I 

113TH CONGRESS 

1ST SESSION H. R. 1727 

To expand and improve opportunities for beginning farmers and ranchers, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2013 

Mr. WALZ (for himself, Mr. FORTENBERRY, Mr. GIBSON, and Mr. PETERSON) 

introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on the Budget, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To expand and improve opportunities for beginning farmers 

and ranchers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Beginning Farmer and Rancher Opportunity Act of 

6 2013’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—CONSERVATION 

Subtitle A—Conservation Reserve Program 

Sec. 101. Extension of conservation reserve program. 

Sec. 102. Contracts. 

Subtitle B—Farmland Protection Program 

Sec. 111. Farmland protection program. 

Subtitle C—Environmental Quality Incentives Program 

Sec. 121. Establishment and administration of environmental quality incentives 

program. 

Sec. 122. Conservation innovation grants and payments. 

Subtitle D—Funding and Administration 

Sec. 131. Funding of conservation programs under Food Security Act of 1985. 

Sec. 132. Assistance to certain farmers or ranchers for conservation access. 

Sec. 133. Comprehensive conservation planning. 

TITLE II—CREDIT 

Subtitle A—Farm Ownership Loans 

Sec. 201. Direct farm ownership experience requirement. 

Sec. 202. Conservation loan and loan guarantee program. 

Sec. 203. Indexing of direct farm ownership loans. 

Sec. 204. Joint financing arrangement. 

Sec. 205. Loan terms for down payment loan program. 

Sec. 206. Limited resource loan rate. 

Sec. 207. Definition of qualified beginning farmer or rancher. 

Subtitle B—Operating Loans 

Sec. 211. Young beginning farmer or rancher microloans. 

Subtitle C—Administrative Provisions 

Sec. 221. Beginning farmer and rancher individual development accounts pilot 

program. 

Sec. 222. Transition to private commercial or other sources of credit. 

Sec. 223. Direct loans for beginning farmers and ranchers. 

TITLE III—RURAL DEVELOPMENT 

Sec. 301. Value-added producer grants. 

TITLE IV—RESEARCH, EDUCATION, AND EXTENSION 

Sec. 401. Beginning farmer and rancher development program. 

Sec. 402. Agriculture and Food Research Initiative. 

TITLE V—CROP INSURANCE 

Sec. 501. Risk management partnership programs. 


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TITLE VI—MISCELLANEOUS 

Sec. 601. Military Veterans Agricultural Liaison. 

Sec. 602. Budgetary effects. 

Sec. 603. Effective date. 

1 TITLE I—CONSERVATION 

2 Subtitle A—Conservation Reserve 

3 Program 

4 SEC. 101. EXTENSION OF CONSERVATION RESERVE PRO5 GRAM. 

6 (a) IN GENERAL.—Section 1231(a) of the Food Se7 curity Act of 1985 (16 U.S.C. 3831(a)) is amended by 

8 striking ‘‘2012’’ and inserting ‘‘2018’’. 

9 (b) LAND ELIGIBLE FOR ENROLLMENT IN CON10 SERVATION RESERVE.—Section 1231(b)(1)(B) of the 

11 Food Security Act of 1985 (16 U.S.C. 3831(b)(1)(B)) is 

12 amended by striking ‘‘Food, Conservation, and Energy 

13 Act of 2008’’ and inserting ‘‘Beginning Farmer and 

14 Rancher Opportunity Act of 2013’’. 

15 (c) MAXIMUM ENROLLMENT OF ACREAGE IN CON16 SERVATION RESERVE.—Section 1231(d) of the Food Se17 curity Act of 1985 (16 U.S.C. 3831(d)) is amended— 

18 (1) by striking the first sentence; and 

19 (2) in the second sentence, by striking ‘‘2010, 

20 2011, and 2012’’ and inserting ‘‘2010 through 

21 2018’’. 

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1 SERVE.—Section 1231B of the Food Security Act of 1985 

2 (16 U.S.C. 3831b) is amended— 

3 (1) in subsection (a)(1), by striking ‘‘2012’’ and 

4 inserting ‘‘2018’’; and 

5 (2) in subsection (b)(1)(C), by striking ‘‘2002 

6 through 2007’’ and inserting ‘‘2008 through 2012’’. 

7 SEC. 102. CONTRACTS. 

8 Section 1235 of the Food Security Act of 1985 (16 

9 U.S.C. 3835) is amended— 

10 (1) in subsection (c)(1)(B), by striking clause 

11 (iii) and inserting the following: 

12 ‘‘(iii) to facilitate a transition of land 

13 subject to the contract from a retired or 

14 retiring owner or operator to a beginning 

15 farmer or rancher, socially disadvantaged 

16 farmer or rancher, or limited resource 

17 farmer or rancher who is or will be actively 

18 engaged in farming or ranching with re19 spect to the land transferred under this 

20 subsection for the purpose of returning 

21 some or all of the land into production 

22 using sustainable grazing or crop produc23 tion methods that meet or exceed the re24 source management system quality criteria 


