US Code

Public Law 119-87 (04/30/2026)

7 U.S.C. § 1981

Farmers Home Administration

(a)

Appointment and compensation of Administrator; transfer of powers, duties, and assets pertaining to agricultural credit

section 2006a of this titleIn accordance with , for purposes of this chapter, and for the administration of assets under the jurisdiction of the Secretary of Agriculture pursuant to the Farmers Home Administration Act of 1946, as amended, the Bankhead-Jones Farm Tenant Act, as amended, the Act of , as amended, the Act of , as amended, the Act of , as amended, and the powers and duties of the Secretary under any other Act authorizing agricultural credit, the Secretary may assign and transfer such powers, duties, and assets to such officers or agencies of the Department of Agriculture as the Secretary considers appropriate.

(b)

Powers of Secretary of Agriculture

The Secretary may—
(1)
administer his powers and duties through such national, area, State, or local offices and employees in the United States as he determines to be necessary and may authorize an office to serve the area composed of two or more States if he determines that the volume of business in the area is not sufficient to justify separate State offices, and until , make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Secretary to be necessary for carrying out the purposes of this chapter; (and the Secretary shall prior to , report to the Congress through the President on the experience in using such contracts, together with recommendations for such legislation as he may see fit);
(2)
accept and utilize voluntary and uncompensated services, and, with the consent of the agency concerned, utilize the officers, employees, equipment, and information of any agency of the Federal Government, or of any State, territory, or political subdivision;
(3)
within the limits of appropriations made therefor, make necessary expenditures for purchase or hire of passenger vehicles, and such other facilities and services as he may from time to time find necessary for the proper administration of this chapter;
(4)
1
1 See Change of Name note below.
42 U.S.C. 14417 U.S.C. 901 compromise, adjust, reduce, or charge-off debts or claims (including debts and claims arising from loan guarantees), and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Consolidated Farm Service Agency, Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or the Rural Development Administration, except for activities under the Housing Act of 1949 [ et seq.]. In the case of a security instrument entered into under the Rural Electrification Act of 1936 ( et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under this paragraph. The Secretary may not require liquidation of property securing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under this subsection. After consultation with a local or area county committee, the Secretary may release borrowers or others obligated on a debt, except for debt incurred under the Housing Act of 1949, from personal liability with or without payment of any consideration at the time of the compromise, adjustment, reduction, or charge-off of any claim, except that no compromise, adjustment, reduction, or charge-off of any claim may be made or carried out after the claim has been referred to the Attorney General, unless the Attorney General approves;
(5)
42 U.S.C. 1441 except for activities conducted under the Housing Act of 1949 [ et seq.], collect all claims and obligations administered by the Farmers Home Administration, or under any mortgage, lease, contract, or agreement entered into or administered by the Farmers Home Administration and, if in his judgment necessary and advisable, pursue the same to final collection in any court having jurisdiction;
(6)
release mortgage and other contract liens if it appears that they have no present or prospective value or that their enforcement likely would be ineffectual or uneconomical;
(7)
2
2 See References in Text note below.
obtain fidelity bonds protecting the Government against fraud and dishonesty of officers and employees of the Farmers Home Administration in lieu of faithful performance of duties bonds under section 14  of title 6, and regulations issued pursuant thereto, but otherwise in accordance with the provisions thereof;
(8)
consent to (A) long-term leases of facilities financed under this subchapter notwithstanding the failure of the lessee to meet any of the requirements of this subchapter if such long-term leases are necessary to ensure the continuation of services for which financing was extended to the lessor, and (B) the transfer of property securing any loan or financed by any loan or grant made, insured, or held by the Secretary under this chapter, or the provisions of any other law administered by the Rural Development Administration under this chapter or by the Farmers Home Administration, upon such terms as he deems necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Government, and shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower; and
(9)
notwithstanding that an area ceases, or has ceased, to be “rural”, in a “rural area”, or an eligible area, make loans and grants, and approve transfers and assumptions, under this chapter on the same basis as though the area still was rural in connection with property securing any loan made, insured, or held by the Secretary under this chapter or in connection with any property held by the Secretary under this chapter.
(c)

Delinquent claims and obligations

The Secretary may use for the prosecution or defense of any claim or obligation described in subsection (b)(5) the Attorney General, the General Counsel of the Department of Agriculture, or a private attorney who has entered into a contract with the Secretary.

