I 

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. 

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 2011’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

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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. 

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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. 

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 ‘‘2017’’. 

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 2011’’. 

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 2017’’. 

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1 (d) PILOT PROGRAM FOR ENROLLMENT OF WET2 LAND AND BUFFER ACREAGE IN CONSERVATION RE3 SERVE.—Section 1231B of the Food Security Act of 1985 

4 (16 U.S.C. 3831b) is amended— 

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

6 inserting ‘‘2017’’; and 

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

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

9 SEC. 102. CONTRACTS. 

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

11 U.S.C. 3835) is amended— 

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

13 (iii) and inserting the following: 

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

15 subject to the contract from a retired or 

16 retiring owner or operator to a beginning 

17 farmer or rancher, socially disadvantaged 

18 farmer or rancher, or limited resource 

19 farmer or rancher who is or will be actively 

20 engaged in farming or ranching with re21 spect to the land transferred under this 

22 subsection for the purpose of returning 

23 some or all of the land into production 

24 using sustainable grazing or crop produc25 tion methods that meet or exceed the remstockstill on DSK4VPTVN1PROD with BILLS

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1 source management system quality criteria 

2 for erosion, soil quality, water quality, and 

3 fish and wildlife; or’’; and 

4 (2) in subsection (f)(1)— 

5 (A) in the matter preceding subparagraph 

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

7 farmer or rancher’’ and inserting ‘‘socially dis8 advantaged farmer or rancher, or limited re9 source farmer or rancher who is or will be ac10 tively engaged in farming or ranching with re11 spect to the land transferred under this sub12 section’’; and 

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

14 and (E) and inserting the following: 

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

16 to develop and implement a comprehensive con17 servation plan that addresses all resource con18 cerns and meets such sustainability criteria as 

19 the Secretary may establish; 

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

21 rancher an opportunity to enroll in the con22 servation stewardship program or the environ23 mental quality incentives program at any time 

24 beginning on the date that is 1 year before the 

25 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 ‘‘2012’’ and 

2 inserting ‘‘2017’’; 

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 ‘‘2017’’. 

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 ‘‘2017’’. 

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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 (a) IN GENERAL.—Section 1241(a) of the Food Se6 curity Act of 1985 (16 U.S.C. 3841(a)) is amended in the 

7 matter preceding paragraph (1) by striking ‘‘2012’’ and 

8 inserting ‘‘2017’’. 

9 (b) CONSERVATION RESERVE PROGRAM.—Section 

10 1241(a)(1) of the Food Security Act of 1985 (16 U.S.C. 

11 3841(a)(1)) is amended by striking ‘‘2012’’ each place it 

12 appears and inserting ‘‘2017’’. 

13 (c) ENVIRONMENTAL QUALITY INCENTIVES PRO14 GRAM.—Section 1241(a)(6)(E) of the Food Security Act 

15 of 1985 (16 U.S.C. 3841(a)(6)(E)) is amended by striking 

16 ‘‘fiscal year 2012’’ and inserting ‘‘each of fiscal years 

17 2012 through 2017’’. 

18 SEC. 132. ASSISTANCE TO CERTAIN FARMERS OR RANCH19 ERS FOR CONSERVATION ACCESS. 

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

21 (16 U.S.C. 3841(g)) is amended— 

22 (1) in paragraph (1)— 

23 (A) by striking ‘‘2012’’ and inserting 

24 ‘‘2017’’; and 

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1 (B) by striking ‘‘5 percent’’ each place it 

2 appears and inserting ‘‘10 percent’’; 

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

4 earlier than 120 days after the date that funding for 

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

6 ‘‘Secretary’’; 

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

8 earlier than 120 days after the date that acres for 

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

10 ‘‘Secretary’’; and 

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

12 ‘‘(4) PARTICIPATION BY BEGINNING AND SO13 CIALLY DISADVANTAGED FARMERS AND RANCH14 ERS.—Nothing in this subsection prohibits beginning 

15 or socially disadvantaged farmers or ranchers from 

16 participating in programs and receiving funding 

17 available under this title that is not reserved under 

18 paragraph (1). 

