12 2 STA T . 1 906PUBLIC LA W 110 – 2 4 6 —J U NE 1 8, 2008 (A)inpar a g rap h ( 3 ) — (i) by in se r t ing ‘ ‘an d s oc ia l ly disad v antaged f ar m ers or ranchers ’ ’ after ‘‘ranchers’’
and (ii) by stri k ing ‘‘and’’ at the end; ( B ) in paragraph ( 4 ) , by striking ‘‘and ranchers . ’’ and inserting ‘‘ or ranchers or socially disadvantaged farmers or ranchers; and’’; and ( C ) by adding at the end the follo w ing
‘‘( 5 ) establish ann u al performance goals to promote the use of the down payment loan program and other j oint financing arrangements as the preferred choice for direct real estate loans made by any lender to a q ualified beginning farmer or rancher or socially disadvantaged farmer or rancher.’’; and (5) by adding at the end the following: ‘‘(e) SOCIAL L YD I S A DV A NT A GE D F A RM ER OR R ANC H ER DE F INED.— I n this section, the term ‘socially disadvantaged farmer or rancher’ has the meaning given that term in section 355(e)( 2 ).’’. SEC.50 05. B E GIN NING FARM ER O R RANC H ER AN D SOCIA L L Y DIS - AD V AN T AGED FARMER OR RANCHER CONTRACT LAND SALES P ROGRAM. Section 3 10 F of the Consolidated Farm and Rural Development Act ( 7U .S.C. 1 9 3 6 ) is amended to read as follows: ‘ ‘SEC. 31 0F. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS- ADVANTAGED FARMER OR RANCHER CONTRACT LAND SALES PROGRAM. ‘‘(a) IN G ENERAL.— T he Secretary shall, in accordance with this section, guarantee a loan made by a private seller of a farm or ranch to a qualified beginning farmer or rancher or socially dis - advantaged farmer or rancher (as defined in section 355(e)(2)) on a contract land sales basis. ‘‘(b) E LIGI B ILITY.—In order to be eligible for a loan guarantee under subsection (a)— ‘‘(1) the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher shall— ‘‘(A) on the date the contract land sale that is subject of the loan is complete, own and operate the farm or ranch that is the subject of the contract land sale; ‘‘(B) have a credit history that— ‘‘(i) includes a record of satisfactory debt repay- ment, as determined by the Secretary; and ‘‘(ii) is acceptable to the Secretary; and ‘‘(C) demonstrate to the Secretary that the farmer or rancher, as the case may be, is unable to obtain sufficient credit without a guarantee to finance any actual need of the farmer or rancher, as the case may be, at a reason- able rate or term; and ‘‘(2) the loan shall meet applicable underwriting criteria, as determined by the Secretary. ‘‘(c) L IMITATIONS.— ‘‘(1) DO W N P AYMENT.—The Secretary shall not provide a loan guarantee under subsection (a) if the contribution of the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher to the down payment for the farm or ranch that is the subject of the contract land sale would be less than 5 percent of the purchase price of the farm or ranch.
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