Agricultural Credit Expansion Act - Amends the Consolidated Farm and Rural Development Act to expand eligibility for Farm Service Agency operating loans, farm ownership loans, conservation loans, and emergency loans.
Deems specified embedded entities (an entity owned wholly or in part by another entity) eligible for farm ownership and operating loans.
Deems specified operating-only entities eligible for farm ownership loans.
Deems an entity that is an owner-operator or operator to meet the direct ownership loan requirement if it is owned in whole or in part by other entities and each individual that is an owner of the family farm involved has an ownership interest in each of the other entities.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1297 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1297
To amend the Consolidated Farm and Rural Development Act to expand
eligibility for Farm Service Agency loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2013
Mr. Owens (for himself, Mr. Courtney, and Mr. Hanna) introduced the
following bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Consolidated Farm and Rural Development Act to expand
eligibility for Farm Service Agency loans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Agricultural Credit Expansion Act''.
SEC. 2. ELIGIBILITY FOR FARM LOANS.
(a) Farm Ownership Loans.--Section 302(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1922(a)) is amended--
(1) by striking ``(a) In General.--The'' and inserting the
following:
``(a) In General.--
``(1) Eligibility requirements.--The'';
(2) in the 1st sentence, by inserting after ``limited
liability companies'' the following: ``, and such other legal
entities as the Secretary deems appropriate,'';
(3) in the 2nd sentence, by redesignating clauses (1)
through (4) as clauses (A) through (D), respectively;
(4) in each of the 2nd and 3rd sentences, by striking ``and
limited liability companies'' each place it appears and
inserting ``limited liability companies, and such other legal
entities''; and
(5) by adding at the end the following:
``(2) Special deeming rules.--
``(A) Eligibility of certain operating-only
entities.--An entity that is or will become only the
operator of a family farm is deemed to meet the owner-
operator requirements of paragraph (1) if the
individuals that are the owners of the family farm own
more than 50 percent (or such other percentage as the
Secretary determines is appropriate) of the entity.
``(B) Eligibility of certain embedded entities.--An
entity that is an owner-operator described in paragraph
(1), or an operator described in subparagraph (A) of
this paragraph that is owned, in whole or in part, by
other entities, is deemed to meet the direct ownership
requirement imposed under paragraph (1) if at least 75
percent of the ownership interests of each embedded
entity of such entity is owned directly or indirectly
by the individuals that own the family farm.''.
(b) Conservation Loans.--Section 304(c)(1) of such Act (7 U.S.C.
1924(c)(1)) is amended by inserting after ``limited liability
companies'' the following: ``, or such other legal entities as the
Secretary deems appropriate,''.
(c) Farm Operating Loans.--Section 311(a) of such Act (7 U.S.C.
1941(a)) is amended--
(1) by striking ``(a) In General.--The'' and inserting the
following:
``(a) In General.--
``(1) Eligibility requirements.--The'';
(2) in the 1st sentence, by inserting after ``limited
liability companies'' the following: ``, and such other legal
entities as the Secretary deems appropriate,'';
(3) in the 2nd sentence, by redesignating clauses (1)
through (4) as clauses (A) through (D), respectively;
(4) in each of the 2nd and 3rd sentences, by striking ``and
limited liability companies'' each place it appears and
inserting ``limited liability companies, and such other legal
entities''; and
(5) by adding at the end the following:
``(2) Special deeming rule.--An entity that is an operator
described in paragraph (1) that is owned, in whole or in part,
by other entities, is deemed to meet the direct ownership
requirement imposed under paragraph (1) if at least 75 percent
of the ownership interests of each embedded entity of such
entity is owned directly or indirectly by the individuals that
own the family farm.''.
(d) Emergency Loans.--Section 321(a) of such Act (7 U.S.C. 1961(a))
is amended--
(1) by striking ``owner-operators (in the case of loans for
a purpose under subtitle A) or operators (in the case of loans
for a purpose under subtitle B)'' each place it appears and
inserting ``(in the case of farm ownership loans in accordance
with subtitle A) owner-operators or operators, or (in the case
of loans for a purpose under subtitle B) operators'';
(2) by inserting after ``limited liability companies'' the
1st place it appears the following: ``, or such other legal
entities as the Secretary deems appropriate'';
(3) by inserting after ``limited liability companies'' the
2nd place it appears the following: ``, or other legal
entities'';
(4) by striking ``and limited liability companies,'' and
inserting ``limited liability companies, and such other legal
entities'';
(5) by striking ``ownership and operator'' and inserting
``ownership or operator''; and
(6) by adding at the end the following: ``An entity that is
an owner-operator or operator described in this subsection is
deemed to meet the direct ownership requirement imposed under
this subsection if the entity is owned, in whole or in part, by
other entities and each individual that is an owner of the
family farm involved has a direct or indirect ownership
interest in each of the other entities.''.
(e) Conforming Amendments.--
(1) Section 304(c)(2) of such Act (7 U.S.C. 1924(c)(2)) by
striking ``paragraphs (1) and (2) of section 302(a)'' and
inserting ``subparagraphs (A) and (B) of section 302(a)(1)''.
(2) Section 310D of such Act (7 U.S.C. 1934) is amended--
(A) by inserting after ``partnership'' the
following: ``, or such other legal entities as the
Secretary deems appropriate,''; and
(B) by inserting after ``partners'' the following:
``, or owners,''.
(3) Section 343(a)(11) of such Act (7 U.S.C. 1991(a)(11))
is amended--
(A) by inserting after ``joint operation,'' the 1st
place it appears the following: ``or such other legal
entity as the Secretary deems appropriate,'';
(B) by striking ``or joint operators'' each place
it appears and inserting ``joint operators, or
owners''; and
(C) by inserting after ``joint operation,'' each
other place it appears the following: ``or such other
legal entity,''.
(4) Section 359(c)(2) of such Act (7 U.S.C. 2006a(c)(2)) is
amended by striking ``section 302(a)(2) or 311(a)(2)'' and
inserting ``section 302(a)(1)(B) or 311(a)(1)(B)''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on Livestock, Rural Development, and Credit.
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