§ 2003. — Target participation rates.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2003]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 2003. Target participation rates
(a) Establishment
(1) In general
The Secretary shall establish annual target participation rates,
on a county wide basis, that shall ensure that members of socially
disadvantaged groups will receive loans made or insured under
subchapter I of this chapter and will have the opportunity to
purchase or lease inventory farmland.
(2) Group population
Except as provided in paragraph (3), in establishing such target
rates the Secretary shall take into consideration the portion of the
population of the county made up of such groups, and the
availability of inventory farmland in such county.
(3) Gender
With respect to gender, target participation rates shall take
into consideration the number of current and potential socially
disadvantaged farmers and ranchers in a State in proportion to the
total number of farmers and ranchers in the State.
(b) Reservation and allocation
(1) Reservation
The Secretary shall, to the greatest extent practicable, reserve
sufficient loan funds made available under subchapter I of this
chapter, for use by members of socially disadvantaged groups
identified under target participation rates established under
subsection (a) of this section.
(2) Allocation
The Secretary shall allocate such loans on the basis of the
proportion of members of socially disadvantaged groups in a county
and the availability of inventory farmland, with the greatest amount
of loan funds being distributed in the county with the greatest
proportion of socially disadvantaged group members and the greatest
amount of available inventory farmland.
(3) Indian reservations
In distributing loan funds in counties within the boundaries of
an Indian reservation, the Secretary shall allocate the funds on a
reservation-wide basis.
(c) Operating loans
(1) Establishment
The Secretary shall establish annual target participation rates,
that shall ensure that socially disadvantaged farmers or ranchers
will receive loans made or insured under subchapter II of this
chapter. In establishing such target rates, the Secretary shall
consider the number of socially disadvantaged farmers and ranchers
in a State in proportion to the total number of farmers and ranchers
in that State.
(2) Reservation and allocation
The Secretary shall, to the greatest extent practicable, reserve
and allocate the proportion of each State's loan funds made
available under subchapter II of this chapter that is equal to that
State's target participation rate for use by the socially
disadvantaged farmers or ranchers in that State. The Secretary
shall, to the extent practicable, distribute the total so derived on
a county by county basis according to the number of socially
disadvantaged farmers or ranchers in the county. Any funds reserved
and allocated under this paragraph but not used within a State
shall, to the extent necessary to satisfy pending applications under
this chapter, be available for use by socially disadvantaged farmers
and ranchers in other States, as determined by the Secretary, and
any remaining funds shall be reallocated within the State.
(d) Report
The Secretary shall prepare and submit, to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report that
describes the annual target participation rates and the success in
meeting such rates.
(e) Definitions
(1) Socially disadvantaged group
As used in this section, the term ``socially disadvantaged
group'' means a group whose members have been subjected to racial,
ethnic, or gender prejudice because of their identity as members of
a group without regard to their individual qualities.
(2) Socially disadvantaged farmer or rancher
As used in this section, the term ``socially disadvantaged
farmer or rancher'' means a farmer or rancher who is a member of a
socially disadvantaged group.
(f) Implementation consistent with Supreme Court holding
Not later than 180 days after April 4, 1996, the Secretary shall
ensure that the implementation of this section is consistent with the
holding of the Supreme Court in Adarand Constructors, Inc. v. Federico
Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).
(Pub. L. 87-128, title III, Sec. 355, as added Pub. L. 100-233, title
VI, Sec. 617, Jan. 6, 1988, 101 Stat. 1682; amended Pub. L. 101-624,
title XVIII, Sec. 1817, title XXV, Sec. 2501(f), Nov. 28, 1990, 104
Stat. 3829, 4065; Pub. L. 102-554, Sec. 21(a), (b), Oct. 28, 1992, 106
Stat. 4161; Pub. L. 104-127, title VI, Sec. 647, Apr. 4, 1996, 110 Stat.
1104; Pub. L. 107-171, title V, Sec. 5315, May 13, 2002, 116 Stat. 348.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (c)(2),
see note set out under section 1921 of this title.
Amendments
2002--Subsec. (c)(2). Pub. L. 107-171 substituted ``Any funds
reserved and allocated under this paragraph but not used within a State
shall, to the extent necessary to satisfy pending applications under
this chapter, be available for use by socially disadvantaged farmers and
ranchers in other States, as determined by the Secretary, and any
remaining funds shall be reallocated within the State.'' for ``Any funds
reserved and allocated for purposes of this paragraph, but not used
shall be reallocated within such State.''
1996--Subsec. (f). Pub. L. 104-127 added subsec. (f).
1992--Subsec. (a)(2). Pub. L. 102-554, Sec. 21(a)(1), substituted
``Except as provided in paragraph (3), in establishing'' for ``In
establishing''.
Subsec. (a)(3). Pub. L. 102-554, Sec. 21(a)(2), added par. (3).
Subsec. (e)(1). Pub. L. 102-554, Sec. 21(b), substituted ``, ethnic,
or gener'' for ``or ethnic''.
1990--Subsec. (b)(3). Pub. L. 101-624, Sec. 1817, added par. (3).
Subsecs. (c), (d). Pub. L. 101-624, Sec. 2501(f)(1)-(3), added
subsec. (c), redesignated former subsec. (c) as (d), and struck out
former subsec. (d) which read as follows: ``As used in this section, the
term `socially disadvantaged group' means a group whose members have
been subjected to racial or ethnic prejudice because of their identity
as members of a group without regard to their individual qualities.''
Subsec. (e). Pub. L. 101-624, Sec. 2501(f)(4), added subsec. (e).
Termination of Reporting Requirements
For termination, effective May 15, 2000, of provisions of law
requiring submittal to Congress of any annual, semiannual, or other
regular periodic report listed in House Document No. 103-7 (in which the
report required by subsec. (d) of this section is listed on page 44),
see section 3003 of Pub. L. 104-66, as amended, set out as a note under
section 1113 of Title 31, Money and Finance.
Section Referred to in Other Sections
This section is referred to in sections 2279, 2279-1, 3319f of this
title; title 16 section 590h.
