AUTHORIZATION FOR LOANS.

SEC. 641. AUTHORIZATION FOR LOANS. Section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994) is amended— (1) in the second sentence of subsection (a), by striking “with or without” and all that follows through “administration”; and (2) by striking subsection (b) and inserting the following: “(b) Authorization for Loans.— “(1) In general.— The Secretary may make or guarantee loans under subtitles A and B from the Agricultural Credit Insurance Fund provided for in section 309 in not more than the following amounts: “(A) Fiscal year 1996.— For fiscal year 1996, $3,085,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,500,000,000 shall be for guaranteed loans, of which— “(I) $600,000,000 shall be for guarantees of farm ownership loans under subtitle A; and 110 STAT. 1099 “(II) $1,900,000,000 shall be for guarantees of operating loans under subtitle B. “(B) Fiscal year 1997.— For fiscal year 1997, $3,165,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,580,000,000 shall be for guaranteed loans, of which— “(I) $630,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(II) $1,950,000,000 shall be for guarantees of operating loans under subtitle B. “(C) Fiscal year 1998.— For fiscal year 1998, $3,245,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,660,000,000 shall be for guaranteed loans, of which— “(I) $660,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(II) $2,000,000,000 shall be for guarantees of operating loans under subtitle B. “(D) Fiscal year 1999.— For fiscal year 1999, $3,325,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,740,000,000 shall be for guaranteed loans, of which— “(I) $690,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(II) $2,050,000,000 shall be for guarantees of operating loans under subtitle B. “(E) Fiscal year 2000.— For fiscal year 2000, $3,435,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,850,000,000 shall be for guaranteed loans, of which— “(I) $750,000,000 shall be for guarantees of farm ownership loans under subtitle A; and 110 STAT. 1100 “(II) $2,100,000,000 shall be for guarantees of operating loans under subtitle B. “(F) Fiscal year 2001.— For fiscal year 2001, $3,435,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,850,000,000 shall be for guaranteed loans, of which— “(I) $750,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(II) $2,100,000,000 shall be for guarantees of operating loans under subtitle B. “(G) Fiscal year 2002.— For fiscal year 2002, $3,435,000,000, of which— “(i) $585,000,000 shall be for direct loans, of which— “(I) $85,000,000 shall be for farm ownership loans under subtitle A; and “(II) $500,000,000 shall be for operating loans under subtitle B; and “(ii) $2,850,000,000 shall be for guaranteed loans, of which— “(I) $750,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(II) $2,100,000,000 shall be for guarantees of operating loans under subtitle B. “(2) Beginning farmers and ranchers.— “(A) Direct loans.— “(i) Farm ownership loans.— “(I) In general.— Of the amounts made available under paragraph (1) for direct farm ownership loans, the Secretary shall reserve 70 percent for qualified beginning farmers and ranchers. “(II) Down payment loans.— Of the amounts reserved for a fiscal year under subclause (I), the Secretary shall reserve 60 percent for the down payment loan program under section 310E until April 1 of the fiscal year. “(ii) Operating loans.— Of the amounts made available under paragraph (1) for direct operating loans, the Secretary shall reserve for qualified beginning farmers and ranchers— “(I) for each of fiscal years 1996 through 1998, 25 percent; “(II) for fiscal year 1999, 30 percent; and “(III) for each of fiscal years 2000 through 2002, 35 percent. “(iii) Funds reserved until September 1.— Except as provided in clause (i)(II), funds reserved for qualified beginning farmers or ranchers under this subparagraph for a fiscal year shall be reserved only until September 1 of the fiscal year. “(B) Guaranteed loans.— 110 STAT. 1101 “(i) Farm ownership loans.— Of the amounts made available under paragraph (1) for guarantees of farm ownership loans, the Secretary shall reserve 25 percent for qualified beginning farmers and ranchers. “(ii) Operating loans.— Of the amounts made available under paragraph (1) for guarantees of operating loans, the Secretary shall reserve 40 percent for qualified beginning farmers and ranchers. “(iii) Funds reserved until April 1.— Funds reserved for qualified beginning farmers or ranchers under this subparagraph for a fiscal year shall be reserved only until April 1 of the fiscal year. “(C) Reserved funds for all qualified beginning farmers and ranchers.— If a qualified beginning farmer or rancher meets the eligibility criteria for receiving a direct or guaranteed loan under section 302, 310E, or 311, the Secretary shall make or guarantee the loan if sufficient funds reserved under this paragraph are available to make or guarantee the loan. “(3) Transfer for down payment loans.— “(A) In general.— Notwithstanding subsection (a), subject to subparagraph (B)— “(i) beginning on August 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to provide direct farm ownership loans approved by the Secretary to qualified beginning farmers and ranchers under the down payment loan program established under section 310E, if sufficient direct farm ownership loan funds are not otherwise available; and “(ii) beginning on September 1 of each fiscal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to provide direct farm ownership loans approved by the Secretary to qualified beginning farmers and ranchers, if sufficient direct farm ownership loan funds are not otherwise available. “(B) Limitation.— The Secretary shall limit the transfer of funds under subparagraph (A) so that all guaranteed farm operating loans that have been approved, or will be approved, by the Secretary during the fiscal year will be made to the extent of available amounts. “(4) Transfer for credit sales of farm inventory property.— “(A) In general.— Notwithstanding subsection (a), subject to subparagraphs (B) and (C), beginning on September 1 of each fiscal year, the Secretary may use available funds made available under subtitle C for the fiscal year to fund the credit sale of farm real estate in the inventory of the Secretary. “(B) Supplemental appropriations.— The transfer authority provided under subparagraph (A) shall not apply to any funds made available to the Secretary for any fiscal year under an Act making supplemental appropriations. “(C) Limitation.— The Secretary shall limit the transfer of funds under subparagraph (A) so that all emergency disaster loans that have been approved, or will be approved, 110 STAT. 1102by the Secretary during the fiscal year will be made to the extent of available amounts.”.