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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3236 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3236

To expand and improve opportunities for beginning farmers and ranchers, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 14, 2011

Mr. Walz of Minnesota (for himself and Mr. Fortenberry) 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Beginning Farmer 
and Rancher Opportunity Act of 2011''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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. Loan terms for down payment loan program.
Sec. 204. 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. Loan authorization levels.
Sec. 224. Direct loans for beginning farmers and ranchers.
Sec. 225. Borrower training.
                      TITLE III--RURAL DEVELOPMENT

Sec. 301. Value-added producer grants.
Sec. 302. Use of loans and grants for entrepreneurial farm enterprises.
              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. Sense of Congress on beginning farmer and rancher access to 
                            crop and revenue insurance.
Sec. 502. Risk management partnership programs.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Small and beginning farmer and rancher coordinators.
Sec. 602. Military Veterans Agricultural Liaison.
Sec. 603. Budgetary effects.
Sec. 604. Effective date.

                         TITLE I--CONSERVATION

                Subtitle A--Conservation Reserve Program

SEC. 101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended by striking ``2012'' and inserting 
``2017''.
    (b) Land Eligible for Enrollment in Conservation Reserve.--Section 
1231(b)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 
3831(b)(1)(B)) is amended by striking ``Food, Conservation, and Energy 
Act of 2008'' and inserting ``Beginning Farmer and Rancher Opportunity 
Act of 2011''.
    (c) Maximum Enrollment of Acreage in Conservation Reserve.--Section 
1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is 
amended--
            (1) by striking the first sentence; and
            (2) in the second sentence, by striking ``2010, 2011, and 
        2012'' and inserting ``2010 through 2017''.
    (d) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231B of the Food Security Act of 1985 
(16 U.S.C. 3831b) is amended--
            (1) in subsection (a)(1), by striking ``2012'' and 
        inserting ``2017''; and
            (2) in subsection (b)(1)(C), by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''.

SEC. 102. CONTRACTS.

    Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is 
amended--
            (1) in subsection (c)(1)(B), by striking clause (iii) and 
        inserting the following:
                            ``(iii) to facilitate a transition of land 
                        subject to the contract from a retired or 
                        retiring owner or operator to a beginning 
                        farmer or rancher, socially disadvantaged 
                        farmer or rancher, or limited resource farmer 
                        or rancher who is or will be actively engaged 
                        in farming or ranching with respect to the land 
                        transferred under this subsection for the 
                        purpose of returning some or all of the land 
                        into production using sustainable grazing or 
                        crop production methods that meet or exceed the 
                        resource management system quality criteria for 
                        erosion, soil quality, water quality, and fish 
                        and wildlife; or''; and
            (2) in subsection (f)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``or socially disadvantaged farmer or 
                rancher'' and inserting ``socially disadvantaged farmer 
                or rancher, or limited resource farmer or rancher who 
                is or will be actively engaged in farming or ranching 
                with respect to the land transferred under this 
                subsection''; and
                    (B) by striking subparagraphs (C), (D), and (E) and 
                inserting the following:
                    ``(C) require the covered farmer or rancher to 
                develop and implement a comprehensive conservation plan 
                that addresses all resource concerns and meets such 
                sustainability criteria as the Secretary may establish;
                    ``(D) provide to the covered farmer or rancher an 
                opportunity to enroll in the conservation stewardship 
                program or the environmental quality incentives program 
                at any time beginning on the date that is 1 year before 
                the date of termination of the contract, including 
                technical and financial assistance in the development 
                of a comprehensive conservation plan;
                    ``(E) if the land transferred under this subsection 
                remains in grass cover, provide to the covered farmer 
                or rancher an opportunity to enroll in a long-term or 
                permanent easement under the grassland reserve program 
                or farmland protection program at any time beginning on 
                the date that is 1 year before the date of termination 
                of the contact; and
                    ``(F) continue to make annual payments to the 
                retired or retiring owner or operator for not more than 
                an additional 2 years after the date of termination of 
                the contract, except that, in the case of a retired or 
                retiring owner or operator who is a family member (as 
                defined in section 1001) of the covered farmer or 
                rancher, the additional payments shall be made only if 
                title to the land is sold or transferred to the covered 
                farmer or rancher on termination of the contract.''.

