7 USC 1981 - Farmers Home Administration

1 See Change of Name note below.

Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or the Rural Development Administration, except for activities under the Housing Act of 1949 [

2 See References in Text note below.

of title 6, and regulations issued pursuant thereto, but otherwise in accordance with the provisions thereof;

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (span)(1), (3), (8), (9), and (e)(1), was in the original “this title”, meaning title III of Puspan. 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.

The Farmers Home Administration Act of 1946, as amended, referred to in subsec. (a), is act Aug. 14, 1946, ch. 964, 60 Stat. 1062, as amended, which was classified to sections 1001 to 1005, 1005a to 1005d, 1007, 1008, 1009, 1015 to 1029, 1030, and 1031 of this title, section 371 of Title 12, Banks and Banking, and section 82h of Title 31, Money and Finance, and in so far as it amended provisions of Title I, II, and IV of the Bankhead-Jones Farm Tenant Act, was repealed by section 341(a) of Puspan. L. 87–128, and is covered by this chapter.

The Bankhead-Jones Farm Tenant Act, as amended, referred to in subsec. (a), is act July 22, 1937, ch. 517, 50 Stat. 522, as amended. Title III of act July 22, 1937, as amended, is classified to sections 1010 to 1012 and 1013a of this title. Titles I, II, and IV of act July 22, 1937, as amended, were formerly classified to sections 1001 to 1005, 1005a to 1005d, 1006, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1026, and 1027 to 1029 of this title, respectively, were repealed by section 341(a) of Puspan. L. 87–128, and are covered by this chapter.

Act of August 28, 1937, as amended, referred to in subsec. (a), is act Aug. 28, 1937, ch. 870, 50 Stat. 869, as amended, which was formerly classified to sections 590r to 590x–4 of Title 16, Conservation, was repealed by section 341(a) of Puspan. L. 87–128, and is covered by this chapter.

Act of April 6, 1949, as amended, referred to in subsec. (a), is act Apr. 6, 1949, ch. 49, 63 Stat. 43, as amended, which was formerly classified to sections 1148a–1 to 1148a–3 of Title 12, Banks and Banking, was repealed by section 341(a) of Puspan. L. 87–128, and is covered by this chapter.

Act of August 31, 1954, as amended, referred to in subsec. (a), is act Aug. 31, 1954, ch. 1145, 68 Stat. 999, which was formerly classified as a note under section 1148a–1 of Title 12, was repealed by section 341(a) of Puspan. L. 87–128, and is covered by this chapter.

The Housing Act of 1949, as amended, referred to in subsec. (span)(4), (5), is act July 15, 1949, ch. 338, 63 Stat. 413, as amended, which is classified principally to chapter 8A (§ 1441 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of Title 42 and Tables.

The Rural Electrification Act of 1936, referred to in subsecs. (span)(4) and (e)(3), is act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to chapter 31 (§ 901 et seq.) of this title. For complete classification of this Act to the Code, see section 901 of this title and Tables.

Section 14 of title 6, referred to in subsec. (span)(7), was repealed by Puspan. L. 92–310, title II, § 203(1), June 6, 1972, 86 Stat. 202. For provisions relating to surety bonds of Federal personnel, see section 9301 et seq. of Title 31, Money and Finance.

Amendments

2018—Subsec. (e). Puspan. L. 115–334, § 6210(a), added subsec. (e).

Subsec. (f). Puspan. L. 115–334, § 6417, added subsec. (f).

2014—Subsec. (d). Puspan. L. 113–79 added subsec. (d).

2002—Subsec. (span)(4). Puspan. L. 107–171, § 5303, substituted “After consultation with a local or area county committee, the Secretary may release” for “The Secretary may release” and “carried out after” for “carried out—

“(A) with respect to farmer program loans, on terms more favorable than those recommended by the appropriate county committee utilized pursuant to section 1982 of this title; or

“(B) after”.

Subsecs. (d), (e). Puspan. L. 107–171, § 5304(a), struck out subsecs. (d) and (e) which related to temporary authority to enter into contracts, and private collection agency, respectively.

