Rule2025-12877
Removal of Unconstitutional Preferences Based on Race and Sex in Response to Court Ruling
Primary source
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Published
July 10, 2025
Effective
July 10, 2025
Issuing agencies
Agriculture DepartmentFederal Crop Insurance CorporationNatural Resources Conservation ServiceFarm Service AgencyCommodity Credit CorporationRural Business-Cooperative ServiceRural Housing ServiceRural Utilities Service
Abstract
The U.S. Department of Agriculture (USDA) has independently determined that it will no longer employ the race- and sex-based "socially disadvantaged" designation to provide increased benefits based on race and sex in the programs at issue in this regulation. The USDA has faced a long history of litigation stemming from allegations of discrimination in the administration of its farm loan and benefit programs. However, over the past several decades, USDA has undertaken substantial efforts to redress past injustices, culminating in comprehensive settlements, institutional reforms, and compensatory frameworks. These actions collectively support the conclusion that past discrimination has been sufficiently addressed and that further race- and sex-based remedies are no longer necessary or legally justified under current circumstances.
Full Text
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[Federal Register Volume 90, Number 130 (Thursday, July 10, 2025)]
[Rules and Regulations]
[Pages 30555-30561]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12877]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 90, No. 130 / Thursday, July 10, 2025 / Rules
and Regulations
[[Page 30555]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 9
Federal Crop Insurance Corporation
7 CFR Part 400
Natural Resources Conservation Service
7 CFR Part 636
Farm Service Agency
7 CFR Parts 760, 761, 762, and 767
Commodity Credit Corporation
7 CFR Parts 1410, 1465, 1467, and 1468
Rural Business-Cooperative Service
7 CFR Parts 4280 and 5001
Rural Housing Service
7 CFR Part 5001
Rural Utilities Service
7 CFR Part 5001
[Docket No. USDA-2024-0002]
RIN 0503-AA87
Removal of Unconstitutional Preferences Based on Race and Sex in
Response to Court Ruling
AGENCY: Office of the Secretary, Federal Crop Insurance Corporation,
Natural Resources Conservation Service, Farm Service Agency, Commodity
Credit Corporation, Rural Business-Cooperative Service, Rural Housing
Service, and Rural Utilities Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Agriculture (USDA) has independently
determined that it will no longer employ the race- and sex-based
``socially disadvantaged'' designation to provide increased benefits
based on race and sex in the programs at issue in this regulation.
The USDA has faced a long history of litigation stemming from
allegations of discrimination in the administration of its farm loan
and benefit programs. However, over the past several decades, USDA has
undertaken substantial efforts to redress past injustices, culminating
in comprehensive settlements, institutional reforms, and compensatory
frameworks. These actions collectively support the conclusion that past
discrimination has been sufficiently addressed and that further race-
and sex-based remedies are no longer necessary or legally justified
under current circumstances.
DATES: Effective July 10, 2025.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Poe, Office of the General
Counsel, USDA, 1400 Independence Avenue SW, Washington, DC 20250-1400,
(202) 769-8247.
SUPPLEMENTARY INFORMATION: Over the years, USDA has acknowledged and
confronted its history of discrimination in the administration of
federal farm loan and benefit programs through a series of lawsuits
brought by minority and female farmers. Courts and Congress have
examined claims of disparate treatment and unequal access to credit and
services. These proceedings have resulted in landmark settlements,
meaningful reforms, and the disbursement of substantial compensatory
relief.
Litigation addressing discrimination by USDA-affiliated entities
dates to the early 1970s. In Strain v. Philippot, 331 F. Supp. 836
(M.D. Ala. 1971) a federal court entered a consent decree to address
claims of racially discriminatory employment and service delivery
practices within the Alabama Cooperative Extension Service (ACES). The
plaintiffs, all black citizens of Alabama, included an employee of ACES
and other rural residents who were beneficiaries or potential
beneficiaries of extension services in Alabama.
The court determined that racial discrimination had influenced the
employment practices and service distribution of the defendants,
necessitating a detailed and specific decree. This decree not only
prohibited discriminatory practices but also established procedures to
prevent future discrimination and address the effects of past
inequities. The case set a precedent for judicial intervention in USDA-
related civil rights matters and underscored USDA's willingness to
engage in meaningful reforms to ensure equitable access and treatment
for all.
In the mid-1990s, lawsuits such as Williams v. Glickman, 936 F.
