7 U.S. Code § 1924 - Conservation loan and loan guarantee program
(a) In general
The Secretary may make or guarantee qualified conservation loans to eligible borrowers under this section.
In this section:
(1) Qualified conservation loan
The term “qualified conservation loan” means a loan, the proceeds of which are used to cover the costs to the borrower of carrying out a qualified conservation project.
(2) Qualified conservation project
The term “qualified conservation project” means conservation measures that address provisions of a conservation plan of the eligible borrower.
(3) Conservation plan
The term “conservation plan” means a plan, approved by the Secretary, that, for a farming or ranching operation, identifies the conservation activities that will be addressed with loan funds provided under this section, including—
(B) the establishment of forest cover for sustained yield timber management, erosion control, or shelter belt purposes;
(1) In general
The Secretary may make or guarantee loans to farmers or ranchers in the United States, farm cooperatives, private domestic corporations, partnerships, joint operations, trusts, limited liability companies, or such other legal entities as the Secretary considers appropriate that are controlled by farmers or ranchers and engaged primarily and directly in agricultural production in the United States.
In making or guaranteeing loans under this section, the Secretary shall give priority to—
(2) owners or tenants who use the loans to convert to sustainable or organic agricultural production systems; and
(e) Limitations applicable to loan guarantees
The portion of a loan that the Secretary may guarantee under this section shall be—
(f) Administrative provisions
The Secretary shall ensure, to the maximum extent practicable, that loans made or guaranteed under this section are distributed across diverse geographic regions.
(g) Credit eligibility
The provisions of paragraphs (1) and (3) of section 1983 of this title shall not apply to loans made or guaranteed under this section.
Source(Pub. L. 87–128, title III, § 304,Aug. 8, 1961, 75 Stat. 308; Pub. L. 90–488, § 2,Aug. 15, 1968, 82 Stat. 770; Pub. L. 92–419, title I, § 102,Aug. 30, 1972, 86 Stat. 657; Pub. L. 95–334, title I, § 102,Aug. 4, 1978, 92 Stat. 421; Pub. L. 101–624, title XVIII, § 1802(a),Nov. 28, 1990, 104 Stat. 3817; Pub. L. 102–237, title V, § 501(a),Dec. 13, 1991, 105 Stat. 1865; Pub. L. 104–127, title VI, § 603,Apr. 4, 1996, 110 Stat. 1085; Pub. L. 110–234, title V, § 5002,May 22, 2008, 122 Stat. 1142; Pub. L. 110–246, § 4(a), title V, § 5002,June 18, 2008, 122 Stat. 1664, 1904; Pub. L. 113–79, title V, §§ 5001(c)(1), 5002,Feb. 7, 2014, 128 Stat. 833.)
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.
2014—Subsec. (c)(1). Pub. L. 113–79, § 5002(a), substituted “limited liability companies, or such other legal entities as the Secretary considers appropriate” for “or limited liability companies”.
Subsec. (c)(2). Pub. L. 113–79, § 5001(c)(1), substituted “subparagraphs (A) and (B) of section 1922 (a)(1)” for “paragraphs (1) and (2) of section 1922 (a)”.
Subsec. (e). Pub. L. 113–79, § 5002(b), substituted “shall be—” for “shall be 75 percent of the principal amount of the loan.” and added pars. (1) and (2).
Subsec. (h). Pub. L. 113–79, § 5002(c), added subsec. (h) and struck out former subsec. (h). Prior to amendment, text read as follows: “For each of fiscal years 2008 through 2012, there are authorized to be appropriated to the Secretary such funds as are necessary to carry out this section.”
2008—Pub. L. 110–246, § 5002, amended section generally, substituting provisions relating to conservation loans and loan guarantee programs for former provisions which related to, in subsec. (a), authority to make or insure loans for soil and water conservation and protection, in subsec. (b), priority of producers who would build conservation structures or establish conservation practices to comply with section 3812 of title 16, and in subsec. (c), maximum amount of a loan.
1996—Pub. L. 104–127, § 603(2), inserted section catchline.
Subsec. (a). Pub. L. 104–127, § 603(2), (5), redesignatedsubsec. (a)(1) as (a), inserted heading, and redesignated subpars. (A) to (F) as pars. (1) to (6), respectively. Former pars. (2) and (3) redesignated subsecs. (b) and (c), respectively.
Subsec. (b). Pub. L. 104–127, § 603(1), (3), redesignatedsubsec. (a)(2) as (b), inserted heading, substituted “guaranteeing loans” for “insuring loans”, and struck out former subsec. (b) which read as follows: “Loans may also be made or insured under this subchapter to residents of rural areas without regard to the requirements of clauses (2) and (3) of section 1922 of this title to acquire or establish in rural areas small business enterprises to provide such residents with essential income.”
Subsec. (c). Pub. L. 104–127, § 603(1), (4), (6), redesignatedsubsec. (a)(3) as (c), inserted heading, redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, and struck out former subsec. (c) which read as follows: “Loans may also be made or insured under this subchapter to any farm owners or tenants without regard to the requirements of clauses (1), (2), and (3) of section 1922 of this title for the purposes of meeting Federal, State, or local requirements for agricultural, animal, or poultry waste pollution abatement and control facilities, including the construction, modification, or relocation of farm or other structures necessary to comply with such pollution abatement requirements.”
1991—Subsecs. (a), (d). Pub. L. 102–237redesignated subsec. (d) as (a) and moved it to appear before subsec. (b) and struck out former subsec. (a) which read as follows: “Loans may also be made or insured under this subchapter to any farmowners or tenants without regard to the requirements of section 1922 (1), (2), and (3) of this title for the purposes only of land and water development, use and conservation, not including recreational uses and facilities, and without regard to the requirements of section 1922 (2) and (3) of this title, to farmowners or tenants to finance outdoor recreational enterprises or to convert to recreational uses their farming or ranching operations, including those heretofore financed under this chapter.”
1990—Subsec. (d). Pub. L. 101–624added subsec. (d).
1978—Subsec. (a). Pub. L. 95–334, § 102(1), struck out “individual” after “title, to”.
Subsec. (c). Pub. L. 95–334, § 102(2), added subsec. (c).
1972—Pub. L. 92–419designated existing provisions as subsec. (a) and struck out item (a) and (b) designations appearing before “to any farmowners” and “without regard to”, respectively, and added subsec. (b).
1968—Pub. L. 90–488designated existing provisions as cl. (a), excluded recreational uses and facilities, and added cl. (b).
Effective Date of 2008 Amendment
Amendment of this section and repeal of Pub. L. 110–234by Pub. L. 110–246effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 ofPub. L. 110–246, set out as an Effective Date note under section 8701 of this title.
Effective Date of 1991 Amendment