1996—Subsec. (span)(4). Puspan. L. 104–127, § 748, inserted “(including debts and claims arising from loan guarantees)” after “debts or claims”, substituted “Consolidated Farm Service Agency, Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or” for “Farmers Home Administration or”, and inserted “In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under this paragraph.” after “activities under the Housing Act of 1949 [42 U.S.C. 1441 et seq.].”

Subsec. (d). Puspan. L. 104–127, § 631, added subsec. (d).

Subsec. (e). Puspan. L. 104–127, § 632, added subsec. (e).

1994—Subsec. (a). Puspan. L. 103–354 substituted “assets to such officers or agencies of the Department of Agriculture as the Secretary considers appropriate.” for “assets to the Farmers Home Administration, to be headed by an Administrator, appointed by the President, by and with the advice and consent of the Senate, without regard to the civil service laws or chapter 51 and subchapter III of chapter 53 of title 5, who shall receive basic compensation as provided by law for that office, or may assign and transfer such powers, duties, and assets to the Rural Development Administration as provided by law for that office.”

Subsec. (c). Puspan. L. 103–248 added subsec. (c).

1991—Puspan. L. 102–237, § 501(c)(2)(B)(i), amended directory language of Puspan. L. 101–624, § 2388(d)(1). See 1990 Amendment note below.

Subsec. (span)(1), (2). Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Subsec. (span)(3). Puspan. L. 102–237, § 701(h)(1)(E), substituted “this chapter” for “this Act”.

Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Subsec. (span)(4). Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Puspan. L. 102–237, § 501(c)(1), struck out “this chapter” after “activities under the Housing Act of 1949” and substituted “1949, from” for “1949 from”.

Subsec. (span)(4)(A). Puspan. L. 102–237, § 501(c)(2)(B)(iii), redesignated Puspan. L. 101–624, § 2388(d)(1)(A)(vi), as (v). See 1990 Amendment note below.

Subsec. (span)(4)(B). Puspan. L. 102–237, § 501(c)(2)(B)(iii), redesignated Puspan. L. 101–624, § 2388(d)(1)(A)(vi), as (v). See 1990 Amendment note below.

Subsec. (span)(5). Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Subsec. (span)(6). Puspan. L. 102–237, § 501(c)(2)(B)(ii), (iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(i), (vi). See 1990 Amendment note below.

Puspan. L. 102–237, § 501(c)(2)(A), repealed Puspan. L. 101–624, § 1805(c)(1), (2). See 1990 Amendment note below.

Subsec. (span)(7). Puspan. L. 102–237, § 501(c)(2)(B)(ii), (iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(i), (vi). See 1990 Amendment note below.

Puspan. L. 102–237, § 501(c)(2)(A), repealed Puspan. L. 101–624, § 1805(c)(1), (3). See 1990 Amendment note below.

Subsec. (span)(8). Puspan. L. 102–237, § 501(c)(2)(B)(ii)–(v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(i), (iv), (vi). See 1990 Amendment note below.

Puspan. L. 102–237, § 501(c)(2)(A), repealed Puspan. L. 101–624, § 1805(c)(1), (4). See 1990 Amendment note below.

Subsec. (span)(9). Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Pars. (c) to (g). Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Puspan. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below.

Par. (h). Puspan. L. 102–237, § 501(c)(2)(B)(iii), repealed Puspan. L. 101–624, § 2388(d)(1)(A)(iv). See 1990 Amendment note below.

Puspan. L. 102–237, § 501(c)(2)(A), amended Puspan. L. 101–624, § 1805(span), and repealed Puspan. L. 101–624, § 1805(c)(5). See 1990 Amendment note below.

Pars. (i), (j). Puspan. L. 102–237, § 501(c)(2)(A), amended Puspan. L. 101–624, § 1805(span), and repealed Puspan. L. 101–624, § 1805(c)(5). See 1990 Amendment note below.

1990—Puspan. L. 101–624, § 2388(d)(1), was amended in its directory language by Puspan. L. 102–237, § 501(c)(2)(B)(i), resulting in no change in text.