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1 for erosion, soil quality, water quality, and 

2 fish and wildlife; or’’; and 

3 (2) in subsection (f)(1)— 

4 (A) in the matter preceding subparagraph 

5 (A), by striking ‘‘or socially disadvantaged 

6 farmer or rancher’’ and inserting ‘‘socially dis7 advantaged farmer or rancher, or limited re8 source farmer or rancher who is or will be ac9 tively engaged in farming or ranching with re10 spect to the land transferred under this sub11 section’’; and 

12 (B) by striking subparagraphs (C), (D), 

13 and (E) and inserting the following: 

14 ‘‘(C) require the covered farmer or rancher 

15 to develop and implement a comprehensive con16 servation plan that addresses all resource con17 cerns and meets such sustainability criteria as 

18 the Secretary may establish; 

19 ‘‘(D) provide to the covered farmer or 

20 rancher an opportunity to enroll in the con21 servation stewardship program or the environ22 mental quality incentives program at any time 

23 beginning on the date that is 1 year before the 

24 date of termination of the contract, including 


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1 technical and financial assistance in the devel2 opment of a comprehensive conservation plan; 

3 ‘‘(E) if the land transferred under this 

4 subsection remains in grass cover, provide to 

5 the covered farmer or rancher an opportunity to 

6 enroll in a long-term or permanent easement 

7 under the grassland reserve program or farm8 land protection program at any time beginning 

9 on the date that is 1 year before the date of 

10 termination of the contact; and 

11 ‘‘(F) continue to make annual payments to 

12 the retired or retiring owner or operator for not 

13 more than an additional 2 years after the date 

14 of termination of the contract, except that, in 

15 the case of a retired or retiring owner or oper16 ator who is a family member (as defined in sec17 tion 1001) of the covered farmer or rancher, 

18 the additional payments shall be made only if 

19 title to the land is sold or transferred to the 

20 covered farmer or rancher on termination of the 

21 contract.’’. 


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1 Subtitle B—Farmland Protection 

2 Program 

3 SEC. 111. FARMLAND PROTECTION PROGRAM. 

4 Section 1238I of the Food Security Act of 1985 (16 

5 U.S.C. 3838i) is amended— 

6 (1) in subsection (b), by inserting ‘‘to promote 

7 farm viability for future generations’’ before the pe8 riod at the end; and 

9 (2) in subsection (g)(4)— 

10 (A) in subparagraph (B), by striking 

11 ‘‘and’’ at the end; 

12 (B) by redesignating subparagraph (C) as 

13 subparagraph (D); and 

14 (C) by inserting after subparagraph (B) 

15 the following: 

16 ‘‘(C) provide a funding priority, to the 

17 maximum extent practicable, for— 

18 ‘‘(i) eligible land for which there exists 

19 a farm or ranch succession plan or similar 

20 plan established to create opportunities for 

21 beginning farmers and ranchers and en22 courage farm viability for future genera23 tions; 


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1 ‘‘(ii) easements that exercise an op2 tion to purchase at a price that is equal to 

3 the agricultural use value; 

4 ‘‘(iii) qualified beginning farmers or 

5 ranchers with contracts to purchase the 

6 land to be protected; 

7 ‘‘(iv) land owned by a nongovern8 mental organization that will be sold to a 

9 qualified beginning farmer or rancher; 

10 ‘‘(v) contemporaneous farm transfers 

11 of eligible land to qualified beginning farm12 ers and ranchers that may not occur with13 out the financial assistance of the pro14 gram; and 

15 ‘‘(vi) other similar mechanisms to 

16 maintain the affordability of farm and 

17 ranch land for successive generations of 

18 farmers and ranchers; and’’. 

19 Subtitle C—Environmental Quality 

20 Incentives Program 

21 SEC. 121. ESTABLISHMENT AND ADMINISTRATION OF ENVI22 RONMENTAL QUALITY INCENTIVES PRO23 GRAM. 

24 Section 1240B of the Food Security Act of 1985 (16 

25 U.S.C. 3839aa–2) is amended— 


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1 (1) in subsection (a), by striking ‘‘2014’’ and 

2 inserting ‘‘2018’’; 

3 (2) in subsection (d)(4)(B), by striking ‘‘30 

4 percent’’ and inserting ‘‘50 percent’’; and 

5 (3) in subsection (f), by striking ‘‘2012’’ and 

6 inserting ‘‘2018’’. 

7 SEC. 122. CONSERVATION INNOVATION GRANTS AND PAY8 MENTS. 

9 Section 1240H of the Food Security Act of 1985 (16 

10 U.S.C. 3839aa–8) is amended— 

11 (1) in subsection (a)(2)— 

12 (A) in subparagraph (C), by striking ‘‘; 

13 and’’ and inserting a semicolon; 

14 (B) in subparagraph (D), by striking the 

15 period at the end and inserting ‘‘; and’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(E) provide environmental and resource 

18 conservation benefits through increased partici19 pation by beginning farmers and ranchers and 

20 socially disadvantaged farmers and ranchers.’’; 

21 and 

22 (2) in subsection (b)(2), by striking ‘‘2012’’ 

23 and inserting ‘‘2018’’. 


