TITLE I—IMPROVED ACCESS TO LAND 
Sec. 101. Land trust eligibility for assistance for agricultural land easements. 
Sec. 102. Priority for option to purchase at agricultural value in agricultural 
land easements. 
Sec. 103. Exclusion of gain from sale of farm or ranch to a qualified agricul-
tural purchaser. 
Sec. 104. Prequalification of prospective applicants for credit from Farm Serv-
ice Agency programs. 
Sec. 105. Increase in limitation on amount of direct farm ownership loans; in-
flation indexation of limit. 
Sec. 106. Minimum funding percentage for agricultural land easements and 
wetland reserve easements. 
Sec. 107. Report on agricultural conservation easement program. 
TITLE II—IMPROVED ACCESS TO DEPARTMENT OF 
AGRICULTURE TRAINING AND PROGRAMS 
Sec. 201. Beginning farmer coordination. 
Sec. 202. Transfer of Advisory Committee on Beginning Farmers and Ranchers 
to jurisdiction of Farm Service Agency. 
Sec. 203. Department of Agriculture on-line customer self-service portal. 
Sec. 204. Extension of beginning farmer and rancher development program to 
provide training, education, outreach, and technical assistance 
initiatives. 
Sec. 205. Mandatory funding for beginning farmer and rancher individual de-
velopment accounts pilot program. 
Sec. 206. Sale of surplus farm equipment or property to socially disadvantaged 
farmers or ranchers, veteran farmers or ranchers, and begin-
ning farmers or ranchers. 
TITLE III—INVESTMENT IN LOCAL AND REGIONAL FOOD 
SYSTEMS 
Sec. 301. Mandatory funding for farmers’ market and local food promotion pro-
gram. 
Sec. 302. Grants to support farm viability programs. 
TITLE I—IMPROVED ACCESS TO 
LAND 
SEC. 101. LAND TRUST ELIGIBILITY FOR ASSISTANCE FOR 
AGRICULTURAL LAND EASEMENTS. 
(a) LAND TRUSTS.—Section 1265B of the Food Se-
curity Act of 1985 (16 U.S.C. 3865b) is amended by add-
ing at the end the following: 
‘‘(e) LAND TRUSTS.— 
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give priority to an application for the purchase 
of an agricultural land easement that maintains 
agricultural viability or includes, as a condition 
of the easement, a requirement that any subse-
quent purchase of the land subject to the ease-
ment shall be at agricultural value, as deter-
mined by the Secretary, or both.’’. 
SEC. 103. EXCLUSION OF GAIN FROM SALE OF FARM OR 
RANCH TO A QUALIFIED AGRICULTURAL 
PURCHASER. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139E the following: 
‘‘SEC. 139F. GAIN FROM SALE OF FARM OR RANCH TO A 
QUALIFIED AGRICULTURAL PURCHASER. 
‘‘(a) IN GENERAL.—In the case of an individual, 
gross income shall not include gain from the sale or ex-
change of property if— 
‘‘(1) during the 3-year period ending on the 
date of the sale or exchange, such property has been 
owned and used by the taxpayer in a farming busi-
ness (as defined in section 263A(e)), 
‘‘(2) such property is acquired by a qualified 
agricultural purchaser, 
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‘‘(3) immediately before such sale or exchange, 
the qualified agricultural purchaser does not own 
property that, in aggregate acreage, is greater than 
or equal to twice the average farm size in the county 
in which the property subject to the sale or exchange 
is located, and 
‘‘(4) in connection with such transfer there is in 
effect a restriction (granted in perpetuity) that such 
property be used in a farming business (as so de-
fined). 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount of gain ex-
cluded from gross income under subsection (a) with 
respect to any sale or exchange shall not exceed 
$250,000. 
‘‘(2) SPECIAL RULE FOR JOINT RETURNS.—In 
the case of a joint return for the taxable year of the 
sale or exchange of the property, paragraph (1) shall 
be applied by substituting ‘$500,000’ for ‘$250,000’ 
if— 
‘‘(A) either spouse meets the ownership re-
quirements of subsection (a) with respect to 
such property, and 
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‘‘(B) both spouses meet the use require-
ments of subsection (a) with respect to such 
property. 
‘‘(c) QUALIFIED AGRICULTURAL PURCHASER.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified agricul-
tural purchaser’ means an individual who is— 
‘‘(A) a beginning farmer or rancher, 
‘‘(B) a socially disadvantaged farmer (as 
defined in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279(e)), or 
‘‘(C) a veteran farmer or rancher (as de-
fined in (as defined in section 2501(e) of the 
Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279(e))). 
‘‘(2) BEGINNING FARMER OR RANCHER.—For 
purposes of this section— 
‘‘(A) IN GENERAL.—The term ‘beginning 
farmer or rancher’ means an individual or enti-
ty who— 
‘‘(i) has not operated a farm or ranch, 
or who has operated a farm or ranch for 
not more than 10 consecutive years, and 
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‘‘(ii) will materially and substantially 
participate in the operation of the farm or 
ranch. 
‘‘(B) MATERIAL AND SUBSTANTIAL PAR-
TICIPATION.—For purposes of subparagraph 
(A), material and substantial participation 
means— 
‘‘(i) in the case of an individual, that 
the individual provides substantial day-to- 
day labor and management of the farm or 
ranch, consistent with the practices in the 
county or State where the farm is located, 
and 
‘‘(ii) in the case of an entity, that all 
shareholders, holders of a capital or profits 
interest in the case of a partnership, or 
holders of a beneficial interest in the case 
of a trust or cooperative provide some 
amount of the management or labor nec-
essary for day-to-day activities such that if 
each of the members did not provide these 
inputs, operation of the farm or ranch 
would be seriously impaired. 
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‘‘(d) APPLICABLE RULES.—For purposes of this sec-
tion, rules similar to the rules of paragraphs (2), (3), and 
(6) of section 121(d) shall apply.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139E the following new item: 
‘‘Sec. 139F. Gain from sale of farm or ranch to a qualified agricultural pur-
chaser.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and exchanges on or after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
SEC. 104. PREQUALIFICATION OF PROSPECTIVE APPLI-
CANTS FOR CREDIT FROM FARM SERVICE 
AGENCY PROGRAMS. 
Not later than October 1, 2016, the Secretary of Ag-
riculture shall develop and implement procedures to en-
sure that the Farm Service Agency is prepared, in ad-
vance, to respond to a request by a prospective loan appli-
cant (other than a request for preapproval) for a prelimi-
nary determination on— 
(1) whether the prospective applicant would 
likely qualify for credit under any program adminis-
tered by the Farm Service Agency; or 
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(2) the amount of credit for which the prospec-
tive applicant would likely qualify under any such 
program. 
SEC. 105. INCREASE IN LIMITATION ON AMOUNT OF DI-
RECT FARM OWNERSHIP LOANS; INFLATION 
INDEXATION OF LIMIT. 
Section 305 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1925) is amended by striking 
‘‘$300,000’’ and inserting ‘‘$500,000 (increased, begin-
ning with fiscal year 2017, by the inflation percentage ap-
plicable to the fiscal year in which the loan is made, and 
reduced by the amount of any unpaid indebtedness of the 
borrower on direct loans under subtitle B)’’. 
SEC. 106. MINIMUM FUNDING PERCENTAGE FOR AGRICUL-
TURAL LAND EASEMENTS AND WETLAND RE-
SERVE EASEMENTS. 
Section 1265D of the Food Security Act of 1985 (16 
U.S.C. 3865d) is amended by adding at the end the fol-
lowing: 
‘‘(f) MINIMUM PERCENTAGES.—The Secretary shall 
ensure that, of funds made available to carry out this sub-
title, not less than 40 percent are used to carry out each 
of sections 1265B and 1265C.’’. 
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SEC. 107. REPORT ON AGRICULTURAL CONSERVATION 
EASEMENT PROGRAM. 
Not later than 180 days after the date of the enact-
ment of this Act, the Chief of the Natural Resources Con-
servation Service shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that includes an evaluation of the extent in 
which the agricultural conservation easement program es-
tablished under section 1265(a) of the Food Security Act 
of 1985 (16 U.S.C. 3865(a)) supports beginning farmers 
or ranchers (as defined in section 206(b)) in purchasing 
land. 
TITLE II—IMPROVED ACCESS TO 
DEPARTMENT OF AGRICUL-
TURE TRAINING AND PRO-
GRAMS 
SEC. 201. BEGINNING FARMER COORDINATION. 
(a) PROGRAM ESTABLISHED.—Not later than 1 year 
after the date of the enactment of this Act, the Secretary, 
acting through the Administrator of the Farm Service 
Agency, shall implement a program to assign to each State 
at least one coordinator to— 
(1) promote communication between the De-
partment of Agriculture and beginning farmers or 
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ranchers (as defined in section 206(b)) located in 
such State; and 
(2) increase the access of such beginning farm-
ers or ranchers to apprenticeship programs, farm 
loan programs, and land available for purchase. 
(b) STATE DEFINED.—In this section, the term 
‘‘State’’ means each of the several States, the District of 
Columbia, and any commonwealth, territory, or possession 
of the United States. 
SEC. 202. TRANSFER OF ADVISORY COMMITTEE ON BEGIN-
NING FARMERS AND RANCHERS TO JURIS-
DICTION OF FARM SERVICE AGENCY. 
The Department of Agriculture Reorganization Act 
of 1994 (7 U.S.C. 6901 et seq.) is amended— 
(1) in section 226B(e)(2) (7 U.S.C. 6934)— 
(A) by striking subparagraph (C); and 
(B) by redesignating subparagraph (D) as 
subparagraph (C); and 
(2) in section 226 (7 U.S.C. 6932), by adding 
at the end the following new subsection: 
‘‘(i) ADVISORY COMMITTEE ON BEGINNING FARMERS 
AND RANCHERS.—The Administrator of the Farm Service 
Agency shall coordinate the activities of the Farm Service 
Agency with the Advisory Committee on Beginning Farm-
ers and Ranchers established under section 5(b) of the Ag-
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ricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 
note; Public Law 102–554).’’. 
SEC. 203. DEPARTMENT OF AGRICULTURE ON-LINE CUS-
TOMER SELF-SERVICE PORTAL. 
(a) CUSTOMER SELF-SERVICE PORTAL.—The Sec-
retary of Agriculture shall develop an on-line customer 
self-service portal through which farmers and ranchers will 
be able to securely access their customer and program in-
formation and complete program applications in a wide 
range of agricultural programs offered by the Department 
of Agriculture. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the development of an on-line customer self- 
service portal, as required by subsection (a), should not 
negatively impact the many farmers and ranchers who do 
not yet have access to high-speed internet or who would 
prefer not to utilize the online self-service portal. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of Agri-
culture to carry out subsection (a) $6,000,000 for the 
three-fiscal year period beginning on October 1, 2016. 
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SEC. 204. EXTENSION OF BEGINNING FARMER AND RANCH-
ER DEVELOPMENT PROGRAM TO PROVIDE 
TRAINING, 
EDUCATION, 
OUTREACH, 
AND 
TECHNICAL ASSISTANCE INITIATIVES. 
Section 7405(h) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 3319f(h)) is amended— 
(1) by striking ‘‘2018’’ both places it appears 
and inserting ‘‘2021’’; 
(2) in the heading for paragraph (1), by strik-
ing ‘‘2018’’ and inserting ‘‘2021’’; and 
(3) in the heading for paragraph (2), by strik-
ing ‘‘2018’’ and inserting ‘‘2021’’. 
SEC. 205. MANDATORY FUNDING FOR 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— 
(1) in subsection (h), by striking ‘‘2018’’ and 
inserting ‘‘2016’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(i) MANDATORY FUNDING.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall use to 
carry out this section $5,000,000 for fiscal year 2017 and 
each fiscal year thereafter.’’. 
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SEC. 206. SALE OF SURPLUS FARM EQUIPMENT OR PROP-
ERTY TO SOCIALLY DISADVANTAGED FARM-
ERS OR RANCHERS, VETERAN FARMERS OR 
RANCHERS, AND BEGINNING FARMERS OR 
RANCHERS. 
(a) SALE AUTHORIZED.—The Administrator of Gen-
eral Services, under regulations prescribed by the Admin-
istrator, may sell to a socially disadvantaged farmer or 
rancher, veteran farmer or rancher, or beginning farmer 
or rancher any farm equipment acquired by the General 
Services Administration that— 
(1) is suitable for use in farming operations; 
and 
(2) has been determined to be surplus property 
under chapter 5 of title 40, United States Code. 
(b) DEFINITIONS.—In this section: 
(1) BEGINNING
FARMER
OR
RANCHER.—The 
term ‘‘beginning farmer or rancher’’ means an indi-
vidual or entity that has not operated a farm or 
ranch or that has operated a farm or ranch for not 
more than 10 consecutive years and that will materi-
ally and substantially participate in the operation of 
the farm or ranch. In the case of an entity, these 
requirements apply to all members of the entity. 
(2) FOOD, AGRICULTURE, CONSERVATION, AND 
TRADE ACT OF 1990 TERMS.—The terms ‘‘socially 
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viability program developed by a public or private entity 
that is designed— 
(1) to improve the economic viability and envi-
ronmental integrity of farms participating in the 
program through the development and implementa-
tion of a farm viability plans; and 
(2) to provide participating farmers with envi-
ronmental, technical, and business planning assist-
ance to expand, upgrade, and modernize their agri-
cultural operations and assist in land access and 
transfer. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of Agri-
culture to make grants under this section such sums as 
are necessary for each of fiscal years 2017 through 2021. 
Æ 
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