§1936c Relending Program to Resolve Ownership and Succession on Farmland

Summary

The Secretary can lend money to certain groups so those groups can re-lend it to people who need help fixing shared ownership and planning who will take over farmland that has many owners. Eligible groups are cooperatives, credit unions, and nonprofits that are certified to act as lenders under 12 CFR 1805.201 (or its replacement), have experience helping socially disadvantaged, limited-resource, or new farmers and ranchers and making and managing farm or business loans, and can show they will repay the loan. The Secretary must favor groups with at least 10 years of experience helping socially disadvantaged farmers and those in States that have adopted the Uniform Partition of Heirs Property Act and use the loans for heirs property. The Secretary sets the rate for intermediaries. Intermediaries set borrower rates to cover running the loan fund and must publicly share the terms. Borrowers must complete a succession plan and may borrow to pay for that plan and related legal and closing costs. A report was due within 1 year after December 20, 2018. Up to $10,000,000 is authorized each year for fiscal years 2019–2023.