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1 Subtitle D—Funding and 

2 Administration 

3 SEC. 131. FUNDING OF CONSERVATION PROGRAMS UNDER 

4 FOOD SECURITY ACT OF 1985. 

5 Section 1241(a) of the Food Security Act of 1985 

6 (16 U.S.C. 3841(a)) is amended— 

7 (1) in the matter preceding paragraph (1), by 

8 inserting ‘‘and through fiscal year 2018 in the case 

9 of the program described in paragraph (1)(B)’’ after 

10 ‘‘(7)’’; and 

11 (2) in paragraph (1), by striking subparagraph 

12 (B) and inserting the following: 

13 ‘‘(B) $50,000,000 for the period of fiscal 

14 years 2014 through 2018 to carry out section 

15 1235(f) to facilitate the transfer of land subject 

16 to contracts from retired or retiring owners and 

17 operators to beginning farmers or ranchers, so18 cially disadvantaged farmers or ranchers, or 

19 limited resource farmers or ranchers.’’. 

20 SEC. 132. ASSISTANCE TO CERTAIN FARMERS OR RANCH21 ERS FOR CONSERVATION ACCESS. 

22 Section 1241(g) of the Food Security Act of 1985 

23 (16 U.S.C. 3841(g)) is amended— 

24 (1) in paragraph (1), by striking ‘‘2012’’ and 

25 inserting ‘‘2018’’; and 


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1 (2) in paragraph (2), by inserting ‘‘(but not 

2 earlier than 120 days after the date that funding for 

3 the fiscal year is allocated to the States)’’ after 

4 ‘‘Secretary’’; 

5 (3) in paragraph (3), by inserting ‘‘(but not 

6 earlier than 120 days after the date that acres for 

7 the fiscal year are allocated to the States)’’ after 

8 ‘‘Secretary’’; and 

9 (4) by adding at the end the following: 

10 ‘‘(4) PARTICIPATION BY BEGINNING AND SO11 CIALLY DISADVANTAGED FARMERS AND RANCH12 ERS.—Nothing in this subsection prohibits beginning 

13 or socially disadvantaged farmers or ranchers from 

14 participating in programs and receiving funding 

15 available under this title that is not reserved under 

16 paragraph (1). 

17 ‘‘(5) TECHNICAL ASSISTANCE.—Within the 

18 funds reserved under paragraph (1), the Secretary 

19 shall allocate to the Natural Resources Conservation 

20 Service funding for technical assistance at a rate 

21 that is not more than 10 percent higher than the 

22 rate that would otherwise apply to allow the Service 

23 to provide additional technical assistance to begin24 ning farmers or ranchers and socially disadvantaged 


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1 farmers or ranchers to establish conservation 

2 plans.’’. 

3 SEC. 133. COMPREHENSIVE CONSERVATION PLANNING. 

4 Section 1244(a) of the Food Security Act of 1985 

5 (16 U.S.C. 3844(a)) is amended by adding at the end the 

6 following: 

7 ‘‘(3) COMPREHENSIVE CONSERVATION PLAN8 NING.—In carrying out this subsection, the Sec9 retary shall provide technical and financial assist10 ance using resources available under the environ11 mental quality incentives program, conservation 

12 stewardship program, or such other programs as the 

13 Secretary may determine to covered persons who re14 quest the assistance to develop a comprehensive con15 servation plan for the farming or ranching operation 

16 of the covered person that addresses all resource 

17 concerns and meets such sustainability criteria as 

18 the Secretary may establish.’’. 

19 TITLE II—CREDIT 

20 Subtitle A—Farm Ownership Loans 

21 SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE RE22 QUIREMENT. 

23 Section 302(b)(1) of the Consolidated Farm and 

24 Rural Development Act (7 U.S.C. 1922(b)(1)) is amended 

25 in the matter preceding subparagraph (A) by inserting ‘‘or 


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1 has other acceptable experience for a period of time, as 

2 determined by the Secretary,’’ after ‘‘3 years’’. 

3 SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE 

4 PROGRAM. 

5 Section 304 of the Consolidated Farm and Rural De6 velopment Act (7 U.S.C. 1924) is amended— 

7 (1) in subsection (c)(2)— 

8 (A) by striking ‘‘shall meet’’ and inserting 

9 ‘‘shall— 

10 ‘‘(A) meet’’; 

11 (B) in subparagraph (A) (as so des12 ignated), by striking the period at the end and 

13 inserting ‘‘; and’’; and 

14 (C) by adding at the end the following: 

15 ‘‘(B) be the owner or operator of not larg16 er than a family farm.’’; 

17 (2) in subsection (e)— 

18 (A) by striking ‘‘The portion’’ and insert19 ing the following: 

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), the portion’’; and 

22 (B) by adding at the end the following: 

23 ‘‘(2) BEGINNING AND SOCIALLY DISADVAN24 TAGED FARMERS AND RANCHERS.—In the case of 

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1 taged farmers or ranchers, the portion of the loan 

2 the Secretary may guarantee under this section shall 

3 be 95 percent of the principal amount of the loan.’’; 

4 and 

5 (3) by striking subsection (h) and inserting the 

6 following: 

7 ‘‘(h) FUNDING.— 

8 ‘‘(1) IN GENERAL.—The Secretary may make 

9 or guarantee loans under this section for not more 

10 than $250,000,000 for each of fiscal years 2013 

11 through 2018, of which, for each fiscal year, not 

more than 1 12 ⁄2 shall be used for direct loans and not 

more than 1 13 ⁄2 shall be used for guaranteed loans. 

