S.Amdt. 2408

1. Adds SEC. 12___. YOUNG AND BEGINNING FARMER AND RANCHER LOAN FUND AND PROGRAM at the end of the bill

   Adds a section

   In S. 3240 · Placed on Calendar Senate

   (2) commence consultation with the Secretary of the Interior to complete the collection and removal of Canada geese from the applicable National Park Service land to ensure that the removal is completed by not later than August 1, 2012.

   Inserted: SEC. 12___. YOUNG AND BEGINNING FARMER AND RANCHER LOAN FUND AND PROGRAM.

   Inserted: (a) In General.--Part D of title IV of the Farm Credit Act of 1971 (12 U.S.C. 2203 et seq.) is amended by adding at the end the following:

   Inserted: "SEC. 4.22. YOUNG AND BEGINNING FARMER AND RANCHER LOAN FUND AND PROGRAM.

   Inserted: "(a) Definitions.--In this section:

   Inserted: "(1) Eligible borrower.--The term 'eligible borrower' means an agricultural producer who, as determined by the Secretary--

   Inserted: "(A) is not more than 35 years old;

   Inserted: "(B)(i) has experience of at least 3 years in operating a farm or ranch; but

   Inserted: "(ii) has not more than 10 years of total farming or ranching experience;

   Inserted: "(C) for the immediately preceding complete taxable year had an average adjusted gross farm income (as defined in section 1001D of the Farm Security Act of 1985 (7 U.S.C. 1308 3a) of not more than $250,000;

   Inserted: "(D) meets the creditworthiness standards of the Farm Service Agency; and

   Inserted: "(E) has received, or commits to obtain, a minimum quantity of training in agricultural production and financial management.

   Inserted: "(2) Fund.--The term 'Fund' means the Young and Beginning Farmer and Ranchers Loan Fund established by subsection (b).

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   Inserted: "(3) Funding institution.--The term 'funding institution' means an entity that, during the immediately preceding taxable year--

   Inserted: "(A) was part of the Farm Credit System;

   Inserted: "(B) was subject to regulation by the Farm Credit Administration; and

   Inserted: "(C) had net income resulting from tax-exempt earnings on real estate lending.

   Inserted: "(4) Secretary.--The term 'Secretary' means the Secretary of Agriculture, acting through the Administrator of the Farm Service Agency.

   Inserted: "(b) Young and Beginning Farmer and Ranchers Loan Fund.--

   Inserted: "(1) Establishment of fund.--

   Inserted: "(A) In general.--There is established in the Treasury of the United States a fund to be known as the 'Young and Beginning Farmer and Ranchers Loan Fund', to be administered by the Secretary, to be available without fiscal year limitation and not subject to appropriation.

   Inserted: "(B) Use of funds.--Amounts in the Fund may be used by the Secretary for--

   Inserted: "(i) the costs of making loans to eligible borrowers for use as collateral toward the purchase of farm or ranch land in accordance with subsection (c);

   Inserted: "(ii) the provision of training in agricultural production and financial management to eligible borrowers; and

   Inserted: "(iii) the making of grants to States under subsection (d).

   Inserted: "(C) Relationship to other authorities.--The authority and funding for loans described in subsection (c) shall be in addition to any other authority of the Secretary for providing such loans to eligible borrowers.

   Inserted: "(2) Transfers to fund.--

   Inserted: "(A) In general.--The Fund shall consist of--

   Inserted: "(i) such amounts as are transferred to the Fund by funding institutions under subparagraph (B);

   Inserted: "(ii) such amounts as are received from any payment made with respect to any loan made from the Fund; and

   Inserted: "(iii) appropriations equivalent to the taxes received in the Treasury under section 4968 of the Internal Revenue Code of 1986.