(d)

Rural college coordinated strategy

(1)

In general

The Secretary shall develop a coordinated strategy across the relevant programs within the Rural Development mission areas to serve the specific, local needs of rural communities when making investments in rural community colleges and technical colleges through other authorities in effect on .

(2)

Consultation

In developing a coordinated strategy, the Secretary shall consult with groups representing rural-serving community colleges and technical colleges to coordinate critical investments in rural community colleges and technical colleges involved in workforce training.

(3)

Administration

Nothing in this subsection provides a priority for funding under authorities in effect on .

(4)

Use

The Secretary shall use the coordinated strategy and information developed for the strategy to more effectively serve rural communities with respect to investments in community colleges and technical colleges.

(e)

Development of rural broadband infrastructure

(1)
Except as provided in paragraph (2), the Secretary may allow a recipient of a grant, loan, or loan guarantee provided by the Office of Rural Development under this chapter to use not more than 10 percent of the amount so provided—
(A)
7 U.S.C. 950bb for any activity for which assistance may be provided under section 601 of the Rural Electrification Act of 1936 []; or
(B)
to construct other broadband infrastructure.
(2)
7 U.S.C. 950bb(e) Paragraph (1) of this subsection shall not apply to a recipient who is seeking to provide retail broadband service in any area where retail broadband service is available at the minimum broadband speeds, as defined under section 601(e) of the Rural Electrification Act of 1936 [].
(3)
The Secretary shall not provide funding under paragraph (1) if the funding would result in competitive harm to any grant, loan, or loan guarantee provided under the Rural Electrification Act of 1936.
(f)

Access to information to verify income for participants in certain rural housing programs

section 653 of title 42l42 U.S.C. 1472lThe Secretary and the designees of the Secretary are hereby granted the same access to information and subject to the same requirements applicable to the Secretary of Housing and Urban Development as provided in and section 6103()(7)(D)(ix) of title 26 to verify income for individuals participating in sections 502, 504, 521, and 542 of the Housing Act of 1949 (, 1474, 1490a, and 1490r), notwithstanding section 653() of title 42.

Pub. L. 87–128, title III, § 33175 Stat. 312 Pub. L. 90–488, § 1182 Stat. 771 Pub. L. 92–419, title I, § 12486 Stat. 665 Pub. L. 95–334, title I, § 12192 Stat. 427 Pub. L. 97–98, title XVI, § 160395 Stat. 1346 Pub. L. 99–198, title XIII, § 130999 Stat. 1523 Pub. L. 100–233, title VI, § 615(c)101 Stat. 1682 Pub. L. 101–624, title XVIII104 Stat. 3819 Pub. L. 102–237, title V, § 501(c)105 Stat. 1866 Pub. L. 103–248, § 2108 Stat. 619 Pub. L. 103–354, title II, § 226(h)108 Stat. 3216 Pub. L. 104–127, title VI110 Stat. 1092 Pub. L. 107–171, title V116 Stat. 345 Pub. L. 113–79, title VI, § 6018128 Stat. 846 Pub. L. 115–334, title VI132 Stat. 4743 (, , ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 1805, 1806, title XXIII, §§ 2303(a), 2388(d)(1), , , 3981, 4052; , title VII, § 701(h)(1)(E), , , 1880; , , ; , , ; , §§ 631, 632, title VII, § 748, , , 1128; , §§ 5303, 5304(a), , ; , , ; , §§ 6210(a), 6417, , , 4763.)