14 ‘‘(2) QUALIFIED BEGINNING FARMERS AND

15 RANCHERS.— 

16 ‘‘(A) DIRECT LOANS.—Of the amount 

17 made available for direct loans for a fiscal year 

18 under paragraph (1), the Secretary shall re19 serve for qualified beginning farmers and 

20 ranchers until April 1 of the fiscal year not less 

21 than 50 percent of the amount. 

22 ‘‘(B) GUARANTEED LOANS.—Of the 

23 amount made available for guaranteed loans for 

24 a fiscal year under paragraph (1), the Secretary 

25 shall reserve for qualified beginning farmers 


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1 and ranchers until April 1 of the fiscal year not 

2 less than 50 percent of the amount.’’. 

3 SEC. 203. INDEXING OF DIRECT FARM OWNERSHIP LOANS. 

4 Section 305(a) of the Consolidated Farm and Rural 

5 Development Act (7 U.S.C. 1925(a)) is amended by in6 serting ‘‘(increased, beginning with fiscal year 2014, by 

7 the inflation percentage, as determined by the Secretary, 

8 applicable to the fiscal year in which the loan is made)’’ 

9 after ‘‘$300,000’’. 

10 SEC. 204. JOINT FINANCING ARRANGEMENT. 

11 Section 307(a)(3)(D) of the Consolidated Farm and 

12 Rural Development Act (7 U.S.C. 1927(a)(3)(D)) is 

13 amended by striking ‘‘4’’ and inserting ‘‘1.5’’. 

14 SEC. 205. LOAN TERMS FOR DOWN PAYMENT LOAN PRO15 GRAM. 

16 Section 310E(b)(1)(C) of the Consolidated Farm and 

17 Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is 

18 amended by striking ‘‘$500,000’’ and inserting 

19 ‘‘$667,000’’. 

20 SEC. 206. LIMITED RESOURCE LOAN RATE. 

21 Section 316(a)(2)(B) of the Consolidated Farm and 

22 Rural Development Act (7 U.S.C. 1946(a)(2)(B)) is 

23 amended by striking ‘‘5’’ and inserting ‘‘1.5’’. 


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1 SEC. 207. DEFINITION OF QUALIFIED BEGINNING FARMER 

2 OR RANCHER. 

3 Section 343(a)(11)(F) of the Consolidated Farm and 

4 Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is 

5 amended by striking ‘‘median’’ and inserting ‘‘average’’. 

6 Subtitle B—Operating Loans 

7 SEC. 211. YOUNG BEGINNING FARMER OR RANCHER 

8 MICROLOANS. 

9 (a) IN GENERAL.—Section 311 of the Consolidated 

10 Farm and Rural Development Act (7 U.S.C. 1941) is 

11 amended by adding at the end the following: 

12 ‘‘(d) MICROLOANS.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

14 the Secretary may establish a program to make or 

15 guarantee microloans. 

16 ‘‘(2) LIMITATION.—The Secretary shall not 

17 make or guarantee a microloan under this sub18 section that— 

19 ‘‘(A) exceeds $35,000; or 

20 ‘‘(B) would cause the total principal in21 debtedness outstanding at any time for 

22 microloans under this subsection to any 1 bor23 rower to exceed $70,000. 

24 ‘‘(3) APPLICATIONS.—To the maximum extent 

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1 tive burdens and streamline the application and ap2 proval process for microloans under this subsection. 

3 ‘‘(4) COOPERATIVE LENDING PROJECTS.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (B), the Secretary may enter into a con6 tract with one or more community-based and 

7 nongovernmental organizations, State entities, 

8 or other intermediaries, as the Secretary deter9 mines appropriate— 

10 ‘‘(i) to make or guarantee a microloan 

11 under this subsection; and 

12 ‘‘(ii) to provide business, financial, 

13 marketing, and credit management services 

14 to borrowers. 

15 ‘‘(B) REQUIREMENTS.—Before entering 

16 into a contract with an entity described in sub17 paragraph (A), the Secretary— 

18 ‘‘(i) shall review and approve— 

19 ‘‘(I) the loan loss reserve fund 

20 for microloans established by the enti21 ty; and 

22 ‘‘(II) the underwriting standards 

23 for microloans of the entity; and 


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1 ‘‘(ii) establish such other requirements 

2 for contracting with the entity as the Sec3 retary determines to be necessary. 

