Agricultural Credit Improvement Act of 1998

Agricultural Credit Improvement Act of 1998 - Amends the Consolidated Farm and Rural Development Act to prohibit agricultural loan guarantees to borrowers who have received debt forgiveness after a specified date. Authorizes emergency loans to be made to borrowers who have received debt forgiveness after a specified date.

(Sec. 3) States that with respect to agricultural real estate, operating, and emergency loans, the primary factor in determining whether an applicant is primarily and directly engaged in farming or ranching shall be whether he or she participates in ongoing farm activities and decision making.

(Sec. 4) Increases the respective limits and provides inflation indexing for guaranteed farm ownership and operating loans.

(Sec. 5) Eliminates the prohibition on providing beginning farmer direct operating loans to persons who have operated a farm or ranch for more than five years.

(Sec. 6) Gives loan and grant priority to projects that encourage farmer-owned value-added processing facilities.

(Sec. 7) Requires borrowers under shared appreciation arrangements to be given notice of recapture.

(Sec. 8) Provides for reservation and reallocation of specified loan funds for socially disadvantaged farmers and ranchers.

(Sec. 9) Prohibits emergency loan denial based upon insufficient collateral if it is reasonably certain that the borrower will be able to repay the loan.

(Sec. 10) Provides that under specified conditions a grower-shipper agreement shall not disqualify the applicant-grower from receiving a real estate, operating, or emergency loan.