PUBLIC LAW 99-514—OCT. 22, 1986
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100 STAT. 2637
indirectly) for the acquisition of land (or an interest therein), or "(B) any portion of the proceeds of such issue is to be used (directly or indirectly) for the acquisition of land (or an interest therein) to be used for farming purposes. "(2) EXCEPTION FOR FIRST-TIME FARMERS.—
"(A) IN GENERAL.—If the requirements of subparagraph (B) are met with respect to any land, paragraph (1) shall not apply to such land, and subsection (d) shall not apply to property to be used thereon for farming purposes, but only to the extent of expenditures (financed with the proceeds of the issue) not in excess of $250,000.
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"(B) ACQUISITION BY FIRST-TIME FARMERS.—The require-
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ments of this subparagraph are met with respect to any land if— "(i) such land is to be used for farming purposes, and "(ii) such land is to be acquired by an individual who is a first-time farmer, who will be the principal user of such land, and who will materially and substantially participate on the farm of which such land is a part in the operation of such farm. "(C) FIRST-TIME FARMER.—For purposes of this paragraph— "(i) IN GENERAL.—The term 'first-time farmer' means any individual if such individual— "(I) has not at any time had any direct or indirect ownership interest in substantial farmland in the operation of which such individual materially participated, and "(II) has not received financing under this paragraph in an amount which, when added to the financing to be provided under this paragraph, exceeds $250,000. "(ii) AGGREGATION RULES.—Any ownership or material participation, or financing received, by an individual's spouse or minor child shall be treated as ownership and material participation, or financing received, by the individual, "(iii) INSOLVENT FARMER.—For purposes of clause (i), farmland which was previously owned by the individual and was disposed of while such individual was insolvent shall be disregarded if section 108 applied to indebtedness with respect to such farmland. "(D) FARM.—For purposes of this paragraph, the term 'farm' has the meaning given such term by section 6420(c)(2). "(E) SUBSTANTIAL FARMLAND.—For purposes of this paragraph, the term 'substantial farmland' means any parcel of land unless— "(i) such parcel is smaller than 15 percent of the median size of a farm in the county in which such parcel is located, and "(ii) the fair market value of the land does not at any time while held by the individual exceed $125,000. "(F) USED EQUIPMENT LIMITATION.—For purposes of this paragraph, in no event may the amount of financing pro-
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