(a) In general

Loans may also be made or insured under this subchapter for soil and water conservation and protection. Such loans may be made to farm owners or tenants who are eligible borrowers under this subchapter for -

(1)

the installation of conservation structures, including terraces, sod waterways, permanently vegetated stream borders and filter strips, windbreaks (tree or grass), shelterbelts, and living snow fences;

(2)

the establishment of forest cover for sustained yield timber management, erosion control, or shelterbelt purposes;

(3)

the establishment or improvement of permanent pasture;

(4)

the conversion to and maintenance of sustainable agricultural production systems, as described by Department technical guides and handbooks;

(5)

the payment of costs of complying with section 3812 of title 16; and

(6)

other purposes consistent with plans for soil and water conservation, integrated farm management, water quality protection and enhancement, and wildlife habitat improvement.

(b) Priority

In making or guaranteeing loans under this subsection, (FOOTNOTE 1) the Secretary shall give priority to producers who use such loans to build conservation structures or establish conservation practices to comply with section 3812 of title 16.

(c) Loan maximum

The Secretary shall not make or insure a loan under this section that exceeds the lesser of -

(1)

the value of the farm or other security for such loan; or

(2)

$50,000