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

20 funds reserved under paragraph (1), the Secretary 

21 shall allocate to the Natural Resources Conservation 

22 Service funding for technical assistance at a rate 

23 that is not more than 10 percent higher than the 

24 rate that would otherwise apply to allow the Service 

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1 ning farmers or ranchers and socially disadvantaged 

2 farmers or ranchers to establish conservation 

3 plans.’’. 

4 SEC. 133. COMPREHENSIVE CONSERVATION PLANNING. 

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

6 (16 U.S.C. 3844(a)) is amended by adding at the end the 

7 following: 

8 ‘‘(3) COMPREHENSIVE CONSERVATION PLAN9 NING.—In carrying out this subsection, the Sec10 retary shall provide technical and financial assist11 ance using resources available under the environ12 mental quality incentives program, conservation 

13 stewardship program, or such other programs as the 

14 Secretary may determine to covered persons who re15 quest the assistance to develop a comprehensive con16 servation plan for the farming or ranching operation 

17 of the covered person.’’. 

18 TITLE II—CREDIT 

19 Subtitle A—Farm Ownership Loans 

20 SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE RE21 QUIREMENT. 

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

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

24 by striking ‘‘3 years’’ and inserting ‘‘2 years’’. 

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1 SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE 

2 PROGRAM. 

3 Section 304 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1924) is amended— 

5 (1) in subsection (c)(2)— 

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

7 ‘‘shall— 

8 ‘‘(A) meet’’; 

9 (B) in subparagraph (A) (as so des10 ignated), by striking the period at the end and 

11 inserting ‘‘; and’’; and 

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

13 ‘‘(B) be the owner or operator of not larg14 er than a family farm.’’; 

15 (2) in subsection (e)— 

16 (A) by striking ‘‘The portion’’ and insert17 ing the following: 

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graph (2), the portion’’; and 

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

21 ‘‘(2) BEGINNING AND SOCIALLY DISADVAN22 TAGED FARMERS AND RANCHERS.—In the case of 

23 beginning farmers or ranchers and socially disadvan24 taged farmers or ranchers, the portion of the loan 

25 the Secretary may guarantee under this section shall 

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

2 and 

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

4 following: 

5 ‘‘(h) FUNDING.— 

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

7 or guarantee loans under this section for not more 

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

9 through 2017, of which, for each fiscal year, not 

more than 1 10 ⁄2 shall be used for direct loans and not 

more than 1 11 ⁄2 shall be used for guaranteed loans. 

12 ‘‘(2) QUALIFIED BEGINNING FARMERS AND

13 RANCHERS.— 

14 ‘‘(A) DIRECT LOANS.—Of the amount 

15 made available for direct loans for a fiscal year 

16 under paragraph (1), the Secretary shall re17 serve for qualified beginning farmers and 

18 ranchers until April 1 of the fiscal year not less 

19 than 50 percent of the amount. 

20 ‘‘(B) GUARANTEED LOANS.—Of the 

21 amount made available for guaranteed loans for 

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

23 shall reserve for qualified beginning farmers 

24 and ranchers until April 1 of the fiscal year not 

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

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1 SEC. 203. LOAN TERMS FOR DOWN PAYMENT LOAN PRO2 GRAM. 

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

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

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

6 ‘‘$667,000’’. 

7 SEC. 204. DEFINITION OF QUALIFIED BEGINNING FARMER 

8 OR RANCHER. 

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

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

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

12 Subtitle B—Operating Loans 

13 SEC. 211. YOUNG BEGINNING FARMER OR RANCHER 

14 MICROLOANS. 

15 Section 311 of the Consolidated Farm and Rural De16 velopment Act (7 U.S.C. 1941) is amended by adding at 

17 the end the following: 

18 ‘‘(d) YOUNG BEGINNING FARMER OR RANCHER

19 MICROLOANS.— 

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

21 microloans under this subtitle to beginning farmers 

22 or ranchers who are not less than 19 and not more 

23 than 35 years of age to enable the beginning farm24 ers or ranchers to obtain flexible capital to finance 

25 operations. 