Supp. 1 (D.D.C. 1996) raised serious allegations of racial bias in USDA
loan programs. The plaintiffs in this case alleged racial and national
origin discrimination by the Farmers Home Administration (FmHA), a
credit agency within USDA, in its administration of farm loans. They
sought damages and equitable relief under the Equal Credit Opportunity
Act and the Fifth Amendment and filed a motion for class certification,
seeking to represent a broader group of individuals allegedly affected
by discriminatory practices. However, after reviewing the arguments,
evidence, and legal standards, the court denied the motion for class
certification.
Although these early claims were dismissed for procedural reasons,
they laid the foundation for the class-action case Pigford v. Glickman,
182 FRD. 341 (D.D.C. 1998) filed on behalf of black farmers who had
been systematically excluded from USDA credit programs between 1981 and
1996. The Pigford settlement, approved by the court in 1999, provided
over $1 billion in payments and debt relief. It also imposed
institutional reforms within USDA, including strengthened civil rights
oversight and improved loan processing procedures with a consent decree
establishing a system for notice, claims submission, consideration, and
review that involved a facilitator, arbitrator, adjudicator, and
monitor, all with assigned responsibilities.
In 2004, the Black Farmers and Agriculturalists Association (BFAA)
filed a $20.5 billion class action lawsuit against the USDA for the
same practices, alleging racially discriminatory practices between 1997
and 2004. The lawsuit was dismissed when the BFAA failed to show it had
standing to bring the suit.
Recognizing that many eligible claimants were excluded from the
[[Page 30556]]
original Pigford settlement due to missed deadlines, Congress enacted
legislation authorizing the Pigford II settlement in 2010. This
legislation appropriated an additional $1.25 billion to allow late
filers to seek relief under a non-judicial claims process. These
efforts underscored a bipartisan consensus that the legacy of
discrimination required not only financial redress but also structural
reform.
Similar allegations were addressed in Keepseagle v. Vilsack, No.
1:99-cv-03119 (D.D.C. filed Nov. 24, 1999) (settled), brought by Native
American farmers who faced comparable disparities in USDA credit
services. The 2010 settlement in that case provided up to $760 million
in relief and further commitments to reform agency outreach and support
for Native communities. Although other lawsuits, including Garcia v.
Vilsack (filed by Hispanic farmers) and Love v. Vilsack (filed by
female farmers), did not achieve class certification, they nonetheless
spurred USDA to create additional administrative processes for
reviewing and compensating individual claims. These responses
collectively reflected a broad institutional effort to correct past
practices and ensure equitable access moving forward.
These actions collectively demonstrate USDA's substantial and
sustained efforts to identify, acknowledge, and correct historical
discrimination in its programs. The Department has implemented billions
of dollars in settlement compensation, restructured its civil rights
offices, and improved transparency, access, and service delivery.
Courts have consistently affirmed that targeted relief, rather than
open-ended racial or sex-based preferences, are the appropriate remedy
for past discrimination.
In Strickland v. USDA, white farmers challenged USDA disaster and
pandemic relief programs that targeted socially disadvantaged groups.
The plaintiffs argued that the use of race and sex as criteria violated
the Equal Protection Clause. Emphasizing an emerging judicial scrutiny
of remedial race-based classifications, particularly considering
Supreme Court precedent clarifying constitutional limits on affirmative
action, the Court preliminarily enjoined the relief programs that
included race- and sex-based preferences. Strickland v. United States
Dep't of Agric., 736 F. Supp. 3d 469 (N.D. Tex. 2024).
In alignment with the Strickland court's June 7, 2024, decision,
USDA has concluded that the use of discretionary policy choices, made
under the rubric of the statutory authorities for the programs
identified in the table below, is inconsistent with constitutional
principles and the administration's policy objectives.
----------------------------------------------------------------------------------------------------------------
Program title Description CFR citation
----------------------------------------------------------------------------------------------------------------
Pandemic Assistance Programs..... 7 CFR Part 9 outlines the Pandemic Assistance 7 CFR Part 9.
Programs, specifically the Coronavirus Food
Assistance Program (CFAP) and the Pandemic
Assistance Revenue Program (PARP), designed
to support agricultural producers impacted
by the COVID-19 pandemic. These programs aim
to compensate for revenue losses incurred
during 2020 due to pandemic-related
disruptions.
General Administrative 7 CFR Part 400 contains the general 7 CFR Part 400.