4 ‘‘(C) REVOLVING FUND.—Under such con5 ditions as the Secretary may require, an entity 

6 described in subparagraph (A) that enters into 

7 a contract with the Secretary under this para8 graph may elect to convert the loan loss reserve 

9 fund for microloans established by the entity 

10 into a revolving loan fund to carry out the pur11 poses of this paragraph.’’. 

12 (b) EXCEPTIONS FOR DIRECT LOANS.—Section 

13 311(c) of the Consolidated Farm and Rural Development 

14 Act (7 U.S.C. 1941(c)) is amended by striking paragraph 

15 (2) and inserting the following: 

16 ‘‘(2) EXCEPTIONS.—In this subsection, the 

17 term ‘direct operating loan’ shall not include— 

18 ‘‘(A) a loan made to a youth under sub19 section (b); or 

20 ‘‘(B) a microloan made to a young begin21 ning farmer or rancher or a military veteran 

22 farmer or rancher, as defined by the Sec23 retary.’’. 

24 (c) PURPOSES OF LOANS.—Section 312(a) of the 

25 Consolidated Farm and Rural Development Act (7 U.S.C. 


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1 1942(a)) is amended in the matter preceding paragraph 

2 (1) by inserting ‘‘(including a microloan, as defined by the 

3 Secretary)’’ after ‘‘A direct loan’’. 

4 (d) DETERMINATION OF INTEREST RATES.—Section 

5 316(a)(2) of the Consolidated Farm and Rural Develop6 ment Act (7 U.S.C. 1946(a)(2)) is amended in the matter 

7 preceding subparagraph (A) by inserting ‘‘a microloan to 

8 a beginning farmer or rancher or military veteran farmer 

9 or rancher or’’ after ‘‘The interest rate on’’. 

10 Subtitle C—Administrative 

11 Provisions 

12 SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL 

13 DEVELOPMENT ACCOUNTS PILOT PROGRAM. 

14 Section 333B of the Consolidated Farm and Rural 

15 Development Act (7 U.S.C. 1983b) is amended by striking 

16 subsection (h) and inserting the following: 

17 ‘‘(h) FUNDING.—On October 1, 2013, and on each 

18 October 1 thereafter through October 1, 2017, of the 

19 funds of the Commodity Credit Corporation, the Secretary 

20 shall use to carry out this section $5,000,000, to remain 

21 available until expended.’’. 


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1 SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR 

2 OTHER SOURCES OF CREDIT. 

3 (a) CONDITIONS FOR DIRECT LOANS.—Section 

4 311(c) of the Consolidated Farm and Rural Development 

5 Act (7 U.S.C. 1941(c)) is amended— 

6 (1) in paragraph (1)— 

7 (A) in subparagraph (A), by striking the 

8 semicolon at the end and inserting ‘‘; and’’; 

9 (B) in subparagraph (B), by striking ‘‘; 

10 or’’ at the end and inserting a period; and 

11 (C) by striking subparagraph (C); and 

12 (2) by striking paragraphs (3) and (4) and in13 serting the following: 

14 ‘‘(3) TERM LIMITS.—Subject to paragraph (4), 

15 if a farmer or rancher has received a direct oper16 ating loan pursuant to this section in each of 9 con17 secutive years, the farmer or rancher may not re18 ceive a direct operating loan from the Secretary 

19 under this section for the next year. 

20 ‘‘(4) WAIVERS FOR FARM AND RANCH OPER21 ATIONS ON TRIBAL LAND.—The Secretary shall 

22 waive the limitation under paragraph (3) for a direct 

23 loan made under this subtitle to a farmer or rancher 

24 whose farm or ranch land is subject to the jurisdic25 tion of an Indian tribe and whose loan is secured by 

26 one or more security instruments that are subject to 


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1 the jurisdiction of an Indian tribe if the Secretary 

2 determines that commercial credit is not generally 

3 available for the farm or ranch operations.’’. 

4 (b) LIMITATION ON PERIOD BORROWERS ARE ELIGI5 BLE FOR GUARANTEED ASSISTANCE.—Section 319 of the 

6 Consolidated Farm and Rural Development Act (7 U.S.C. 

7 1949) is amended by striking subsection (b) and inserting 

8 the following: 

9 ‘‘(b) LIMITATION ON PERIOD BORROWERS ARE ELI10 GIBLE FOR GUARANTEED ASSISTANCE.—If a borrower 

11 has received a guaranteed loan under this subtitle in each 

12 of 15 consecutive years, the borrower may not receive a 

13 loan guaranteed by the Secretary for the next year.’’. 