                Subtitle B--Farmland Protection Program

SEC. 111. FARMLAND PROTECTION PROGRAM.

    Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is 
amended--
            (1) in subsection (b), by inserting ``to promote farm 
        viability for future generations'' before the period at the 
        end; and
            (2) in subsection (g)(4)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) provide a funding priority, to the maximum 
                extent practicable, for--
                            ``(i) eligible land for which there exists 
                        a farm or ranch succession plan or similar plan 
                        established to create opportunities for 
                        beginning farmers and ranchers and encourage 
                        farm viability for future generations;
                            ``(ii) easements that exercise an option to 
                        purchase at a price that is equal to the 
                        agricultural use value;
                            ``(iii) qualified beginning farmers or 
                        ranchers with contracts to purchase the land to 
                        be protected;
                            ``(iv) land owned by a nongovernmental 
                        organization that will be sold to a qualified 
                        beginning farmer or rancher;
                            ``(v) contemporaneous farm transfers of 
                        eligible land to qualified beginning farmers 
                        and ranchers that may not occur without the 
                        financial assistance of the program; and
                            ``(vi) other similar mechanisms to maintain 
                        the affordability of farm and ranch land for 
                        successive generations of farmers and ranchers; 
                        and''.

          Subtitle C--Environmental Quality Incentives Program

SEC. 121. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) 
is amended--
            (1) in subsection (a), by striking ``2012'' and inserting 
        ``2017'';
            (2) in subsection (d)(4)(B), by striking ``30 percent'' and 
        inserting ``50 percent''; and
            (3) in subsection (f), by striking ``2012'' and inserting 
        ``2017''.

SEC. 122. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (C), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) provide environmental and resource 
                conservation benefits through increased participation 
                by beginning farmers and ranchers and socially 
                disadvantaged farmers and ranchers.''; and
            (2) in subsection (b)(2), by striking ``2012'' and 
        inserting ``2017''.

                 Subtitle D--Funding and Administration

SEC. 131. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF 
              1985.

    (a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1) by 
striking ``2012'' and inserting ``2017''.
    (b) Conservation Reserve Program.--Section 1241(a)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3841(a)(1)) is amended by striking 
``2012'' each place it appears and inserting ``2017''.
    (c) Environmental Quality Incentives Program.--Section 
1241(a)(6)(E) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)(6)(E)) is amended by striking ``fiscal year 2012'' and 
inserting ``each of fiscal years 2012 through 2017''.

SEC. 132. ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CONSERVATION 
              ACCESS.

    Section 1241(g) of the Food Security Act of 1985 (16 U.S.C. 
3841(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``2012'' and inserting ``2017''; 
                and
                    (B) by striking ``5 percent'' each place it appears 
                and inserting ``10 percent'';
            (2) in paragraph (2), by inserting ``(but not earlier than 
        120 days after the date that funding for the fiscal year is 
        allocated to the States)'' after ``Secretary'';
            (3) in paragraph (3), by inserting ``(but not earlier than 
        120 days after the date that acres for the fiscal year are 
        allocated to the States)'' after ``Secretary''; and
            (4) by adding at the end the following:
            ``(4) Participation by beginning and socially disadvantaged 
        farmers and ranchers.--Nothing in this subsection prohibits 
        beginning or socially disadvantaged farmers or ranchers from 
        participating in programs and receiving funding available under 
        this title that is not reserved under paragraph (1).
            ``(5) Technical assistance.--Within the funds reserved 
        under paragraph (1), the Secretary shall allocate to the 
        Natural Resources Conservation Service funding for technical 
        assistance at a rate that is not more than 10 percent higher 
        than the rate that would otherwise apply to allow the Service 
        to provide additional technical assistance to beginning farmers 
        or ranchers and socially disadvantaged farmers or ranchers to 
        establish conservation plans.''.

