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LegalText 7 U.S.C. § 1925 Limitations on amount of farm ownership loans us united_states_code code_section 7 AGRICULTURE 50 AGRICULTURAL CREDIT 1925 7 U.S.C. § 1925 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc07@119-100.zip /us/usc/t7/s1925 data/legal/raw/us/code/title-07/usc07.xml 0cc09da4a1ace7c52d09cdb327f09fa1d8112ca9e6a7599323f8faca49056c33 50edab1679a711653797362c0aeb8f2273303fe473fb7fa16df1ee76bdd6e984 992b1055f38695dba08e31a9cb6ded5fbf64994987f1e1ce97054b742aeca4d6 2026-07-04 official
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7 U.S.C. § 1925 - Limitations on amount of farm ownership loans

Text

(a) In general The Secretary shall make or insure no loan under sections 1922, 1923, 1924, 1934, and 1935 of this title that would cause the unpaid indebtedness under such sections of any one borrower to exceed the smaller of (1) the value of the farm or other security, or (2) in the case of a loan other than a loan guaranteed by the Secretary, $600,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary).

(b) Determination of value In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.

(c) Inflation percentage For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—

(1) the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year; exceeds

(2) the average of such index (as so defined) for the 12-month period that immediately precedes the 12-month period described in paragraph (1).

(Pub. L. 87128, title III, § 305, Aug. 8, 1961, 75 Stat. 308; Pub. L. 91620, § 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92419, title I, § 103, Aug. 30, 1972, 86 Stat. 658; Pub. L. 91524, title VIII, § 807, as added Pub. L. 9386, § 1(27)(B), Aug. 10, 1973, 87 Stat. 237; Pub. L. 95334, title I, § 103, Aug. 4, 1978, 92 Stat. 421; Pub. L. 102554, § 3, Oct. 28, 1992, 106 Stat. 4142; Pub. L. 105277, div. A, § 101(a) [title VIII, § 806(a)], Oct. 21, 1998, 112 Stat. 2681, 268139; Pub. L. 110234, title V, § 5003, May 22, 2008, 122 Stat. 1144; Pub. L. 110246, § 4(a), title V, § 5003, June 18, 2008, 122 Stat. 1664, 1905; Pub. L. 115334, title V, § 5103, Dec. 20, 2018, 132 Stat. 4669.)

Notes

Editorial Notes

Codification Pub. L. 110234 and Pub. L. 110246 made identical amendments to this section. The amendments by Pub. L. 110234 were repealed by section 4(a) of Pub. L. 110246.

Amendments2018—Subsec. (a)(2). Pub. L. 115334, § 5103(1), substituted “$600,000” for “$300,000”, “$1,750,000” for “$700,000”, and “2019” for “2000”. Subsec. (c)(1). Pub. L. 115334, § 5103(2)(A), substituted “July” for “August”. Subsec. (c)(2). Pub. L. 115334, § 5103(2)(B), substituted “that immediately precedes the 12-month period described in paragraph (1)” for “ending on August 31, 1996”. 2008—Subsec. (a)(2). Pub. L. 110246, § 5003, substituted “$300,000” for “$200,000”. 1998—Pub. L. 105277 inserted section catchline, designated first sentence as subsec. (a), inserted heading, and substituted “$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary)” for “$300,000”, designated second sentence as subsec. (b) and inserted heading, and added subsec. (c). 1992—Pub. L. 102554 inserted reference to section 1935 of this title. 1978—Pub. L. 95334 substituted provisions setting forth requirements for loans under sections 1922, 1923, 1924, and 1934 of this title for provisions setting forth requirements for loans under sections 1922, 1923, and 1924 of this title. 1973—Pub. L. 91524, § 807, as added by Pub. L. 9386, substituted “$225,000” for “$100,000” in cl. (a), added cl. (b), and redesignated former cl. (b) as (c). 1972—Pub. L. 92419 struck out “normal” before “value” in first and second sentences and before “market value” in last sentence. 1970—Pub. L. 91620 substituted “$100,000” for “$60,000”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110234 by Pub. L. 110246 effective May 22, 2008, the date of enactment of Pub. L. 110234, see section 4 of Pub. L. 110246, set out as an Effective Date note under section 8701 of this title.