I 
110TH CONGRESS 
1ST SESSION H. R. 2348 
To amend the Farm Security and Rural Development Act of 2002 to support 
beginning farmers and ranchers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 16, 2007 
Ms. HERSETH SANDLIN (for herself, Mr. WALZ of Minnesota, and Ms. 
MCCOLLUM of Minnesota) introduced the following bill; which was re-
ferred to the Committee on Agriculture 
A BILL 
To amend the Farm Security and Rural Development Act 
of 2002 to support beginning farmers and ranchers, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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 
2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Beginning farmer and rancher development program. 
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Sec. 3. Beginning farmer and rancher individual development accounts pilot 
program. 
Sec. 4. Down payment loan program. 
Sec. 5. Beginning farmer or rancher contract land sales program. 
Sec. 6. Inventory sales preferences. 
Sec. 7. Agricultural loans. 
Sec. 8. Loan authorization levels and fund set-asides. 
Sec. 9. Soil and water conservation and protection. 
Sec. 10. Conservation Reserve Program transition incentives. 
Sec. 11. Conservation cost sharing. 
Sec. 12. Research programs. 
Sec. 13. Risk management education for beginning farmers or ranchers. 
SEC. 2. BEGINNING FARMER AND RANCHER DEVELOPMENT 
PROGRAM. 
(a) GRANTS.—Section 7405(c) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 3319f(c)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (I), by inserting ‘‘, in-
cluding energy conservation and efficiency’’ be-
fore the semicolon; and 
(B) in subparagraph (K), by inserting ‘‘, 
including transition to organic and other 
source-verified and value-added alternative pro-
duction and marketing systems’’; 
(2) by striking paragraph (3) and inserting the 
following: 
‘‘(3) MAXIMUM TERM AND SIZE OF GRANT.— 
‘‘(A) IN
GENERAL.—A grant under this 
subsection shall— 
‘‘(i) have a term that is not more than 
3 years; and 
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‘‘(ii) be in an amount that is not more 
than $250,000 a year. 
‘‘(B) CONSECUTIVE GRANTS.—An eligible 
recipient may receive consecutive grants under 
this subsection.’’; 
(3) by redesignating paragraphs (5) through 
(7) as paragraphs (9) through (11), respectively; 
(4) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) 
EVALUATION
CRITERIA.—In 
making 
grants under this subsection, the Secretary shall 
evaluate— 
‘‘(A) relevancy; 
‘‘(B) technical merit; 
‘‘(C) achievability; 
‘‘(D) the expertise and track record of the 
principal partners; 
‘‘(E) 
the 
adequacy 
of 
plans 
for 
participatory evaluation process, outcome-based 
reporting, and the communication of findings 
and results beyond the immediate target audi-
ence; and 
‘‘(F) other appropriate factors, as deter-
mined by the Secretary. 
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‘‘(6) REGIONAL BALANCE.—In making grants 
under this section, the Secretary shall, to the max-
imum extent practicable, ensure geographic diver-
sity. 
‘‘(7) ORGANIC
CONVERSION.—The Secretary 
may make grants under this section to support 
projects that provide comprehensive technical assist-
ance to beginning farmers or ranchers who are in 
the process of converting to certified organic produc-
tion. 
‘‘(8) PRIORITY.—In making grants under this 
section, the Secretary shall give priority to partner-
ships and collaborations that are led by or include 
non-governmental and community-based organiza-
tions with expertise in new farmer training and out-
reach.’’; and 
(5) in paragraph (9) (as redesignated by para-
graph (3))— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the 
period and adding ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) farmers or ranchers that are refugees 
or immigrants (as those terms are defined in 
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section 101(a) of the Immigration and Nation-
ality Act (8 U.S.C. 1101(a)).’’. 
(6) EDUCATION TEAMS.—Section 7405(d)(2) of 
the Farm Security and Rural Investment At of 2002 
(7 U.S.C. 3319f(d)(2)) is amended by inserting 
‘‘and including sustainable and organic farming pro-
duction and marketing methods’’ before the period 
at the end. 
(b) STAKEHOLDER INPUT.—Section 7405(f) of the 
Farm Security and Rural Investment At of 2002 (7 
U.S.C. 3319f(f)) is amended— 
(1) by redesignating paragraphs (1) through 
(3) as subparagraphs (A) through (C), respectively, 
and indenting appropriately; 
(2) by striking ‘‘In carrying out’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—In carrying out’’; and 
(3) by adding at the end the following: 
‘‘(2) REVIEW PANELS.—In forming review pan-
els to evaluate proposals submitted under this sec-
tion, the Secretary shall include individuals from the 
categories described in paragraph (1).’’. 
(c) FUNDING.—Section 7405(h) of the Farm Secu-
rity and Rural Investment At of 2002 (7 U.S.C. 3319f(h)) 
is amended to read as follows: 
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‘‘(h) FUNDING.— 
‘‘(1) IN GENERAL.—On October 1, 2007, and 
on each October 1 thereafter through October 1, 
2011, out of any funds in the Treasury not other-
wise appropriated, the Secretary of the Treasury 
shall transfer to the Secretary to carry out this sec-
tion $25,000,000, to remain available for 2 fiscal 
years. 
‘‘(2) RECEIPT
AND
ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, and 
shall use to carry out this section the funds trans-
ferred under paragraph (1), without further appro-
priation. 
‘‘(3) LIMITATION.—The Secretary shall use not 
more than 10 percent of the total funds made avail-
able under paragraph (1) to carry out subsections 
(d) and (e).’’. 