Editorial Notes

References in Text

Pub. L. 87–12875 Stat. 307 section 1921 of this titleThis chapter, referred to in subsecs. (a), (b)(1), (3), (8), (9), and (e)(1), was in the original “this title”, meaning title III of , , , 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 and Tables.

act Aug. 14, 1946, ch. 964 60 Stat. 1062 section 371 of Title 12section 82h of Title 31section 341(a) of Pub. L. 87–128The Farmers Home Administration Act of 1946, as amended, referred to in subsec. (a), is , , as amended, which was classified to sections 1001 to 1005, 1005a to 1005d, 1007, 1008, 1009, 1015 to 1029, 1030, and 1031 of this title, , Banks and Banking, and , Money and Finance, and in so far as it amended provisions of Title I, II, and IV of the Bankhead-Jones Farm Tenant Act, was repealed by , and is covered by this chapter.

act July 22, 1937, ch. 517 50 Stat. 522 section 341(a) of Pub. L. 87–128The Bankhead-Jones Farm Tenant Act, as amended, referred to in subsec. (a), is , , as amended. Title III of act , as amended, is classified to sections 1010 to 1012 and 1013a of this title. Titles I, II, and IV of act , as amended, were formerly classified to sections 1001 to 1005, 1005a to 1005d, 1006, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1026, and 1027 to 1029 of this title, respectively, were repealed by , and are covered by this chapter.

act Aug. 28, 1937, ch. 870 50 Stat. 869 section 341(a) of Pub. L. 87–128Act of , as amended, referred to in subsec. (a), is , , as amended, which was formerly classified to sections 590r to 590x–4 of Title 16, Conservation, was repealed by , and is covered by this chapter.

act Apr. 6, 1949, ch. 49 63 Stat. 43 section 341(a) of Pub. L. 87–128Act of , as amended, referred to in subsec. (a), is , , as amended, which was formerly classified to sections 1148a–1 to 1148a–3 of Title 12, Banks and Banking, was repealed by , and is covered by this chapter.

act Aug. 31, 1954, ch. 1145 68 Stat. 999 section 1148a–1 of Title 12section 341(a) of Pub. L. 87–128Act of , as amended, referred to in subsec. (a), is , , which was formerly classified as a note under , was repealed by , and is covered by this chapter.

act July 15, 1949, ch. 338 63 Stat. 413 section 1441 of Title 42The Housing Act of 1949, as amended, referred to in subsec. (b)(4), (5), is , , as amended, which is classified principally to chapter 8A (§ 1441 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 and Tables.

act May 20, 1936, ch. 432 49 Stat. 1363 section 901 of this titleThe Rural Electrification Act of 1936, referred to in subsecs. (b)(4) and (e)(3), is , , which is classified generally to chapter 31 (§ 901 et seq.) of this title. For complete classification of this Act to the Code, see and Tables.

Section 14 of title 6Pub. L. 92–310, title II, § 203(1)86 Stat. 202 , referred to in subsec. (b)(7), was repealed by , , . For provisions relating to surety bonds of Federal personnel, see section 9301 et seq. of Title 31, Money and Finance.

Amendments

Pub. L. 115–334, § 6210(a)2018—Subsec. (e). , added subsec. (e).

Pub. L. 115–334, § 6417Subsec. (f). , added subsec. (f).

Pub. L. 113–792014—Subsec. (d). added subsec. (d).

Pub. L. 107–171, § 53032002—Subsec. (b)(4). , substituted “After consultation with a local or area county committee, the Secretary may release” for “The Secretary may release” and “carried out after” for “carried out—

section 1982 of this title“(A) with respect to farmer program loans, on terms more favorable than those recommended by the appropriate county committee utilized pursuant to ; or

“(B) after”.

Pub. L. 107–171, § 5304(a)Subsecs. (d), (e). , struck out subsecs. (d) and (e) which related to temporary authority to enter into contracts, and private collection agency, respectively.

