Dick Lugar: “Senator Simpson raises a valid issue regarding the interpretation of section 663 of the Federal Agriculture Improvement…”

“Senator Simpson raises a valid issue regarding the interpretation of section 663 of the Federal Agriculture Improvement and Reform Act of 1996. Although I disagree with your statement that the statute is not clear on this point, I agree that USDA has incorrectly interpreted this section. Section 663 clearly states that a complete application to acquire inventory property must have been submitted prior to the date of enactment of the FAIR Act. The issue is whether the property in question has already come into the Government's possession. Until that time, the property should not be deemed inventory property. If a borrower had submitted an application that the Secretary would have deemed complete except that the steps necessary for the Government to acquire the property had not been fulfilled, those borrowers' applications should be considered complete so that once the property does enter the Government's inventory, the lease back-buyback agreement can be executed.”