Regulations. administrative regulations for the Federal
Crop Insurance Corporation (FCIC). These
regulations cover various aspects of the
crop insurance program, including
eligibility, policy submissions, production
reporting, and appeals processes. The part
is divided into several subparts, each
addressing specific areas of the program.
Wildlife Habitat Incentive The Wildlife Habitat Incentives Program, 7 CFR Part 636.
Program. governed by 7 CFR Part 636, is a program
designed to encourage private landowners to
develop and improve fish and wildlife
habitat on their land. This voluntary
program offers financial and technical
assistance for conservation practices on
eligible lands, including agricultural land,
nonindustrial private forest land, and
Indian land.
Indemnity Payment Programs....... Indemnity Payment Programs administered by 7 CFR Part 760.
the Farm Service Agency provide financial
assistance to producers who have suffered
losses due to natural disasters or other
qualifying events.
Farm Loan Programs; General 7 CFR Part 761 outlines the general program 7 CFR Part 761.
Program Administration. administration for Farm Loan Programs
offered by the Farm Service Agency. This
section covers both direct and guaranteed
loan programs, detailing policies and
procedures for loan making, servicing, and
debt settlement. It also addresses issues
relevant to both types of loans, such as
farm operating plans, progression lending,
and fund allocations.
Guaranteed Farm Loans............ This subpart contains regulations governing 7 CFR Part 762.
Operating loans, Farm Ownership loans, and
Conservation loans guaranteed by the Agency.
This subpart applies to lenders, holders,
borrowers, Agency personnel, and other
parties involved in making, guaranteeing,
holding, servicing, or liquidating such
loans.
Inventory Property Management.... 7 CFR Part 767 outlines the regulations 7 CFR Part 767.
governing the management, lease, and sale of
inventory property acquired by the Farm
Service Agency, usually because of loan
issues with borrowers. This acquisition can
happen either by foreclosure or deed in lieu
of foreclosure. The core policy is to manage
and sell inventory property to protect the
Agency's financial interest, although the
Agency may opt to lease acquired property in
specific situations.
Conservation Reserve Program..... The goals of the Conservation Reserve Program 7 CFR Part 1410.
include cost-effectively reducing water and
wind erosion, and protecting the Nation's
long-term capability to produce food and
fiber by establishing contracts with
eligible producers to convert eligible land
to an approved cover during the contract
period in return for financial and technical
assistance.
Agricultural Management Agricultural Management Assistance provides 7 CFR Part 1465.
Assistance. financial assistance funds annually to
producers in 16 statutorily designated
States to improve water management and
quality, plant trees, and mitigate risk
through production diversification,
conservation practices, pest management, or
the transition to organic farming.
Wetlands Reserve Program......... The Wetlands Reserve Program aims to provide 7 CFR Part 1467.
technical and financial assistance to
eligible landowners for the restoration,
protection, and enhancement of wetlands on
eligible private and Tribal lands.
Agricultural Conservation ACEP is a voluntary program administered by 7 CFR Part 1468.
Easement Program. the USDA's Natural Resources Conservation
Service aimed at assisting farmers,
ranchers, and other eligible entities in
preserving agricultural lands and restoring,
protecting, and enhancing wetlands on
eligible lands.
[[Page 30557]]
Loans and Grants................. These programs aim to support rural 7 CFR Part 4280.
communities through financial assistance for
economic development, energy projects, and
small businesses. They include the Rural
Economic Development Loan and Grant Program,
the Rural Energy for America Program, the
Rural Microentrepreneur Assistance Program,
and Rural Business Development Grants.
Guaranteed Loans................. The Guaranteed Loan Programs provide loan 7 CFR Part 5001.
guarantees to lenders, enabling them to
extend credit to rural businesses,
agricultural producers, and communities for
various projects. The regulations cover
eligibility for projects, borrowers, and
lenders, as well as loan origination,
servicing, and guarantee provisions.
----------------------------------------------------------------------------------------------------------------
Moving forward, USDA will no longer apply race- or sex-based
criteria in its decision-making processes, ensuring that its programs
are administered in a manner that upholds the principles of
meritocracy, fairness, and equal opportunity for all participants.