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1 ‘‘(2) LIABILITY.—In the case of a microloan 

2 under this subsection, the Secretary may accept the 

3 personal liability of a cosigner of the promissory 

4 note in addition to the personal liability of the bor5 rower. 

6 ‘‘(3) PRINCIPAL BALANCE.—The principal bal7 ance for a microloan made under this subsection 

8 shall not exceed $35,000. 

9 ‘‘(4) TERM.—Loan repayment under this sub10 section shall be required in not less than 1 and not 

11 more than 7 years. 

12 ‘‘(5) INTEREST RATE.—The interest rate on a 

13 loan made under this subsection shall not exceed the 

14 maximum interest rate that may be charged low in15 come, limited resource borrowers under section 

16 316(a)(2). 

17 ‘‘(6) BORROWER TRAINING.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), to be eligible for a microloan under 

20 this subsection, the borrower shall have success21 fully completed, or will complete within 1 year, 

22 borrower training described in section 359. 

23 ‘‘(B) WAIVERS.—In carrying out subpara24 graph (A), the Secretary shall not grant a waiv25 er described in section 359(f) except in the case 

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1 of a borrower who successfully completed, or 

2 will complete within 1 year, an equivalent train3 ing program, including programs established 

4 under section 7405 of the Farm Security and 

5 Rural Investment Act of 2002 (7 U.S.C. 

6 3319f), as determined by the Secretary.’’. 

7 Subtitle C—Administrative 

8 Provisions 

9 SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL 

10 DEVELOPMENT ACCOUNTS PILOT PROGRAM. 

11 Section 333B of the Consolidated Farm and Rural 

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

13 subsection (h) and inserting the following: 

14 ‘‘(h) FUNDING.—On October 1, 2012, and on each 

15 October 1 thereafter through October 1, 2016, of the 

16 funds of the Commodity Credit Corporation, the Secretary 

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

18 available until expended.’’. 

19 SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR 

20 OTHER SOURCES OF CREDIT. 

21 (a) CONDITIONS FOR DIRECT LOANS.—Section 

22 311(c) of the Consolidated Farm and Rural Development 

23 Act (7 U.S.C. 1941(c)) is amended— 

24 (1) in paragraph (1)— 

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

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

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

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

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

6 (2) by striking paragraphs (3) and (4) and in7 serting the following: 

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

9 if a farmer or rancher has received a direct oper10 ating loan pursuant to this section in each of 9 con11 secutive years, the farmer or rancher may not re12 ceive a direct operating loan from the Secretary 

13 under this section for the next year. 

14 ‘‘(4) WAIVERS FOR FARM AND RANCH OPER15 ATIONS ON TRIBAL LAND.—The Secretary shall 

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

17 loan made under this subtitle to a farmer or rancher 

18 whose farm or ranch land is subject to the jurisdic19 tion of an Indian tribe and whose loan is secured by 

20 1 or more security instruments that are subject to 

21 the jurisdiction of an Indian tribe if the Secretary 

22 determines that commercial credit is not generally 

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

24 (b) LIMITATION ON PERIOD BORROWERS ARE ELIGI25 BLE FOR GUARANTEED ASSISTANCE.—Section 319 of the 

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

2 1949) is amended by striking subsection (b) and inserting 

3 the following: 

4 ‘‘(b) LIMITATION ON PERIOD BORROWERS ARE ELI5 GIBLE FOR GUARANTEED ASSISTANCE.—If a borrower 

6 has received a guaranteed loan under this subtitle in each 

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

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

9 SEC. 223. LOAN AUTHORIZATION LEVELS. 

10 Section 346(b)(1) of the Consolidated Farm and 

11 Rural Development Act (7 U.S.C. 1994(b)(1)) is amend12 ed— 

13 (1) in the matter preceding subparagraph (A), 

14 by striking ‘‘$4,226,000,000 for each of fiscal years 

15 2008 through 2012’’ and inserting ‘‘$5,000,000,000 

16 for each of fiscal years 2013 through 2017’’ ; 

