Agricultural Credit and Rural Development Act of 1985

[AI summary unavailable — showing source text] Agricultural Credit and Rural Development Act of 1985 - Amends the Consolidated Farm and Rural Development Act to direct the Secretary of Agriculture to establish a graduated scale of water and waste facilities grant rates, with higher rates for lower population and income areas. Grants maximum rates to communities of 1500 or less and an income level not exceeding the higher of the poverty line prescribed by the Office of Management and Budget, or 80 percent of the Statewide nonmetropolitan median household income. Directs the Secretary to establish a water and waste facility project selection system based upon population, income, and health hazard problems. Authorizes facility redevelopment payments and training grants. Gives priority to rural area projects. Authorizes funds to test cost-effective methods of serving rural communities which do not have and cannot afford safe drinking water services. Changes the eligibility standard for five-percent water and waste facility loans from one based on the Federal poverty level to one based on having an income level below 80 percent of the Statewide nonmetropolitan median family income. Establishes a seven percent loan for areas not qual…