Each loan made under this section shall be in an amount that does not exceed 45 percent of the least of—
the purchase price of the farm or ranch to be acquired;
the appraised value of the farm or ranch to be acquired; or
The interest rate on any loan made by the Secretary under this section shall be a rate equal to the greater of—
the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subchapter; or
Each loan under this section shall be made for a period of 20 years or less, at the option of the borrower.
Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments.
Nature of retained security interest
The Secretary shall retain an interest in each farm or ranch acquired with a loan made under this section that shall—
be secured by the farm or ranch;
be junior only to such interests in the farm or ranch as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtained a loan used to acquire the farm or ranch; and
require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm or ranch.
In carrying out this section, the Secretary shall, to the maximum extent practicable—
facilitate the transfer of farms and ranches from retiring farmers and ranchers to persons eligible for insured loans under this subchapter;
make efforts to widely publicize the availability of loans under this section among—
potentially eligible farmers or ranchers;
retiring farmers and ranchers; and
applicants for farm ownership loans under this subchapter;
encourage retiring farmers and ranchers to assist in the sale of their farms and ranches to eligible farmers or ranchers by providing seller financing;
coordinate the loan program established by this section with State programs that provide farm ownership or operating loans for—
beginning farmers or ranchers;
establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to an eligible farmer or rancher.
Definition of eligible farmer or rancher
In this section, the term “eligible farmer or rancher” means—
a qualified beginning farmer or rancher;
[Pub. L. 87–128, title III, § 310E], as added [Pub. L. 102–554, § 7(a)], Oct. 28, 1992, [106 Stat. 4144]; amended [Pub. L. 107–171, title V, § 5005], May 13, 2002, [116 Stat. 342]; [Pub. L. 110–234, title V, § 5004], May 22, 2008, [122 Stat. 1144]; [Pub. L. 110–246, § 4(a)], title V, § 5004, June 18, 2008, [122 Stat. 1664], 1905; [Pub. L. 113–79, title V, § 5005], Feb. 7, 2014, [128 Stat. 834]; [Pub. L. 115–334, title XII, § 12306(c)], Dec. 20, 2018, [132 Stat. 4969].)