17 (2) in subparagraph (A)— 

18 (A) in the matter preceding clause (i), by 

19 striking ‘‘$1,200,000,000’’ and inserting 

20 ‘‘$2,000,000,000’’; 

21 (B) in clause (i), by striking 

22 ‘‘$350,000,000’’ and inserting ‘‘$750,000,000’’; 

23 and 

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1 (C) in clause (ii), by striking 

2 ‘‘$850,000,000’’ and inserting 

3 ‘‘$1,250,000,000’’; and 

4 (3) in subparagraph (B)— 

5 (A) in the matter preceding clause (i), by 

6 striking ‘‘$3,026,000,000’’ and inserting 

7 ‘‘$3,000,000,000’’; 

8 (B) in clause (i), by striking 

9 ‘‘$1,000,000,000’’ and inserting 

10 ‘‘$1,500,000,000’’; and 

11 (C) in clause (ii), by striking 

12 ‘‘$2,026,000,000’’ and inserting 

13 ‘‘$1,500,000,000’’. 

14 SEC. 224. 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 SEC. 225. BORROWER TRAINING. 

17 Section 359 of the Consolidated Farm and Rural De18 velopment Act (7 U.S.C. 2006a) is amended by adding 

19 at the end the following: 

20 ‘‘(g) COORDINATION.—The Secretary shall coordi21 nate the borrower training program under this section 

22 with the beginning farmer and rancher development pro23 gram established under section 7405 of the Farm Security 

24 and Rural Investment Act of 2002 (7 U.S.C. 3319f) to 

25 ensure, to the maximum extent practicable, that financial 

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1 management training programs funded under the begin2 ning farmer and rancher development program are de3 signed in such a way that the financial management train4 ing programs will— 

5 ‘‘(1) meet borrower training requirements under 

6 this section; and 

7 ‘‘(2) qualify as beginning farmer and rancher 

8 development program projects covered by contracts 

9 under subsection (b).’’. 

10 TITLE III—RURAL 

11 DEVELOPMENT 

12 SEC. 301. VALUE-ADDED PRODUCER GRANTS. 

13 Section 231(b) of the Agricultural Risk Protection 

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

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

16 following: 

17 ‘‘(6) PRIORITY.— 

18 ‘‘(A) IN GENERAL.—In awarding grants 

19 under this subsection, the Secretary shall give 

20 priority to projects that— 

21 ‘‘(i) contribute to increasing opportu22 nities for operators of small- and medium23 sized farms and ranches that are struc24 tured as a family farm; or 

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‘‘(ii) have applicants at least 1 1 ⁄4 of 

2 whom are beginning farmers or ranchers 

3 or socially disadvantaged farmers or ranch4 ers. 

5 ‘‘(B) RANKING.—In evaluating and rank6 ing proposals under this subsection, the Sec7 retary shall provide very substantial weight to 

8 the priorities described in subparagraph (A).’’; 

9 and 

10 (2) in paragraph (7)— 

11 (A) in subparagraph (A)— 

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

13 inserting ‘‘October 1, 2012, and each Octo14 ber 1 thereafter through October 1, 2016’’; 

15 and 

16 (ii) by striking ‘‘$15,000,000’’ and in17 serting ‘‘$30,000,000’’; 

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

19 ‘‘2012’’ and inserting ‘‘2017’’; and 

20 (C) in subparagraph (C)— 

21 (i) in clause (i), by striking ‘‘benefit’’ 

and inserting ‘‘have applicants at least 1 22 ⁄4

23 of whom are’’; and 

24 (ii) in clause (iii), by striking ‘‘June 

25 30 of the fiscal year’’ and inserting ‘‘the 

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1 close of the annual proposal review proc2 ess’’. 