Pub. L. 104–127, § 7487 U.S.C. 90142 U.S.C. 14411996—Subsec. (b)(4). , inserted “(including debts and claims arising from loan guarantees)” after “debts or claims”, substituted “Consolidated Farm Service Agency, Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or” for “Farmers Home Administration or”, and inserted “In the case of a security instrument entered into under the Rural Electrification Act of 1936 ( et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under this paragraph.” after “activities under the Housing Act of 1949 [ et seq.].”

Pub. L. 104–127, § 631Subsec. (d). , added subsec. (d).

Pub. L. 104–127, § 632Subsec. (e). , added subsec. (e).

Pub. L. 103–3541994—Subsec. (a). substituted “assets to such officers or agencies of the Department of Agriculture as the Secretary considers appropriate.” for “assets to the Farmers Home Administration, to be headed by an Administrator, appointed by the President, by and with the advice and consent of the Senate, without regard to the civil service laws or chapter 51 and subchapter III of chapter 53 of title 5, who shall receive basic compensation as provided by law for that office, or may assign and transfer such powers, duties, and assets to the Rural Development Administration as provided by law for that office.”

Pub. L. 103–248Subsec. (c). added subsec. (c).

Pub. L. 102–237, § 501(c)(2)(B)(i)Pub. L. 101–624, § 2388(d)(1)1991—, amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(1), (2). , (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 701(h)(1)(E)Subsec. (b)(3). , substituted “this chapter” for “this Act”.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi), (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(4). , (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(1), struck out “this chapter” after “activities under the Housing Act of 1949” and substituted “1949, from” for “1949 from”.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(4)(A). , redesignated , as (v). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(4)(B). , redesignated , as (v). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(5). , (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(ii)Pub. L. 101–624, § 2388(d)(1)(A)(i)Subsec. (b)(6). , (iii), (v), amended directory language of , (vi). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(A)Pub. L. 101–624, § 1805(c)(1), repealed , (2). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(ii)Pub. L. 101–624, § 2388(d)(1)(A)(i)Subsec. (b)(7). , (iii), (v), amended directory language of , (vi). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(A)Pub. L. 101–624, § 1805(c)(1), repealed , (3). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(ii)Pub. L. 101–624, § 2388(d)(1)(A)(i)Subsec. (b)(8). –(v), amended directory language of , (iv), (vi). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(A)Pub. L. 101–624, § 1805(c)(1), repealed , (4). See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Subsec. (b)(9). , (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pars. (c) to (g). , (v), amended directory language of . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 2388(d)(1)(A)(iv)Par. (h). , repealed . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(A)Pub. L. 101–624, § 1805(b)Pub. L. 101–624, § 1805(c)(5), amended , and repealed . See 1990 Amendment note below.

Pub. L. 102–237, § 501(c)(2)(A)Pub. L. 101–624, § 1805(b)Pub. L. 101–624, § 1805(c)(5)Pars. (i), (j). , amended , and repealed . See 1990 Amendment note below.

Pub. L. 101–624, § 2388(d)(1)Pub. L. 102–237, § 501(c)(2)(B)(i)1990—, was amended in its directory language by , resulting in no change in text.

Pub. L. 101–624section 2006a of this titleSubsec. (a). , §§ 2303(a)(1), 2388(d)(1)(B), designated first undesignated par. as subsec. (a) and substituted “In accordance with , for purposes of this chapter, and” for “For the purposes of this chapter and”, and inserted before period at end “, or may assign and transfer such powers, duties, and assets to the Rural Development Administration as provided by law for that office”.

Pub. L. 101–624, § 2388(d)(1)(B)Subsec. (b). , designated second undesignated par. beginning “The Secretary may—” as subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(1) to (3). , formerly (vii), as redesignated and amended by , (v), redesignated pars. (a) to (c) as (1) to (3), respectively, of subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(4). , formerly (vii), as redesignated and amended by , (v), redesignated par. (d) as (4) of subsec. (b).