This decision aligns with recent federal directives emphasizing the
importance of equal protection under the law and merit-based
opportunity. On January 20, 2025, President Trump issued Executive
Order 14148, ``Initial Recissions of Harmful Executive Orders and
Actions,'' which revoked prior executive orders that advanced racial
equity and support for underserved communities through race- and sex-
based preferences. The following day, Executive Order 14173, ``Ending
Illegal Discrimination and Restoring Merit-Based Opportunity,'' was
issued, declaring that it is the policy of the United States to protect
civil rights, promote individual initiative, and eliminate all
discriminatory and illegal preferences, mandates, policies, programs,
and activities. This order directed all executive departments and
agencies to terminate mandates and programs that rely on criteria such
as ``diversity,'' ``equity,'' ``advancing equity,'' or similar
frameworks.
On February 5, 2025, Attorney General Bondi issued a memorandum
titled ``Eliminating Internal Discriminatory Practices,'' which
reinforced the commitment to ensuring equal protection under the law.
The memorandum emphasized that eliminating racial discrimination
requires eliminating all forms of it and directed federal agencies to
evaluate their practices and policies to ensure alignment with the
principles of equal dignity and respect.
Accordingly, with respect to the programs at issue in this
rulemaking, USDA has transitioned to race- and sex-neutral frameworks
to ensure compliance with constitutional principles and the equal
protection of all farmers and ranchers under the law. This regulatory
action reflects that transition. It affirms that USDA, going forward,
lacks a compelling interest in redressing instances of historical
discrimination because of the progress achieved through USDA's
extensive settlement processes and structural reforms. Future
programmatic relief will be administered without regard to race or sex,
in accordance with the law and the principles of fairness.
Procedural Matters
Pursuant to 5 U.S.C. 553(a)(2), the provisions of the
Administrative Procedure Act requiring notice of proposed rulemaking
and the opportunity for public participation are inapplicable to this
final rule because this rule relates to ``personnel or public property,
loans, grants, benefits, or contracts.'' In addition, the Strickland
decision catalyzed the changes USDA is making in this rule to comport
with the Constitution. Therefore, this final rule is being issued
without notice and comment.
Executive Order 12866
Analyzing the economic impact of this rule involves comparing the
proposed change with an analytic baseline. Since the court ruling in
Strickland v. USDA, USDA has not provided special consideration based
on race or gender. Therefore, this rule results in no economic effect
relative to a baseline in which current practice is extended into the
future.
This rule has been determined to be significant for the purposes of
Executive Order 12866 and was submitted to the Office of Information
and Regulatory Affairs for review.
Congressional Review Act
This final rule is not major under the Congressional Review Act (5
U.S.C. 801 et seq.).
Regulatory Flexibility Act
The provisions of the Regulatory Flexibility Act relating to an
initial and final regulatory flexibility analysis (5 U.S.C. 603, 604)
are not applicable to this final rule because USDA was not required to
publish notice of proposed rulemaking under 5 U.S.C. 553 or any other
law.
Paperwork Reduction Act
The purpose of the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C.
3501 et seq., includes minimizing the paperwork burden on affected
entities. The PRA requires certain actions before an agency can adopt
or revise a collection of information, including publishing for public
comment a summary of the collection of information and a brief
description of the need for and proposed use of the information.
A Federal agency may not conduct or sponsor a collection of
information unless it is approved by the Office of Management and
Budget (OMB) under the PRA and it displays a currently valid OMB
control number. The public is also not required to respond to a
collection of information unless it displays a currently valid OMB
control number. In addition, notwithstanding any other provisions of
law, no person will be subject to penalty for failing to comply with a
collection of information if the collection of information does not
display a currently valid OMB control number (44 U.S.C. 3512).
This rulemaking potentially affects existing information
collections related to the grant and loan programs listed in the table
included in the preamble. USDA will obtain OMB approval for any changes
to these collections prior to their adoption.
Severability
While many provisions of this final rule reinforce each other, USDA
intends for each provision to stand on its own merit and be severable.
If any part of this final rule is declared invalid or stayed, USDA
intends for the remaining provisions to remain valid and enforceable.
USDA would separately adopt all of the provisions contained in this
final rule.
List of Subjects
7 CFR Part 9
Agricultural commodities, Agriculture, Disaster assistance,
Indemnity payments.
[[Page 30558]]
7 CFR Part 400
Administrative practice and procedure, Crop insurance.
7 CFR Part 636
Administrative practice and procedure, Agriculture, Conservation,
Endangered and threatened species, Natural resources, Soil
conservation, Wildlife.
7 CFR Part 760
Acreage allotments, Dairy products, Indemnity payments, Pesticides
and pests, Reporting and recordkeeping requirements.
7 CFR Part 761
Loan programs--Agriculture.