3 SEC. 302. USE OF LOANS AND GRANTS FOR ENTREPRE4 NEURIAL FARM ENTERPRISES. 

5 Subtitle D of the Consolidated Farm and Rural De6 velopment Act is amended by inserting after section 365 

7 (7 U.S.C. 2008) the following: 

8 ‘‘SEC. 366. USE OF LOANS AND GRANTS FOR ENTREPRE9 NEURIAL FARM ENTERPRISES. 

10 ‘‘(a) IN GENERAL.—The Secretary shall approve 

11 grants and loans under any rural development program 

12 established under this title to support farm and farm-re13 lated business enterprises that— 

14 ‘‘(1) create new entrepreneurial employment op15 portunities for beginning farmers and ranchers; 

16 ‘‘(2) have the effect of— 

17 ‘‘(A) creating new small- and medium-size 

18 family farms; 

19 ‘‘(B) enhancing local and regional food 

20 systems; 

21 ‘‘(C) increasing value-added production 

22 and new markets; 

23 ‘‘(D) preserving farmland and rural herit24 age; and 

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1 ‘‘(E) developing strong rural economies; 

2 and 

3 ‘‘(3) are consistent with the purposes of the 

4 program. 

5 ‘‘(b) LIMITATION.—Loans or grants made under this 

6 section shall not be available for annual agricultural pro7 duction purposes.’’. 

8 TITLE IV—RESEARCH, 

9 EDUCATION, AND EXTENSION 

10 SEC. 401. BEGINNING FARMER AND RANCHER DEVELOP11 MENT PROGRAM. 

12 Section 7405 of the Farm Security and Rural Invest13 ment Act of 2002 (7 U.S.C. 3319f) is amended— 

14 (1) in subsection (c)— 

15 (A) in paragraph (1)— 

16 (i) in subparagraph (Q), by striking 

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

18 (ii) by redesignating subparagraph 

19 (R) as subparagraph (S); and 

20 (iii) by inserting after subparagraph 

21 (Q) the following: 

22 ‘‘(R) agricultural rehabilitation and voca23 tional training for veterans; and’’; 

24 (B) in paragraph (4)— 

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1 (i) by striking ‘‘To be eligible’’ and in2 serting the following: 

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

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

5 (ii) by adding at the end the fol6 lowing: 

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

8 waive or modify the matching requirement in 

9 subparagraph (A) if the Secretary determines a 

10 waiver or modification is necessary to effectively 

11 reach an underserved area or population.’’; 

12 (C) in paragraph (8)— 

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

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

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

16 the period at the end and inserting ‘‘; 

17 and’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(D) military veteran beginning farmers 

21 and ranchers.’’; and 

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

23 ‘‘(11) INDIRECT COSTS.—To help facilitate par24 ticipation in the program under this subsection by 

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1 ganizations, the Secretary shall provide for an op2 tional 10 percent indirect cost option in lieu of a 

3 higher negotiated rate.’’; and 

4 (2) in subsection (h)— 

5 (A) in paragraph (1), by striking ‘‘sec6 tion—’’ and all that follows through the period 

7 at the end and inserting ‘‘$25,000,000 for each 

8 of fiscal years 2013 through 2017.’’; and 

9 (B) in paragraph (2), by striking ‘‘2008 

10 through 2012’’ and inserting ‘‘2013 through 

11 2017’’. 

12 SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE. 

13 Subsection (b) of the Competitive, Special, and Fa14 cilities Research Grant Act (7 U.S.C. 450i(b)) is amend15 ed— 

16 (1) in paragraph (2)(F)— 

17 (A) by redesignating clauses (iii) through 

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

19 and 

20 (B) by inserting after clause (ii) the fol21 lowing: 

22 ‘‘(iii) new farming opportunities, in23 cluding young, beginning, socially dis24 advantaged, and immigrant issues and 

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1 farm transition, farm transfer, farm entry, 

2 and beginning farmer profitability issues;’’; 

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

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

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

6 (3) in paragraph (11)(A)— 

7 (A) in the matter preceding clause (i), by 

8 striking ‘‘2008 through 2012’’ and inserting 

9 ‘‘2013 through 2017’’; and 

10 (B) in clause (i), by striking ‘‘pursuant to’’ 

11 and inserting ‘‘under’’. 

