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When a USDA farm loan borrower lacks the financial resources to make payments on a delinquent loan, is ineligible for a restructured loan, and is unable to buy out the loan at the net recovery value of the collateral property, the borrower can convey the property to USDA in lieu of loan payments. Until eliminated by the FAIR Act of 1996, the borrower may have been eligible for homestead protection, whereby the borrower could lease and/or purchase the residence and up to 10 acres of adjoining land.