Subsec. (a). Puspan. L. 101–624, §§ 2303(a)(1), 2388(d)(1)(B), designated first undesignated par. as subsec. (a) and substituted “In accordance with section 2006a of this title, for purposes of this chapter, and” for “For the purposes of this chapter and”, and inserted before period at end “, or may assign and transfer such powers, duties, and assets to the Rural Development Administration as provided by law for that office”.

Subsec. (span). Puspan. L. 101–624, § 2388(d)(1)(B), designated second undesignated par. beginning “The Secretary may—” as subsec. (span).

Subsec. (span)(1) to (3). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated pars. (a) to (c) as (1) to (3), respectively, of subsec. (span).

Subsec. (span)(4). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (d) as (4) of subsec. (span).

Puspan. L. 101–624, §§ 1805(a)(1)(A), (B), 2303(a)(2), inserted “or the Rural Development Administration” after “Farmers Home Administration” in first sentence, substituted “, except for activities under the Housing Act of 1949” for “under any of its programs, as circumstances may require, to carry out” in first sentence, and substituted “, except for debt incurred under the Housing Act of 1949” for “incurred under this chapter” in third sentence.

Subsec. (span)(4)(A). Puspan. L. 101–624, § 2388(d)(1)(A)(v), formerly (vi), as redesignated by Puspan. L. 102–237, § 501(c)(2)(B)(iii), redesignated subpar. (1) as (A).

Puspan. L. 101–624, § 1805(a)(1)(C), inserted “with respect to farmer program loans,” before “on terms”.

Subsec. (span)(4)(B). Puspan. L. 101–624, § 2388(d)(1)(A)(v), formerly (vi), as redesignated by Puspan. L. 102–237, § 501(c)(2)(B)(iii), redesignated subpar. (2) as (B).

Subsec. (span)(5). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (e) as (5) of subsec. (span).

Puspan. L. 101–624, § 1805(a)(2), inserted “except for activities conducted under the Housing Act of 1949,” before “collect”, struck out “arising or” after “obligations”, substituted “by the Farmers Home Administration” for “under this chapter” before “, or under any” and “by the Farmers Home Administration” for “pursuant to this chapter” before “and, if in his”.

Subsec. (span)(6). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (f) as (6) of subsec. (span).

Puspan. L. 101–624, § 2388(d)(1)(A)(ii), substituted “release” for “Release”.

Puspan. L. 101–624, § 2388(d)(1)(A)(i), as amended by Puspan. L. 102–237, § 501(c)(2)(B)(ii), realigned margin.

Puspan. L. 101–624, § 1805(c)(1), (2), which made amendments identical to those by Puspan. L. 101–624, § 2388(d)(1)(A)(i), (ii), was repealed by Puspan. L. 102–237, § 501(c)(2)(A).

Subsec. (span)(7). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (g) as (7) of subsec. (span).

Puspan. L. 101–624, § 2388(d)(1)(A)(iii), substituted “obtain” for “Obtain”.

Puspan. L. 101–624, § 2388(d)(1)(A)(i), as amended by Puspan. L. 102–237, § 501(c)(2)(B)(ii), realigned margin.

Puspan. L. 101–624, § 1805(c)(1), (3), which made amendments identical to those by Puspan. L. 101–624, § 2388(d)(1)(A)(i), (iii), was repealed by Puspan. L. 102–237, § 501(c)(2)(A).

Subsec. (span)(8). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (h) [par. (i) prior to redesignation by Puspan. L. 101–624, § 1805(span), as amended] as (8) of subsec. (span).

Puspan. L. 101–624, § 2388(d)(1)(A)(iv)(II), formerly (v)(II), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (iv), redesignated former subpars. (1) and (2) as (A) and (B), respectively.

Puspan. L. 101–624, § 2303(a)(3), inserted “Rural Development Administration under this chapter or by the” before “Farmers Home Administration”.

Puspan. L. 101–624, § 1806, inserted before semicolon at end “, and shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower”.

Puspan. L. 101–624, § 2388(d)(1)(A)(i), (iv)(I), formerly (v)(I), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(ii)–(iv), realigned margin and substituted “consent” for “Consent”.

Puspan. L. 101–624, § 1805(c)(1), (4), which made amendments identical to those by Puspan. L. 101–624, § 2388(d)(1)(A)(i), (iv)(I), was repealed by Puspan. L. 102–237, § 501(c)(2)(A).

