Farming - Trees Are The Future

[Luke_Wilbur]

One Hundred Eleventh Congress

of the United States of America

 

AT THE FIRST SESSION

 

Begun and held at the City of Washington on Tuesday, the sixth day of January, two thousand and nine

 

An Act

 

Making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes.

 

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

 

SECTION 1. SHORT TITLE.

 

This Act may be cited as the ‘‘American Recovery and Reinvestment Act of 2009’’.

 

SEC. 2. TABLE OF CONTENTS.

 

The table of contents for this Act is as follows:

 

DIVISION A - APPROPRIATIONS PROVISIONS

 

TITLE I - AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES

 

SEC. 3. PURPOSES AND PRINCIPLES.

 

(a) STATEMENT OF PURPOSES. - The purposes of this Act include the following:

 

SEC. 3. PURPOSES AND PRINCIPLES.

 

( a ) STATEMENT OF PURPOSES.—The purposes of this Act include the following:

 

( 1 ) To preserve and create jobs and promote economic recovery.

 

( 2 ) To assist those most impacted by the recession.

 

( 3 ) To provide investments needed to increase economic efficiency

 

( 4 ) To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits.

 

( 5 ) To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.

 

( b ) GENERAL PRINCIPLES CONCERNING USE OF FUNDS.—The President and the heads of Federal departments and agencies shall manage and expend the funds made available in this Act so as to achieve the purposes specified in subsection ( a ), including commencing expenditures and activities as quickly as possible consistent with prudent management.

 

SEC. 4. REFERENCES.

 

Except as expressly provided otherwise, any reference to "this Act" contained in any division of this Act shall be treated as referring only to the provisions of that division.

 

SEC. 5. EMERGENCY DESIGNATIONS.

 

( a ) IN GENERAL.—Each amount in this Act is designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301( B )( 2 ) of S. Con. Res. 70 ( 110th Congress ), the concurrent resolutions on the budget for fiscal years 2008 and 2009.

 

( b ) PAY-AS-YOU-GO. - All applicable provisions in this Act are designated as an emergency for purposes of pay-as-you-go principles.

 

DIVISION A—APPROPRIATIONS PROVISIONS

 

That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2009, and for other purposes, namely:

 

TITLE I - AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES

 

DEPARTMENT OF AGRICULTURE

 

AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS

 

For an additional amount for "Agriculture Buildings and Facilities and Rental Payments", $24,000,000, for necessary construction, repair, and improvement activities.

 

OFFICE OF INSPECTOR GENERAL

 

For an additional amount for "Office of Inspector General", $22,500,000, to remain available until September 30, 2013, for

 

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

 

For an additional amount for the cost of direct loans and grants for rural community facilities programs as authorized by section 306 and described in section 381E( d )( 1 ) of the Consolidated Farm and Rural Development Act, $130,000,000.

 

RURAL BUSINESS—COOPERATIVE SERVICE

 

RURAL BUSINESS PROGRAM ACCOUNT

 

For an additional amount for the cost of guaranteed loans and grants as authorized by sections 310B( a )( 2 )( A ) and 310B( c ) of the Consolidated Farm and Rural Development Act ( 7 U.S.C.1932 ), $150,000,000.

 

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

 

For an additional amount for the cost of direct loans and grants for rural community facilities programs as authorized by section 306 and described in section 381E(d)(1) of the Consolidated Farm and Rural Development Act, $130,000,000.

 

RURAL BUSINESS—COOPERATIVE SERVICE

 

RURAL BUSINESS PROGRAM ACCOUNT

 

For an additional amount for the cost of guaranteed loans and grants as authorized by sections 310B( a )( 2 )( A ) and 310B( c ) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1932 ), $150,000,000.

