A bill to amend the Consolidated Farm and Rural Development Act.

Amends the Consolidated Farm and Rural Development Act to repeal authority for making: (1) recreation loans; and (2) limited resource ownership and operating loans.

Increases ownership loan limits on insured loans from $200,000 to $300,000, and on guaranteed loans from $300,000 to $400,000.

Repeals authority for the use of operating loans for nonagricultural purposes.

Increases operating loan limits on insured loans from $100,000 to $150,000, and on guaranteed loans from $200,000 to $300,000.

Authorizes the Secretary of Agriculture to exercise discretion in making disaster emergency farm loans available in areas where Federal crop insurance is generally available. Allows such loans where crop insurance indemnity payments are insufficient to alleviate the economic emergency.

Increases the amount of debt settlement authority (from $25,000 to $50,000) that the Administrator of the Farmers Home Administration (FmHA) may delegate to agency field offices.

Repeals the requirement that FmHA claims must be held at least five years before they can be adjusted.

Authorizes county committees to certify operating loan applicants on a crop year basis.

Extends to all States and territories (presently only applies in Hawaii) specified ownership loan eligibility for lands held under trust or long-term lease.

Authorizes appropriations through FY 1986 for farm real estate and ownership, operating, emergency, water and waste disposal, and community facility loans.