12 TITLE V—CROP INSURANCE 

13 SEC. 501. SENSE OF CONGRESS ON BEGINNING FARMER 

14 AND RANCHER ACCESS TO CROP AND REV15 ENUE INSURANCE. 

16 It is the sense of Congress that the Secretary of Agri17 culture should, to the maximum extent practicable, remove 

18 barriers and ensure effective access to crop and revenue 

19 insurance by beginning farmers and ranchers on terms 

20 that are fair and assist in the goal of increasing the num21 ber of new farming and ranching opportunities. 

22 SEC. 502. RISK MANAGEMENT PARTNERSHIP PROGRAMS. 

23 Section 522 of the Federal Crop Insurance Act (7 

24 U.S.C. 1522) is amended— 

25 (1) in subsection (d)— 

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1 (A) in paragraph (1)— 

2 (i) by striking ‘‘priority given to risk’’ 

3 and inserting ‘‘priority given to— 

4 ‘‘(A) risk’’; 

5 (ii) by striking the period at the end 

6 and inserting ‘‘; and’’; and 

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

9 ‘‘(B) underserved producers, including be10 ginning farmers and ranchers and socially dis11 advantaged farmers and ranchers.’’; 

12 (B) in paragraph (2)— 

13 (i) by striking ‘‘options for producers’’ 

14 and inserting ‘‘options for— 

15 ‘‘(A) producers’’; 

16 (ii) by striking the period at the end 

17 and inserting ‘‘; and’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(B) underserved producers, including be21 ginning farmers and ranchers and socially dis22 advantaged farmers and ranchers.’’; and 

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

24 ‘‘(4) REQUIREMENTS.—In carrying out the pro25 grams established under paragraphs (2) and (3), the 

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1 Secretary shall place special emphasis on risk man2 agement techniques, tools, and programs that are 

3 specifically targeted at— 

4 ‘‘(A) beginning farmers or ranchers; 

5 ‘‘(B) legal immigrant farmers or ranchers 

6 that are attempting to become established agri7 cultural producers in the United States; 

8 ‘‘(C) socially disadvantaged farmers or 

9 ranchers; 

10 ‘‘(D) farmers or ranchers that— 

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

12 ‘‘(ii) are using transition strategies to 

13 help new farmers or ranchers get started; 

14 and 

15 ‘‘(E) new or established farmers or ranch16 ers that are converting production and mar17 keting systems to pursue new markets.’’; and 

18 (2) in subsection (e)(2)(A), by striking 

19 ‘‘$12,500,000 for fiscal year 2008’’ and inserting 

20 ‘‘$15,000,000 for fiscal year 2013’’. 

21 TITLE VI—MISCELLANEOUS 

22 SEC. 601. SMALL AND BEGINNING FARMER AND RANCHER 

23 COORDINATORS. 

24 Section 226B of the Department of Agriculture Reor25 ganization Act of 1994 (7 U.S.C. 6934) is amended— 

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1 (1) in subsection (c)(4), by inserting before the 

2 semicolon at the end the following: ‘‘, including re3 view of rulemakings to provide an assessment and 

4 make recommendations regarding the impact of 

5 rules on small farms and ranches, beginning and so6 cially disadvantaged farmers and ranchers, and re7 lated matters relevant to the structure of agri8 culture’’; 

9 (2) in subsection (e)(2)— 

10 (A) by redesignating subparagraph (D) as 

11 subparagraph (E); and 

12 (B) by inserting after subparagraph (C) 

13 the following: 