7 CFR Part 762
Agriculture, Credit, Loan programs--Agriculture.
7 CFR Part 767
Agriculture, Credit, Loan programs--Agriculture.
7 CFR Part 1410
Acreage allotments, Agriculture, Environmental protection, Natural
resources, Reporting and recordkeeping requirements, Soil conservation,
Technical assistance, Water resources, Wildlife.
7 CFR Part 1465
Conservation contract, Conservation plan, Conservation practices,
Soil and water conservation.
7 CFR Part 1467
Administrative practice and procedure, Agriculture, Soil
conservation, Wetlands.
7 CFR Part 1468
Agricultural, Flood Plains, Grazing lands, Natural resources, Soil
conservation, Wildlife.
7 CFR Part 4280
Business and industry, Community development, Economic development,
Grant programs--housing and community development, Loan programs--
housing and community programs, Reporting and recordkeeping
requirements, Rural areas.
7 CFR Part 5001
Business and industry, Community facilities, Energy efficiency
improvement, Loan programs, Renewable energy, Rural areas, Rural
development, Water and waste disposal.
Accordingly, for the reasons stated in the preamble, USDA amends 7
CFR parts 9, 400, 636, 760, 761, 762, 767, 1410, 1465, 1467, 1468,
4280, and 5001 as follows:
PART 9--PANDEMIC ASSISTANCE PROGRAMS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 15 U.S.C. 714b and 714c; Division B, Title I, Pub.
L. 116-136, 134 Stat. 505; and Division N, Title VII, Subtitle B,
Chapter 1, Pub. L. 116-260.
0
2. Amend Sec. 9.203 by revising paragraph (p) to read as follows:
Sec. 9.203 Calculation of payments.
* * * * *
(p) An additional payment equal to 15 percent of a producer's CFAP
2 payment calculated according to paragraphs (a) through (k) of this
section will be issued to producers who have certified their status as
a beginning farmer or rancher, limited resource farmer or rancher, or
veteran farmer or rancher applicable to the 2020 program year on CCC-
860.
0
3. Amend Sec. 9.306 by revising paragraphs (a)(1)(iii)(A) and
(b)(1)(iii)(A) to read as follows:
Sec. 9.306 Payment calculation.
(a) * * *
(1) * * *
(iii) * * *
(A) Ninety (90) percent for a beginning farmer or rancher, limited
resource farmer or rancher, or veteran farmer or rancher, who has
submitted form CCC-860 certifying they meet the definition for at least
one of the applicable groups; or
* * * * *
(b) * * *
(1) * * *
(iii) * * *
(A) 90 percent for a beginning farmer or rancher, limited resource
farmer or rancher, or veteran farmer or rancher, who has submitted form
CCC-860 certifying they meet the definition for at least one of the
applicable groups; or
* * * * *
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
0
4. The authority citation for part 400 continues to read as follows:
Authority: 7 U.S.C. 1506(1), 1506(o).
0
5. Amend Sec. 400.705 by revising paragraph (c)(3) to read as follows:
Sec. 400.705 Contents for new and changed 508(h) submissions, concept
proposals, and index-based weather plans of insurance.
* * * * *
(c) * * *
(3) A detailed description of the coverage provided by the 508(h)
submission and its applicability to all producers, including those who
are considered small, beginning and limited resource or other specific
aspects designated by FCIC for review.
* * * * *
PART 636--WILDLIFE HABITAT INCENTIVE PROGRAM
0
6. The authority citation for part 636 continues to read as follows:
Authority: 16 U.S.C. 3839bb-1.
0
7. Amend Sec. 636.7 by revising paragraph (a)(2) to read as follows:
Sec. 636.7 Cost-share payments.
(a) * * *
(2) An eligible person, joint operation, legal entity, or Indian
tribe who is a beginning farmer or rancher, limited resource farmer or
rancher, or NIPF landowner who meets the beginning or limited resource
qualifications set forth in Sec. 636.3, and Indian tribes may receive
the applicable payment rate and an additional rate that is not less
than 25 percent above the applicable rate, provided that this increase
does not exceed 90 percent of the estimated costs associated with WHIP
plan of operations implementation.
* * * * *
PART 760--INDEMNITY PAYMENT PROGRAMS
0
8. The authority citation for part 760 continues to read as follows:
Authority: 7 U.S.C. 4501 and 1531; 16 U.S.C. 3801, note; 19
U.S.C. 2497; Title III, Pub. L. 109-234, 120 Stat. 474; Title IX,
Pub. L. 110-28, 121 Stat. 211; Sec. 748, Pub. L. 111-80, 123 Stat.
