FINANCING FOR BASIC PROCESSING AND MARKETING OPERATIONS OWNED BY BONA FIDE PRODUCERS.

SEC. 1832. FINANCING FOR BASIC PROCESSING AND MARKETING OPERATIONS OWNED BY BONA FIDE PRODUCERS. (a) Farm Credit Banks.— Section 1.11(a) (12 U.S.C. 2019(a)) is amended— (1) by striking “(a) Agricultural or Aquatic Purposes.—Loans made by a Farm Credit Bank” and inserting the following: “(a) Agricultural or Aquatic Purposes.— “(1) In general.— Loans made by a Farm Credit Bank”; (2) by striking “at least 20 percent,” and all that follows through “Farm Credit Administration,” and inserting “some portion”; and (3) by adding after and below the end the following new paragraph: “(2) Limitation on loans for basic processing and marketing operations.— The aggregate of the financing provided by any Farm Credit Bank for basic processing and marketing directly related to the operations of farmers, ranchers, and producers or harvesters of aquatic products, if the operations of the applicant supply less than 20 percent of the total processing or marketing for which financing is extended, shall not exceed 15 percent of the total of all outstanding loans of such bank.”. (b) Production Credit Associations.— Section 2.4(a)(1) (12 U.S.C. 2075(a)(1)) is amended by striking “at least 20 percent,” and all that follows through the end of the paragraph and inserting “some portion of the total processing or marketing for which financing is extended, except that the aggregate of the financing provided by any association for basic processing and marketing directly related to the operations of farmers, ranchers, and producers or harvesters of aquatic products, if the operations of the applicant supply less than 20 percent of the total processing or marketing for which financing is extended, shall not exceed 15 percent of the total of all outstanding loans of all associations in the district at the end of its preceding fiscal year;”.