SEC. 3. BEGINNING FARMER AND RANCHER INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
The Consolidated Farm and Rural Development Act 
is amended by adding after section 333A (7 U.S.C. 1983a) 
the following: 
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‘‘SEC. 333B. BEGINNING FARMER AND RANCHER INDI-
VIDUAL DEVELOPMENT ACCOUNTS PILOT 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DEMONSTRATION
PROGRAM.—The term 
‘demonstration program’ means a demonstration 
program carried out by a qualified entity under the 
pilot program established in subsection (b)(1). 
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligi-
ble participant’ means a qualified beginning farmer 
or rancher that— 
‘‘(A) has knowledge, experience, and a 
demonstrated commitment to agriculture; 
‘‘(B) lacks significant financial resources 
or assets; and 
‘‘(C) has an income that is less than— 
‘‘(i) 80 percent of the median income 
of the area in which the eligible participant 
is located; or 
‘‘(ii) 200 percent of the most recent 
Federal Poverty Income Guidelines pub-
lished by the Department of Health and 
Human Services. 
‘‘(3) INDIVIDUAL
DEVELOPMENT
ACCOUNT.— 
The term ‘individual development account’ means a 
savings account described in subsection (b)(4)(A). 
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‘‘(4) QUALIFIED ENTITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
entity’ means— 
‘‘(i) 1 or more organizations— 
‘‘(I) 
described 
in 
section 
501(c)(3) of the Internal Revenue 
Code of 1986; and 
‘‘(II) exempt from taxation under 
section 501(a) of such Code; or 
‘‘(ii) a State, local, or tribal govern-
ment submitting an application jointly with 
an organization described in clause (i). 
‘‘(B) NO
PROHIBITION
ON
COLLABORA-
TION.—An organization described in subpara-
graph (A)(i) may collaborate with a financial 
institution or for-profit community development 
corporation to carry out the purposes of this 
section. 
‘‘(b) PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a pilot program to be known as the ‘New Farm-
er Individual Development Accounts Pilot Program’ 
under which the Secretary shall work through quali-
fied entities to establish demonstration programs— 
‘‘(A) of at least 5 years in duration; and 
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‘‘(B) in at least 15 States. 
‘‘(2) COORDINATION.—The Secretary shall op-
erate the pilot program through, and in coordination 
with the farm loan programs of, the Farm Service 
Agency. 
‘‘(3) RESERVE FUNDS.— 
‘‘(A) IN
GENERAL.—Each demonstration 
program shall establish a reserve fund con-
sisting of a non-Federal match of 25 percent of 
the total amount of the grant awarded to the 
demonstration program under this section. 
‘‘(B) FEDERAL
FUNDS.—After a dem-
onstration program has deposited in the reserve 
fund the non-Federal matching funds described 
in subparagraph (A), the Secretary shall pro-
vide to the demonstration program for deposit 
in the reserve fund the total amount of the 
grant awarded under this section. 
‘‘(C) USE
OF
FUNDS.—Of the Federal 
funds deposited in a reserve fund under sub-
paragraphs (A) and (B), a demonstration pro-
gram— 
‘‘(i) may use up to 20 percent for ad-
ministrative expenses; and 
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‘‘(ii) shall use the remainder to make 
matching awards described in paragraph 
(4)(B)(ii)(I). 
‘‘(D) INTEREST.—Any interest earned on 
amounts in a reserve fund established under 
subparagraph (A) may be used as additional 
matching funds for, or to administer, the dem-
onstration program. 
‘‘(E) GUIDANCE.—The Secretary shall im-
plement guidance regarding the investment re-
quirements of reserve funds established under 
this paragraph. 
‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
‘‘(A) IN GENERAL.—A demonstration pro-
gram shall establish and administer an indi-
vidual development account for each eligible 
participant. 
‘‘(B) CONTRACT REQUIREMENTS.—To be 
eligible to receive funds under this section, each 
eligible participant shall enter into a contract 
with a demonstration program under which— 
‘‘(i) the eligible participant shall 
agree— 
‘‘(I) to deposit a certain amount 
of funds of the eligible participant in 
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a personal savings account, as pre-
scribed by the contractual agreement 
between the eligible participant and 
the demonstration program; 
‘‘(II) to use the funds described 
in subclause (I) only for 1 or more eli-
gible expenditures described in para-
graph (5)(A); 
‘‘(III) to forfeit any right to 
amounts in the individual development 
account in any case in which the eligi-
ble participant is more than 1 month 
delinquent in fulfilling the obligation 
under subclause (I) or in which the el-
igible participant uses funds described 
in that subclause for a purpose other 
than an eligible expenditure; and 
‘‘(IV) to complete qualified finan-
cial training; and 
‘‘(ii) the demonstration program shall 
agree— 
‘‘(I) to deposit not later than 1 
month after a deposit described in 
clause (i)(I) a 300-percent match of 
that amount into the individual devel-
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opment account established for the el-
igible participant; 
‘‘(II) to use the funds described 
in subclause (I) only for 1 or more eli-
gible expenditures selected by the eli-
gible participant; and 
‘‘(III) to provide a financial edu-
cation course to all eligible partici-
pants. 
‘‘(C) LIMITATION.— 
‘‘(i) IN GENERAL.—A demonstration 
program may provide not more than 
$9,000 for each fiscal year in matching 
funds to any eligible participant. 
‘‘(ii) TREATMENT
OF
AMOUNT.—An 
amount provided under clause (i) shall not 
be considered to be a gift or loan. 
‘‘(D) FORFEITS.—Any amounts forfeited 
under subparagraph (B)(i)(III) shall be re-
turned to the reserve fund of the demonstration 
program. 
‘‘(E) INTEREST.—Any interest earned on 
amounts in an individual development account 
shall be compounded with amounts otherwise 
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