business trust, estate, trust, partnership, limited li-
ability company, association, joint venture, public 
corporation, cooperative, pension or investment fund, 
or any other legal or commercial entity organized or 
created under the laws of any State that meets each 
of the following requirements: 
(A) The entity is not a subsidiary of, or 
owned in any part by, a multilayered subsidiary 
entity. 
(B) The shareholders, partners, members, 
or beneficial owners of the entity do not exceed 
25 individuals. 
(C) The shareholders, partners, members, 
or beneficial owners of the entity are all natural 
persons who— 
(i) regularly and frequently make, or 
take an important part in making, man-
agement decisions substantially contrib-
uting to or affecting the operation of a 
farm or forest; or 
(ii) perform physical work that signifi-
cantly contributes to cultivation, steward-
ship, crop or livestock production, or food 
production. 
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(2) COVERED
PROJECT.—The term ‘‘covered 
project’’ means a project described in subsection (e). 
(3) ELIGIBLE ENTITY.— 
(A) IN GENERAL.—The term ‘‘eligible enti-
ty’’ means an entity that— 
(i) has demonstrated experience in 
serving qualified beneficiaries; and 
(ii) is— 
(I) a State, local, or territorial 
government; 
(II) an Indian Tribe or Tribal or-
ganization (as those terms are defined 
in section 4 of the Indian Self-Deter-
mination and Education Assistance 
Act (25 U.S.C. 5304)); 
(III) a Native community devel-
opment financial institution certified 
by the Secretary of the Treasury; 
(IV) a community development 
financial institution (as defined in sec-
tion 103 of the Community Develop-
ment Banking and Financial Institu-
tions Act of 1994 (12 U.S.C. 4702)) 
certified by the Secretary of the 
Treasury, acting through the Director 
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of the Community Development Fi-
nancial Institutions Fund established 
under section 104(a) of that Act (12 
U.S.C. 4703(a)); 
(V) an organization described in 
paragraph (2) or (3) of section 501(c) 
of the Internal Revenue Code of 1986 
and exempt from tax under section 
501(a) of such Code; 
(VI) a foundation; 
(VII) a cooperative entity; 
(VIII) an institution of higher 
education (as defined in section 101 
of the Higher Education Act of 1965 
(20 U.S.C. 1001)); 
(IX) a financial institution de-
scribed in section 1.7(b)(1)(B) of the 
Farm Credit Act of 1971 (12 U.S.C. 
2015(b)(1)(B)); and 
(X) any other appropriate part-
ner, as determined by the Secretary. 
(B) EXCLUSION.—The term ‘‘eligible enti-
ty’’ does not include a corporation that is for-
eign-based or foreign-owned. 
(4) ELIGIBLE LAND.— 
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(A) IN
GENERAL.—The term ‘‘eligible 
land’’ means— 
(i) agricultural land; 
(ii) private land; 
(iii) urban land; 
(iv) public land, including Federal, 
State, and municipally owned or managed 
land; 
(v) lands held in common that are 
controlled and managed by groups of indi-
viduals; 
(vi) lands held in trust; 
(vii) multiple parcels of land described 
in any of clauses (i) through (vi) that are 
noncontiguous; and 
(viii) public or private shoreline or 
intertidal zone areas, which may be wholly 
or partially underwater. 
(B) EXCLUSION.—The term ‘‘eligible land’’ 
does not include a natural area (as defined in 
section 650.23(a) of title 7, Code of Federal 
Regulations (or successor regulations)). 
(5) PROGRAM.—The term ‘‘program’’ means 
the New Producer Economic Security Program es-
tablished under subsection (b). 
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(6) QUALIFIED BENEFICIARY.— 
(A) IN
GENERAL.—The term ‘‘qualified 
beneficiary’’ means a farmer, a rancher, or a 
forest owner who— 
(i) is a natural person; 
(ii) is— 
(I) a shareholder in an author-
ized legal entity; 
(II) an officer, director, or em-
ployee of an authorized legal entity; 
(III) a member or manager of an 
authorized legal entity; 
(IV) a partner in an authorized 
legal entity; 
(V) a beneficiary or trustee of an 
authorized legal entity; or 
(VI) any other individual who— 
(aa) regularly and frequently 
makes, or takes an important 
part in making, management de-
cisions substantially contributing 
to or affecting the operation of a 
farm or forest; or 
(bb) performs physical work 
that significantly contributes to 
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cultivation, stewardship, crop or 
livestock production, or food pro-
duction; and 
(iii)(I) has never operated, or has not 
operated for more than 10 consecutive 
years, a farm or a ranch; 
(II) operates only on rented or leased 
land; 
(III) has an income that is at or 
below 200 percent of the national poverty 
level or half of the median household in-
come of the county in which the natural 
person is located; or 
(IV) is economically disadvantaged, as 
determined by the Secretary. 
(B) EXCLUSION.—The term ‘‘qualified 
beneficiary’’ does not include a natural person 
who solely provides capital to an authorized 
legal entity that is not a qualified beneficiary 
described in subparagraph (A). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) ESTABLISHMENT.—The Secretary shall establish 
within the Farm Service Agency a competitive program, 
to be known as the ‘‘New Producer Economic Security 
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