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Shared Appreciation Agreements |
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As of late 1988, whenever a farm loan borrower receives a write-down of debt owed to the Farmers Home Administration (FmHA) - now the Farm Service Agency (FSA) - the borrower must sign a Shared Appreciation Agreement (SAA). At the same time, the borrower usually also signs a mortgage or other security agreement securing the SAA. An SAA is a contract between FmHA/FSA and the borrower in which the borrower promises to pay a certain amount of money in the future if the property securing the agreement increases in value, allowing FmHA/FSA to "recapture" all or a portion of the write-down amount. This page is intended to provide current and background information on SAAs, including federal laws, regulations, and notices; SAA case decisions; FLAG informational memos and fact sheets; and other informational resources. Please note that this SAA information is not intended to provide specific legal advice. Each borrower should carefully look at his or her own SAA agreement for specific requirements and should seek individual assistance for any problems or questions. SAA Fact Sheet (5/3/01) Articles & Memos ArticlesSusan A. Schneider, Shared Appreciation Agreements: Confusion and Mismanagement Threatens Family Farmers. This article is published at 7 Drake J. Agric. L. 107 (Spr. 2002). Copyright is retained by the author and the Drake Journal of Agricultural Law (reprinted here with permission). Douglas J. O'Brien, Shared Appreciation Agreements, Thesis to complete LL.M. at University of Arkansas, Fayetteville, May 1998. Copyright is retained by the author (reprinted here with permission). MemosFederal Appeals Court Upholds Dismissal of SAA Case (5/6/03) Update on SAA Treatment in the 2002 Farm Bill and Recent Court Decisions (5/15/02) Preliminary Injunction Denied in SAA Case (9/17/01) FSA Issues Notice Lowering Interest Rate for SAA Repayment Loans (5/3/01) Change to Definition of "Improvement" for SAA Recapture Calculations (5/2/01) District Court Affirms Shared Appreciation Obligation (5/2/01) Interest Rate Reduction for SAA Amortizations (12/15/00) FSA News and Notices(Some of the following notices may be considered obsolete by FSA.) FSA Notice FLP-303, Debt Collection Notice Regarding Pigford, Keepseagle, Love, Garcia, Stahl, and McBride Lawsuits FSA Notice FLP-198, Interest Rate Reduction and Existing Shared Appreciation (SA) Payment Agreements FSA Notice FLP-179, Reduction of Amortized Shared Appreciation Agreement (SAA) Recapture Interest Rate FSA Notice FLP-156, Collection and Resolution of Shared Appreciation FSA Notice FLP-139, Applying Proceeds on Accounts With Shared Appreciation FSA Notice FLP-136, Amortization of Suspended Shared Appreciation Agreement (SAA) Recapture FSA Notice FLP-89, Processing Shared Appreciation Agreement Suspension Through Finance Office FSA Notice FLP-48, Collection and Resolution of Shared Appreciation FSA Notice FLP-24, Amortization of Shared Appreciation Agreements Case LawBukaske v. United States Dep't of Agric., 193 F. Supp. 2d 1162 (D.S.D. 2002).
Curtis v. Farm Service Agency, No. 4:00-CV-93, 2001 U.S. Dist. LEXIS 8766 (W.D. Mich. June 22, 2001). Davies v. Johanes, No. 05-6009-CV-ODS (W.D. Mo. Dec. 5, 2005). Evans v. Veneman, No. 99-M-2331 (D. Col. Aug. 29, 2001).
Evans v. Veneman II No. 04-RPM-00762 (D. Col. Nov. 01, 2005). Gannon v. Farm Service Agency, No. 02-35741, 2003 U.S. App. LEXIS 23155 (9th Cir. Nov. 10, 2003). Hall v. Glickman, No. 3:99-CV-171BN (D. Miss. July 19, 2000) (Jan. 10, 2001 Order) (Mar. 3, 2004 Opinion & Order). Hopper Bros v. United States Dep't of Agric., Civ No. 00-265-JE (D. Or. 2001). Israel v. United States Dep't of Agric., 135 F. Supp. 2d 945 (W.D. Wis. 2001), aff'd 282 F.3d 521, 2002 WL 363375 (7th Cir. 2002) (see petition for cert.) (cert. denied Oct. 7, 2002).
Estate of James v. United States Dep't of Agric, No. 03-6399/6417 (6th Cir. April 20, 2005). In re Kreber, 1999 Bk DSD 17 (June 29, 1999). Lawinger v. Commissioner, 103 T.C. 428, 1994 U.S. Tax Ct. LEXIS 67 (1994). In re Moncur, No. 98-03213, 1999 WL 33287727 (Bankr. D. Id. May 27, 1999). Pandora Farms v. Secretary, United States Dep't of Agric. 2001 U.S. Dist. LEXIS 20935, No. 00-1753-A (E.D. Va. July 5, 2001).
Pauly v. United States Dep't of Agric., 348 F.3d 1143, No. 02-35731 (9th Cir. Nov. 13, 2003).
Stahl v. Veneman, No. A3-01-85, 2002 U.S. Dist. LEXIS 9534 (D.N.D. May 20, 2002) (denial of preliminary injunction); Stahl v. Veneman, No. A3-01-85, 2001 U.S. Dist. LEXIS 12925 (D.N.D. Aug. 22, 2001) (granting motion to dismiss) (see Eighth Circuit briefing: the Stahl's brief, USDA's brief, and the Stahl's reply brief). Listen to the March 10, 2003, oral argument heard before the Eighth Circuit Court of Appeals on March 10, 2003, in St. Paul, Minnesota. A final decision affirming the district court's motion to dismiss was issued on May 6, 2003, No. 02-2915, 327 F.3d 697 (8th Cir. 2003).
In re Tunnissen 216 B.R. 834 (Bankr. D.S.D. 1996). Viers v. Glickman, No. 4-99-CV-90431, 2000 U.S. Dist. LEXIS 21414 (S.D. Iowa July 10, 2000). Wright v. Farm Service Agency, No. 4:00-CV-94, 2001 U.S. Dist. LEXIS 8767 (W.D. Mich. June 22, 2001). StatutesDebt Restructuring and Loan Servicing (7 U.S.C. § 2001) Rules & Regulations2002 Farm Bill Regulations - Loan Eligibility Provisions, 69 Fed. Reg. 5,259 (Feb. 4, 2004) (final rule) (affecting 7 C.F.R. pt. 1951) 2002 Farm Bill Regulations - Loan Eligibility Provisions, 68 Fed. Reg. 17,316 (Apr. 9, 2003) (proposed rule) (affecting 7 C.F.R. pt. 1951) Servicing Shared Appreciation Agreements (7 C.F.R. §1951.914) Servicing and Collections (7 C.F.R. pt. 1951) Servicing Shared Appreciation Agreements, 67 Fed. Reg. 12,458 (March 19, 2002) (correcting amendment) (affecting 7 C.F.R. pt. 1951) Reduction of Amortized Shared Appreciation Recapture Rate, 67 Fed. Reg. 7942 (Feb. 21, 2002) (final rule) (affecting 7 C.F.R. pt. 1951) OMB Information Collection on SAA Capital Improvements, 66 Fed. Reg. 12,454 (Feb. 27, 2001) Farm Loan Programs Account Servicing Policies: Servicing Shared Appreciation Agreements, 7 C.F.R. pt. 1951, 65 Fed. Reg. 81,325 (Dec. 26, 2000) Servicing Shared Appreciation Agreements, 65 Fed. Reg. 81,325 (Dec. 26, 2000) (correction to final rule) (affecting 7 C.F.R. pt. 1951) Servicing Shared Appreciation Agreements, 65 Fed. Reg. 50,401 (Aug. 18, 2000) (final rule) (affecting 7 C.F.R. pt. 1951) Servicing Shared Appreciation Agreements, 64 Fed. Reg. 61,221 (Nov. 10, 1999) (proposed rule) (affecting 7 C.F.R. pt. 1951) Suspension of Collection of Recapture Amount for Borrowers With Certain Shared Appreciation Agreements, 64 Fed. Reg. 19,863 (April 23, 1999) (interim rule) (affecting 7 C.F.R. pt. 1951) Enforcement and Collection of Shared Appreciation Agreements, 63 Fed. Reg. 56,290 (Oct. 21, 1998) (correction) (affecting 7 C.F.R. pt. 1951) Enforcement and Collection of Shared Appreciation Agreements, 63 Fed. Reg. 6627 (Feb. 10, 1998) (final rule) (affecting 7 C.F.R. pt. 1951 ) Comments Submitted Regarding Shared Appreciation AgreementsFLAG provides administrative technical assistance to its clients by submitting formal comments on proposed federal agency regulations and notices. Posted below are comments FLAG has submitted on behalf of its clients regarding Shared Appreciation Agreements (see the Federal Register page of this web site for comments submitted in other areas). Comments on 2002 Farm Bill Regulations, 68 Fed. Reg. 17,316 (Apr. 9, 2003) (submitted June 9, 2003) Comments on FSA's submission for OMB Review entitled "Farmer Program Account Servicing Policies—7 C.F.R. Part 1951-S" published at 65 Fed. Reg. 48,446, 48,447 (Aug. 8, 2000) (submitted August 10, 2000) Comments to the Advisory Committee on Small Farms setting out issues facing small farmers holding Farm Service Agency (FSA) Shared Appreciation Agreements (SAAs) (submitted April 18, 2000) Comments on Proposed Rule, "Farm Loan Programs Account Servicing Policies—Servicing Shared Appreciation Agreements," published at 64 Fed. Reg. 61221-61223 (Nov.10, 1999) (submitted January 10, 2000) USDA Links & InformationFSA 2-FLP guaranteed Loan Making and Servicing Handbook, Amendment 8 FSA 2-FLP Guaranteed Loan Making and Servicing Handbook, Part 11 How the Farm Bill affects SAAs (5/30/02) FSA SAA Fact Sheet (02/03) FSA SAA Fact Sheet (11/00) USDA New Release (8/2/00) Office of Inspector General Report: Recapture Under Shared Appreciation Agreements (3/00) Secretary Glickman's testimony before the House Committee on Agriculture (3/18/1999) USDA Farm Loan Programs Hearing Before the House of Representatives Subcommittee on Forestry, Resource Conservation, and Research of the Committee on Agriculture (3/11/98) Other LinksWhat Are Shared Appreciation Agreements? (interview with Professor of Economics at Iowa State University Neil Harl) (audio) National AgLaw Reporter articles:
Uniform Standards of Professional Appraisal Practice (USPAP) Farm Journal Articles on SAACourts Side With USDA on Farm Crisis Issue (12/06/03) Farmers Lose Appeal on Shared Appreciation Agreements (5/9/03) Farmers Fight USDA (9/4/02) Court Dismisses Shared Appreciation Case (5/24/02) Debate Continues Over Agreements (5/13/02) Challenging Provisions of Share Appreciation Agreements (3/12/02) Shared Appreciation Case Awaits Ruling (3/2/02) Farmers Sue USDA (7/20/01) |
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Thank you for visiting FLAG's web site. Please note that the information located on this site is not intended to provide specific legal advice. You should consult an attorney and not rely on any information contained herein regarding your specific situation. 
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