SEC. 133. COMPREHENSIVE CONSERVATION PLANNING.

    Section 1244(a) of the Food Security Act of 1985 (16 U.S.C. 
3844(a)) is amended by adding at the end the following:
            ``(3) Comprehensive conservation planning.--In carrying out 
        this subsection, the Secretary shall provide technical and 
        financial assistance using resources available under the 
        environmental quality incentives program, conservation 
        stewardship program, or such other programs as the Secretary 
        may determine to covered persons who request the assistance to 
        develop a comprehensive conservation plan for the farming or 
        ranching operation of the covered person.''.

                            TITLE II--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE REQUIREMENT.

    Section 302(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922(b)) is amended by striking ``3 years'' and inserting 
``2 years''.

SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended--
            (1) in subsection (c)(2)--
                    (A) by striking ``shall meet'' and inserting 
                ``shall--
                    ``(A) meet'';
                    (B) in subparagraph (A) (as so designated), by 
                striking the period at the end and inserting ``; and''; 
                and
                    (C) by adding at the end the following:
                    ``(B) be the owner or operator of not larger than a 
                family farm.'';
            (2) in subsection (e)--
                    (A) by striking ``The portion'' and inserting the 
                following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        portion''; and
                    (B) by adding at the end the following:
            ``(2) Beginning and socially disadvantaged farmers and 
        ranchers.--In the case of beginning farmers or ranchers and 
        socially disadvantaged farmers or ranchers, the portion of the 
        loan the Secretary may guarantee under this section shall be 95 
        percent of the principal amount of the loan.''; and
            (3) by striking subsection (h) and inserting the following:
    ``(h) Funding.--
            ``(1) In general.--The Secretary may make or guarantee 
        loans under this section for not more than $250,000,000 for 
        each of fiscal years 2013 through 2017, of which, for each 
        fiscal year, not more than \1/2\ shall be used for direct loans 
        and not more than \1/2\ shall be used for guaranteed loans.
            ``(2) Qualified beginning farmers and ranchers.--
                    ``(A) Direct loans.--Of the amount made available 
                for direct loans for a fiscal year under paragraph (1), 
                the Secretary shall reserve for qualified beginning 
                farmers and ranchers until April 1 of the fiscal year 
                not less than 50 percent of the amount.
                    ``(B) Guaranteed loans.--Of the amount made 
                available for guaranteed loans for a fiscal year under 
                paragraph (1), the Secretary shall reserve for 
                qualified beginning farmers and ranchers until April 1 
                of the fiscal year not less than 50 percent of the 
                amount.''.

SEC. 203. LOAN TERMS FOR DOWN PAYMENT LOAN PROGRAM.

    Section 310E(b)(1)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking 
``$500,000'' and inserting ``$667,000''.

SEC. 204. DEFINITION OF QUALIFIED BEGINNING FARMER OR RANCHER.

    Section 343(a)(11)(F) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking 
``median'' and inserting ``average''.

                      Subtitle B--Operating Loans

SEC. 211. YOUNG BEGINNING FARMER OR RANCHER MICROLOANS.