Pub. L. 101–624, §§ 1805(a)(1)(A), (B), 2303(a)(2), inserted “or the Rural Development Administration” after “Farmers Home Administration” in first sentence, substituted “, except for activities under the Housing Act of 1949” for “under any of its programs, as circumstances may require, to carry out” in first sentence, and substituted “, except for debt incurred under the Housing Act of 1949” for “incurred under this chapter” in third sentence.

Pub. L. 101–624, § 2388(d)(1)(A)(v)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(4)(A). , formerly (vi), as redesignated by , redesignated subpar. (1) as (A).

Pub. L. 101–624, § 1805(a)(1)(C), inserted “with respect to farmer program loans,” before “on terms”.

Pub. L. 101–624, § 2388(d)(1)(A)(v)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(4)(B). , formerly (vi), as redesignated by , redesignated subpar. (2) as (B).

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(5). , formerly (vii), as redesignated and amended by , (v), redesignated par. (e) as (5) of subsec. (b).

Pub. L. 101–624, § 1805(a)(2), inserted “except for activities conducted under the Housing Act of 1949,” before “collect”, struck out “arising or” after “obligations”, substituted “by the Farmers Home Administration” for “under this chapter” before “, or under any” and “by the Farmers Home Administration” for “pursuant to this chapter” before “and, if in his”.

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(6). , formerly (vii), as redesignated and amended by , (v), redesignated par. (f) as (6) of subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(ii), substituted “release” for “Release”.

Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(B)(ii), as amended by , realigned margin.

Pub. L. 101–624, § 1805(c)(1)Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(A), (2), which made amendments identical to those by , (ii), was repealed by .

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Subsec. (b)(7). , formerly (vii), as redesignated and amended by , (v), redesignated par. (g) as (7) of subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(iii), substituted “obtain” for “Obtain”.

Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(B)(ii), as amended by , realigned margin.

Pub. L. 101–624, § 1805(c)(1)Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(A), (3), which made amendments identical to those by , (iii), was repealed by .

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 1805(b)Subsec. (b)(8). , formerly (vii), as redesignated and amended by , (v), redesignated par. (h) [par. (i) prior to redesignation by , as amended] as (8) of subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(iv)(II)Pub. L. 102–237, § 501(c)(2)(B)(iii), formerly (v)(II), as redesignated and amended by , (iv), redesignated former subpars. (1) and (2) as (A) and (B), respectively.

Pub. L. 101–624, § 2303(a)(3), inserted “Rural Development Administration under this chapter or by the” before “Farmers Home Administration”.

Pub. L. 101–624, § 1806, inserted before semicolon at end “, and shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower”.

Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(B)(ii), (iv)(I), formerly (v)(I), as redesignated and amended by –(iv), realigned margin and substituted “consent” for “Consent”.

Pub. L. 101–624, § 1805(c)(1)Pub. L. 101–624, § 2388(d)(1)(A)(i)Pub. L. 102–237, § 501(c)(2)(A), (4), which made amendments identical to those by , (iv)(I), was repealed by .

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Pub. L. 101–624, § 1805(b)Subsec. (b)(9). , formerly (vii), as redesignated and amended by , (v), redesignated par. (i) [par. (j) prior to redesignation by , as amended] as (9) of subsec. (b).

Pub. L. 101–624, § 2388(d)(1)(A)(vi)Pub. L. 102–237, § 501(c)(2)(B)(iii)Pars. (c) to (g). , formerly (vii), (B), as redesignated and amended by , (v), redesignated former pars. (c) to (g) as (3) to (7), respectively, of subsec. (b). See above.

Pub. L. 101–624, § 2388(d)(1)(A)(iv)Pub. L. 102–237, § 501(c)(2)(B)(iii)Par. (h). , which directed substitution of “not” for “Not” before “require”, was repealed by .

