
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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 for purposes of this paragraph, but not used shall be 
    reallocated within such 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.)


                               Amendments

    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 section 2279 of this title; title 16 
section 590h.