2131; Title I, Pub. L. 115-123, 132 Stat. 65; Title I, Pub. L. 116-
20, 133 Stat. 871; Division B, Title VII, Pub. L. 116-94, 133 Stat.
2658; Title I, Pub. L. 117-43, 135 Stat. 356; and Division N, Title
I, Pub. L. 117-328, 136 Stat. 4459; Division B, Title I, Pub. L.
118-158, 138 Stat. 1722.
0
9. Amend Sec. 760.1704 by revising paragraph (a) introductory text to
read as follows:
Sec. 760.1704 Payments to dairy farmers for milk.
(a) A milk loss payment will be made to an affected farmer who is
determined by the FSA county committee to be in compliance with all the
terms and conditions of this subpart in the amount equal to 90 percent
for a beginning farmer or rancher, limited resource farmer or rancher,
or veteran farmer or rancher or 75 percent for all other affected
farmers of the fair market value
[[Page 30559]]
of the farmer's normal marketings for the application period, less:
* * * * *
0
10. Amend Sec. 760.1905 by revising paragraph (d) to read as follows:
Sec. 760.1905 Payment calculation.
* * * * *
(d) After the close of the ERP Phase 2 application period, FSA will
issue a final payment equal to the amount calculated according to this
section minus the amount of the producer's initial payment. If total
calculated payments exceed the total funding available for ERP Phase 2,
the ERP factor may be adjusted and the final payment amounts will be
prorated to stay within the amount of available funding. If there are
insufficient funds, a differential of 15 percent will be used for a
beginning farmer or rancher, limited resource farmer or rancher, or
veteran farmer or rancher similar to ERP Phase 1, but with a cap at the
statutory maximum of 70 percent. For example, if the ERP Factor is set
at 50 percent, the factor used for a beginning farmer or rancher,
limited resource farmer or rancher, or veteran farmer or rancher will
be 65 percent, but if the factor is set at 55 percent or higher, the
factor for a beginning farmer or rancher, limited resource farmer or
rancher, or veteran farmer or rancher will be capped at 70 percent.
* * * * *
PART 761--FARM LOAN PROGRAMS; GENERAL PROGRAM ADMINISTRATION
0
11. The authority citation for part 761 continues to read as follows:
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
0
12. Amend Sec. 761.211 by revising paragraph (a) to read as follows:
Sec. 761.211 Transfer of funds.
* * * * *
(a) August 1 of each fiscal year, the Agency will use available
unsubsidized guaranteed OL loan funds to make approved direct FO loans
to beginning farmers under the Down payment loan program; and
* * * * *
PART 762--GUARANTEED FARM LOANS
0
13. The authority citation for part 762 continues to read as follows:
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
0
14. Amend Sec. 762.129 by:
0
a. Adding the word ``or'' at the end of paragraph (b)(1)(iv);
0
b. Removing paragraph (b)(1)(v);
0
c. Redesignating paragraph (b)(1)(vi) as paragraph (b)(1)(v); and
0
d. Revising paragraph (b)(2).
The revision reads as follows:
Sec. 762.129 Percent of guarantee and maximum loss.
* * * * *
(b) * * *
(2) For CLs, the guarantee will be issued at 80 percent; however,
the guarantee will be issued at 90 percent if the applicant is a
qualified beginning farmer.
* * * * *
0
15. Amend Sec. 762.130 by revising paragraph (d)(4)(iii)(C) to read as
follows:
Sec. 762.130 Loan approval and issuing the guarantee.
* * * * *
(d) * * *
(4) * * *
(iii) * * *
(C) Loans to beginning or veteran farmers involved in the direct
Down Payment Loan Program or beginning farmers participating in a
qualified State Beginning Farmer Program.
* * * * *
PART 767--INVENTORY PROPERTY MANAGEMENT
0
16. The authority citation for part 767 continues to read as follows:
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
0
17. Amend Sec. 767.101 by revising paragraphs (a)(2), (c)(2), (d)(3),
and (g) to read as follows:
Sec. 767.101 Leasing real estate inventory property.
(a) * * *
(2) To a beginning farmer selected to purchase the property but who
was unable to purchase it because of a lack of Agency direct or
guaranteed loan funds;
* * * * *
(c) * * *
(2) A maximum of 18 months to a beginning farmer the Agency
selected as purchaser when no Agency loan funds are available; or
* * * * *
(d) * * *
(3) On a crop-share basis, if the lessee is a beginning farmer
under paragraph (a) of this section.