14 SEC. 223. DIRECT LOANS FOR BEGINNING FARMERS AND 

15 RANCHERS. 

16 Section 346(b)(2)(A) of the Consolidated Farm and 

17 Rural Development Act (7 U.S.C. 1994(b)(2)(A)) is 

18 amended— 

19 (1) in clause (i), by adding at the end the fol20 lowing: 

21 ‘‘(III) PRIORITY.—In order to 

22 maximize the number of borrowers 

23 served under this clause, the Sec24 retary— 


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1 ‘‘(aa) shall give priority to 

2 borrowers who apply under the 

3 down payment loan program 

4 under section 310E or joint fi5 nancing arrangements under sec6 tion 307(a)(3)(D); and 

7 ‘‘(bb) may offer other fi8 nancing options only if the Sec9 retary determines that down pay10 ment or other participation loan 

11 options are not a viable approach 

12 for a particular borrower.’’; and 

13 (2) in clause (ii)(III), by striking ‘‘each of fiscal 

14 years 2008 through 2012’’ and inserting ‘‘fiscal year 

15 2008 and each fiscal year thereafter’’. 

16 TITLE III—RURAL 

17 DEVELOPMENT 

18 SEC. 301. VALUE-ADDED PRODUCER GRANTS. 

19 Section 231(b) of the Agricultural Risk Protection 

20 Act of 2000 (7 U.S.C. 1632a(b)) is amended— 

21 (1) by striking paragraph (6) and inserting the 

22 following: 

23 ‘‘(6) PRIORITY.—In awarding grants under this 

24 subsection, the Secretary shall— 


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1 ‘‘(A) in the case of grants awarded under 

2 paragraph (1)(A), give priority to— 

3 ‘‘(i) operators of small- and medium4 sized farms and ranches that are struc5 tured as family farms; or 

6 ‘‘(ii) beginning farmers or ranchers or 

7 socially disadvantaged farmers or ranchers; 

8 and 

9 ‘‘(B) in the case of grants awarded under 

10 paragraph (1)(B), give priority to projects that, 

11 as determined through peer review, best con12 tribute— 

13 ‘‘(i) to increasing opportunities for op14 erators of small- and medium-sized farms 

15 and ranches that are structured as family 

16 farms; or 

17 ‘‘(ii) to creating opportunities for be18 ginning farmers and ranchers or socially 

19 disadvantaged farmers and ranchers.’’; and 

20 (2) by redesignating paragraph (7) as para21 graph (8); 

22 (3) by inserting after paragraph (6) the fol23 lowing: 

24 ‘‘(7) OUTREACH AND TECHNICAL ASSIST25 ANCE.—The Secretary shall develop and implement 


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1 an outreach and technical assistance strategy to as2 sist recipients of a grant under this subsection reach 

3 and serve underserved States and communities (as 

4 determined by the Secretary).’’; and 

5 (4) in paragraph (8) (as redesignated by para6 graph (3))— 

7 (A) in subparagraph (A)— 

8 (i) by striking ‘‘October 1, 2008’’ and 

9 inserting ‘‘October 1, 2012, and each Octo10 ber 1 thereafter through October 1, 2017’’; 

11 and 

12 (ii) by striking ‘‘$15,000,000’’ and in13 serting ‘‘$20,000,000’’; 

14 (B) in subparagraph (B), by striking 

15 ‘‘2012’’ and inserting ‘‘2018’’; and 

16 (C) by striking subparagraph (C) and in17 serting the following: 

18 ‘‘(C) PRIORITY FUNDING.— 

19 ‘‘(i) IN GENERAL.—In accordance 

20 with clause (ii), the Secretary shall, to the 

21 maximum extent practicable, reserve not 

less than 2 22 ⁄3 of the amounts made available 

23 for each fiscal year under this paragraph 

24 to award grants with respect to which pri25 ority is given under paragraph (6). 


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1 ‘‘(ii) RESERVATION OF FUNDS.— 

2 ‘‘(I) IN GENERAL.—Of the 

3 amounts reserved under clause (i) for 

4 each fiscal year, the Secretary shall 

5 reserve a total of 10 percent to award 

6 grants to recipients described in sub7 paragraphs (A)(ii) and (B)(ii) of 

8 paragraph (6). 

9 ‘‘(II) MID-TIER VALUE

10 CHAINS.—Of the total amount of 

11 funds made available for each fiscal 

12 year under this paragraph, the Sec13 retary shall reserve 10 percent to fund 

14 applications of eligible recipients de15 scribed in paragraph (1) that propose 

16 to develop mid-tier value chains. 

17 ‘‘(III) UNOBLIGATED

18 AMOUNTS.—Any amounts reserved for 

19 a fiscal year under subclause (I) or 

20 (II) that are not obligated by the date 

21 on which the Secretary completes the 

22 review process for applications sub23 mitted under this section in that fiscal 

24 year shall be available to the Sec25 retary to make grants under this subVerDate Mar 15 2010 23:53 Apr 30, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1727.IH H1727

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1 section to eligible recipients in any 

2 State, as determined by the Sec3 retary.’’. 

4 TITLE IV—RESEARCH, 

5 EDUCATION, AND EXTENSION 

6 SEC. 401. BEGINNING FARMER AND RANCHER DEVELOP7 MENT PROGRAM. 

8 Section 7405 of the Farm Security and Rural Invest9 ment Act of 2002 (7 U.S.C. 3319f) is amended— 

10 (1) in subsection (c)— 

11 (A) in paragraph (1), by striking subpara12 graphs (A) through (R) and inserting the fol13 lowing; 