    Section 311 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941) is amended by adding at the end the following:
    ``(d) Young Beginning Farmer or Rancher Microloans.--
            ``(1) In general.--The Secretary may make microloans under 
        this subtitle to beginning farmers or ranchers who are not less 
        than 19 and not more than 35 years of age to enable the 
        beginning farmers or ranchers to obtain flexible capital to 
        finance operations.
            ``(2) Liability.--In the case of a microloan under this 
        subsection, the Secretary may accept the personal liability of 
        a cosigner of the promissory note in addition to the personal 
        liability of the borrower.
            ``(3) Principal balance.--The principal balance for a 
        microloan made under this subsection shall not exceed $35,000.
            ``(4) Term.--Loan repayment under this subsection shall be 
        required in not less than 1 and not more than 7 years.
            ``(5) Interest rate.--The interest rate on a loan made 
        under this subsection shall not exceed the maximum interest 
        rate that may be charged low income, limited resource borrowers 
        under section 316(a)(2).
            ``(6) Borrower training.--
                    ``(A) In general.--Subject to subparagraph (B), to 
                be eligible for a microloan under this subsection, the 
                borrower shall have successfully completed, or will 
                complete within 1 year, borrower training described in 
                section 359.
                    ``(B) Waivers.--In carrying out subparagraph (A), 
                the Secretary shall not grant a waiver described in 
                section 359(f) except in the case of a borrower who 
                successfully completed, or will complete within 1 year, 
                an equivalent training program, including programs 
                established under section 7405 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 3319f), as 
                determined by the Secretary.''.

                 Subtitle C--Administrative Provisions

SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS 
              PILOT PROGRAM.

    Section 333B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983b) is amended by striking subsection (h) and inserting the 
following:
    ``(h) Funding.--On October 1, 2012, and on each October 1 
thereafter through October 1, 2016, of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out this section 
$5,000,000, to remain available until expended.''.

SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    (a) Conditions for Direct Loans.--Section 311(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking the semicolon 
                at the end and inserting ``; and'';
                    (B) in subparagraph (B), by striking ``; or'' at 
                the end and inserting a period; and
                    (C) by striking subparagraph (C); and
            (2) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Term limits.--Subject to paragraph (4), if a farmer 
        or rancher has received a direct operating loan pursuant to 
        this section in each of 9 consecutive years, the farmer or 
        rancher may not receive a direct operating loan from the 
        Secretary under this section for the next year.
            ``(4) Waivers for farm and ranch operations on tribal 
        land.--The Secretary shall waive the limitation under paragraph 
        (3) for a direct loan made under this subtitle to a farmer or 
        rancher whose farm or ranch land is subject to the jurisdiction 
        of an Indian tribe and whose loan is secured by 1 or more 
        security instruments that are subject to the jurisdiction of an 
        Indian tribe if the Secretary determines that commercial credit 
        is not generally available for the farm or ranch operations.''.
    (b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--Section 319 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1949) is amended by striking subsection (b) and inserting 
the following:
    ``(b) Limitation on Period Borrowers Are Eligible for Guaranteed 
Assistance.--If a borrower has received a guaranteed loan under this 
subtitle in each of 15 consecutive years, the borrower may not receive 
a loan guaranteed by the Secretary for the next year.''.

SEC. 223. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``$4,226,000,000 for each of fiscal years 2008 through 2012'' 
        and inserting ``$5,000,000,000 for each of fiscal years 2013 
        through 2017'' ;
            (2) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``$1,200,000,000'' and inserting ``$2,000,000,000'';
                    (B) in clause (i), by striking ``$350,000,000'' and 
                inserting ``$750,000,000''; and
                    (C) in clause (ii), by striking ``$850,000,000'' 
                and inserting ``$1,250,000,000''; and
            (3) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking 
                ``$3,026,000,000'' and inserting ``$3,000,000,000'';
                    (B) in clause (i), by striking ``$1,000,000,000'' 
                and inserting ``$1,500,000,000''; and
                    (C) in clause (ii), by striking ``$2,026,000,000'' 
                and inserting ``$1,500,000,000''.

SEC. 224. DIRECT LOANS FOR BEGINNING FARMERS AND RANCHERS.

    Section 346(b)(2)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(2)(A)) is amended--
            (1) in clause (i), by adding at the end the following:
                                    ``(III) Priority.--In order to 
                                maximize the number of borrowers served 
                                under this clause, the Secretary--
                                            ``(aa) shall give priority 
                                        to borrowers who apply under 
                                        the down payment loan program 
                                        under section 310E or joint 
                                        financing arrangements under 
                                        section 307(a)(3)(D); and
                                            ``(bb) may offer other 
                                        financing options only if the 
                                        Secretary determines that down 
                                        payment or other participation 
                                        loan options are not a viable 
                                        approach for a particular 
                                        borrower.''; and
            (2) in clause (ii)(III), by striking ``each of fiscal years 
        2008 through 2012'' and inserting ``fiscal year 2008 and each 
        fiscal year thereafter''.

