I
107TH CONGRESS
2D SESSION
H. R. 4479
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 also provide environmental benefits, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 17, 2002
Mr. UDALL of Colorado introduced the following bill; which was referred to
the Committee on Small Business, and in addition to the Committee on
Agriculture, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction 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 also provide environmental benefits, 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.
This Act may be cited as the ‘‘Family Farm and
Ranch Innovation Act of 2002’’.
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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