14 ‘‘(A) basic livestock, forest management, 

15 and crop farming practices; 

16 ‘‘(B) innovative farm, ranch, and private 

17 nonindustrial forest land transfer strategies; 

18 ‘‘(C) entrepreneurship and business train19 ing; 

20 ‘‘(D) financial and risk management train21 ing (including the acquisition and management 

22 of agricultural credit); 

23 ‘‘(E) natural resource management and 

24 conservation planning; 


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1 ‘‘(F) diversification and marketing strate2 gies; 

3 ‘‘(G) curriculum development; 

4 ‘‘(H) mentoring, apprenticeships, and in5 ternships; 

6 ‘‘(I) assisting beginning farmers or ranch7 ers in acquiring land from retiring farmers and 

8 ranchers; 

9 ‘‘(J) food safety training; 

10 ‘‘(K) agricultural rehabilitation and voca11 tional training for veterans; and 

12 ‘‘(L) other similar subject areas of use to 

13 beginning farmers or ranchers.’’; 

14 (B) in paragraph (4)— 

15 (i) by striking ‘‘To be eligible’’ and in16 serting the following: 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 subparagraph (B), to be eligible’’; and 

19 (ii) by adding at the end the fol20 lowing: 

21 ‘‘(B) EXCEPTIONS.—The Secretary may 

22 waive or modify the matching requirement in 

23 subparagraph (A) if the Secretary determines a 

24 waiver or modification is necessary to effectively 

25 reach an underserved area or population.’’; 


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1 (C) in paragraph (8)— 

2 (i) in subparagraph (B), by striking 

3 ‘‘and’’ after the semicolon at the end; 

4 (ii) in subparagraph (C), by striking 

5 the period at the end and inserting ‘‘; 

6 and’’; and 

7 (iii) by adding at the end the fol8 lowing: 

9 ‘‘(D) military veteran beginning farmers 

10 and ranchers.’’; and 

11 (D) by adding at the end the following: 

12 ‘‘(11) INDIRECT COSTS.—To help facilitate par13 ticipation in the program under this subsection by 

14 nongovernmental and community-based nonprofit or15 ganizations, the Secretary shall provide for an op16 tional 10 percent indirect cost option in lieu of a 

17 higher negotiated rate.’’; and 

18 (2) in subsection (h)— 

19 (A) in paragraph (1)— 

20 (i) in the paragraph heading, by strik21 ing ‘‘FOR FISCAL YEARS 2009 

22 THROUGH 2012’’; and 

23 (ii) by striking ‘‘section—’’ and all 

24 that follows through the period at the end 


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1 and inserting ‘‘section $20,000,000 for 

2 each of fiscal years 2014 through 2018.’’; 

3 (B) in paragraph (2)— 

4 (i) in the paragraph heading, by strik5 ing ‘‘FOR FISCAL YEARS 2009 

6 THROUGH 2012’’; and 

7 (ii) by striking ‘‘2008 through 2012’’ 

8 and inserting ‘‘2013 through 2018’’; and 

9 (C) by striking paragraph (3). 

10 SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE. 

11 Subsection (b) of the Competitive, Special, and Fa12 cilities Research Grant Act (7 U.S.C. 450i(b)) is amend13 ed— 

14 (1) in paragraph (1), by striking ‘‘food and ag15 ricultural sciences’’ and all that follows through the 

16 period at the end and inserting the following: ‘‘food 

17 and agricultural sciences (as defined in section 1404 

18 of the National Agricultural Research, Extension, 

19 and Teaching Policy Act of 1977 (7 U.S.C. 

20 3103))— 

21 ‘‘(A) in the case of grant made under 

22 paragraph (6), to an entity described in sub23 paragraphs (A), (B), (C), or (D) of that para24 graph; and 


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1 ‘‘(B) in the case of any other grant made 

2 under this subsection, to any eligible entity de3 scribed in paragraph (7), including a grant 

4 made for— 

5 ‘‘(i) fundamental research (as defined 

6 in section 251(f)(1) of the Department of 

7 Agriculture Reorganization Act of 1994 (7 

8 U.S.C. 6971(f)(1)); 

9 ‘‘(ii) applied research (as defined in 

10 that section); 

11 ‘‘(iii) integrated research conducted 

12 pursuant to section 406 of the Agricultural 

13 Research, Extension, and Education Re14 form Act of 1998 (7 U.S.C. 7626); or 

15 ‘‘(iv) integrated research described in 

16 clause (iii) that is applied or fundamental 

17 research.’’; 

18 (2) in paragraph (2)(F)— 

19 (A) by redesignating clauses (iii) through 

20 (vi) as clauses (iv) through (vii), respectively; 

21 and 

22 (B) by inserting after clause (ii) the fol23 lowing: 

24 ‘‘(iii) new farming opportunities, in25 cluding young, beginning, socially disVerDate Mar 15 2010 23:53 Apr 30, 2013 Jkt 029200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H1727.IH H1727

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1 advantaged, and immigrant issues and 

2 farm transition, farm transfer, farm entry, 

3 and beginning farmer profitability issues;’’; 

4 (3) in paragraph (7), in the matter preceding 

5 subparagraph (A), by inserting ‘‘projects (including 

6 integrated projects)’’ after ‘‘education’’; and 

7 (4) in paragraph (11)(A), in the matter pre8 ceding clause (i), by striking ‘‘2008 through 2012’’ 

9 and inserting ‘‘2013 through 2018’’. 