SEC. 225. BORROWER TRAINING.

    Section 359 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006a) is amended by adding at the end the following:
    ``(g) Coordination.--The Secretary shall coordinate the borrower 
training program under this section with the beginning farmer and 
rancher development program established under section 7405 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 3319f) to ensure, 
to the maximum extent practicable, that financial management training 
programs funded under the beginning farmer and rancher development 
program are designed in such a way that the financial management 
training programs will--
            ``(1) meet borrower training requirements under this 
        section; and
            ``(2) qualify as beginning farmer and rancher development 
        program projects covered by contracts under subsection (b).''.

                      TITLE III--RURAL DEVELOPMENT

SEC. 301. VALUE-ADDED PRODUCER GRANTS.

    Section 231(b) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1632a(b)) is amended--
            (1) by striking paragraph (6) and inserting the following:
            ``(6) Priority.--
                    ``(A) In general.--In awarding grants under this 
                subsection, the Secretary shall give priority to 
                projects that--
                            ``(i) contribute to increasing 
                        opportunities for operators of small- and 
                        medium-sized farms and ranches that are 
                        structured as a family farm; or
                            ``(ii) have applicants at least \1/4\ of 
                        whom are beginning farmers or ranchers or 
                        socially disadvantaged farmers or ranchers.
                    ``(B) Ranking.--In evaluating and ranking proposals 
                under this subsection, the Secretary shall provide very 
                substantial weight to the priorities described in 
                subparagraph (A).''; and
            (2) in paragraph (7)--
                    (A) in subparagraph (A)--
                            (i) by striking ``October 1, 2008'' and 
                        inserting ``October 1, 2012, and each October 1 
                        thereafter through October 1, 2016''; and
                            (ii) by striking ``$15,000,000'' and 
                        inserting ``$30,000,000'';
                    (B) in subparagraph (B), by striking ``2012'' and 
                inserting ``2017''; and
                    (C) in subparagraph (C)--
                            (i) in clause (i), by striking ``benefit'' 
                        and inserting ``have applicants at least \1/4\ 
                        of whom are''; and
                            (ii) in clause (iii), by striking ``June 30 
                        of the fiscal year'' and inserting ``the close 
                        of the annual proposal review process''.

SEC. 302. USE OF LOANS AND GRANTS FOR ENTREPRENEURIAL FARM ENTERPRISES.

    Subtitle D of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 365 (7 U.S.C. 2008) the following:

``SEC. 366. USE OF LOANS AND GRANTS FOR ENTREPRENEURIAL FARM 
              ENTERPRISES.

    ``(a) In General.--The Secretary shall approve grants and loans 
under any rural development program established under this title to 
support farm and farm-related business enterprises that--
            ``(1) create new entrepreneurial employment opportunities 
        for beginning farmers and ranchers;
            ``(2) have the effect of--
                    ``(A) creating new small- and medium-size family 
                farms;
                    ``(B) enhancing local and regional food systems;
                    ``(C) increasing value-added production and new 
                markets;
                    ``(D) preserving farmland and rural heritage; and
                    ``(E) developing strong rural economies; and
            ``(3) are consistent with the purposes of the program.
    ``(b) Limitation.--Loans or grants made under this section shall 
not be available for annual agricultural production purposes.''.

