SOIL AND WATER LOANS.

SEC. 1802. SOIL AND WATER LOANS. (a) In General.— Section 304 (7 U.S.C. 1924) is amended by adding at the end the following new subsection: “(d) (1) Loans may also be made or insured under this subtitle for soil and water conservation and protection. Such loans may be made104 STAT. 3818 to farm owners or tenants who are eligible borrowers under this subtitle for— “(A) the installation of conservation structures, including terraces, sod waterways, permanently vegetated stream borders and filter strips, windbreaks (tree or grass), shelterbelts, and living snow fences; “(B) the establishment of forest cover for sustained yield timber management, erosion control, or shelterbelt purposes; “(C) the establishment or improvement of permanent pasture; “(D) the conversion to and maintenance of sustainable agricultural production systems, as described by Department technical guides and handbooks; “(E) the payment of costs of complying with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812); and “(F) other purposes consistent with plans for soil and water conservation, integrated farm management, water quality protection and enhancement, and wildlife habitat improvement. “(2) In making or insuring loans under this subsection, the Secretary shall give priority to producers who use such loans to build conservation structures or establish conservation practices to comply with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812). “(3) The Secretary shall not make or insure a loan under this section that exceeds the lesser of— “(A) the value of the farm or other security for such loan; or “(B) $50,000.”. (b) Limited Resource Authorization.— Section 310D(a) (7 U.S.C. 1934(a)) is amended— (1) by striking “clauses (1) through (5) of section 303(a) of this title” and inserting “paragraphs (1) through (5) of section 303(a), or subparagraphs (A) through (E) of section 304(d)(1),”; (2) in paragraph (2), by striking “clauses” and inserting “paragraphs”; (3) in paragraph (3), by striking “of this title”; and (4) in the second sentence, by striking “clauses” and inserting “paragraphs”.