Pub. L. 101–624, § 1805(c)(5)Pub. L. 102–237, § 501(c)(2)(A), which redesignated par. (i) as (h), was repealed by .

Pub. L. 101–624, § 1805(b)Pub. L. 102–237, § 501(c)(2)(A), as amended by , redesignated par. (i) as (h) and struck out par. (h) which read as follows: “Not require borrowers to pay interest accrued after , on interest which is not more than 90 days overdue on any loan held or insured by the Farmers Home Administration;”.

Pub. L. 101–624, § 1805(c)(5)Pub. L. 102–237, § 501(c)(2)(A)Pars. (i), (j). , which redesignated pars. (i) and (j) as (h) and (i), respectively, was repealed by .

Pub. L. 101–624, § 1805(b)Pub. L. 102–237, § 501(c)(2)(A), as amended by , redesignated pars. (i) and (j) as (h) and (i), respectively. Pars. (h) and (i) subsequently redesignated pars. (8) and (9) of subsec. (b). See above.

Pub. L. 100–2331988—Par. (d). inserted “or debts” before “claims”, and inserted “The Secretary may not require liquidation of property securing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under this subsection.”

Pub. L. 99–198, § 13091985—Par. (d). , in amending par. (d) generally, substituted provisions authorizing the Secretary to compromise, adjust, reduce, or charge-off claims, and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farmers Home Administration to carry out this chapter for provisions which had authorized the Secretary to compromise, adjust, or reduce claims, and adjust and modify the terms of mortgages, leases, contracts and agreements entered into or administered by the Administration under any of its programs, but not in the event of claims of $25,000 or more without the approval of the Administrator, substituted provisions authorizing the Secretary to release borrowers or others obligated on a debt incurred under this chapter from personal liability with or without consideration at the time of the compromise, adjustment, reduction or charge-off of any claim for provisions authorizing the Secretary to release from personal liability, with or without payment of any consideration at the time of adjustment of the claims, borrowers who transferred the security property to approved applicants, to other than approved applicants, or for amounts less than the indebtedness secured thereby, struck out provisions that compromise, adjustment, or reduction of the claim shall be based on the value of the security and a determination of the debtor’s reasonable ability to pay considering his other assets and income, and struck out provisions relating to any claim due and payable for five years or more and to partial releases and subordination of mortgages.

Pub. L. 97–981981—Par. (i). designated existing provisions following “consent to” as cl. (2) and added cl. (1).

Pub. L. 95–3341978— in par. (a) struck out references to Puerto Rico and the Virgin Islands, in par. (d) substituted “$25,000” for “$15,000”, and added par. (j).

Pub. L. 92–419, § 124(1)1972—Par. (a). , authorized the Secretary of Agriculture, until , to make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Secretary to be necessary for carrying out the purposes of this chapter, and required the Secretary, prior to , to report to Congress through the President on the experience in using such contracts, together with recommendations for such legislation as he may see fit.

Pub. L. 92–419, § 124(2)Pars. (d) to (i). , substituted a semicolon for a period at end of lettered pars. (d), (e) and (f) and added pars. (g) to (i).

Pub. L. 90–4881968—Par. (f). added par. (f).

Statutory Notes and Related Subsidiaries

Change of Name

section 6932 of this titlePub. L. 115–334, title XII, § 12404(a)132 Stat. 4974 Consolidated Farm Service Agency effectively renamed Farm Service Agency by the amendments made to by , , .

Effective Date of 2002 Amendment

Pub. L. 107–171, title V, § 5304(b)116 Stat. 345

“The amendment made by subsection (a) [amending this section] shall not apply to a contract entered into before the effective date of this Act [].”
, , , provided that:

Effective Date of 1991 Amendment

section 501(c) of Pub. L. 102–237Pub. L. 101–624section 701(h)(1)(E) of Pub. L. 102–237Pub. L. 102–237section 1421 of this titleAmendment by effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, , to which the amendment relates, and amendment by to any provision specified therein effective as if included in act that added provision so specified at the time such act became law, see section 1101(b)(3), (c) of , set out as a note under .

