View Rule

The Farm Service Agency (FSA) implemented a new Highly Fractionated Indian Lands (HFIL) loan program to provide revolving loan funds to eligible intermediary lenders familiar with Indian lands, and those lenders will give loans to the qualified individuals, entities, and tribes to purchase HFIL, as specified in the section 5402 of the 2014 Farm Bill.  As ownership of Indian land descends from one generation to another, fractionation continues to be a worsening problem, and many tracts are held in undivided ownership by hundreds or thousands of people.  The ability of the owners to use land decreases as fractionation increases, sometimes to the point where it is nearly impossible to locate the owners or for the owners to coordinate. The new HFIL program is required by 2014 Farm Bill. The final rule provides a way for tribal members to be able to get loans to purchase the lands and consolidate the fractionated interests to qualified tribes, individuals and entities.