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USDA/FSA RIN: 0560-AI03 Publication ID: Fall 2008 
Title: ●Farm Loan Programs Loan Making Activities 
Abstract: The proposed rule will implement the provisions of the 2008 Farm Bill that affect Farm Loan Programs (FLP) Loan Making Division (LMD); there is discretion involved in the implementation. The sections being implemented are; 5001, Direct Loans, 5005, Beginning Farmer or Rancher and Socially Disadvantaged farmer or Rancher Contract Land Sales Program Down Payment Loan Program, 5101, Farming Experience as an Eligibility Requirement, 5201, Eligibility of Equine Farmers and Ranchers for Emergency Loans, 5301, Beginning Farmer and Rancher Individual Development Accounts Pilot Program, 5501, Loans to Purchase Highly Fractionated Land. Required changes are: Any farm experience, without regard to time elapsing between farm experiences, will be considered in determining whether a loan applicant meets experience requirements for direct ownership loan eligibility. The Beginning Farmer or Rancher and Socially Disadvantaged Farmer or Rancher Contract Land Sales Program Down Payment Loan pilot program initiated in the 2002 Farm Bill will be permanent. Program eligibility is expanded to socially disadvantaged farmers in addition to beginning farmers. The program is similar to the pilot but expands to provide a guarantee of 90 percent of principal and interest in addition to the prompt payment guarantee provided under the pilot. A transition period is authorized but all changes must be in place for fiscal year 2011. Any farm experience, no matter when it occurred, must be considered in determining whether a loan applicant meets experience requirements for direct operating loan eligibility. For emergency disaster loans, the definition of a farmer or rancher includes equine farmers or ranchers, making equine farmers and ranchers potentially eligible for these loans. A Beginning Farmer and Rancher Individual Development Accounts 5 year pilot program will be established in at least 15 States. The program entails FSA making grants to qualified non-profit organizations who then deliver the program to eligible participants. Grantees must match 50 percent of the grant received. Under the program, qualified, low-income beginning farmers or prospective beginning farmers would establish saving accounts with a monthly deposit plan administered by the grantees. The program funds match must the participantsÂ’ deposits at a minimum of 100 percent and a maximum of 200 percent. Participants must use the savings account funds toward the purchase of farmland, livestock, or similar farm start-up/operating expenses. The program must be operated by and in conjunction with FSA farm loan programs. The initial applications for the program must be approved no more than one year after the law is enacted. The program is not mandatory; an appropriation of up to $5 million annually is authorized to fund the program. Individual tribal members will be allowed to qualify for Indian Land Acquisition loans. 
Agency: Department of Agriculture(USDA)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 7 CFR 761    7 CFR 762    7 CFR 764    7 CFR 765    7 CFR 766    7 CFR 767   
Legal Authority: PL 110-246   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  11/00/2008    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: Yes 
Agency Contact:
Deirdre Holder
Branch Chief, Regulatory Analysis and PRA Requirements Branch
Department of Agriculture
Farm Production and Conservation Business Center, 1400 Independence Avenue SW,
Washington, DC 20250-0572
Phone:202 205-5851
Email: deirdre.holder@usda.gov