* * * * *
(g) Only leases to a beginning farmer or Homestead Protection
Program participant will contain an option to purchase the property.
0
18. Amend Sec. 767.152 by revising paragraph (a) to read as follows:
Sec. 767.152 Exceptions.
* * * * *
(a) If the Agency leases real estate inventory property to a
beginning farmer in accordance with Sec. 767.101(a)(2), and the lease
expires, the Agency will not advertise the property if the Agency has
direct or guaranteed loan funds available to finance the transaction.
* * * * *
0
19. Amend Sec. 767.153 by revising paragraph (b)(3) to read as
follows:
Sec. 767.153 Sale of real estate inventory property.
* * * * *
(b) * * *
(3) All purchasers who are not beginning farmers make a 10 percent
down payment.
* * * * *
PART 1410--CONSERVATION RESERVE PROGRAM
0
20. The authority citation for part 1410 continues to read as follows:
Authority: 15 U.S.C. 714b and 714c; 16 U.S.C. 3801-3847.
0
21. Amend Sec. 1410.5 by revising paragraph (b) to read as follows:
Sec. 1410.5 Eligible persons.
* * * * *
(b) The provisions of this section do not apply to beginning, or
veteran farmers or ranchers who are eligible participants in the
Transition Incentives Program as specified in Sec. 1410.64.
0
22. Amend Sec. 1410.33 by revising paragraph (a)(4) to read as
follows:
Sec. 1410.33 Contract modifications.
(a) * * *
(4) During the last 2 years of the CRP contract period, facilitate
a transition of land subject to the contract to a beginning or veteran
farmer or rancher for the purpose of returning some or all of the land
into production using sustainable grazing or crop production methods.
For purposes of this paragraph (a)(4), ``sustainable grazing and crop
production methods'' will be considered methods that would be designed
as part of an overall plan defined on an ecosystem level to be useful
in the creation of integrated systems of plant and animal production
practices that have a site specific application that would:
(i) Enhance the environment and the natural resource base;
(ii) Use nonrenewable resources efficiently; and
(iii) Sustain the economic viability of the farming operation.
* * * * *
[[Page 30560]]
0
23. Amend Sec. 1410.62 by revising paragraph (f) to read as follows:
Sec. 1410.62 Miscellaneous.
* * * * *
(f) As determined by CCC, incentives may be authorized to foster
opportunities for Indian Tribes and beginning, limited resource, and
veteran farmers and ranchers, and to enhance long-term environmental
goals.
0
24. Amend Sec. 1410.64 by revising paragraphs (a)(2)(i), (a)(5)
introductory text, (a)(5)(i), (b) introductory text, (c), (d), (e), and
(f) to read as follows:
Sec. 1410.64 Transition Incentives Program.
(a) * * *
(2) * * *
(i) Beginning on the date of the end of the CRP contract period,
the land must be sold or leased (under a long-term lease, or a lease
with an option to purchase the land, including a lease with a term of
less than 5 years and an option to purchase the land) to a beginning or
veteran farmer or rancher who will return some or all of the land to
production using sustainable grazing or crop production methods; and
* * * * *
(5) The beginning or veteran farmers or ranchers must:
(i) Certify that they meet the definition of either a beginning or
veteran farmer or rancher as defined in part 718 of this title;
* * * * *
(b) Beginning in the last 2 years of the CRP contract period, the
beginning or veteran farmer or rancher may:
* * * * *
(c) Eligible beginning or veteran farmers or ranchers may be
eligible immediately to re-enroll certain partial field conservation
practices in CRP, in accordance with the conservation plan and the
provisions of this part, following the expiration of the CRP contract,
provided that the beginning or veteran farmer or rancher has control of
the land and meets all other qualifying conditions specified in this
part.
(d) Eligible beginning or veteran farmers or ranchers will be
eligible to enroll land in the Environmental Quality Incentives Program
or the Conservation Stewardship Program, as specified in parts 1466 and
1470 of this chapter, provided that their offer to enroll otherwise
meets all program conditions, and provided that the CRP contract has
expired and the beginning or veteran farmer or rancher is either
leasing or has possession of the property.