 

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

 

For an additional amount for the cost of broadband loans and loan guarantees, as authorized by the Rural Electrification Act of 1936 ( 7 U.S.C. 901 et seq. ) and for grants ( including for technical assistance ), $2,500,000,000:

 

Provided, That the cost of direct and guaranteed loans shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That, notwithstanding title VI of the Rural Electrification Act of 1936, this amount is available for grants, loans and loan guarantees for broadband infrastructure in any area of the United States:

 

Provided further, That at least 75 percent of the area to be served by a project receiving funds from such grants, loans or loan guarantees shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture:

 

Provided further, That priority for awarding such funds shall be given to project applications for broadband systems that will deliver end users a choice of more than one service provider: Provided further, That priority for awarding funds made available under this paragraph shall be given to projects that provide service to the highest proportion of rural residents that do not have access to broadband service:

 

Provided further, That priority shall be given for project applications from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 and for project applications that include such borrowers or former borrowers: Provided further, That priority for awarding such funds shall be given to project applications that demonstrate that, if the application is approved, all project elements will be fully funded:

 

Provided further, That priority for awarding such funds shall be given to project applications for activities that can be completed if the requested funds are provided:

 

Provided further, That priority for awarding such funds shall be given to activities that can commence promptly following approval:

 

Provided further, That no area of a project funded with amounts made available under this paragraph may receive funding to provide broadband service under the Broadband Technology Opportunities Program:

 

Provided further, That the Secretary shall submit a report on planned spending and actual obligations describing the use of these funds not later than 90 days after the date of enactment of this Act, and quarterly thereafter until all funds are obligated, to the Committees on Appropriations of the House of Representatives and the Senate.

 

"( F ) LACK OF ACCESS. - Notwithstanding any other provision of this section, the Secretary may provide assistance under this section to eligible producers on a farm

 

that:

 

" ( i ) suffered a production loss due to a natural cause during the 2008 crop year; and "( ii ) as determined by the Secretary"

 

"( I )( aa ) except as provided in item ( bb ), lack access to a policy or plan of insurance under subtitle A; or

 

"( bb ) do not qualify for a written agreement because 1 or more farming practices, which the Secretary has determined are good farming practices, of the eligible producers on the farm differ significantly from the farming practices used by producers of the same crop in other regions of the United States; and

 

( II ) are not eligible for the noninsured crop disaster assistance program established by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7333 ).".

 

( 4 )( A ) not later than 90 days after the date of enactment of this paragraph; and

 

"( ii )( I ) in the case of each insurable commodity of the eligible producers on the farm, excluding grazing land, agree to obtain a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ) (excluding a crop insurance pilot program under that Act) for the next insurance year for which crop insurance is available to the eligible producers on the farm at a level of coverage equal to 70 percent or more of the recorded or appraised average yield.

 

which a policy is available.

 

"( B ) AMOUNT OF ASSISTANCE.—Eligible producers on a farm that meet the requirements of subparagraph ( A ) shall be eligible to receive assistance under this section

as if the eligible producers on the farm—

 

"( i ) in the case of each insurable commodity of the eligible producers on the farm, had obtained a policy or plan of insurance for the 2008 crop year at a level of coverage not to exceed 70 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage; and

 

"( ii ) in the case of each noninsurable commodity of the eligible producers on the farm, had filed the required paperwork, and paid the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the 2008 crop year, except that in determining the level of coverage, the Secretary shall use 70 percent of the applicable yield.

 

"© EQUITABLE RELIEF.—Except as provided in subparagraph (D), eligible producers on a farm that met the requirements of paragraph ( 1 ) before the deadline described in paragraph (4)(A) and are eligible to receive, a disaster assistance payment under this section for a production loss during the 2008 crop year shall be eligible to receive an amount equal to the greater of—

 

"( i ) the amount that would have been calculated under subparagraph ( B ) if the eligible producers on the farm had paid the appropriate fee under that subparagraph; or

 

"( ii ) the amount that would have been calculated under subparagraph ( A ) of subsection ( b )( 3 ) if—

 

"( I ) in clause (i) of that subparagraph, '120 percent’ is substituted for ‘115 percent’; and

 

‘‘(II) in clause (ii) of that subparagraph, '125' is substituted for '120 percent'.

 

Question - What does the above mean in "Plain Spoken English ?"

 

"( D ) LIMITATION. - For amounts made available under this paragraph, the Secretary may make such adjustments as are necessary to ensure that no producer receives a

payment under this paragraph for an amount in excess of the assistance received by a similarly situated producer that had purchased the same or higher level of crop insurance

prior to the date of enactment of this paragraph.

 

"( E ) AUTHORITY OF THE SECRETARY. - The Secretary may provide such additional assistance as the Secretary considers appropriate to provide equitable treatment for

eligible producers on a farm that suffered production losses in the 2008 crop year that result in multiyear production losses, as determined by the Secretary.

 

"( F ) LACK OF ACCESS. -Notwithstanding any other provision of this section, the Secretary may provide assistance under this section to eligible producers on a farm

that:

 

"( i ) suffered a production loss due to a natural cause during the 2008 crop year; and

"( ii ) as determined by the Secretary—

"( I ) ( aa ) except as provided in item ( bb ), lack access to a policy or plan of insurance under subtitle A; or

"( bb ) do not qualify for a written agreement because 1 or more farming practices, which the Secretary has determined are good farming practices,

 

of the eligible producers on the farm differ significantly from the farming practices used by producers of the same crop in other regions of

the United States; and

 

"(II) are not eligible for the noninsured crop disaster assistance program established by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333)".

 

In my opinion, this Act really needs a more legible structure to it. I get lost in the clauses and find print

Edited April 27, 2009 by wiley

[Guest Greenzen]

Who may apply

 

Community Programs can make and guarantee loans to develop essential community facilities in rural areas and towns of up to 20,000 in population. Loans and guarantees are available to public entities such as municipalities, counties, and special-purpose districts, as well as to non-profit corporations and tribal governments.

Applicants must have the legal authority to borrow and repay loans, to pledge security for loans, and to construct, operate, and maintain the facilities. They must also be financially sound and able to organize and manage the facility effectively.

 

Repayment of the loan must be based on tax assessments, revenues, fees, or other sources of money sufficient for operation and maintenance, reserves, and debt retirement. Feasibility studies are normally required when loans are for start-up facilities or existing facilities when the project will significantly change the borrower’s financial operations. The feasibility study should be prepared by an independent consultant with recognized expertise in the type of facility being financed.

 

Community Programs can guarantee loans made and serviced by lenders such as banks, savings and loans, mortgage companies which are part of bank holding companies, banks of the Farm Credit System, or insurance companies regulated by the National Association of Insurance Commissioners. Community Programs may guarantee up to 90% of any loss of interest or principal on the loan. Community Programs can also make direct loans to applicants who are unable to obtain commercial credit.

 

Fund Uses

 

Loan funds may be used to construct, enlarge, or improve community facilities for health care, public safety, and public services. This can include costs to acquire land needed for a facility, pay necessary professional fees, and purchase equipment required for its operation. For examples of essential community facilities click here.

 

Refinancing existing debts may be considered an eligible direct or guaranteed loan purpose if the debt being refinanced is a secondary part of the loan, is associated with the project facility, and if the applicant’s creditors are unwilling to extend or modify terms in order for the new loan to be feasible.

 

Rates & Terms

 

For the direct loan program there are three levels of interest rates available (poverty, intermediate, and market) each on a fixed basis. The poverty rate is set at 4.5%. The market rate is indexed to the eleventh bond buyers rate as determined by the U. S. Treasury Department. The intermediate rate is set halfway between the market and the poverty rates. Eligibility for these different interest rates is determined by the median household income (MHI) of the area being served and the type of project. The intermediate and market interest rates are adjusted quarterly. Contact your Rural Development State Office to determine the eligible interest rate for your area.

 

For the guaranteed loan program, the interest rate is the lender's customary interest rate for similar projects. The interest rates for guaranteed loans may be fixed or variable and are determined by the lender and borrower, subject to HCFP review and approval.

 

Loan repayment terms may not exceed the applicant's authority (under State law or organizational structure), the useful life of the facility, or a maximum 40 years.

 

Security Requirements

 

Bonds or notes pledging taxes, assessments, or revenues will be accepted as security if they meet statutory requirements. Where State laws permit, a mortgage may be taken on real and personal property. Tax-exempt notes or bonds may be issued to secure direct loans, but cannot be used for guaranteed loans.

 

Application Processing

 

Applications are handled by USDA Rural Development field offices. Rural Development staff will be glad to discuss a community's needs and the services available from HCFP and other agencies within USDA. Field staff can provide application materials and current program information, and assist in the preparation of an application.

 

The CF application process is a two-stage procedure (preapplication and application). Approximately 45 days is required to determine applicant eligibility, project priority status, and funding availability. After an application is submitted, time to process the application depends upon the scope of the project, environmental review, and legal issues.