; or (B) in the case of a loan guaranteed by the Secretary, $700,000 (increased, beginning with fiscal year 2000, by the cost inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subtitle B that are guaranteed by the Secretary). (b) Determination of value In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary. (c) Cost inflation percentage For purposes of this section, the cost inflation percentage applicable to a fiscal year is the percentage (if any) by which— (1) the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds (2) the average of such index (as so defined) for the 12-month period ending on August 31, 1996. (d) Regional farm real estate inflation percentage (1) In general For purposes of this section, the regional farm real estate inflation percentage applicable to a farm for a fiscal year is the percentage (if any) by which— (A) the regional farm real estate inflation index developed under paragraph (2) for the region in which the farm is located, for the 12-month period ending on August 31 of the immediately preceding fiscal year