(e) As an incentive for selling or leasing land to a beginning or
veteran farmer or rancher who is not a family member of the previous
participants, CCC will pay 2 years of additional CRP annual rental
payments at the same contract rate to the previous participants. The
previous participants must certify in writing that the beginning or
veteran farmer or rancher is not a family member.
(f) The previous participants and the eligible beginning or veteran
farmer or rancher must agree to be jointly and severally responsible
for complying with both the provisions of the Transition Incentives
Program contract and the provisions of this part, and must also agree
to be jointly and severally responsible for any payment adjustments
that may result from violations of the terms or conditions of the
Transition Incentives Program contract or this part.
PART 1465--AGRICULTURAL MANAGEMENT ASSISTANCE
0
25. The authority citation for part 1465 continues to read as follows:
Authority: 7 U.S.C. 1524(b).
0
26. Amend Sec. 1465.23 by revising paragraph (a)(2) to read as
follows:
Sec. 1465.23 Payments.
(a) * * *
(2) In the case of an eligible person, joint operation, or legal
entity who is a beginning farmer or rancher, limited resource farmer or
rancher, or nonindustrial private forest landowner who meets the
beginning or limited resource qualifications set forth in Sec. 1465.3,
the payment rate will be the applicable rate and an additional rate
that is not less than 25 percent above the applicable rate, provided
that this increase does not exceed 90 percent of the estimated incurred
costs or estimated income foregone.
* * * * *
PART 1467--WETLANDS RESERVE PROGRAM
0
27. The authority citation for part 1467 continues to read as follows:
Authority: 16 U.S.C. 3837 et seq.
0
28. Amend Sec. 1467.2 by revising paragraph (g) to read as follows:
Sec. 1467.2 Administration.
* * * * *
(g) The Chief may allocate funds for purposes related to:
Encouraging enrollment by a beginning or limited resource farmer or
rancher as authorized by 16 U.S.C. 3844; special pilot programs for
wetland management and monitoring; acquisition of wetland easements
with emergency funding; cooperative agreements with other Federal or
State agencies for program implementation; coordination of easement
enrollment across State boundaries; coordination of the development of
conservation plans; or, for other goals of the WRP found in this part.
NRCS may designate areas as conservation priority areas where
environmental concerns are especially pronounced and to assist
landowners in meeting nonpoint source pollution requirements and other
conservation needs.
PART 1468--AGRICULTURAL CONSERVATION EASEMENT PROGRAM
0
29. The authority citation for part 1468 continues to read as follows:
Authority: 15 U.S.C. 714b and 714c; 16 U.S.C. 3865-3865d.
0
30. Amend Sec. 1468.2 by revising paragraph (e) to read as follows:
Sec. 1468.2 Administration.
* * * * *
(e) The Chief may allocate funds for purposes related to:
Encouraging enrollment by beginning farmers or ranchers, limited
resource farmers or ranchers, Indian Tribes, and veteran farmers or
ranchers as authorized by 16 U.S.C. 3844; implementing landscape and
related initiatives, special pilot programs for easement management and
monitoring; agreements with other agencies and organizations to assist
with program implementation; coordination of easement enrollment across
State boundaries; coordination of the development of easement plans for
ACEP-WRE or conservation plans for ACEP-ALE; or for other goals of the
ACEP found in this part.
* * * * *
PART 4280--LOANS AND GRANTS
0
31. The authority citation for part 4280 continues to read as follows:
Authority: 7 U.S.C. 1989(a), 7 U.S.C. 2008s.
Sec. 4280.121 [Amended]
0
32. Amend Sec. 4280.121 by:
0
a. Removing ``; or'' at the end of paragraph (h)(3)(i) and adding a
period in its place; and
0
b. Removing and reserving paragraph (h)(3)(ii).
PART 5001--GUARANTEED LOANS
0
33. The authority citation for part 5001 continues to read as follows:
[[Page 30561]]
Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a);
and 7 U.S.C. 8107.
0
34. Amend Sec. 5001.319 by revising paragraph (g)(3) to read as
follows:
Sec. 5001.319 REAP project priority point system.
* * * * *
(g) * * *
(3) The borrower is a veteran or veterans own 20 percent or more in
interest in the borrower. In order to receive points, the borrower must
sign a certification in its application to indicate that the borrower
has veteran status.
* * * * *
Ralph A. Linden,
Acting General Counsel, Office of the General Counsel.
[FR Doc. 2025-12877 Filed 7-9-25; 8:45 am]
BILLING CODE 3410-14-P
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</html>Indexed from Federal Register on July 10, 2025.
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