10 TITLE V—CROP INSURANCE 

11 SEC. 501. RISK MANAGEMENT PARTNERSHIP PROGRAMS. 

12 Section 522(d) of the Federal Crop Insurance Act (7 

13 U.S.C. 1522(d)) is amended— 

14 (1) in paragraph (1)— 

15 (A) by striking ‘‘priority given to risk’’ and 

16 inserting ‘‘priority given to— 

17 ‘‘(A) risk’’; 

18 (B) by striking the period at the end and 

19 inserting ‘‘; and’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(B) underserved producers, including be22 ginning farmers and ranchers and socially dis23 advantaged farmers and ranchers.’’; 

24 (2) in paragraph (2)— 


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1 (A) by striking ‘‘options for producers’’ 

2 and inserting ‘‘options for— 

3 ‘‘(A) producers 

4 ‘‘(B) by striking the period at the end and 

5 inserting’’; and 

6 (B) by adding at the end the following: 

7 ‘‘(B) underserved producers, including be8 ginning farmers and ranchers and socially dis9 advantaged farmers and ranchers.’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(4) REQUIREMENTS.—In carrying out the pro12 grams established under paragraphs (2) and (3), the 

13 Secretary shall place special emphasis on risk man14 agement techniques, tools, and programs that are 

15 specifically targeted at— 

16 ‘‘(A) beginning farmers or ranchers; 

17 ‘‘(B) legal immigrant farmers or ranchers 

18 that are attempting to become established agri19 cultural producers in the United States; 

20 ‘‘(C) socially disadvantaged farmers or 

21 ranchers; 

22 ‘‘(D) farmers or ranchers that— 

23 ‘‘(i) are preparing to retire; and 


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1 ‘‘(ii) are using transition strategies to 

2 help new farmers or ranchers get started; 

3 and 

4 ‘‘(E) new or established farmers or ranch5 ers that are converting production and mar6 keting systems to pursue new markets.’’. 

7 TITLE VI—MISCELLANEOUS 

8 SEC. 601. MILITARY VETERANS AGRICULTURAL LIAISON. 

9 (a) IN GENERAL.—Subtitle A of the Department of 

10 Agriculture Reorganization Act of 1994 is amended by in11 serting after section 218 (7 U.S.C. 6918) the following: 

12 ‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON. 

13 ‘‘(a) AUTHORIZATION.—The Secretary shall establish 

14 in the Department the position of Military Veterans Agri15 cultural Liaison. 

16 ‘‘(b) DUTIES.—The Military Veterans Agricultural 

17 Liaison shall— 

18 ‘‘(1) provide information to returning veterans 

19 about, and connect returning veterans with, begin20 ning farmer training and agricultural vocational and 

21 rehabilitation programs appropriate to the needs and 

22 interests of returning veterans, including assisting 

23 veterans in using Federal veterans educational bene24 fits for purposes relating to beginning a farming or 

25 ranching career; 


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1 ‘‘(2) provide information to veterans concerning 

2 the availability of and eligibility requirements for 

3 participation in agricultural programs, with par4 ticular emphasis on beginning farmer and rancher 

5 programs; 

6 ‘‘(3) serving as a resource for assisting veteran 

7 farmers and ranchers, and potential farmers and 

8 ranchers, in applying for participation in agricul9 tural programs; and 

10 ‘‘(4) advocating on behalf of veterans in inter11 actions with employees of the Department.’’. 

12 (b) CONFORMING AMENDMENTS.—Section 296(b) of 

13 the Department of Agriculture Reorganization Act of 

14 1994 (7 U.S.C. 7014(b)) is amended— 

15 (1) in paragraph (6), by striking ‘‘or’’ after the 

16 semicolon at the end; 

17 (2) in paragraph (7), by striking the period at 

18 the end and inserting ‘‘; or’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(8) the authority of the Secretary to establish 

21 in the Department the position of Military Veterans 

22 Agricultural Liaison in accordance with section 

23 219.’’. 


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1 SEC. 602. BUDGETARY EFFECTS. 

2 The budgetary effects of this Act, for the purpose of 

3 complying with the Statutory Pay-As-You-Go Act of 2010, 

4 shall be determined by reference to the latest statement 

5 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

6 Act, submitted for printing in the Congressional Record 

7 by the Chairman of the House Budget Committee, pro8 vided that such statement has been submitted prior to the 

9 vote on passage. 

10 SEC. 603. EFFECTIVE DATE. 

11 This Act and the amendments made by this Act take 

12 effect on October 1, 2013. 

Æ 


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