Page:United States Statutes at Large Volume 99 Part 2.djvu/407

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1517

the end of the previous year, together with a detailed statement of policy regarding soil and water conservation activities of the United States Department of Agriculture."; (2) striking out subsection (b); and (3) redesignating subsection (c) as subsection (b). (d) Section 10 of such Act (16 U.S.C. 2009) is amended by striking out "1985" and inserting in lieu thereof "2008". DRY LAND FARMING

SEC. 1253. The first sentence of section 7(a) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g(a)) is amended by— (1) striking out "and" at the end of clause (5); and (2) inserting before the period the following: ", and (7) the promotion of energy and water conservation through dry land farming". SOFTWOOD TIMBER

SEC. 1254. Section 608 of the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1981 note) is amended to read as follows:

98 Stat. 140.

SOFTWOOD TIMBER

"SEC. 608. (a)(1) Notwithstanding any other provision of law, the Loans. Secretary of Agriculture (hereinafter in this section referred to as the 'Secretary') may implement a program, pursuant to the rec;< j ! ommendations contained in the study mandated by section 608 of the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1421 note), under which a distressed loan (as determined by the Sec- 7 USC 1981 note. retary) made or insured under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), or a portion thereof, may be reamortized with the use of future revenue produced from the planting of softwood timber crops on marginal land (as determined by the Secretary) that— "(A) was previously used to produce an agricultural commodir ity or as pasture; and "(B) secures a loan made or insured under such Act. "(2) Accrued interest on a loan reamortized under this section may be capitalized and interest charged on such interest. "(3) All or a portion of the payments on such reamortized loan may be deferred until such softwood timber crop produces revenue or for a term of 45 years, whichever comes first. "(4) Repayment of such reamortized loan shall be made not later than 50 years after the date of reamortization. "(b) The interest rate on such reamortized loans shall be determined by the Secretary, but not in excess of the current average )deld on outstanding marketable obligations of the United States with periods to maturity comparable to the average maturities of such loans, plus not to exceed 1 percent, as determined by the Secretary and adjusted to the nearest one-eighth of 1 percent. "(c) To be eligible for such program— "(1) the borrower of such reamortized loan must place not less than 50 acres of such land in softwood timber production; "(2) such land (including timber) may not have any lien Prohibition, against such land other than a lien for—

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