Beginning Farmers Assistance Act of 1981

Beginning Farmers Assistance Act of 1981 - Directs the Secretary of Agriculture to establish a program to provide loan guarantees to States for loans by State agencies to eligible and approved individuals to purchase and operate family farms. Limits the loan guarantee to not more than 90 percent of the principal and interest. Prescribes the contents of a State application to participate in such loan guarantee program. Limits approval of such applications to 20. Requires the Secretary to approve or disapprove such an application within 90 days after receipt. Provides for termination of participation whenever an approved State falls into noncompliance with the terms of its application.

Limits eligibility of individuals seeking State loans under such program to individuals who: (1) have a net worth of less than $100,000 and assets having an aggregate value of less than $300,000 in fiscal year 1982; (2) have not purchased or owned a family farm in the ten-year period preceding application for a loan; and (3) are unable to obtain conventional credit.

Sets forth a formula for the determination of the maximum aggregate amount of outstanding loans with respect to which the Secretary may make guarantees. Requires the Secretary to submit annual reports to the appropriate Congressional committees.

Authorizes appropriations to carry out the provisions of this Act for fiscal years 1982 through 1984, at the end of which the Secretary's authority to guarantee such loans shall terminate.

Amends the Consolidated Farm and Rural Development Act to permit the use of real estate loans for loan closing costs and points.