National Fuel Alcohol and Farm Commodity Production Act of 1979

National Fuel Alcohol and Farm Commodity Production Act of 1979 - Amends the Rural Development Act of 1972 to replace the current program of loan guarantees for pilot project production of industrial hydrocarbons from agricultural commodities with a program under which the Secretary of Agriculture may guarantee payment of 50 percent of loans made by private lenders to persons constructing and maintaining plants for the production of fuel alcohol derived from corn and other agricultural commodities. Authorizes the Secretary to sell corn to such loan recipients and to acquire and use distilled dried grain from them. Specifies conditions for such loan guarantees and sets the maximum cumulative total of outstanding principal and interest during the period from October 1, 1979, through September 30, 1984, at $600,000,000. Establishes in the Treasury of the United States the Fuel Alcohol Plant Loan Guarantee Fund, and authorizes the appropriation of $60,000,000 for deposit in such Fund for fiscal year 1980.

Amends the Agricultural Act of 1949 to set the loan level for the 1980 crop of corn at $2.10 per bushel, and the established price at $2.50 per bushel.

Amends the Food and Agriculture Act of 1977 to require that at least 25 percent of the amount appropriated in any fiscal year for grants for research in the production of industrial hydrocarbons from agricultural commodities be reserved for research relating to the identification and development of agricultural commodities which are usable in the production of agricultural chemicals and fuel alcohol.

Removes the $50,000 limit from the total amount of payments which a person shall be entitled to receive for annual feed grains programs.