              TITLE IV--RESEARCH, EDUCATION, AND EXTENSION

SEC. 401. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    Section 7405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3319f) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (Q), by striking 
                        ``and'' after the semicolon at the end;
                            (ii) by redesignating subparagraph (R) as 
                        subparagraph (S); and
                            (iii) by inserting after subparagraph (Q) 
                        the following:
                    ``(R) agricultural rehabilitation and vocational 
                training for veterans; and'';
                    (B) in paragraph (4)--
                            (i) by striking ``To be eligible'' and 
                        inserting the following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible''; and
                            (ii) by adding at the end the following:
                    ``(B) Exceptions.--The Secretary may waive or 
                modify the matching requirement in subparagraph (A) if 
                the Secretary determines a waiver or modification is 
                necessary to effectively reach an underserved area or 
                population.'';
                    (C) in paragraph (8)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon at the end;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) military veteran beginning farmers and 
                ranchers.''; and
                    (D) by adding at the end the following:
            ``(11) Indirect costs.--To help facilitate participation in 
        the program under this subsection by nongovernmental and 
        community-based nonprofit organizations, the Secretary shall 
        provide for an optional 10 percent indirect cost option in lieu 
        of a higher negotiated rate.''; and
            (2) in subsection (h)--
                    (A) in paragraph (1), by striking ``section--'' and 
                all that follows through the period at the end and 
                inserting ``$25,000,000 for each of fiscal years 2013 
                through 2017.''; and
                    (B) in paragraph (2), by striking ``2008 through 
                2012'' and inserting ``2013 through 2017''.

SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

    Subsection (b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)) is amended--
            (1) in paragraph (2)(F)--
                    (A) by redesignating clauses (iii) through (vi) as 
                clauses (iv) through (vii), respectively; and
                    (B) by inserting after clause (ii) the following:
                            ``(iii) new farming opportunities, 
                        including young, beginning, socially 
                        disadvantaged, and immigrant issues and farm 
                        transition, farm transfer, farm entry, and 
                        beginning farmer profitability issues;'';
            (2) in paragraph (7), in the matter preceding subparagraph 
        (A), by inserting ``projects (including integrated projects)'' 
        after ``education''; and
            (3) in paragraph (11)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``2008 through 2012'' and inserting ``2013 through 
                2017''; and
                    (B) in clause (i), by striking ``pursuant to'' and 
                inserting ``under''.

                        TITLE V--CROP INSURANCE

SEC. 501. SENSE OF CONGRESS ON BEGINNING FARMER AND RANCHER ACCESS TO 
              CROP AND REVENUE INSURANCE.

    It is the sense of Congress that the Secretary of Agriculture 
should, to the maximum extent practicable, remove barriers and ensure 
effective access to crop and revenue insurance by beginning farmers and 
ranchers on terms that are fair and assist in the goal of increasing 
the number of new farming and ranching opportunities.

SEC. 502. RISK MANAGEMENT PARTNERSHIP PROGRAMS.

    Section 522 of the Federal Crop Insurance Act (7 U.S.C. 1522) is 
amended--
            (1) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``priority given to risk'' 
                        and inserting ``priority given to--
                    ``(A) risk'';
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(B) underserved producers, including beginning 
                farmers and ranchers and socially disadvantaged farmers 
                and ranchers.'';
                    (B) in paragraph (2)--
                            (i) by striking ``options for producers'' 
                        and inserting ``options for--
                    ``(A) producers'';
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(B) underserved producers, including beginning 
                farmers and ranchers and socially disadvantaged farmers 
                and ranchers.''; and
                    (C) by adding at the end the following:
            ``(4) Requirements.--In carrying out the programs 
        established under paragraphs (2) and (3), the Secretary shall 
        place special emphasis on risk management techniques, tools, 
        and programs that are specifically targeted at--
                    ``(A) beginning farmers or ranchers;
                    ``(B) legal immigrant farmers or ranchers that are 
                attempting to become established agricultural producers 
                in the United States;
                    ``(C) socially disadvantaged farmers or ranchers;
                    ``(D) farmers or ranchers that--
                            ``(i) are preparing to retire; and
                            ``(ii) are using transition strategies to 
                        help new farmers or ranchers get started; and
                    ``(E) new or established farmers or ranchers that 
                are converting production and marketing systems to 
                pursue new markets.''; and
            (2) in subsection (e)(2)(A), by striking ``$12,500,000 for 
        fiscal year 2008'' and inserting ``$15,000,000 for fiscal year 
        2013''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. SMALL AND BEGINNING FARMER AND RANCHER COORDINATORS.

