Emergency Farm Credit Assistance Act of 1985

Emergency Farm Credit Assistance Act of 1985 - Title I: Emergency Farm Credit Assistance - Amends the Consolidated Farm and Rural Development Act to authorize additional FY 1985 loan guarantee authority.

Authorizes the Secretary of Agriculture to release liens on loan-securing assets of up to $10,000 to assist certain borrowers facing foreclosure in the transition out of farming and ranching. Requires a borrower to convey the remaining property or the proceeds of its sale to the Government.

Authorizes the Secretary to make grants through FY 1986 to States for interest rate reductions (for at least three years) on loans made by commercial or cooperative lenders. Requires the Secretary to make such grants without a State matching requirement whenever it would not be practicable for a State to provide such matching funds. Provides for interest recapture upon sale or title transfer.

Permits lenders to qualify for loan guarantees without principal or interest reductions.

Provides for 90 percent guarantees. Sets the Farmers Home Administration loan and set-aside cash flow requirement at 100 percent.

Provides reduced interest rates for farm ownership and operating loans through FY 1986.

Directs the Secretary to ensure that: (1) personnel and other resources are made available to administer such assistance programs; and (2) "approved lender" applications are reviewed within 15 days.

Title II: Task Force on Agricultural Credit - Agricultural Credit Task Force Act of 1985 - Establishes a National Task Force on Agricultural Credit to study and make recommendations regarding the problems confronting U.S. agricultural producers and related businesses. Requires a final report to the President and the Congress by September 1, 1985. Terminates the Task Force 60 days after submission of such report.

Title III: Restraint in Adversely Classifying Agricultural Loans; Protection of Farm Credit System Borrower Capital - Directs Federal bank regulators to exercise restraint in adversely classifying agricultural loans. Requires a report to the Congress within 90 days.

Directs the Farm Credit Administration to conduct a study of the need to establish a fund to protect Farm Credit System borrower capital. Requires a report to the appropriate committees within 180 days.