§1936. Beginning farmer and rancher contract land sales program

(a) In general

If the Secretary makes a determination that the risk is comparable under subsection (b) of this section, the Secretary shall carry out a pilot program in not fewer than 5 States, as determined by the Secretary, to guarantee up to 5 loans per State in each of fiscal years 2003 through 2007 made by a private seller of a farm or ranch to a qualified beginning farmer or rancher on a contract land sale basis, if the loan meets applicable underwriting criteria and a commercial lending institution agrees to serve as escrow agent.

(b) Date of commencement of program

Not later than October 1, 2002, the Secretary shall make a determination on whether guarantees of contract land sales present a risk that is comparable with the risk presented in the case of guarantees to commercial lenders.

(Pub. L. 87–128, title III, §310F, as added Pub. L. 107–171, title V, §5006, May 13, 2002, 116 Stat. 342 .)

Prior Provisions

A prior section 1936, Pub. L. 87–128, title III, §310F, as added Pub. L. 102–554, §7(b), Oct. 28, 1992, 106 Stat. 4146 , related to availability of farm ownership loans and loan guarantees for certain qualified beginning farmers and ranchers, prior to repeal by Pub. L. 104–127, title VI, §616(b), Apr. 4, 1996, 110 Stat. 1090 .