PRIA, Government Policy, Made Personal

Summary

USDA must review the farm plan and money situation of each qualified farmer or rancher who applies. The review must figure out how much the applicant will need to borrow, what interest rate they can afford to cover costs and build equity, the goals of the farm plan, whether the plan can make money or needs changes, and whether and how much help is needed. USDA may hire outside groups (including those allowed to give borrower training under section 2006a(b)) to do these reviews. Direct loans must be checked every year and guaranteed loans checked as needed. If a borrower falls behind on payments, USDA or its contractor must find why and decide how to fix it. USDA must write rules that explain how to do these assessments.

Title 7, §2006b

Agriculture, Source: USLM XML via OLRC

(a)In general

The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant.

(b)Determinations

In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine—

(1)the amount that the applicant will need to borrow to carry out the proposed farming plan;

(2)the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;

(3)the goals of the proposed farming plan of the applicant;

(4)the financial viability of the plan and any changes that are necessary to make the plan viable; and

(5)whether assistance is necessary under this chapter and, if so, the amount of the assistance.

(c)Contract

The Secretary may contract with a third party (including those entities eligible to provide borrower training under section 2006a(b) of this title) to conduct loan assessments under this section.

(d)Review of loans

(1)In general

Loan assessments conducted under this section shall include annual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this chapter to assess the progress of a borrower in meeting the goals for the farm or ranch operation.

(2)Contracts

The Secretary may contract with an entity that is eligible to provide borrower training under section 2006a(b) of this title to conduct loan reviews under paragraph (1).

(3)Problem assessments

If a borrower is delinquent in payments on a direct or guaranteed loan made under this chapter, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.

(e)Guidelines

The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (b)(5), and (d)(1), (3), was in the original “this title”, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see

Short Title

note set out under section 1921 of this title and Tables.

Amendments

2002—Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”. Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.

§2006b Loan Assessments