This chapter, referred to in text, was in the original “this title”, meaning title III of Puspan. 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.
This Act, referred to in subsec. (e)(1)(A)(vi), refers to the Agricultural Act of 1961, Puspan. L. 87–128, Aug. 8, 1961, 75 Stat. 294. For classification of this Act to the Code, see Short Title note set out under section 1911 of this title and Tables. However, the reference was probably intended to be “this title” meaning the Consolidated Farm and Rural Development Act, title III of Puspan. L. 87–128, as amended, which is classified principally to this chapter. For classification of this title to the Code, see Short Title note set out under section 1921 of this title and Tables.
Subsection (g)(6) of this section, referred to in subsec. (e)(1)(D)(iii)(I), was redesignated subsection (g)(3) of this section by Puspan. L. 104–127, title VI, § 639(4), Apr. 4, 1996, 110 Stat. 1097.
In subsec. (c)(4), “Chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(span), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)” on authority of Puspan. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Puspan. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
Puspan. L. 110–234 and Puspan. L. 110–246 made identical amendments to this section. The amendments by Puspan. L. 110–234 were repealed by section 4(a) of Puspan. L. 110–246.
2008—Subsec. (c)(1)(B). Puspan. L. 110–246, § 5302(a)(1)(A), in span, inserted “; socially disadvantaged farmer or rancher” at end, in cls. (i) and (iii), inserted “or a socially disadvantaged farmer or rancher” after “beginning farmer or rancher”, in cl. (ii), inserted “or socially disadvantaged farmer or rancher” after “beginning farmer or rancher”, and, in cl. (iv), substituted “beginning farmers or ranchers and socially disadvantaged farmers or ranchers” for “beginning farmers and ranchers”.
Subsec. (c)(1)(C). Puspan. L. 110–246, § 5302(a)(1)(B), inserted “or a socially disadvantaged farmer or rancher” after “beginning farmer or rancher”.
Subsec. (c)(5)(B)(i). Puspan. L. 110–246, § 5302(a)(2)(A), in span, inserted “; socially disadvantaged farmer or rancher” at end and, in text, inserted “or a socially disadvantaged farmer or rancher” after “a beginning farmer or rancher” and “or the socially disadvantaged farmer or rancher” after “the beginning farmer or rancher”.
Subsec. (c)(5)(B)(ii). Puspan. L. 110–246, § 5302(a)(2)(B), in introductory provisions, inserted “or a socially disadvantaged farmer or rancher” after “a beginning farmer or rancher” and, in subcl. (II), inserted “or the socially disadvantaged farmer or rancher” after “the beginning farmer or rancher”.
Subsec. (c)(6)(A). Puspan. L. 110–246, § 5302(a)(3)(A), inserted “or a socially disadvantaged farmer or rancher” after “beginning farmer or rancher”.
Subsec. (c)(6)(C). Puspan. L. 110–246, § 5302(a)(3)(B), in cl. (i)(I), substituted “beginning farmers or ranchers and socially disadvantaged farmers or ranchers” for “beginning farmers and ranchers” and, in cl. (ii), inserted “or socially disadvantaged farmers or ranchers” after “beginning farmers or ranchers”.
2002—Subsec. (c)(1)(B)(i). Puspan. L. 107–171, § 5308(1)(A)(i), substituted “135 days” for “75 days”.
Subsec. (c)(1)(B)(iv). Puspan. L. 107–171, § 5308(1)(A)(ii), added cl. (iv).
Subsec. (c)(1)(C). Puspan. L. 107–171, § 5308(1)(B), substituted “135 days” for “75 days” and “135-day period” for “75-day period”.
Subsec. (c)(2). Puspan. L. 107–171, § 5308(2), added par. (2) and struck out span and text of former par. (2). Text read as follows:
“(A) Previous lease.—In the case of real property acquired prior to April 4, 1996, that the Secretary leased prior to April 4, 1996, not later than 60 days after the lease expires, the Secretary shall offer to sell the property in accordance with paragraph (1).
