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Federal Register / Vol. 86, No. 150 / Monday, August 9, 2021 / Rules and Regulations
2000d7. Sex gender data will be collected in accordance with Title IX of the Education Amendments of 1972 20
U.S.C. 16811688. The intermediary does not need to submit these documents with the application, but will need to make these documents available when requested by FSA. See the Paperwork Reduction Act section below for more information.
HPRP is subject to environmental compliance provisions, which are specified in 7 CFR part 799. Therefore, each intermediary is required to provide FSA with documentation of its process to address environmental issues.
Ultimate Recipient An ultimate recipient is an individual or entity that receives a loan from an intermediarys HPRP revolving loan fund. The eligibility requirements of an ultimate recipient are specified in 7 CFR
part 769 and mirror the requirements that are specified in 7 U.S.C. 1936c. As authorized by 7 U.S.C. 1936ce3, individual heirs and entities who have an undivided ownership interest in a farm that are willing to complete a succession plan as a condition of the loan are eligible to be an ultimate recipient of HPRP loan funds. The intent of HPRP is to help families resolve titles issues on heirs property.
To ensure the HPRP loans are used for this purpose rather than by investors to acquire land, FSA has specified the requirement that an ultimate recipient must be a family member or heir-at-law related by blood or marriage to the previous owner of the real property.

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Intermediaries As specified in 7 U.S.C. 1936cc, HPRP provides loan funds to intermediaries who will re-lend loan funds to individuals and entities with undivided ownership interests in order to resolve ownership and succession issues relating to a farm owned in common by multiple owners. To address these issues, FSA has determined that HPRP loan funds may be used for the following:
To buy out fractional interests held in tenancy in common by other heirs in jointly-owned property, and To pay for costs associated with developing and implementing a succession plan such as closing costs, appraisals, title searches, surveys, preparing documents, mediation, and legal services.
After researching the heirs property issue, FSA believes these loan purposes will help ultimate recipients resolve title issues by financing the purchase of property interests and paying to finance
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the many related costs associated with implementing a succession plan.
In 7 CFR part 769, and as specified in 7 U.S.C. 1936cb, FSA requires that the intermediary have experience working with socially disadvantaged or beginning farmers. As 7 U.S.C. 1936cd requires, preference is given to intermediaries with not less than 10
years experience serving socially disadvantaged farmers and ranchers and is also given to intermediaries located in states that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act.
Under 7 CFR 769.156, intermediaries are required to determine the rates, terms, and payment structure for loans to ultimate recipients in an amount sufficient to cover the cost of operating and sustaining the revolving loan fund;
and must clearly and publicly disclose the loan terms and conditions to qualified ultimate recipients. FSA will review the annual monitoring reports of intermediaries, as well as provide oversight of the intermediarys loan processes and procedures.
Use of HPRP Loan Funds The HPRP funds can only be used for the purposes specified in 7 CFR 769.154
and as explained above.
Loan limitations are specified in 7
CFR 769.155. FSA is establishing maximum limits for loans to intermediaries and ultimate recipients to help manage risk and ensure funds are available for multiple intermediaries. For ultimate recipients, FSA is establishing maximum limits to help ensure that loans are used by family farms rather than larger entities.
For each application period, loans to intermediaries will not exceed $5
million for each intermediary, and loans to ultimate recipients will not exceed the loan limit for a Direct Farm Ownership loan as specified in 7 CFR
761.8a1i which is currently $600,000.
In 7 CFR 769.156, the rates and terms for HPRP loans are specified. For loans to intermediaries, the FSA
Administrator will set the interest rate as a fixed rate over the term of the loan of 1 percent or less; the repayment term for HPRP loans will not exceed 30 years;
and annual payments will be established. For loans to ultimate recipients, the interest rate will be set by the intermediary within the limits established by the intermediarys relending plan approved by FSA; and the repayment period may not exceed 30 years.

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Intermediarys Relending Plan FSA will provide flexibility to the intermediary to develop a relending plan to be approved by FSA that governs the use of the HPRP revolving loan fund. The relending plan must be approved by FSA prior to closing the initial HPRP loan to the intermediary and must include a detailed explanation of the intermediarys fund administration policies and procedures, and planned use of the HPRP revolving loan fund after the funds in the revolving loan fund have revolved. The required elements of the relending plan are specified in 7 CFR 769.157; and the relending plan must contain, in detail, the policies and procedures that the intermediary must follow with respect to the HPRP loan.
The rates, terms, and payment structure for loans approved by an intermediary to an ultimate recipient must be an amount sufficient to cover the cost of operating and sustaining the revolving loan fund; and must be clearly and publicly disclosed to qualified ultimate recipients. In addition, the proposed rates, terms, and payment structure of any loan made by the intermediary to an ultimate recipient must be reasonable and prudent considering the purpose of the loan, expected repayment ability of the ultimate recipient, the useful life of the collateral, and must adhere to the terms of the approved HPRP loan agreement.
Processing HPRP Loan Applications The opening and closing date for the HPRP application submission will be announced in a notice in the Federal Register. The initial application period will open August 30, 2021 and will close on October 29, 2021. If funds are not sufficient to fully fund all approved applications from intermediaries, 7 CFR
769.159 specifies the priorities used to allocate loan funds to intermediaries. In 7 U.S.C. 1936ce, it specifies that intermediaries with not less than 10
years experience serving socially disadvantaged farmers and ranchers, and that are located in states that have adopted a statute consisting of an enactment or adoption of the Uniform Partition of Heirs Property Act will receive first priority. After funding has been provided to those listed in 7 U.S.C.
1936ce, FSA will then give priority to intermediaries that have applications from ultimate recipients already in process, or intermediaries that have a history of fully relending previous HPRP funds. Multiple applications in the same priority tier will be processed based on the date received. Finally, any
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