 amended section generally, substituting present provisions for provisions outlining purposes of loans made under this subchapter, authorizing loans to rural area residents to operate small business enterprises, authorizing loans for pollution abatement and control projects in rural areas and providing for limitations on such loans, and authorizing creation, from loan funds, of nonsupervised bank accounts to be used at discretion of borrower for necessary family living expenses. 1992-Subsec. (a). Pub. L. 102-552, §516(f)(2), repealed amendment by Pub. L. 102-237, §501(b). See 1991 Amendment note below. Pub. L. 102-552, §516(f)(1)(A), made technical correction to directory language of Pub. L. 101-624, §1818(b). See 1990 Amendment note below. 1991-Subsec. (a). Pub. L. 102-237, §501(b), which directed the substitution of "systems (for purposes of this subchapter, the term 'solar energy' means energy derived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974) (42 U.S.C. 5901 et seq.), (12) training in maintaining records of farming and ranching operations for limited resource borrowers receiving loans under section 1934 of this title, and (13) borrower training under section 2006a of this title." for "'systems.' and all that follows", could not be executed because "systems." does not appear in subsec. (a) was repealed by Pub. L. 102-552, §516(f)(2). See Construction of 1991 Amendment note below.1990-Subsec. (a). Pub. L. 101-624, §1818(b), as amended by Pub. L. 102-552, §516(f)(1)(A), added cl. (13).1985-Subsec. (a). Pub. L. 99-198, §1306, added cl. (12).Subsec. (e). Pub. L. 99-198, §1307, added subsec. (e). 1980-Subsec. (a). Pub. L. 96-438 added cl. (11).1978-Subsec. (a). Pub. L. 95-334 struck out "individual" after "title, to". 1977-Subsec. (a). Pub. L. 95-113 inserted parenthetical provision extending the section to include farm equipment which utilizes solar energy and inserted definition of "solar energy". 1972-Subsec. (a). Pub. L. 92-419, §§120(b), 121, substituted "section 1941(a) for "section 1941", designated existing provisions as subsec. (a), and added cl. (10). Subsecs. (b) to (d). Pub. L. 92-419, §121(3), added subsecs. (b) to (d). 1968- Pub. L. 90-488 struck out from cl. (4) the concluding phrase, "including recreational uses and facilities", added cls. (5) and (6), and redesignated former cls. (5) to (7) as (7) to (9), respectively.1962- Pub. L. 87-703 authorized, in cl. (4), loans to be made for recreational uses and facilities.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104-127, title VI, §612(b), Apr. 4, 1996, 110 Stat. 1089, provided that: "Section 312(c)(1) of the Consolidated Farm and Rural Development Act [7 U.S.C. 1942(c)(1)] shall not apply until the Secretary of Agriculture makes the determination required by section 312(c)(2) of the Act." [The Secretary's determination relating to hazard insurance under this provision was contained in interim rules published Mar. 3, 1997, and effective Mar. 24, 1997, see 62 F.R. 9351.]Amendment by Pub. L. 104-127 effective 90 days after Apr. 4, 1996, see section 663(b) of Pub. L. 104-127 set out as a note under section 1922 of this title.
EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102-552, title V, §516(f)(1)(B), Oct. 28, 1992, 106 Stat. 4137, provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if included in the Food, Agriculture, Conservation, and Trade Act of 1990 [Pub. L. 101-624] at the time such Act became law."
EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113 set out as a note under section 1307 of this title.
TRANSFER OF FUNCTIONSPowers, duties, and assets of agencies, offices, and other entities within Department of Agriculture relating to rural development functions transferred to Rural Development Administration by section 2302(b) of Pub. L. 101-624.
CONSTRUCTION OF 1991 AMENDMENT Pub. L. 102-552, title V, §516(f)(2), Oct. 28, 1992, 106 Stat. 4138, provided that: "Subsection (b) of section 501 of the Food, Agriculture, Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1866) [amending this section] is repealed. The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) shall be applied and administered as if such subsection had never become law."
- borrower
- The term "borrower" means any farm borrower who has outstanding obligations to the Secretary under any farmer program loan, without regard to whether the loan has been accelerated, but does not include any farm borrower all of whose loans and accounts have been foreclosed on or liquidated, voluntarily or otherwise.
- direct loan
- The term "direct loan" means a loan made or insured from funds in the account created by section 1929 of this title.
- farmer
- The term "farmer" includes a person who is engaged in, or who, with assistance afforded under this chapter, intends to engage in, fish farming.