“(B) Previously in inventory.—In the case of real property acquired prior to April 4, 1996, that the Secretary has not leased, not later than 60 days after April 4, 1996, the Secretary shall offer to sell the property in accordance with paragraph (1).”
1996—Subsec. (span). Puspan. L. 104–127, § 638(1), substituted “subsections (c) and (e)” for “subsection (e)”.
Subsec. (c). Puspan. L. 104–127, § 638(2), added subsec. (c) and struck out former subsec. (c) which authorized Secretary to determine whether real property administered under this chapter was suitable for disposition to persons eligible for assistance under provisions of any law administered by Farmers Home Administration or Rural Development Administration.
Subsec. (e)(1)(A). Puspan. L. 104–127, § 638(3)(A)(i)–(iii), redesignated subpar. (D) as (A), in cl. (i), substituted “(D)” for “(G)” in introductory provisions, added subcl. (I) and struck out former subcl. (I) which read as follows: “the real property described in subparagraph (A)(i) is located within an Indian reservation,”, in subcl. (II), substituted a semicolon for “, and” at end, and struck out subcl. (III) which read as follows: “the period in which the right to purchase or lease such real property provided in clauses (i) and (ii) of subparagraph (A) has expired,”, in cl. (iii), substituted “Not later than 90 days after acquiring the property, the Secretary shall” for “The Secretary shall, within 90 days after the expiration of the period for which the right to purchase or lease real property described in clause (i) is provided in clauses (i) and (ii) of subparagraph (A),”, and struck out former subpar. (A) which authorized the Secretary, during 180-day period beginning on date of acquisition, or during applicable period under State law, to allow borrower-owner to purchase or lease property, if such borrower-owner had acted in good faith with the Secretary.
Subsec. (e)(1)(B). Puspan. L. 104–127, § 638(3)(A)(i), (ii), redesignated subpar. (E) as (B) and struck out former subpar. (B) which read as follows: “Any purchase or lease under subparagraph (A) shall be on such terms and conditions as are established in regulations promulgated by the Secretary.”
Subsec. (e)(1)(C). Puspan. L. 104–127, § 638(3)(A)(i), (ii), redesignated subpar. (F) as (C) and struck out former subpar. (C) which authorized Secretary to give preference in sale or lease, with option to purchase, of property that had been foreclosed, purchased, redeemed, or otherwise acquired by the Secretary to persons in specified order.
Subsec. (e)(1)(D). Puspan. L. 104–127, § 638(3)(A)(ii), (iv), redesignated subpar. (G) as (D), in cl. (i), substituted “(A)” for “(D)” in concluding provisions, in cl. (iii)(I), substituted “subparagraph (A)” for “subparagraphs (C)(i), (C)(ii), and (D)”, and added cl. (v) and struck out former cl. (v) which read as follows: “If a borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), at least 30 days before a foreclosure sale of the property, the Secretary shall provide written notice to the Indian tribe that has jurisdiction over the reservation in which the real property is located of—
“(I) the sale;
“(II) the fair market value of the property; and
“(III) the requirements of this subparagraph.”
Former subpar. (D) redesignated (A).
Subsec. (e)(1)(E) to (G). Puspan. L. 104–127, § 638(3)(A)(ii), redesignated subpars. (E) to (G) as (B) to (D), respectively.
Subsec. (e)(3). Puspan. L. 104–127, § 638(3)(B), (C), (E), redesignated par. (4) as (3), struck out “(i)” before “The Secretary may sell”, redesignated cl. (ii) of subpar. (A) as subpar. (B) and substituted “subparagraph (A)” for “clause (i)”, struck out former subpar. (B) which read as follows: “If two or more qualified operators of not larger than family-size farms desire to purchase, or lease with an option to purchase, such land, the appropriate county committee shall randomly select the operator who may purchase such land, on such basis as the Secretary may prescribe by regulation, in accordance with subsection (c)(2)(B)(iii) of this section.”, and struck out former par. (3) which directed the Secretary to issue regulations providing for leasing of real property, or leasing such property with option to purchase, on fair and equitable basis.
