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The USDA Loan Modernization Act amends the Consolidated Farm and Rural Development Act to expand eligibility for USDA direct loans for farm ownership, operating, and emergency purposes. The bill lowers the ownership threshold from a majority to at least 50 percent for individuals or entity members seeking these loans, and creates new pathways for qualified operators and certain embedded entities to meet eligibility requirements. The Secretary of Agriculture is granted authority to define "qualified operators" and determine appropriate ownership percentages for specific loan scenarios.
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