PUBLIC LAW 102-554—OCT. 28, 1992 106 STAT. 4159

M(bb) provide substantial day-to-day labor and
management of the farm or ranch, consistent with
the practices in the State or county in which the
farm or ranch is located; or

"(IlXaa) in the case of a loan made to a cooperative,
corporation, partnership, or joint operation, will have
members, stockholders, partners, or joint operators,
materially and substantially participate in the oper-
ation of the farm or ranch; and

"(bb) in the case of a loan made to a corporation,
has stockholders, all of whom are qualified beginning
farmers or ranchers;

"(E) who agrees to participate in such loan assessment,
borrower training, and financial management programs as
the Secretary may require;

M(F) who does not own land or who, directly or through
interests in family farm corporations, owns land, the aggre-
gate acreage of which does not exceed 15 percent of the
median acreage of the farms or ranches, as the case may
be, in the county in which the farm or ranch operations
of the applicant are located, as reported in the most recent
census or agriculture taken under section 142 of title 13,
United States Code; and

"(G) who demonstrates that the available resources
of the applicant and spouse (if any) of the applicant are
not sufficient to enable the applicant to continue farming
or ranching on a viable scale.".

SEC. 20. TARGETING OF FUNDS.

(a) FARM OPERATING LOANS FOR BEGINNING FARMERS AND
RANCHERS.—Section 346(b) (7 U.S.C. 1994(b» is amended by adding
at the end the following new paragraph:

"(5XA) In expending funds available for insured operating loans
under subtitle B, including loans made under section 318—

"(i) during the first 6 months of fiscal year 1994, the
Secretary shall reserve not less than 30 percent of the funds
available for the fiscal year to make insured operating loans
to qualified beginning farmers or ranchers;

M(ii) during the first 6 months of each of fiscal years 1995
and 1996, the Secretary shall reserve not less than 40 percent
of the funds available for the fiscal year to make insured
operating loans to qualified beginning farmers or ranchers;
and

"(iii) during the first 6 months of each of fiscal years
1997 and thereafter, the Secretary may reserve not more than
50 percent of the funds available for the fiscal year to make
insured operating loans to qualified beginning farmers or ranch-
ers.

"(B) In each fiscal year described in subparagraph (A), with
regard to the funds not reserved under subparagraph (A), a qualified
beginning farmer or rancher may apply for insured operating loans,
but shall not receive any preference as a result of status as a
qualified beginning fanner or rancher.".

(b) PORTIONS OF FARM OWNERSHIP LOAN GUARANTEE FUNDS
TARGETED TO BEGINNING FARMERS OR RANCHERS.—Section 346(bX2)
(7 U.S.C. 1994(bX2)) is amended by adding at the end the following
new sentence: "Not less than 25 percent of the amounts appro-