Subsec. (e)(4). Puspan. L. 104–127, § 638(3)(E), redesignated par. (7) as (4). Former par. (4) redesignated (3).
Subsec. (e)(5). Puspan. L. 104–127, § 638(3)(D), (E), redesignated par. (8) as (5) and struck out former par. (5) which read as follows:
“(5)(A) If the Secretary determines that farmland administered under this chapter is not suitable for sale or lease to persons eligible for a loan made or insured under subchapter I of this chapter because such farmland is in a tract or tracts that the Secretary determines to be larger than that necessary for such eligible persons, the Secretary shall, to the greatest extent practicable, subdivide such land into tracts suitable for sale under subsection (c) of this section. Such land shall be subdivided into parcels of land the shape and size of which are suitable for farming, the value of which shall not exceed the individual loan limits as prescribed under section 1925 of this title.
“(B) The Secretary shall dispose of such subdivided farmland in accordance with this subsection.”
Subsec. (e)(6). Puspan. L. 104–127, § 638(3)(D), (E), redesignated par. (10) as (6) and struck out former par. (6) which read as follows: “If suitable farmland is available for disposition under this subsection, the Secretary shall—
“(A) publish an announcement of the availability of such farmland in at least one newspaper that is widely circulated in the county in which the farmland is located;
“(B) post an announcement of the availability of such farmland in a prominent place in the local office of the Farmers Home Administration that serves the county in which the farmland is located; and
“(C) provide written notice reasonably calculated to inform the immediate previous owner or immediate previous family-size farm operator of such farmland, of the availability of such farmland.”
Subsec. (e)(7), (8). Puspan. L. 104–127, § 638(3)(E), redesignated pars. (7) and (8) as (4) and (5), respectively.
Subsec. (e)(9). Puspan. L. 104–127, § 638(3)(D), struck out par. (9) which read as follows: “Denials of applications for or disputes over terms and conditions of a lease or purchase agreement under this section are appealable under section 1983span of this title.”
Subsec. (e)(10). Puspan. L. 104–127, § 638(3)(E), redesignated par. (10) as (6).
Subsec. (g). Puspan. L. 104–127, § 639(1)(A), inserted span.
Subsec. (g)(1). Puspan. L. 104–127, § 639(1), inserted span, substituted “Subject to paragraph (2)” for “Subject to paragraphs (2) through (5)”, and struck out “, as determined by the Secretary in accordance with title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.)” after “inventoried property”.
Subsec. (g)(2). Puspan. L. 104–127, § 639(2), added par. (2) and struck out former par. (2) which read as follows: “In establishing the wetland conservation easements on land that is considered to be cropland as of November 28, 1990, the Secretary shall avoid, to the extent practicable, an adverse impact on the productivity of the croplands, as provided in this subsection.”
Subsec. (g)(3). Puspan. L. 104–127, § 639(3), (4), redesignated par. (6) as (3), inserted span, and struck out former par. (3) which read as follows: “In order to avoid the adverse impact, the Secretary shall—
“(A) not establish the wetland conservation easements with respect to wetlands that were converted prior to December 23, 1985, and that have been in cropland use, as determined by the Secretary, in excess of 10 percent of the existing cropland available for production of agricultural commodities on the particular parcel of inventoried property;
“(B) not establish the wetland conservation easements with respect to wetlands that have been frequently planted to agricultural commodities and wetlands described in subparagraph (A), in excess of 20 percent of the existing cropland available for production of agricultural commodities on the particular parcel of inventoried property;
“(C) ensure that the buffer area adjacent to the wetland is generally not more than 100 feet in average width; and
“(D) ensure that access to other portions of the property for farming and other uses is provided.”