   Inserted: "(B) Transfers.--Not later than an annual date determined by the Secretary, each funding institution shall be required to--

   Inserted: "(i) transfer into the Fund an amount equal to 10 percent of the dollar value of the tax-exemption of the institution under the Internal Revenue Code of 1986 for the immediately preceding taxable year as determined by the Secretary of the Treasury, or

   Inserted: "(ii) provide such evidence as the Secretary determines necessary to show that such institution loaned at least such amount to eligible borrowers during such preceding taxable year at an interest rate specified in subsection (c)(4).

   Inserted: "(3) Prohibition.--Amounts in the Fund may not be made available for any purpose other than a purpose described in paragraph (1)(B).

   Inserted: "(c) Loan Program.--

   Inserted: "(1) In general.--The Secretary shall carry out a loan program under which eligible borrowers may apply for loans for use as collateral toward the purchase of farm or ranch land.

   Inserted: "(2) Use of loan.--An eligible borrower may use a loan under this subsection in conjunction with other loans made by--

   Inserted: "(A) the Farm Service Agency;

   Inserted: "(B) an institution that is part of the Farm Credit System; or

   Inserted: "(C) a bank or credit union that is subject to safety and soundness examination by an agency of Federal or State government, including the Farm Service Agency.

   Inserted: "(3) Amount.--

   Inserted: "(A) In general.--The total amount that an eligible borrower may borrow under this subsection is $300,000.

   Inserted: "(B) Individual loan maximum.--The total amount of any 1 loan under this subsection shall not exceed the lesser of--

   Inserted: "(i) the lesser of--

   Inserted: "(I) 10 percent of the appraised value of the land to be purchased; and

   Inserted: "(II) 10 percent of the purchase price of the land; and

   Inserted: "(ii) $250,000.

   Inserted: "(4) Interest rate.--A loan under this subsection shall have an interest rate equal to the lesser of--

   Inserted: "(A) 1.5 percent; and

   Inserted: "(B) the then current cost of funds to the Department of the Treasury for obligations with a 10-year maturity.

   Inserted: "(5) Repayment.--

   Inserted: "(A) In general.--The repayment of a loan under this subsection shall be amortized over a 30-year period, with a balloon payment due for the entire unpaid balance of the loan due on the earlier of--

   Inserted: "(i) the date that is 20 years after the date on which the loan is made; or

   Inserted: "(ii) the date on which the land is sold.

   Inserted: "(B) Default.--

   Inserted: "(i) In general.--If an eligible borrower fails to use the land subject to a loan under this subsection for an agricultural use for a minimum usage period as determined by the Secretary, the loan shall be considered in default and become due and payable.

   Inserted: "(ii) Sale of land.--Subject to subparagraph (C), if an eligible borrower sells or otherwise disposes of an interest in the land subject to a loan under this subsection without the prior permission of the Secretary, the loan shall be considered in default and become due and payable.

   Inserted: "(C) Death or disability.--

   Inserted: "(i) In general.--If an eligible borrower dies or becomes disabled, a loan under this subsection may be assumed by another eligible borrower, including an immediate family member of the original borrower who has been involved in the agricultural operation, as determined by the Secretary.

   Inserted: "(ii) No assumption of debt.--If no eligible borrower is able or willing to assume the loan, the loan shall be due and payable--

   Inserted: "(I) in the case of death of the original borrower, not later than 18 months after the date of death; and

   Inserted: "(II) in the case of disability of the original borrower, not later than 18 months after the determination of disability by an appropriate agency.

   Inserted: "(6) Collateralization.--Notwithstanding applicable State law, the total amount of indebtedness of an eligible borrower in relation to the purchase of land subject to a loan under this subsection shall be fully collateralized in an amount that does not exceed the appraised value of the land being purchased, so that all creditors involved in financing the purchase of the land are considered secured creditors.

   Inserted: "(d) Grants to States.--

   Inserted: "(1) Purpose.--The purpose of the grants made available under this subsection is to develop State-based local farm and food-product economies to revitalize rural and urban communities, promote healthy eating, create jobs, and support economic growth by making local farm and food products more available locally.