Subsec. (span)(9). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (i) [par. (j) prior to redesignation by Puspan. L. 101–624, § 1805(span), as amended] as (9) of subsec. (span).

Pars. (c) to (g). Puspan. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), (B), as redesignated and amended by Puspan. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated former pars. (c) to (g) as (3) to (7), respectively, of subsec. (span). See above.

Par. (h). Puspan. L. 101–624, § 2388(d)(1)(A)(iv), which directed substitution of “not” for “Not” before “require”, was repealed by Puspan. L. 102–237, § 501(c)(2)(B)(iii).

Puspan. L. 101–624, § 1805(c)(5), which redesignated par. (i) as (h), was repealed by Puspan. L. 102–237, § 501(c)(2)(A).

Puspan. L. 101–624, § 1805(span), as amended by Puspan. L. 102–237, § 501(c)(2)(A), redesignated par. (i) as (h) and struck out par. (h) which read as follows: “Not require borrowers to pay interest accrued after December 31, 1972, on interest which is not more than 90 days overdue on any loan held or insured by the Farmers Home Administration;”.

Pars. (i), (j). Puspan. L. 101–624, § 1805(c)(5), which redesignated pars. (i) and (j) as (h) and (i), respectively, was repealed by Puspan. L. 102–237, § 501(c)(2)(A).

Puspan. L. 101–624, § 1805(span), as amended by Puspan. L. 102–237, § 501(c)(2)(A), redesignated pars. (i) and (j) as (h) and (i), respectively. Pars. (h) and (i) subsequently redesignated pars. (8) and (9) of subsec. (span). See above.

1988—Par. (d). Puspan. L. 100–233 inserted “or debts” before “claims”, and inserted “The Secretary may not require liquidation of property securing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under this subsection.”

1985—Par. (d). Puspan. L. 99–198, § 1309, in amending par. (d) generally, substituted provisions authorizing the Secretary to compromise, adjust, reduce, or charge-off claims, and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farmers Home Administration to carry out this chapter for provisions which had authorized the Secretary to compromise, adjust, or reduce claims, and adjust and modify the terms of mortgages, leases, contracts and agreements entered into or administered by the Administration under any of its programs, but not in the event of claims of $25,000 or more without the approval of the Administrator, substituted provisions authorizing the Secretary to release borrowers or others obligated on a debt incurred under this chapter from personal liability with or without consideration at the time of the compromise, adjustment, reduction or charge-off of any claim for provisions authorizing the Secretary to release from personal liability, with or without payment of any consideration at the time of adjustment of the claims, borrowers who transferred the security property to approved applicants, to other than approved applicants, or for amounts less than the indebtedness secured thereby, struck out provisions that compromise, adjustment, or reduction of the claim shall be based on the value of the security and a determination of the debtor’s reasonable ability to pay considering his other assets and income, and struck out provisions relating to any claim due and payable for five years or more and to partial releases and subordination of mortgages.

1981—Par. (i). Puspan. L. 97–98 designated existing provisions following “consent to” as cl. (2) and added cl. (1).

1978—Puspan. L. 95–334 in par. (a) struck out references to Puerto Rico and the Virgin Islands, in par. (d) substituted “$25,000” for “$15,000”, and added par. (j).

1972—Par. (a). Puspan. L. 92–419, § 124(1), authorized the Secretary of Agriculture, until Jan. 1, 1975, to make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Secretary to be necessary for carrying out the purposes of this chapter, and required the Secretary, prior to June 30, 1974, to report to Congress through the President on the experience in using such contracts, together with recommendations for such legislation as he may see fit.

Pars. (d) to (i). Puspan. L. 92–419, § 124(2), substituted a semicolon for a period at end of lettered pars. (d), (e) and (f) and added pars. (g) to (i).

1968—Par. (f). Puspan. L. 90–488 added par. (f).

Statutory Notes and Related Subsidiaries

Change of Name

Consolidated Farm Service Agency effectively renamed Farm Service Agency by the amendments made to section 6932 of this title by Puspan. L. 115–334, title XII, § 12404(a), Dec. 20, 2018, 132 Stat. 4974.

