The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Agricultural activity” or “farming.” The commercial production of agricultural crops, livestock or livestock products, poultry products, milk or dairy products, or fruits and other horticultural products.

“Applicant.” Any family farm enterprise applying for a family farm loan guarantee or an interest deferral.

“Area loan organization.” A local development district of the Appalachian Regional Commission, an industrial development corporation organized and existing under the act of May 17, 1956 (1955 P.L. 1609, No. 537),¹ known as the Pennsylvania Industrial Development Authority Act, or any other nonprofit economic development organization certified by the Secretary of Agriculture and the Secretary of Commerce² as possessing an acceptable loan review committee, professional staff support and such other qualifications as are necessary to evaluate and administer loan guarantees and interest deferrals made under the provisions of this act.

“Committee.” The Agricultural Development Advisory Committee.

“Department.” The Department of Agriculture.

“Eligible agricultural purposes.” Acquisition, construction or rehabilitation of farmland and farm structures located on farmland owned or leased by a family farm enterprise; acquisition, repair or replacement of capital assets, including, but not limited to, equipment and livestock to be used on farmland by a family farm enterprise; and working capital for the acquisition of fertilizer, seed, livestock feed and other supplies to be used on farmland by a family farm enterprise.

“Family farm corporation.” A corporation formed for the purpose of farming in which the majority of the voting stock is held by and the majority of the stockholders are natural persons, or the spouses of such persons or other persons related to such persons or spouses and at least one of such majority stockholders is residing on or actively operating or managing the farm and none of the stockholders of which are corporations.

“Family farm enterprise.” A natural person, family farm corporation or family farm partnership engaged in farming, including the processing and marketing of its agricultural commodities directly, provided that those agricultural commodities are or would be produced on the farm for which financial assistance is sought.

“Family farm partnership.” A general partnership entered into for the purpose of farming having no more than three unrelated members and having at least one member residing on or actively operating or managing the farm.

“Farmland.” Land in the Commonwealth that is capable of supporting the commercial production of agricultural crops, livestock or livestock products, poultry products, milk or dairy products, fruit or other horticultural products and land in the Commonwealth on which a family farm enterprise would process or market its agricultural commodities directly, provided that those agricultural commodities are or would be produced on the farm for which financial assistance is sought.

“Federal agency.” Includes the United States of America, the President of the United States of America and any department or corporation, agency or instrumentality heretofore or hereafter created, designated or established by the United States of America.

“Lender.” Any bank, savings bank, mutual savings bank, building and loan association and savings and loan association organized under the laws of this Commonwealth or the United States, trust companies, trust companies acting as fiduciaries and other financial institutions subject to the supervision of the Department of Banking; and any foreign or domestic corporation engaged in the business of insurance which is subject to the supervision of the Insurance Commissioner; and any financial institutions operating under the supervision of the Federal farm credit administration. The term shall also mean the seller of the property in cases of seller-sponsored loans or purchase money loans.

“Secretary.” The Secretary of Agriculture.