Effective Date of 1981 Amendment

Pub. L. 97–98section 1801 of Pub. L. 97–98section 4301 of this titleAmendment by effective , see , set out as an Effective Date note under .

Continuation of Small Farmer Training and Technical Assistance Program

Pub. L. 99–198, title XIII, § 132899 Stat. 1541

“The Secretary of Agriculture shall, during the period beginning on the date of enactment of this Act [] and ending on , maintain at substantially current levels the small farmer training and technical assistance program in the office of the Administrator of the Farmers Home Administration.”
, , , provided that:

Reamortization of Distressed Farmers Home Administration Loans From Revenues From Softwood Timber Crop Plantings on Marginal Land

Pub. L. 98–258, title VI, § 60898 Stat. 140 Pub. L. 99–198, title XII, § 125499 Stat. 1517

“(a)
(1)
7 U.S.C. 14217 U.S.C. 1921 Notwithstanding any other provision of law, the Secretary of Agriculture (hereinafter in this section referred to as the ‘Secretary’) may implement a program, pursuant to the recommendations contained in the study mandated by section 608 of the Agricultural Programs Adjustment Act of 1984 ( [1981] note), under which a distressed loan (as determined by the Secretary) made or insured under the Consolidated Farm and Rural Development Act ( et seq.), or a portion thereof, may be reamortized with the use of future revenue produced from the planting of softwood timber crops on marginal land (as determined by the Secretary) that—
“(A)
was previously used to produce an agricultural commodity or as pasture; and
“(B)
secures a loan made or insured under such Act.
“(2)
Accrued interest on a loan reamortized under this section may be capitalized and interest charged on such interest.
“(3)
All or a portion of the payments on such reamortized loan may be deferred until such softwood timber crop produces revenue or for a term of 45 years, whichever comes first.
“(4)
Repayment of such reamortized loan shall be made not later than 50 years after the date of reamortization.
“(b)
The interest rate on such reamortized loans shall be determined by the Secretary, but not in excess of the current average yield on outstanding marketable obligations of the United States with periods to maturity comparable to the average maturities of such loans, plus not to exceed 1 percent, as determined by the Secretary and adjusted to the nearest one-eighth of 1 percent.
“(c)
To be eligible for such program—
“(1)
the borrower of such reamortized loan must place not less than 50 acres of such land in softwood timber production;
“(2)
such land (including timber) may not have any lien against such land other than a lien for—
“(A)
7 U.S.C. 1921 a loan made or insured under the Consolidated Farm and Rural Development Act [ et seq.] to secure such reamortized loan; or
“(B)
a loan made under this section, at the time of reamortization or thereafter, that is subject to a lien on such land (including timber) in favor of the Secretary; and
“(3)
the total amount of loans secured by such land (including timber) may not exceed $1,000 per acre.
“(d)
(1)
To assist such borrowers to place such land in softwood timber production, the Secretary may make loans to such borrowers for such purpose in an aggregate amount not to exceed the actual cost of tree planting for land placed in the program.
“(2)
Any such loan shall be secured by the land (including timber) on which the trees are planted.
“(3)
Such loans shall be made on the same terms and conditions as are provided in this section for reamortized loans.
“(e)
The Secretary shall issue such rules as are necessary to carry out this section, including rules prescribing terms and conditions for—
“(1)
reamortizing and making loans under this section;
“(2)
entering into security instruments and agreements under this section; and
“(3)
management and harvesting practices of the timber crop.
“(f)
There are authorized to be appropriated such sums as are necessary to carry out this section.
“(g)
No more than 50,000 acres may be placed in such program.”
, , , as amended by , , , provided that: