Deferment of payments for borrowers of farm loans

(a) Definitions In this section: (1) Covered producer The term covered producer means— (A) a limited resource farmer or rancher (as defined in section 718.2 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act)); (B) a socially disadvantaged farmer or rancher (as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a))); (C) a beginning farmer or rancher (as defined in that section); and (D) a veteran farmer or rancher (as defined in that section). (2) Eligible borrower The term eligible borrower means a borrower that is a farmer or rancher that is— (A) delinquent, as described in the definition of the term delinquent borrower in section 761.2(b) of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act); or (B) financially distressed, as described in the definition of the term financially distressed borrower in section 761.2(b) of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act). (3) Farm loan The term farm loan means a direct or guaranteed— (A) farm ownership loan under subtitle A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.); (B) operating loan under subtitle B of that Act (7 U.S.C. 1941 et seq.); or (C) emergency loan under subtitle C of that Act (7 U.S.C. 1961 et seq.). (4) Secretary The term Secretary means the Secretary of Agriculture. (b) Deferment of payments on direct farm loans (1) In general The Secretary shall— (A) defer payments of principal and interest due on direct farm loans by eligible borrowers during the 2-year period beginning on the date of enactment of this Act; and (B) extend by 2 years the maturity date and repayment period of each direct farm loan the payments on which are deferred under subparagraph (A). (2) Exclusion Paragraph (1) does not apply to a direct farm loan the term of which is 12 months or less. (3) Authority to exceed loan maturity dates In extending a date under paragraph (1)(B), the Secretary may exceed by not more than 2 years— (A) the maximum period of repayment described in section 307 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927) for a farm ownership loan under subtitle A of that Act (7 U.S.C. 1922 et seq.); (B) the maximum period of repayment described in section 316(b) of that Act (7 U.S.C. 1946(b)) for an operating loan under subtitle B of that Act (7 U.S.C. 1941 et seq.); and (C) the maximum period of repayment described in section 324(d) of that Act (7 U.S.C. 1964(d)) for an emergency loan under subtitle C of that Act (7 U.S.C. 1961 et seq.). (c) Interest rate during deferral The Secretary shall modify each direct farm loan of an eligible borrower that is outstanding as of the date of enactment of this Act such that the interest rate on all remaining principal of the farm loan is 0.125 percent during the 2-year period beginning on that date of enactment. (d) Waiver of guaranteed farm loan fees for covered producers (1) In general The Secretary shall require lenders of guaranteed farm loans to covered producers to waive guarantee fees (as described in section 762.130(d)(4) of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act)) on those loans during the period— (A) beginning on the date of enactment of this Act; and (B) ending not earlier than 2 years after that date of enactment. (2) Extension The Secretary may extend a deadline under paragraph (1)(B) by an additional 180 days if the Secretary determines the extension to be necessary.