§1925 — Title 7 Agriculture | U.S. Code

Summary

Limits how much the Secretary can make or insure in farm ownership loans under sections 1922, 1923, 1924, 1934, and 1935. A borrower’s unpaid loans under those sections cannot be more than either the farm’s value or a dollar cap. The dollar cap is $600,000 for direct loans, or $1,750,000 for guaranteed loans. The $1,750,000 cap is increased for inflation starting in fiscal year 2019 and is lowered by any unpaid guaranteed loans the borrower already has under subchapter II. When valuing a farm, the Secretary must use appraisals done by qualified appraisers under rules the Secretary sets. The “inflation percentage” for a fiscal year is how much the 12‑month average of the Prices Paid By Farmers Index ending July 31 of the prior fiscal year is higher than the 12‑month average for the year before that.

Title 7, §1925

Agriculture — Source: USLM XML via OLRC

(a)The Secretary shall make or insure no loan under section 1922, 1923, 1924, 1934, and 1935 of this title that would cause the unpaid indebtedness under such sections of any one borrower to exceed the smaller of (1) the value of the farm or other security, or (2) in the case of a loan other than a loan guaranteed by the Secretary, $600,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary).

(b)In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.

(c)For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—

(1)the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year; exceeds

(2)the average of such index (as so defined) for the 12-month period that immediately precedes the 12-month period described in paragraph (1).

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2018—Subsec. (a)(2). Pub. L. 115–334, § 5103(1), substituted “$600,000” for “$300,000”, “$1,750,000” for “$700,000”, and “2019” for “2000”. Subsec. (c)(1). Pub. L. 115–334, § 5103(2)(A), substituted “July” for “August”. Subsec. (c)(2). Pub. L. 115–334, § 5103(2)(B), substituted “that immediately precedes the 12-month period described in paragraph (1)” for “ending on August 31, 1996”. 2008—Subsec. (a)(2). Pub. L. 110–246, § 5003, substituted “$300,000” for “$200,000”. 1998—Pub. L. 105–277 inserted section catchline, designated first sentence as subsec. (a), inserted heading, and substituted “$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary)” for “$300,000”, designated second sentence as subsec. (b) and inserted heading, and added subsec. (c). 1992—Pub. L. 102–554 inserted reference to section 1935 of this title. 1978—Pub. L. 95–334 substituted provisions setting forth requirements for loans under section 1922, 1923, 1924, and 1934 of this title for provisions setting forth requirements for loans under section 1922, 1923, and 1924 of this title. 1973—Pub. L. 91–524, § 807, as added by Pub. L. 93–86, substituted “$225,000” for “$100,000” in cl. (a), added cl. (b), and redesignated former cl. (b) as (c). 1972—Pub. L. 92–419 struck out “normal” before “value” in first and second sentences and before “market value” in last sentence. 1970—Pub. L. 91–620 substituted “$100,000” for “$60,000”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of this title.

§1925 Limitations on amount of farm ownership loans

Summary

Title 7, §1925

Notes & Related Subsidiaries

Editorial Notes

Amendments

Amendments

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

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