Subsec. (g)(4). Puspan. L. 104–127, § 639(3), (5), redesignated par. (7) as (4), inserted span, and struck out former par. (4) which read as follows: “The wetland conservation easements shall be placed on wetlands that have a history of haying and grazing, as determined by the Secretary, except that in no case shall the quantity of the wetland subject to the easements exceed 50 percent of the existing forage lands on the parcel of inventoried property. All haying and grazing practices on the wetlands (including the timing and intensity of haying and grazing) shall conform to forage management standards designed to protect wetlands.”
Subsec. (g)(5). Puspan. L. 104–127, § 639(3), struck out par. (5) which read as follows: “If, despite the limitations contained in paragraph (3), wetland conservation easements established under paragraph (1) would prevent a particular parcel of inventoried property that is to be sold or leased to a borrower described in clause (i), (ii), or (iii) of subsection (e)(1)(C) of this section, or to a borrower who is a beginning farmer or rancher, from being a marketable agricultural production unit that is comparable to the parcel as acquired, the Secretary may—
“(A) establish wetland conservation easements on wetland that was converted prior to December 23, 1985, in a quantity that is less than 10 percent of the existing croplands available for production of agricultural commodities on the particular parcel; and
“(B) if the reduction provided in subparagraph (A) is not applicable, or is not sufficient to ensure that the particular parcel would be a marketable agricultural production unit, amend the wetland conservation easements established on the wetlands that have been frequently planted to agricultural commodities to permit the production of agricultural commodities (consistent with title XII of the Food Security Act of 1985) on the wetlands, to the extent necessary to maintain the parcel as a marketable agricultural production unit.”
Subsec. (g)(6), (7). Puspan. L. 104–127, § 639(4), (5), redesignated pars. (6) and (7) as (3) and (4), respectively.
Subsec. (g)(8). Puspan. L. 104–127, § 639(3), struck out par. (8) which read as follows: “Notwithstanding the limitations described under paragraphs (3) and (4), the limitations may be voluntarily, knowingly waived by any person with respect to real property described in paragraph (3) or (4).”
1992—Subsec. (c)(1). Puspan. L. 102–554, § 16, in fourth sentence, inserted “(A)” after “shall be” and “or (B) leased to persons eligible for assistance under the provisions of any law administered by the Farmers Home Administration or the Rural Development Administration under an annual lease or a lease with an option to purchase, with a preference for sale” before period at end.
Subsec. (e)(1)(A)(i). Puspan. L. 102–552, which, in amending directory language of Puspan. L. 102–237, § 501(f)(1), directed the substitution of “the borrower-owner (as defined in subparagraph (F))” for “borrower-owner (as defined in subparagraph (F))”, was executed by making the substitution in text which did not contain a closing parenthesis after “(F)”, to reflect the probable intent of Congress. See 1991 Amendment note below.
Subsec. (e)(1)(D)(i). Puspan. L. 102–554, § 17(1), substituted “Except as provided in subparagraph (G), if” for “If”.
Subsec. (e)(1)(G). Puspan. L. 102–554, § 17(2), added subpar. (G).
1991—Subsec. (e)(1)(A)(i). Puspan. L. 102–237, § 501(f)(1), as amended by Puspan. L. 102–552, substituted “the borrower-owner (as defined in subparagraph (F))” for “the borrower from whom the Secretary acquired real farm or ranch property (including the principal residence of the borrower) used to secure any loan made to the borrower under this chapter (hereinafter referred to in this paragraph as the ‘borrower-owner’)”. See 1992 Amendment note above.
Subsec. (e)(1)(F). Puspan. L. 102–237, § 501(f)(2), added subpar. (F).
1990—Subsec. (a). Puspan. L. 101–624, §§ 1813(a), 2303(c)(1), inserted “or the Rural Development Administration” after “Farmers Home Administration” and substituted “12 months from the date first published under paragraph (2)(D)” for “three years from the date of acquisition”.
Subsec. (c)(1). Puspan. L. 101–624, § 2303(c)(2), inserted “or the Rural Development Administration” after “Farmers Home Administration”.