    Section 226B of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6934) is amended--
            (1) in subsection (c)(4), by inserting before the semicolon 
        at the end the following: ``, including review of rulemakings 
        to provide an assessment and make recommendations regarding the 
        impact of rules on small farms and ranches, beginning and 
        socially disadvantaged farmers and ranchers, and related 
        matters relevant to the structure of agriculture'';
            (2) in subsection (e)(2)--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) State small and beginning farmer and rancher 
                coordinator.--
                            ``(i) In general.--The Small Farms and 
                        Beginning Farmers and Ranchers Group shall 
                        designate a State small and beginning farmer 
                        and rancher coordinator from among the State 
                        office employees of the Farm Service Agency, 
                        the Natural Resources Conservation Service, the 
                        Risk Management Agency, the Rural Business-
                        Cooperative Service, and the Rural Utilities 
                        Service.
                            ``(ii) Training.--The Small Farms and 
                        Beginning Farmers and Ranchers Group shall 
                        coordinate the development of a training plan 
                        so that each State coordinator shall receive 
                        sufficient training to have a general working 
                        knowledge of the programs and services 
                        available from each agency of the Department to 
                        assist small and beginning farmers and 
                        ranchers.
                            ``(iii) Duties.--The coordinator shall--
                                    ``(I) coordinate technical 
                                assistance at the State level to help 
                                small and beginning farmers and 
                                ranchers gain access to programs of the 
                                Department;
                                    ``(II) develop and submit a State 
                                plan for approval by the Small Farms 
                                and Beginning Farmers and Ranchers 
                                Group to provide coordination to ensure 
                                adequate services to small and 
                                beginning farmers and ranchers at all 
                                county and area offices throughout the 
                                State;
                                    ``(III) oversee implementation of 
                                the approved State plan; and
                                    ``(IV) work with outreach 
                                coordinators in the State offices of 
                                the Farm Service Agency, the Natural 
                                Resources Conservation Service, the 
                                Risk Management Agency, the Rural 
                                Business-Cooperative Service, and the 
                                Rural Utilities Service to ensure 
                                appropriate information about technical 
                                assistance is available at outreach 
                                events and activities.''; and
            (3) in subsection (f), by striking paragraph (3); and
            (4) by adding at the end the following:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2013 through 2017.''.

SEC. 602. MILITARY VETERANS AGRICULTURAL LIAISON.

    (a) In General.--Subtitle A of the Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after section 218 (7 
U.S.C. 6918) the following:

``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

    ``(a) Authorization.--The Secretary shall establish in the 
Department the position of Military Veterans Agricultural Liaison.
    ``(b) Duties.--The Military Veterans Agricultural Liaison shall--
            ``(1) provide information to returning veterans about, and 
        connect returning veterans with, beginning farmer training and 
        agricultural vocational and rehabilitation programs appropriate 
        to the needs and interests of returning veterans, including 
        assisting veterans in using Federal veterans educational 
        benefits for purposes relating to beginning a farming or 
        ranching career;
            ``(2) provide information to veterans concerning the 
        availability of and eligibility requirements for participation 
        in agricultural programs, with particular emphasis on beginning 
        farmer and rancher programs;
            ``(3) serving as a resource for assisting veteran farmers 
        and ranchers, and potential farmers and ranchers, in applying 
        for participation in agricultural programs; and
            ``(4) advocating on behalf of veterans in interactions with 
        employees of the Department.''.
    (b) Conforming Amendments.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to establish in the 
        Department the position of Military Veterans Agricultural 
        Liaison in accordance with section 219.''.

SEC. 603. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

SEC. 604. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect on October 
1, 2012.
                                 <all>
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