12 2 STA T . 11 45PUBLIC LA W 11 0– 2 3 4 —M A Y 22 , 200 8SEC.50 05. B E GIN NING FARM ER O R RANC H ER AN D SOCIA L L Y DIS - AD V AN T AGED FARMER OR RANCHER CONTRACT LAND SALES P ROGRAM. Section310F o f t h e C on s o l i da ted Fa rm and Ru ral D e v elo p ment A ct (7U. S.C. 1 9 3 6) is amended to read as follo w s
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‘SEC. 31 0F. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS- ADVANTAGED FARMER OR RANCHER CONTRACT LAND SALES PROGRAM. ‘ ‘(a) INGE NE RAL . —T he Secretar y shall , in accordance with this section, g uarantee a loan made b y a private seller of a farm or ranch to a q ualified beginning farmer or rancher or socially dis - advantaged farmer or rancher (as defined in section 3 5 5(e)( 2 )) on a contract land sales basis. ‘‘(b) E L IG I B ILI TY .—In order to be eligible for a loan guarantee under subsection (a)— ‘‘(1) the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher shall— ‘‘(A) on the date the contract land sale that is sub j ect of the loan is complete, own and operate the farm or ranch that is the subject of the contract land sale
‘‘( B ) have a credit history that— ‘‘(i) includes a record of satisfactory debt repay- ment, as determined by the Secretary; and ‘‘(ii) is acceptable to the Secretary; and ‘‘(C) demonstrate to the Secretary that the farmer or rancher, as the case may be, is unable to obtain sufficient credit without a guarantee to finance any actual need of the farmer or rancher, as the case may be, at a reason- able rate or term; and ‘‘(2) the loan shall meet applicable underwriting criteria, as determined by the Secretary. ‘‘(c) L I M ITATI O N S .— ‘‘(1) DO W N P AYMENT.—The Secretary shall not provide a loan guarantee under subsection (a) if the contribution of the qualified beginning farmer or rancher or socially disadvantaged farmer or rancher to the down payment for the farm or ranch that is the subject of the contract land sale would be less than 5 percent of the purchase price of the farm or ranch. ‘‘(2) M A X IM U M PUR CH ASE PRICE.—The Secretary shall not provide a loan guarantee under subsection (a) if the purchase price or the appraisal value of the farm or ranch that is the subject of the contract land sale is greater than $ 500,000. ‘‘(d) P ERIO D O F GUARANTEE.—The period during which a loan guarantee under this section is in effect shall be the 10-year period beginning with the date the guarantee is provided. ‘‘(e) GUARANTEE PLAN.— ‘‘(1) SELECTION OF PLAN.—A private seller of a farm or ranch who ma k es a loan that is guaranteed by the Secretary under subsection (a) may select— ‘‘(A) a prompt payment guarantee plan, which shall cover— ‘‘(i) 3 amorti z ed annual installments; or ‘‘(ii) an amount equal to 3 annual installments (including an amount equal to the total cost of any ta x and insurance incurred during the period covered by the annual installments); or
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