Subsec. (c)(2)(A), (B). Puspan. L. 101–624, § 1813(e)(1), added subpar. (A) and subpar. (B) introductory provisions, redesignated former subpars. (A) through (D) as cls. (i) through (iv), respectively, of subpar. (B), and struck out former introductory provisions which read as follows: “Notwithstanding any other provision of law, the Secretary shall sell suitable farmland administered under this subchapter to operators (as of the time immediately after such contract for sale or lease is entered into) of not larger than family sized farms, as determined by the county committee. In selling such land, the county committee shall—”.
Subsec. (c)(2)(B)(ii). Puspan. L. 101–624, § 1813(g)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “offer suitable land at a price not greater than that which reflects the appraised market value of such land;”.
Subsec. (c)(2)(B)(iii). Puspan. L. 101–624, § 1813(span)(1), inserted before semicolon “, except that if the committee determines that two or more applicants meet the loan eligibility criteria, the committee shall select between the qualified applicants on a random basis”.
Subsec. (c)(2)(B)(iv). Puspan. L. 101–624, § 2388(g), substituted “cause” for “caused”.
Subsec. (e)(1)(A)(i). Puspan. L. 101–624, § 1813(c), substituted “real farm or ranch property (including the principal residence of the borrower)” for “real property”.
Puspan. L. 101–624, § 1816(e)(1), inserted before period at end “, if such borrower-owner has acted in good faith with the Secretary, as defined in regulations issued by the Secretary, in connection with such loan”.
Subsec. (e)(1)(A)(iv). Puspan. L. 101–624, § 1813(d), added cl. (iv).
Subsec. (e)(1)(C)(i). Puspan. L. 101–624, § 1816(e)(2), inserted before period at end “, if such borrower-owner has acted in good faith with the Secretary, as defined in regulations issued by the Secretary, in connection with the loan of such borrower-owner for which such property served as security”.
Subsec. (e)(1)(C)(iv), (v). Puspan. L. 101–624, § 1813(e)(2), added cl. (iv) and redesignated former cl. (iv) as (v).
Subsec. (e)(1)(D)(x). Puspan. L. 101–624, § 1813(f), added cl. (x).
Subsec. (e)(4)(B). Puspan. L. 101–624, § 1813(g)(2), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “The Secretary shall offer such land for sale to operators of not larger than family-size farms at a price that reflects the average annual income that may be reasonably anticipated to be generated from farming such land.”
Subsec. (e)(4)(C). Puspan. L. 101–624, § 1813(g)(2), redesignated former subpar. (C) as (B).
Puspan. L. 101–624, § 1813(span)(2), substituted “shall randomly” for “shall, by majority vote,” and inserted “, in accordance with subsection (c)(2)(B)(iii) of this section”.
Subsec. (g). Puspan. L. 101–624, § 1813(h)(1), added subsec. (g).
1988—Subsec. (c). Puspan. L. 100–233, § 610(a), designated existing provisions as par. (1), inserted provisions requiring the County Committee to classify or reclassify real property that is farmland, as being suitable for farming operation for such disposition unless property cannot be used to meet any of the purposes of section 1923 of this title, and added par. (2).
Subsec. (e)(1). Puspan. L. 100–233, § 610(span)(1), added par. (1) and struck out former par. (1) which read as follows: “The Secretary shall to the extent practicable sell or lease farmland administered under this chapter in the following order of priority:
“(A) Sale of such farmland to operators (as of the time immediately before such sale) of not larger than family-size farms.
“(B) Lease of such farmland to operators (as of the time immediately before such lease is entered into) of not larger than family-size farms.”
Subsec. (e)(3). Puspan. L. 100–233, § 610(span)(2), redesignated subpars. (B) to (D) as (A) to (C), respectively, in subpar. (B) substituted “Secretary shall determine if the lessee” for “Secretary shall give special consideration to a previous owner or operator of such land if such owner or operator”, added subpar. (D), and struck out former subpar. (A) which read as follows: “The Secretary shall consider granting, and may grant, to an operator of not larger than a family-size farm, in conjunction with paragraph (3), a lease with an option to purchase farmland administered under this chapter.”
