I 
108TH CONGRESS 
1ST SESSION H. R. 1293
To authorize the Small Business Administration and the Department of 
Agriculture to assist farmers and ranchers seeking to develop and imple-
ment agricultural innovation plans in order to increase their profitability 
in ways that provide environmental benefits, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2003
Mr. UDALL of Colorado (for himself and Mr. FROST) introduced the following 
bill; which was referred to the Committee on Small Business, and in addi-
tion to the Committee on Agriculture, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To authorize the Small Business Administration and the 
Department of Agriculture to assist farmers and ranch-
ers seeking to develop and implement agricultural innova-
tion plans in order to increase their profitability in ways 
that provide environmental benefits, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Family Farm and 
Ranch Innovation Act of 2003’’.
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—The Congress finds the following: 
(1) Farming, ranching, and other businesses re-
lated to agriculture form a significant portion of the 
economy of the United States. 
(2) In 2000, 86 percent of the 1,500,000 agri-
cultural workers in the United States were self-em-
ployed farmers and ranchers. 
(3) From 1910 to 1990, the share of the agri-
cultural economy received by farmers and ranchers 
dropped from 21 percent to 5 percent, as processing, 
packaging, and marketing became more profitable 
than producing raw agricultural commodities. 
(4) The trend toward a global processing and 
distribution system for agricultural products is pro-
ducing a system in which the majority of food and 
fiber products are controlled by a few large, 
vertically integrated firms. 
(5) Low market prices for raw agricultural 
commodities and the rising cost of land are causing 
many small farms and ranches to fail, which is re-
sulting in the urbanization of valuable farm and 
ranch lands. 
(6) Small farms and ranches need to employ ef-
ficient means of production, including methods to 
minimize the production of pollutants, and engage in
practices which add value to the raw commodities 
they produce in order to improve profitability and 
remain competitive. 
(7) Small farms and ranches need technical and 
financial assistance to achieve these goals. 
(b) PURPOSE.—The purpose of this Act is to assist 
farmers and ranchers in increasing their incomes while re-
ducing pollution, conserving natural resources, and in-
creasing the likelihood that agricultural land will remain 
available for farming and ranching. 
SEC. 3. SMALL BUSINESS LOANS FOR IMPLEMENTATION OF 
AGRICULTURAL INNOVATION PLANS. 
(a) LOAN AUTHORITY.—The Administrator of the 
Small Business Administration may guarantee, under sec-
tion 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
loans to any small business concern (as described in sec-
tion 3(a) of the Small Business Act (15 U.S.C. 632(a))) 
engaged in farming or ranching, for the purpose of imple-
menting an Agricultural Innovation Plan described in sub-
section (c). 
(b) DEVELOPMENT OF AGRICULTURAL INNOVATION 
PLAN.—On request of a farmer or rancher whose farming 
or ranching operation has been certified as a small busi-
ness concern under subsection (d), the Secretary of Agri-
culture, acting through the Natural Resources Conserva-
tion Service, shall work with the farmer or rancher to de-
velop an Agricultural Innovation Plan described in sub-
section (c). 
(c) CONTENTS
OF
AGRICULTURAL
INNOVATION 
PLAN.—An Agricultural Innovation Plan is a plan to—
(1) increase the on-farm or on-ranch income of 
the farmer or rancher by—
(A) improving farm or ranch management 
practices; 
(B) diversifying crops or livestock; 
(C) using direct marketing of agricultural 
products; 
(D) implementing value-added initiatives; 
(E) stimulating agri-tourism; 
(F) capitalizing on the natural resources of 
the farm or ranch; or 
(G) using any other means that the Sec-
retary of Agriculture determines would improve 
the efficiency and profitability of the farming or 
ranching operation; and 
(2) protect the environmental quality of the 
farm or ranch where the farming or ranching oper-
ation is located by minimizing the production of pol-
lutants by the farm or ranch and conserving the nat-
ural resources of the farm or ranch.
(d) CERTIFICATION
AS
SMALL
BUSINESS
CON-
CERN.—On request of any business concern engaged in 
farming or ranching, the Administrator of the Small Busi-
ness Administration may issue a certification that the 
business concern is a small business concern for purposes 
of subsection (b). Such request shall be submitted to the 
Administrator in such form and manner as the Adminis-
trator may require.
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