Agricultural Credit Act of 1986

[AI summary unavailable — showing source text] Agricultural Credit Act of 1986 - Title I: Interest Subsidy Incentives for Restructuring Loans - Directs the Secretary of Agriculture, and a State at its option, to provide interest rate subsidies to lenders who defer principal or interest payments on agricultural loans. Limits eligible aggregate loan amounts. Sets forth rate reductions. Establishes a three-year deferral period. States that at the end of such period lenders may not charge interest rates in excess of existing comparable rates. Permits lenders to enforce pre-deferral loan terms in the event of a nonmonetary borrower default. Requires lenders to make a good faith effort to reduce principal or interest due before foreclosing, except in the case of a bankruptcy. Requires lenders to develop debt restructuring guidelines. Terminates Federal and State subsidy payments upon foreclosure. Directs the Secretary to use the Agricultural Credit Insurance Fund to carry out such subsidy program. Authorizes the use of additional specified funds under the Consolidated Farm and Rural Development Act. Title II: Conservation Provisions - Amends the Food Security Act of 1985 to prohibit such loan deferral assistance to producers who cult…