Subsec. (e)(5)(A). Puspan. L. 100–233, § 610(span)(3), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “If the Secretary determines that farmland administered under this chapter is not suitable for sale or lease to an operator of not larger than a family-size farm because such farmland is in a tract or tracts that the Secretary determines to be larger than that necessary for family-size farms, the Secretary shall subdivide such land into tracts suitable for such operator.”
Subsec. (e)(6)(C). Puspan. L. 100–233, § 610(span)(4), added subpar. (C).
Subsec. (e)(9), (10). Puspan. L. 100–233, § 610(span)(5), added pars. (9) and (10).
Subsec. (f). Puspan. L. 100–233, § 611, amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows:
“(1) As used in this subsection, the term ‘normal income security’ has the same meaning given such term in section 1962.17(span) of title 7, Code of Federal Regulations (as of January 1, 1985).
“(2) Until such time as the Secretary accelerates a loan made or insured under this chapter, the Secretary shall release from the normal income security provided for such loan an amount sufficient to pay the essential household and farm operating expenses of the borrower, as determined by the Secretary.”
1985—Subsec. (span). Puspan. L. 99–198, § 1314(a)(1), substituted “Except as provided in subsection (e), real property” for “Real property”.
Subsec. (c). Puspan. L. 99–198, § 1314(a)(2), substituted “Except as provided in subsection (e) of this section, the Secretary” for “The Secretary” and inserted sentence at end providing that notwithstanding the preceding sentence, the Secretary may for conservation purposes grant or sell an easement, restriction, development rights, or the equivalent thereof, to a unit of local or State government or a private nonprofit organization separately from the underlying fee or sum of all other rights possessed by the United States.
Puspan. L. 99–198, § 1318(span)(1), which directed insertion of “, other than easements acquired under section 1997 of this title” at end of last sentence, was executed to fifth sentence of subsec. (c), and not to sixth and last sentence as added by section 1314(a)(2)(B) of Puspan. L. 99–198, to reflect the probable intent of Congress.
Subsec. (e). Puspan. L. 99–198, § 1314(a)(3), added subsec. (e).
Subsec. (f). Puspan. L. 99–198, § 1315, added subsec. (f).
1972—Subsec. (c). Puspan. L. 92–419 substituted “the provisions of any law administered by the Farmers Home Administration” for “subchapter I of this chapter” in first sentence and “such provisions” for “the provisions of subchapter I of this chapter” in second sentence, struck out from fourth sentence initial minimum 20 per centum downpayment requirement and provision for payment of remainder in not more than five annual installments, and provided in such fourth sentence for interest rates and terms not more favorable than legally permissible for eligible borrowers.
Amendment of this section and repeal of Puspan. L. 110–234 by Puspan. L. 110–246 effective May 22, 2008, the date of enactment of Puspan. L. 110–234, see section 4 of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of this title.
Amendment by section 638 of Puspan. L. 104–127 effective Apr. 4, 1996, but not applicable with respect to complete application to acquire inventory property submitted prior to Apr. 4, 1996, and amendment by section 639 of Puspan. L. 104–127 effective Apr. 4, 1996, see section 663(a), (c) of Puspan. L. 104–127, set out as a note under section 1922 of this title.
Puspan. L. 102–552, title V, § 516(h)(2), Oct. 28, 1992, 106 Stat. 4138, provided that:
Amendment by section 1816 of Puspan. L. 101–624 applicable to new applications submitted under section 2001 of this title on or after Nov. 28, 1990, see section 1861 of Puspan. L. 101–624, set out as a note under section 2001 of this title.
Puspan. L. 99–198, title XIII, § 1314(span), Dec. 23, 1985, 99 Stat. 1528, provided that:
Puspan. L. 102–142, title VII, § 740, Oct. 28, 1991, 105 Stat. 915, provided that:
Puspan. L. 100–233, title VI, § 623, Jan. 6, 1988, 101 Stat. 1685, as amended by Puspan. L. 101–624, title XVIII, § 1852, Nov. 28, 1990, 104 Stat. 3837, provided that: