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 subse-
quently 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. 
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 
2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
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. 
TITLE I—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 101. EXTENSION OF CONSERVATION RESERVE PRO-
GRAM. 
(a) IN GENERAL.—Section 1231(a) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831(a)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
(b) LAND ELIGIBLE
FOR ENROLLMENT
IN CON-
SERVATION
RESERVE.—Section 1231(b)(1)(B) of the 
Food Security Act of 1985 (16 U.S.C. 3831(b)(1)(B)) is 
amended by striking ‘‘Food, Conservation, and Energy 
Act of 2008’’ and inserting ‘‘Beginning Farmer and 
Rancher Opportunity Act of 2011’’. 
(c) MAXIMUM ENROLLMENT OF ACREAGE IN CON-
SERVATION RESERVE.—Section 1231(d) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831(d)) is amended— 
(1) by striking the first sentence; and 
(2) in the second sentence, by striking ‘‘2010, 
2011, and 2012’’ and inserting ‘‘2010 through 
2017’’. 
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(d) PILOT PROGRAM FOR ENROLLMENT OF WET-
LAND
AND BUFFER ACREAGE
IN CONSERVATION RE-
SERVE.—Section 1231B of the Food Security Act of 1985 
(16 U.S.C. 3831b) is amended— 
(1) in subsection (a)(1), by striking ‘‘2012’’ and 
inserting ‘‘2017’’; and 
(2) in subsection (b)(1)(C), by striking ‘‘2002 
through 2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 102. CONTRACTS. 
Section 1235 of the Food Security Act of 1985 (16 
U.S.C. 3835) is amended— 
(1) in subsection (c)(1)(B), by striking clause 
(iii) and inserting the following: 
‘‘(iii) to facilitate a transition of land 
subject to the contract from a retired or 
retiring owner or operator to a beginning 
farmer or rancher, socially disadvantaged 
farmer or rancher, or limited resource 
farmer or rancher who is or will be actively 
engaged in farming or ranching with re-
spect to the land transferred under this 
subsection for the purpose of returning 
some or all of the land into production 
using sustainable grazing or crop produc-
tion methods that meet or exceed the re-
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source management system quality criteria 
for erosion, soil quality, water quality, and 
fish and wildlife; or’’; and 
(2) in subsection (f)(1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘or socially disadvantaged 
farmer or rancher’’ and inserting ‘‘socially dis-
advantaged farmer or rancher, or limited re-
source farmer or rancher who is or will be ac-
tively engaged in farming or ranching with re-
spect to the land transferred under this sub-
section’’; and 
(B) by striking subparagraphs (C), (D), 
and (E) and inserting the following: 
‘‘(C) require the covered farmer or rancher 
to develop and implement a comprehensive con-
servation plan that addresses all resource con-
cerns and meets such sustainability criteria as 
the Secretary may establish; 
‘‘(D) provide to the covered farmer or 
rancher an opportunity to enroll in the con-
servation stewardship program or the environ-
mental quality incentives program at any time 
beginning on the date that is 1 year before the 
date of termination of the contract, including 
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technical and financial assistance in the devel-
opment of a comprehensive conservation plan; 
‘‘(E) if the land transferred under this 
subsection remains in grass cover, provide to 
the covered farmer or rancher an opportunity to 
enroll in a long-term or permanent easement 
under the grassland reserve program or farm-
land protection program at any time beginning 
on the date that is 1 year before the date of 
termination of the contact; and 
‘‘(F) continue to make annual payments to 
the retired or retiring owner or operator for not 
more than an additional 2 years after the date 
of termination of the contract, except that, in 
the case of a retired or retiring owner or oper-
ator who is a family member (as defined in sec-
tion 1001) of the covered farmer or rancher, 
the additional payments shall be made only if 
title to the land is sold or transferred to the 
covered farmer or rancher on termination of the 
contract.’’. 
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Subtitle B—Farmland Protection 
Program 
SEC. 111. FARMLAND PROTECTION PROGRAM. 
Section 1238I of the Food Security Act of 1985 (16 
U.S.C. 3838i) is amended— 
(1) in subsection (b), by inserting ‘‘to promote 
farm viability for future generations’’ before the pe-
riod at the end; and 
(2) in subsection (g)(4)— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (C) as 
subparagraph (D); and 
(C) by inserting after subparagraph (B) 
the following: 
‘‘(C) provide a funding priority, to the 
maximum extent practicable, for— 
‘‘(i) eligible land for which there exists 
a farm or ranch succession plan or similar 
plan established to create opportunities for 
beginning farmers and ranchers and en-
courage farm viability for future genera-
tions; 
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‘‘(ii) easements that exercise an op-
tion to purchase at a price that is equal to 
the agricultural use value; 
‘‘(iii) qualified beginning farmers or 
ranchers with contracts to purchase the 
land to be protected; 
‘‘(iv) land owned by a nongovern-
mental organization that will be sold to a 
qualified beginning farmer or rancher; 
‘‘(v) contemporaneous farm transfers 
of eligible land to qualified beginning farm-
ers and ranchers that may not occur with-
out the financial assistance of the pro-
gram; and 
‘‘(vi) other similar mechanisms to 
maintain the affordability of farm and 
ranch land for successive generations of 
farmers and ranchers; and’’. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 121. ESTABLISHMENT AND ADMINISTRATION OF ENVI-
RONMENTAL 
QUALITY 
INCENTIVES 
PRO-
GRAM. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
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(1) in subsection (a), by striking ‘‘2012’’ and 
inserting ‘‘2017’’; 
(2) in subsection (d)(4)(B), by striking ‘‘30 
percent’’ and inserting ‘‘50 percent’’; and 
(3) in subsection (f), by striking ‘‘2012’’ and 
inserting ‘‘2017’’. 
SEC. 122. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) provide environmental and resource 
conservation benefits through increased partici-
pation by beginning farmers and ranchers and 
socially disadvantaged farmers and ranchers.’’; 
and 
(2) in subsection (b)(2), by striking ‘‘2012’’ 
and inserting ‘‘2017’’. 
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(B) by striking ‘‘5 percent’’ each place it 
appears and inserting ‘‘10 percent’’; 
(2) in paragraph (2), by inserting ‘‘(but not 
earlier than 120 days after the date that funding for 
the fiscal year is allocated to the States)’’ after 
‘‘Secretary’’; 
(3) in paragraph (3), by inserting ‘‘(but not 
earlier than 120 days after the date that acres for 
the fiscal year are allocated to the States)’’ after 
‘‘Secretary’’; and 
(4) by adding at the end the following: 
‘‘(4) PARTICIPATION BY BEGINNING AND SO-
CIALLY
DISADVANTAGED
FARMERS
AND
RANCH-
ERS.—Nothing in this subsection prohibits beginning 
or socially disadvantaged farmers or ranchers from 
participating in programs and receiving funding 
available under this title that is not reserved under 
paragraph (1). 
‘‘(5) TECHNICAL
ASSISTANCE.—Within the 
funds reserved under paragraph (1), the Secretary 
shall allocate to the Natural Resources Conservation 
Service funding for technical assistance at a rate 
that is not more than 10 percent higher than the 
rate that would otherwise apply to allow the Service 
to provide additional technical assistance to begin-
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ning farmers or ranchers and socially disadvantaged 
farmers or ranchers to establish conservation 
plans.’’. 
SEC. 133. COMPREHENSIVE CONSERVATION PLANNING. 
Section 1244(a) of the Food Security Act of 1985 
(16 U.S.C. 3844(a)) is amended by adding at the end the 
following: 
‘‘(3) COMPREHENSIVE
CONSERVATION
PLAN-
NING.—In carrying out this subsection, the Sec-
retary shall provide technical and financial assist-
ance using resources available under the environ-
mental quality incentives program, conservation 
stewardship program, or such other programs as the 
Secretary may determine to covered persons who re-
quest the assistance to develop a comprehensive con-
servation plan for the farming or ranching operation 
of the covered person.’’. 
TITLE II—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE RE-
QUIREMENT. 
Section 302(b)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1922(b)) is amended 
by striking ‘‘3 years’’ and inserting ‘‘2 years’’. 
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SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE 
PROGRAM. 
Section 304 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1924) is amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘shall meet’’ and inserting 
‘‘shall— 
‘‘(A) meet’’; 
(B) in subparagraph (A) (as so des-
ignated), by striking the period at the end and 
inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(B) be the owner or operator of not larg-
er than a family farm.’’; 
(2) in subsection (e)— 
(A) by striking ‘‘The portion’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the portion’’; and 
(B) by adding at the end the following: 
‘‘(2) BEGINNING
AND
SOCIALLY
DISADVAN-
TAGED FARMERS AND RANCHERS.—In the case of 
beginning farmers or ranchers and socially disadvan-
taged farmers or ranchers, the portion of the loan 
the Secretary may guarantee under this section shall 
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be 95 percent of the principal amount of the loan.’’; 
and 
(3) by striking subsection (h) and inserting the 
following: 
‘‘(h) FUNDING.— 
‘‘(1) IN GENERAL.—The Secretary may make 
or guarantee loans under this section for not more 
than $250,000,000 for each of fiscal years 2013 
through 2017, of which, for each fiscal year, not 
more than 1⁄2 shall be used for direct loans and not 
more than 1⁄2 shall be used for guaranteed loans. 
‘‘(2) QUALIFIED
BEGINNING
FARMERS
AND 
RANCHERS.— 
‘‘(A) DIRECT
LOANS.—Of the amount 
made available for direct loans for a fiscal year 
under paragraph (1), the Secretary shall re-
serve for qualified beginning farmers and 
ranchers until April 1 of the fiscal year not less 
than 50 percent of the amount. 
‘‘(B) 
GUARANTEED
LOANS.—Of 
the 
amount made available for guaranteed loans for 
a fiscal year under paragraph (1), the Secretary 
shall reserve for qualified beginning farmers 
and ranchers until April 1 of the fiscal year not 
less than 50 percent of the amount.’’. 
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SEC. 203. LOAN TERMS FOR DOWN PAYMENT LOAN PRO-
GRAM. 
Section 310E(b)(1)(C) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is 
amended 
by 
striking 
‘‘$500,000’’ 
and 
inserting 
‘‘$667,000’’. 
SEC. 204. DEFINITION OF QUALIFIED BEGINNING FARMER 
OR RANCHER. 
Section 343(a)(11)(F) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is 
amended by striking ‘‘median’’ and inserting ‘‘average’’. 
Subtitle B—Operating Loans 
SEC. 211. YOUNG BEGINNING FARMER OR RANCHER 
MICROLOANS. 
Section 311 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1941) is amended by adding at 
the end the following: 
‘‘(d) YOUNG BEGINNING FARMER
OR RANCHER 
MICROLOANS.— 
‘‘(1) IN GENERAL.—The Secretary may make 
microloans under this subtitle to beginning farmers 
or ranchers who are not less than 19 and not more 
than 35 years of age to enable the beginning farm-
ers or ranchers to obtain flexible capital to finance 
operations. 
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‘‘(2) LIABILITY.—In the case of a microloan 
under this subsection, the Secretary may accept the 
personal liability of a cosigner of the promissory 
note in addition to the personal liability of the bor-
rower. 
‘‘(3) PRINCIPAL BALANCE.—The principal bal-
ance for a microloan made under this subsection 
shall not exceed $35,000. 
‘‘(4) TERM.—Loan repayment under this sub-
section shall be required in not less than 1 and not 
more than 7 years. 
‘‘(5) INTEREST RATE.—The interest rate on a 
loan made under this subsection shall not exceed the 
maximum interest rate that may be charged low in-
come, limited resource borrowers under section 
316(a)(2). 
‘‘(6) BORROWER TRAINING.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), to be eligible for a microloan under 
this subsection, the borrower shall have success-
fully completed, or will complete within 1 year, 
borrower training described in section 359. 
‘‘(B) WAIVERS.—In carrying out subpara-
graph (A), the Secretary shall not grant a waiv-
er described in section 359(f) except in the case 
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of a borrower who successfully completed, or 
will complete within 1 year, an equivalent train-
ing program, including programs established 
under section 7405 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 
3319f), as determined by the Secretary.’’. 
Subtitle C—Administrative 
Provisions 
SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
Section 333B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b) is amended by striking 
subsection (h) and inserting the following: 
‘‘(h) FUNDING.—On October 1, 2012, and on each 
October 1 thereafter through October 1, 2016, of the 
funds of the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $5,000,000, to remain 
available until expended.’’. 
SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR 
OTHER SOURCES OF CREDIT. 
(a) CONDITIONS
FOR
DIRECT
LOANS.—Section 
311(c) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941(c)) is amended— 
(1) in paragraph (1)— 
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(A) in subparagraph (A), by striking the 
semicolon at the end and inserting ‘‘; and’’; 
(B) in subparagraph (B), by striking ‘‘; 
or’’ at the end and inserting a period; and 
(C) by striking subparagraph (C); and 
(2) by striking paragraphs (3) and (4) and in-
serting the following: 
‘‘(3) TERM LIMITS.—Subject to paragraph (4), 
if a farmer or rancher has received a direct oper-
ating loan pursuant to this section in each of 9 con-
secutive years, the farmer or rancher may not re-
ceive a direct operating loan from the Secretary 
under this section for the next year. 
‘‘(4) WAIVERS FOR FARM AND RANCH OPER-
ATIONS
ON
TRIBAL
LAND.—The Secretary shall 
waive the limitation under paragraph (3) for a direct 
loan made under this subtitle to a farmer or rancher 
whose farm or ranch land is subject to the jurisdic-
tion of an Indian tribe and whose loan is secured by 
1 or more security instruments that are subject to 
the jurisdiction of an Indian tribe if the Secretary 
determines that commercial credit is not generally 
available for the farm or ranch operations.’’. 
(b) LIMITATION ON PERIOD BORROWERS ARE ELIGI-
BLE FOR GUARANTEED ASSISTANCE.—Section 319 of the 
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Consolidated Farm and Rural Development Act (7 U.S.C. 
1949) is amended by striking subsection (b) and inserting 
the following: 
‘‘(b) LIMITATION ON PERIOD BORROWERS ARE ELI-
GIBLE FOR GUARANTEED ASSISTANCE.—If a borrower 
has received a guaranteed loan under this subtitle in each 
of 15 consecutive years, the borrower may not receive a 
loan guaranteed by the Secretary for the next year.’’. 
SEC. 223. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(1)) is amend-
ed— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘$4,226,000,000 for each of fiscal years 
2008 through 2012’’ and inserting ‘‘$5,000,000,000 
for each of fiscal years 2013 through 2017’’ ; 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
striking 
‘‘$1,200,000,000’’ 
and 
inserting 
‘‘$2,000,000,000’’; 
(B) 
in 
clause 
(i), 
by 
striking 
‘‘$350,000,000’’ and inserting ‘‘$750,000,000’’; 
and 
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(C) 
in 
clause 
(ii), 
by 
striking 
‘‘$850,000,000’’ 
and 
inserting 
‘‘$1,250,000,000’’; and 
(3) in subparagraph (B)— 
(A) in the matter preceding clause (i), by 
striking 
‘‘$3,026,000,000’’ 
and 
inserting 
‘‘$3,000,000,000’’; 
(B) 
in 
clause 
(i), 
by 
striking 
‘‘$1,000,000,000’’ 
and 
inserting 
‘‘$1,500,000,000’’; and 
(C) 
in 
clause 
(ii), 
by 
striking 
‘‘$2,026,000,000’’ 
and 
inserting 
‘‘$1,500,000,000’’. 
SEC. 224. DIRECT LOANS FOR BEGINNING FARMERS AND 
RANCHERS. 
Section 346(b)(2)(A) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(2)(A)) is 
amended— 
(1) in clause (i), by adding at the end the fol-
lowing: 
‘‘(III) PRIORITY.—In order to 
maximize the number of borrowers 
served under this clause, the Sec-
retary— 
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‘‘(aa) shall give priority to 
borrowers who apply under the 
down 
payment 
loan 
program 
under section 310E or joint fi-
nancing arrangements under sec-
tion 307(a)(3)(D); and 
‘‘(bb) may offer other fi-
nancing options only if the Sec-
retary determines that down pay-
ment or other participation loan 
options are not a viable approach 
for a particular borrower.’’; and 
(2) in clause (ii)(III), by striking ‘‘each of fiscal 
years 2008 through 2012’’ and inserting ‘‘fiscal year 
2008 and each fiscal year thereafter’’. 
SEC. 225. BORROWER TRAINING. 
Section 359 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2006a) is amended by adding 
at the end the following: 
‘‘(g) COORDINATION.—The Secretary shall coordi-
nate the borrower training program under this section 
with the beginning farmer and rancher development pro-
gram established under section 7405 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 3319f) to 
ensure, to the maximum extent practicable, that financial 
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management training programs funded under the begin-
ning farmer and rancher development program are de-
signed in such a way that the financial management train-
ing programs will— 
‘‘(1) meet borrower training requirements under 
this section; and 
‘‘(2) qualify as beginning farmer and rancher 
development program projects covered by contracts 
under subsection (b).’’. 
TITLE III—RURAL 
DEVELOPMENT 
SEC. 301. VALUE-ADDED PRODUCER GRANTS. 
Section 231(b) of the Agricultural Risk Protection 
Act of 2000 (7 U.S.C. 1632a(b)) is amended— 
(1) by striking paragraph (6) and inserting the 
following: 
‘‘(6) PRIORITY.— 
‘‘(A) IN
GENERAL.—In awarding grants 
under this subsection, the Secretary shall give 
priority to projects that— 
‘‘(i) contribute to increasing opportu-
nities for operators of small- and medium- 
sized farms and ranches that are struc-
tured as a family farm; or 
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‘‘(ii) have applicants at least 1⁄4 of 
whom are beginning farmers or ranchers 
or socially disadvantaged farmers or ranch-
ers. 
‘‘(B) RANKING.—In evaluating and rank-
ing proposals under this subsection, the Sec-
retary shall provide very substantial weight to 
the priorities described in subparagraph (A).’’; 
and 
(2) in paragraph (7)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘October 1, 2008’’ and 
inserting ‘‘October 1, 2012, and each Octo-
ber 1 thereafter through October 1, 2016’’; 
and 
(ii) by striking ‘‘$15,000,000’’ and in-
serting ‘‘$30,000,000’’; 
(B) in subparagraph (B), by striking 
‘‘2012’’ and inserting ‘‘2017’’; and 
(C) in subparagraph (C)— 
(i) in clause (i), by striking ‘‘benefit’’ 
and inserting ‘‘have applicants at least 1⁄4 
of whom are’’; and 
(ii) in clause (iii), by striking ‘‘June 
30 of the fiscal year’’ and inserting ‘‘the 
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close of the annual proposal review proc-
ess’’. 
SEC. 302. USE OF LOANS AND GRANTS FOR ENTREPRE-
NEURIAL FARM ENTERPRISES. 
Subtitle D of the Consolidated Farm and Rural De-
velopment Act is amended by inserting after section 365 
(7 U.S.C. 2008) the following: 
‘‘SEC. 366. USE OF LOANS AND GRANTS FOR ENTREPRE-
NEURIAL FARM ENTERPRISES. 
‘‘(a) IN GENERAL.—The Secretary shall approve 
grants and loans under any rural development program 
established under this title to support farm and farm-re-
lated business enterprises that— 
‘‘(1) create new entrepreneurial employment op-
portunities for beginning farmers and ranchers; 
‘‘(2) have the effect of— 
‘‘(A) creating new small- and medium-size 
family farms; 
‘‘(B) enhancing local and regional food 
systems; 
‘‘(C) increasing value-added production 
and new markets; 
‘‘(D) preserving farmland and rural herit-
age; and 
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‘‘(E) developing strong rural economies; 
and 
‘‘(3) are consistent with the purposes of the 
program. 
‘‘(b) LIMITATION.—Loans or grants made under this 
section shall not be available for annual agricultural pro-
duction purposes.’’. 
TITLE IV—RESEARCH, 
EDUCATION, AND EXTENSION 
SEC. 401. BEGINNING FARMER AND RANCHER DEVELOP-
MENT PROGRAM. 
Section 7405 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3319f) is amended— 
(1) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (Q), by striking 
‘‘and’’ after the semicolon at the end; 
(ii) by redesignating subparagraph 
(R) as subparagraph (S); and 
(iii) by inserting after subparagraph 
(Q) the following: 
‘‘(R) agricultural rehabilitation and voca-
tional training for veterans; and’’; 
(B) in paragraph (4)— 
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(i) by striking ‘‘To be eligible’’ and in-
serting the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), to be eligible’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) EXCEPTIONS.—The Secretary may 
waive or modify the matching requirement in 
subparagraph (A) if the Secretary determines a 
waiver or modification is necessary to effectively 
reach an underserved area or population.’’; 
(C) in paragraph (8)— 
(i) in subparagraph (B), by striking 
‘‘and’’ after the semicolon at the end; 
(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) military veteran beginning farmers 
and ranchers.’’; and 
(D) by adding at the end the following: 
‘‘(11) INDIRECT COSTS.—To help facilitate par-
ticipation in the program under this subsection by 
nongovernmental and community-based nonprofit or-
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ganizations, the Secretary shall provide for an op-
tional 10 percent indirect cost option in lieu of a 
higher negotiated rate.’’; and 
(2) in subsection (h)— 
(A) in paragraph (1), by striking ‘‘sec-
tion—’’ and all that follows through the period 
at the end and inserting ‘‘$25,000,000 for each 
of fiscal years 2013 through 2017.’’; and 
(B) in paragraph (2), by striking ‘‘2008 
through 2012’’ and inserting ‘‘2013 through 
2017’’. 
SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE. 
Subsection (b) of the Competitive, Special, and Fa-
cilities Research Grant Act (7 U.S.C. 450i(b)) is amend-
ed— 
(1) in paragraph (2)(F)— 
(A) by redesignating clauses (iii) through 
(vi) as clauses (iv) through (vii), respectively; 
and 
(B) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) new farming opportunities, in-
cluding young, beginning, socially dis-
advantaged, and immigrant issues and 
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farm transition, farm transfer, farm entry, 
and beginning farmer profitability issues;’’; 
(2) in paragraph (7), in the matter preceding 
subparagraph (A), by inserting ‘‘projects (including 
integrated projects)’’ after ‘‘education’’; and 
(3) in paragraph (11)(A)— 
(A) in the matter preceding clause (i), by 
striking ‘‘2008 through 2012’’ and inserting 
‘‘2013 through 2017’’; and 
(B) in clause (i), by striking ‘‘pursuant to’’ 
and inserting ‘‘under’’. 
TITLE V—CROP INSURANCE 
SEC. 501. SENSE OF CONGRESS ON BEGINNING FARMER 
AND RANCHER ACCESS TO CROP AND REV-
ENUE INSURANCE. 
It is the sense of Congress that the Secretary of Agri-
culture should, to the maximum extent practicable, remove 
barriers and ensure effective access to crop and revenue 
insurance by beginning farmers and ranchers on terms 
that are fair and assist in the goal of increasing the num-
ber of new farming and ranching opportunities. 
SEC. 502. RISK MANAGEMENT PARTNERSHIP PROGRAMS. 
Section 522 of the Federal Crop Insurance Act (7 
U.S.C. 1522) is amended— 
(1) in subsection (d)— 
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(A) in paragraph (1)— 
(i) by striking ‘‘priority given to risk’’ 
and inserting ‘‘priority given to— 
‘‘(A) risk’’; 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) underserved producers, including be-
ginning farmers and ranchers and socially dis-
advantaged farmers and ranchers.’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘options for producers’’ 
and inserting ‘‘options for— 
‘‘(A) producers’’; 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) underserved producers, including be-
ginning farmers and ranchers and socially dis-
advantaged farmers and ranchers.’’; and 
(C) by adding at the end the following: 
‘‘(4) REQUIREMENTS.—In carrying out the pro-
grams established under paragraphs (2) and (3), the 
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Secretary shall place special emphasis on risk man-
agement techniques, tools, and programs that are 
specifically targeted at— 
‘‘(A) beginning farmers or ranchers; 
‘‘(B) legal immigrant farmers or ranchers 
that are attempting to become established agri-
cultural producers in the United States; 
‘‘(C) socially disadvantaged farmers or 
ranchers; 
‘‘(D) farmers or ranchers that— 
‘‘(i) are preparing to retire; and 
‘‘(ii) are using transition strategies to 
help new farmers or ranchers get started; 
and 
‘‘(E) new or established farmers or ranch-
ers that are converting production and mar-
keting systems to pursue new markets.’’; and 
(2) 
in 
subsection 
(e)(2)(A), 
by 
striking 
‘‘$12,500,000 for fiscal year 2008’’ and inserting 
‘‘$15,000,000 for fiscal year 2013’’. 
TITLE VI—MISCELLANEOUS 
SEC. 601. SMALL AND BEGINNING FARMER AND RANCHER 
COORDINATORS. 
Section 226B of the Department of Agriculture Reor-
ganization Act of 1994 (7 U.S.C. 6934) is amended— 
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(1) in subsection (c)(4), by inserting before the 
semicolon at the end the following: ‘‘, including re-
view of rulemakings to provide an assessment and 
make recommendations regarding the impact of 
rules on small farms and ranches, beginning and so-
cially disadvantaged farmers and ranchers, and re-
lated matters relevant to the structure of agri-
culture’’; 
(2) in subsection (e)(2)— 
(A) by redesignating subparagraph (D) as 
subparagraph (E); and 
(B) by inserting after subparagraph (C) 
the following: 
‘‘(D) STATE
SMALL
AND
BEGINNING 
FARMER AND RANCHER COORDINATOR.— 
‘‘(i) IN GENERAL.—The Small Farms 
and Beginning Farmers and Ranchers 
Group shall designate a State small and 
beginning farmer and rancher coordinator 
from among the State office employees of 
the Farm Service Agency, the Natural Re-
sources Conservation Service, the Risk 
Management Agency, the Rural Business- 
Cooperative Service, and the Rural Utili-
ties Service. 
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‘‘(ii) TRAINING.—The Small Farms 
and Beginning Farmers and Ranchers 
Group shall coordinate the development of 
a training plan so that each State coordi-
nator shall receive sufficient training to 
have a general working knowledge of the 
programs and services available from each 
agency of the Department to assist small 
and beginning farmers and ranchers. 
‘‘(iii) 
DUTIES.—The 
coordinator 
shall— 
‘‘(I) coordinate technical assist-
ance at the State level to help small 
and beginning farmers and ranchers 
gain access to programs of the De-
partment; 
‘‘(II) develop and submit a State 
plan for approval by the Small Farms 
and Beginning Farmers and Ranchers 
Group to provide coordination to en-
sure adequate services to small and 
beginning farmers and ranchers at all 
county and area offices throughout 
the State; 
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‘‘(III) oversee implementation of 
the approved State plan; and 
‘‘(IV) work with outreach coordi-
nators in the State offices of the 
Farm Service Agency, the Natural 
Resources Conservation Service, the 
Risk Management Agency, the Rural 
Business-Cooperative Service, and the 
Rural Utilities Service to ensure ap-
propriate information about technical 
assistance is available at outreach 
events and activities.’’; and 
(3) in subsection (f), by striking paragraph (3); 
and 
(4) by adding at the end the following: 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as are necessary for each of fiscal years 2013 
through 2017.’’. 
SEC. 602. MILITARY VETERANS AGRICULTURAL LIAISON. 
(a) IN GENERAL.—Subtitle A of the Department of 
Agriculture Reorganization Act of 1994 is amended by in-
serting after section 218 (7 U.S.C. 6918) the following: 
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‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON. 
‘‘(a) AUTHORIZATION.—The Secretary shall establish 
in the Department the position of Military Veterans Agri-
cultural Liaison. 
‘‘(b) DUTIES.—The Military Veterans Agricultural 
Liaison shall— 
‘‘(1) provide information to returning veterans 
about, and connect returning veterans with, begin-
ning farmer training and agricultural vocational and 
rehabilitation programs appropriate to the needs and 
interests of returning veterans, including assisting 
veterans in using Federal veterans educational bene-
fits for purposes relating to beginning a farming or 
ranching career; 
‘‘(2) provide information to veterans concerning 
the availability of and eligibility requirements for 
participation in agricultural programs, with par-
ticular emphasis on beginning farmer and rancher 
programs; 
‘‘(3) serving as a resource for assisting veteran 
farmers and ranchers, and potential farmers and 
ranchers, in applying for participation in agricul-
tural programs; and 
‘‘(4) advocating on behalf of veterans in inter-
actions with employees of the Department.’’. 
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(b) CONFORMING AMENDMENTS.—Section 296(b) of 
the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 7014(b)) is amended— 
(1) in paragraph (6), by striking ‘‘or’’ after the 
semicolon at the end; 
(2) in paragraph (7), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(8) the authority of the Secretary to establish 
in the Department the position of Military Veterans 
Agricultural Liaison in accordance with section 
219.’’. 
SEC. 603. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the Senate Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
SEC. 604. EFFECTIVE DATE. 
This Act and the amendments made by this Act take 
effect on October 1, 2012. 
Æ 
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