   Inserted: "(2) Program.--The Secretary shall use not less than one-fourth of the amounts available in the Fund each fiscal year to make grants to States to assist in the development of local farm economies, including the creation of new markets for local farm products, such as the sale of fresh produce by local agricultural producers to schools.

   Inserted: "(3) Eligibility.--To be eligible to receive a grant under this subsection, a State shall--

   Inserted: "(A) submit to the Secretary a plan that describes--

   Inserted: "(i) the manner in which the State intends to use the grant funds to support small and beginning agricultural producers who are starting or expanding operations to supply local and regional markets as part of a strategy to rebuild and reinvest in rural areas; and

   Inserted: "(ii) which agency of the State will carry out the plan; and

   Inserted: "(B) agree to submit to the Secretary reports at such intervals and containing such information as the Secretary determines to be necessary to ensure that the State is using the grant funds in accordance with the purpose of this subsection.

   Inserted: "(4) Oversight.--The Small Farms and Beginning Farmers and Ranchers Council shall oversee the program in consultation with the Advisory Committee on Beginning Farmers and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554)

   Inserted: "(e) Reports.--

   Inserted: "(1) In general.--The Secretary shall submit regular programmatic reports on the status of the Fund and the program under this section to the Advisory Committee on Beginning Farmers and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554). .

   Inserted: "(2) Reports to congress.--Not later than 60 days after the end of each fiscal year beginning with fiscal year 2013, the Secretary shall submit to the Committee on Appropriations of the House of Representatives, the Committee on Appropriations of the Senate, the Committee on Agriculture, Nutrition, and Forestry of the Senate, and the Committee on Agriculture of the House of Representatives a report on the operation of the Fund during the fiscal year.

   Inserted: "(3) Contents.--Each report submitted under paragraph (2) shall include, for the fiscal year covered by the report, the following:

   Inserted: "(A) A statement of the amounts deposited into the Fund.

   Inserted: "(B) A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures.

   Inserted: "(C) Recommendations, developed in consultation with the Advisory Committee described in paragraph (1), for additional authorities to fulfill the purpose of the Fund.

   Inserted: "(D) A statement of the balance remaining in the Fund at the end of the fiscal year.

   Inserted: "(f) Reports on Lending Data by Funding Institutions.--The Farm Credit Administration shall--

   Inserted: "(1) require each funding institution to annually aggregate and report all lending data by individual eligible borrower, and

   Inserted: "(2) annually report this lending activity to the Secretary and Congress.".

   Inserted: (b) Excise Tax on Failure to Transfer Required Amount to Young and Beginning Farmer and Ranchers Loan Fund.--

   Inserted: (1) In general.--Chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

   Inserted: "Subchapter H--Failure to Transfer Required Amount to Young and Beginning Farmer and Ranchers Loan Fund

   Inserted: "Sec. 4968. Failure to transfer required amount to Young and Beginning Farmer and Ranchers Loan Fund.

   Inserted: "SEC. 4968. FAILURE TO TRANSFER REQUIRED AMOUNT TO YOUNG AND BEGINNING FARMER AND RANCHERS LOAN FUND.

   Inserted: "(a) In General.--If a funding institution fails to transfer any portion of the amount required to be transferred to the Young and Beginning Farmer and Ranchers Loan Fund under section 4.22(b)(2)(B)(i) of Farm Credit Act of 1971 on the date such transfer is due, there is imposed on such date a tax equal to such portion.

   Inserted: "(b) Funding Institution.--For purposes of this section, the term 'funding institution' has the meaning given such term by section 4.22(a)(3) of such Act.".

   Inserted: (2) Conforming amendment.--The table of subchapters for chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

   Inserted: "subchapter h--failure to transfer required amount to young and beginning farmer and ranchers loan fund".

   Inserted: (3) Effective date.--The amendments made by this subsection shall apply to failures occurring after the date of the enactment of this Act.

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