Effective Date of 2002 Amendment

Puspan. L. 107–171, title V, § 5304(span), May 13, 2002, 116 Stat. 345, provided that: “The amendment made by subsection (a) [amending this section] shall not apply to a contract entered into before the effective date of this Act [May 13, 2002].”

Effective Date of 1991 Amendment

Amendment by section 501(c) of Puspan. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Puspan. L. 101–624, to which the amendment relates, and amendment by section 701(h)(1)(E) of Puspan. L. 102–237 to any provision specified therein effective as if included in act that added provision so specified at the time such act became law, see section 1101(span)(3), (c) of Puspan. L. 102–237, set out as a note under section 1421 of this title.

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–98 effective Dec. 22, 1981, see section 1801 of Puspan. L. 97–98, set out as an Effective Date note under section 4301 of this title.

Continuation of Small Farmer Training and Technical Assistance Program

Puspan. L. 99–198, title XIII, § 1328, Dec. 23, 1985, 99 Stat. 1541, provided that: “The Secretary of Agriculture shall, during the period beginning on the date of enactment of this Act [Dec. 23, 1985] and ending on September 30, 1988, maintain at substantially current levels the small farmer training and technical assistance program in the office of the Administrator of the Farmers Home Administration.”

Reamortization of Distressed Farmers Home Administration Loans From Revenues From Softwood Timber Crop Plantings on Marginal Land

Puspan. L. 98–258, title VI, § 608, Apr. 10, 1984, 98 Stat. 140, as amended by Puspan. L. 99–198, title XII, § 1254, Dec. 23, 1985, 99 Stat. 1517, provided that:

“(a)

(1) Notwithstanding any other provision of law, the Secretary of Agriculture (hereinafter in this section referred to as the ‘Secretary’) may implement a program, pursuant to the recommendations contained in the study mandated by section 608 of the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1421 [1981] note), under which a distressed loan (as determined by the Secretary) made or insured under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), or a portion thereof, may be reamortized with the use of future revenue produced from the planting of softwood timber crops on marginal land (as determined by the Secretary) that—

“(A) was previously used to produce an agricultural commodity or as pasture; and

“(B) secures a loan made or insured under such Act.

“(2) Accrued interest on a loan reamortized under this section may be capitalized and interest charged on such interest.

“(3) All or a portion of the payments on such reamortized loan may be deferred until such softwood timber crop produces revenue or for a term of 45 years, whichever comes first.

“(4) Repayment of such reamortized loan shall be made not later than 50 years after the date of reamortization.

“(span) The interest rate on such reamortized loans shall be determined by the Secretary, but not in excess of the current average yield on outstanding marketable obligations of the United States with periods to maturity comparable to the average maturities of such loans, plus not to exceed 1 percent, as determined by the Secretary and adjusted to the nearest one-eighth of 1 percent.

“(c) To be eligible for such program—

“(1) the borrower of such reamortized loan must place not less than 50 acres of such land in softwood timber production;

“(2) such land (including timber) may not have any lien against such land other than a lien for—

“(A) a loan made or insured under the Consolidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.] to secure such reamortized loan; or

“(B) a loan made under this section, at the time of reamortization or thereafter, that is subject to a lien on such land (including timber) in favor of the Secretary; and

“(3) the total amount of loans secured by such land (including timber) may not exceed $1,000 per acre.

“(d)

(1) To assist such borrowers to place such land in softwood timber production, the Secretary may make loans to such borrowers for such purpose in an aggregate amount not to exceed the actual cost of tree planting for land placed in the program.

“(2) Any such loan shall be secured by the land (including timber) on which the trees are planted.

“(3) Such loans shall be made on the same terms and conditions as are provided in this section for reamortized loans.

“(e) The Secretary shall issue such rules as are necessary to carry out this section, including rules prescribing terms and conditions for—

“(1) reamortizing and making loans under this section;

“(2) entering into security instruments and agreements under this section; and

“(3) management and harvesting practices of the timber crop.

“(f) There are authorized to be appropriated such sums as are necessary to carry out this section.

“(g) No more than 50,000 acres may be placed in such program.”