7 U.S. Code § 1936 - Beginning farmer or rancher and socially disadvantaged farmer or rancher contract land sales program
(a) In general
In order to be eligible for a loan guarantee under subsection (a)—
(1) the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher shall—
(A) on the date the contract land sale that is subject of the loan is complete, own and operate the farm or ranch that is the subject of the contract land sale;
(B) have a credit history that—
(1) Down payment
The Secretary shall not provide a loan guarantee under subsection (a) if the contribution of the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher to the down payment for the farm or ranch that is the subject of the contract land sale would be less than 5 percent of the purchase price of the farm or ranch.
(d) Period of guarantee
The period during which a loan guarantee under this section is in effect shall be the 10-year period beginning with the date the guarantee is provided.
(e) Guarantee plan
(1) Selection of plan
A private seller of a farm or ranch who makes a loan that is guaranteed by the Secretary under subsection (a) may select—
(A) a prompt payment guarantee plan, which shall cover—
(2) Eligiblity 1 for standard guarantee plan
In order for a private seller to be eligible for a standard guarantee plan referred to in paragraph (1)(B), the private seller shall—
(A) secure a commercial lending institution or similar entity, as determined by the Secretary, to serve as an escrow agent; or
(f) Transition from pilot program
(1) In general
The Secretary may phase-in the implementation of the changes to the Beginning Farmer and Rancher and Socially Disadvantaged Farmer or Rancher Contract Land Sales Program provided for in this section.
 So in original. Probably should be “Eligibility”.
Source(Pub. L. 87–128, title III, § 310F, as added Pub. L. 107–171, title V, § 5006,May 13, 2002, 116 Stat. 342; amended Pub. L. 110–234, title V, § 5005,May 22, 2008, 122 Stat. 1145; Pub. L. 110–246, § 4(a), title V, § 5005,June 18, 2008, 122 Stat. 1664, 1906.)
Pub. L. 110–234and Pub. L. 110–246made identical amendments to this section. The amendments by Pub. L. 110–234were repealed by section 4(a) ofPub. L. 110–246.
A prior section 1936,Pub. L. 87–128, title III, § 310F, as added Pub. L. 102–554, § 7(b),Oct. 28, 1992, 106 Stat. 4146, related to availability of farm ownership loans and loan guarantees for certain qualified beginning farmers and ranchers, prior to repeal by Pub. L. 104–127, title VI, § 616(b),Apr. 4, 1996, 110 Stat. 1090.
2008—Pub. L. 110–246, § 5005, amended section generally, substituting provisions relating to guarantee of a loan made by a private seller of a farm or ranch to a qualified beginning farmer or rancher or socially disadvantaged farmer or rancher on a contract land sales basis, for similar provisions relating to a pilot program in fiscal years 2003 through 2007.
Effective Date of 2008 Amendment