§ 1981e. — Planting and production history guidelines.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1981e]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1981e. Planting and production history guidelines
(a) In general
The Secretary shall ensure that appropriate procedures, including to
the extent practicable onsite inspections, or use of county or State
yield averages, are used in calculating future yields for an applicant
for a loan, when an accurate projection cannot be made because the
applicant's past production history has been affected by natural
disasters declared under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(b) Calculation of yields
(1) In general
For purposes of averaging past yields of the farm of a borrower
or applicant over a period of crop years to calculate future yields
for the farm under this chapter (except for loans under subchapter
III of this chapter), the Secretary shall permit the borrower or
applicant to exclude the crop year with the lowest actual or county
average yield for the farm from the calculation, if the borrower or
applicant was affected by a disaster during at least 2 of the crop
years during the period.
(2) Affected by a disaster
For purposes of paragraph (1), a borrower or applicant was
affected by a disaster if the Secretary finds that the borrower or
applicant's farming operations have been substantially affected by a
natural disaster in the United States or by a major disaster or
emergency designated by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.), including a borrower or applicant who has a qualifying loss
but is not located in a designated or declared disaster area.
(3) Application of subsection
Paragraph (1) shall apply to all actions taken by the Secretary
to carry out this chapter (except for loans under subchapter III of
this chapter) that involve the yields of a farm of a borrower or
applicant, including making loans and loan guarantees, servicing
loans, and making credit sales.
(Pub. L. 87-128, title III, Sec. 331E, as added Pub. L. 100-233, title
VI, Sec. 606, Jan. 6, 1988, 101 Stat. 1667; amended Pub. L. 102-237,
title V, Sec. 501(d)(1), Dec. 13, 1991, 105 Stat. 1866; Pub. L. 102-552,
title V, Sec. 516(g)(1), Oct. 28, 1992, 106 Stat. 4138.)
References in Text
The Robert T. Stafford Disaster Relief and Emergency Assistance Act,
referred to in subsecs. (a) and (b)(2), is Pub. L. 93-288, May 22, 1974,
88 Stat. 143, as amended, which is classified principally to chapter 68
(Sec. 5121 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 5121 of Title 42 and Tables.
For definition of ``this chapter'', referred to in subsec. (b)(1),
(3), see note set out under section 1921 of this title.
Amendments
1992--Subsec. (a). Pub. L. 102-552, Sec. 516(g)(1)(A), substituted
``Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.)'' for ``Disaster Relief Act of 1974''.
Subsec. (b)(2). Pub. L. 102-552, Sec. 516(g)(1)(B), inserted
``Robert T. Stafford'' before ``Disaster Relief''.
1991--Pub. L. 102-237 designated existing provisions as subsec. (a),
inserted heading, and added subsec. (b).
Effective Date of 1992 Amendment
Section 516(g)(2) of Pub. L. 102-552 provided that: ``The amendments
made by paragraph (1) of this subsection [amending this section] shall
take effect immediately after section 501(d) of the Food, Agriculture,
Conservation, and Trade Act Amendments of 1991 (Public Law 102-237; 105
Stat. 1866) [amending this section and enacting provisions set out
below] took effect.''
Effective Date of 1991 Amendment
Section 501(d)(3) of Pub. L. 102-237 provided that:
``(A) In general.--Except as provided in subparagraph (B), the
amendment made by paragraph (1) [amending this section] shall become
effective on the date of publication of the interim regulations issued
pursuant to paragraph (2)(A) [set out below].
``(B) Exception.--The amendment made by paragraph (1) shall apply to
each primary loan servicing application submitted on or after the date
of enactment of this Act [Dec. 13, 1991].''
Regulations
Section 501(d)(2) of Pub. L. 102-237 provided that:
``(A) Interim regulations.--Notwithstanding section 553 of title 5,
United States Code, as soon as practicable after the date of enactment
of this Act [Dec. 13, 1991] and without a requirement for prior public
notice and comment, the Secretary of Agriculture shall issue interim
regulations that provide for the implementation of the amendment made by
paragraph (1) [amending this section] beginning in crop year 1992.
``(B) Final regulations.--The Secretary of Agriculture shall provide
for public notice and comment before the issuance of final regulations
to implement the amendment made by paragraph (1).''