14 ‘‘(D) STATE SMALL AND BEGINNING

15 FARMER AND RANCHER COORDINATOR.— 

16 ‘‘(i) IN GENERAL.—The Small Farms 

17 and Beginning Farmers and Ranchers 

18 Group shall designate a State small and 

19 beginning farmer and rancher coordinator 

20 from among the State office employees of 

21 the Farm Service Agency, the Natural Re22 sources Conservation Service, the Risk 

23 Management Agency, the Rural Business24 Cooperative Service, and the Rural Utili25 ties Service. 

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1 ‘‘(ii) TRAINING.—The Small Farms 

2 and Beginning Farmers and Ranchers 

3 Group shall coordinate the development of 

4 a training plan so that each State coordi5 nator shall receive sufficient training to 

6 have a general working knowledge of the 

7 programs and services available from each 

8 agency of the Department to assist small 

9 and beginning farmers and ranchers. 

10 ‘‘(iii) DUTIES.—The coordinator 

11 shall— 

12 ‘‘(I) coordinate technical assist13 ance at the State level to help small 

14 and beginning farmers and ranchers 

15 gain access to programs of the De16 partment; 

17 ‘‘(II) develop and submit a State 

18 plan for approval by the Small Farms 

19 and Beginning Farmers and Ranchers 

20 Group to provide coordination to en21 sure adequate services to small and 

22 beginning farmers and ranchers at all 

23 county and area offices throughout 

24 the State; 

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1 ‘‘(III) oversee implementation of 

2 the approved State plan; and 

3 ‘‘(IV) work with outreach coordi4 nators in the State offices of the 

5 Farm Service Agency, the Natural 

6 Resources Conservation Service, the 

7 Risk Management Agency, the Rural 

8 Business-Cooperative Service, and the 

9 Rural Utilities Service to ensure ap10 propriate information about technical 

11 assistance is available at outreach 

12 events and activities.’’; and 

13 (3) in subsection (f), by striking paragraph (3); 

14 and 

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

16 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to carry out this section 

18 such sums as are necessary for each of fiscal years 2013 

19 through 2017.’’. 

20 SEC. 602. MILITARY VETERANS AGRICULTURAL LIAISON. 

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

22 Agriculture Reorganization Act of 1994 is amended by in23 serting after section 218 (7 U.S.C. 6918) the following: 

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

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

3 in the Department the position of Military Veterans Agri4 cultural Liaison. 

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

6 Liaison shall— 

7 ‘‘(1) provide information to returning veterans 

8 about, and connect returning veterans with, begin9 ning farmer training and agricultural vocational and 

10 rehabilitation programs appropriate to the needs and 

11 interests of returning veterans, including assisting 

12 veterans in using Federal veterans educational bene13 fits for purposes relating to beginning a farming or 

14 ranching career; 

15 ‘‘(2) provide information to veterans concerning 

16 the availability of and eligibility requirements for 

17 participation in agricultural programs, with par18 ticular emphasis on beginning farmer and rancher 

19 programs; 

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

21 farmers and ranchers, and potential farmers and 

22 ranchers, in applying for participation in agricul23 tural programs; and 

24 ‘‘(4) advocating on behalf of veterans in inter25 actions with employees of the Department.’’. 

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

2 the Department of Agriculture Reorganization Act of 

3 1994 (7 U.S.C. 7014(b)) is amended— 

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

5 semicolon at the end; 

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

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

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

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

10 in the Department the position of Military Veterans 

11 Agricultural Liaison in accordance with section 

12 219.’’. 

13 SEC. 603. BUDGETARY EFFECTS. 

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

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

16 shall be determined by reference to the latest statement 

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

18 Act, submitted for printing in the Congressional Record 

19 by the Chairman of the Senate Budget Committee, pro20 vided that such statement has been submitted prior to the 

21 vote on passage. 

22 SEC. 604. EFFECTIVE DATE. 

23 This Act and the amendments made by this Act take 

24 effect on October 1, 2012. 

Æ 

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