A bill to provide lending limits for fiscal years 1983, 1984, and 1985 for programs under the Consolidated Farm and Rural Development Act.

(Measure passed House, amended, roll call #314 (372-39))

Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to make grants to be used solely to repay water and waste disposal facility loans when repayment can not be made without economic hardship because of revenue reductions from population or commercial activity decline.

Directs the Secretary to establish: (1) graduated grant rates; and (2) a project selection system. Requires small communities to show inability to secure sufficient credit rather than "financial need".

Authorizes the Secretary to make: (1) facility planning and design payments to associations likely to receive such water and waste disposal assistance; and (2) grants to private nonprofit groups for technical training.

Directs the Secretary, where a project serves more than one rural community, to use median income and population figures to determine assistance amounts.

Changes the standard for low-income areas eligible for five-percent interest rate loans from those having an income level below the Federal poverty line to those having an income level below 80 percent of the statewide nonmetropolitan median family income. Makes five percent loans for firefighting and emergency equipment available to such communities. Makes seven- percent interest rate loans available to other areas that do not exceed such statewide nonmetropolitan median family income.

States that oil, gas, or mineral rights shall not be part of the collateral securing a farm ownership loan unless specifically included in the property's assessment.

Authorizes the Secretary to guarantee State loans to persons eligible for farm ownership loans, including loans involving tax-exempt bond funds.

Limits the amount of equity investment that may be required of an applicant for a business or industrial loan to 20 percent. Permits such equity to be in the form of cash, tangible earning assets at book value, or appraised surplus, or any combination of these.

Permits use of the proceeds of the sale of property securing an operating loan to make prospective scheduled payments on such loan.

Reduces the percentage of loss necessary for emergency loan eligibility (based on production loss) from 30 to 20 percent.

Authorizes the Secretary through September 30, 1983, to defer payments and foreclosures on farm ownership, operating, and emergency loans if the borrower: (1) has demonstrated good management practices; (2) is temporarily unable to make the payments; and (3) has a reasonable chance of repaying the loan after such deferral period. Limits this deferral to family-size farms. Requires the Secretary to issue implementing regulations.

Permits postponement of Farmers Home Administration (FmHA) loan payments involving third party bankruptcies.

Requires the Secretary to inform borrowers upon request of procedures for rescheduling such loans. Prohibits the interest rate on these, and on other rescheduled loans under such Act, from exceeding the interest rate on the original loan.

Authorizes county committees upon request to advise borrowers regarding farm management practices. Requires such committees to set maximum credit levels.

Authorizes a farm ownership, operating, or emergency loan borrower to use the proceeds from gas, oil, or mineral sales, leases, or royalties to make scheduled payments on such loans.

Requires the Farmers Home Administration to give priority to agricultural users in disposing of agricultural land acquired through foreclosure.

Establishes FY 1983 through 1985 lending limits for real estate loans, operating loans, and emergency loans under the Agricultural Credit Insurance Fund. States that at least 25 percent of farm ownership and operating loans shall be for low-income, limited-resource borrowers.

Establishes FY 1983 through 1985 lending limits for water and sewer facility loans, industrial development loans, and community facility loans under the Rural Development Insurance Fund.

Requires the Secretary to submit quarterly reports through September 30, 1985, to the congressional agriculture committees showing the estimated number and value of farm ownership, operating, economic emergency, and disaster emergency loans designated: (1) delinquent; (2) liquidated; (3) accelerated; (4) foreclosed or in foreclosure proceedings; and (5) subject to other adverse actions.

Sets forth effective dates for provisions of this Act.

Sets forth loan deferral notification language.

Allows a purchaser of a farm to assume a seller's outstanding economic emergency loan under its original terms.

Requires the Secretary to notify operating and ownership loan applicants in writing about the limited resource loan program.

Amends the Emergency Agricultural Credit Adjustment Act of 1978 to make the economic emergency loan program mandatory. Extends such program through FY 1983. Lowers the limit on individual loans: (1) under such Act; and (2) under such Act and the Consolidated Farm and Rural Development Act combined.

Expresses the sense of the Congress that the Department of Agriculture should promote the development of agricultural commodities into alcohol or hydrocarbons for fuel and byproducts through the industrial loan program.