Title: Young and Beginning Farmers Act
Policy area: Agriculture and Food

Summary:
Young and Beginning Farmers Act
This bill amends various agricultural laws to modify and establish programs to assist beginning farmers.
The bill makes land trusts eligible for certain assistance under the Department of Agriculture (USDA) Agricultural Conservation Easement Program. In administering the program, USDA must prioritize an application for purchasing an easement that maintains agricultural viability, requires subsequent purchases to be at agricultural value, or both.
The bill modifies several agricultural programs to:
The FSA must assign state coordinators to promote communication with beginning farmers or ranchers and increase their access to USDA programs.
The General Services Administration may sell surplus farm equipment or property to socially disadvantaged, veteran, or beginning farmers and ranchers.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4201 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4201

  To improve the ability of beginning farmers in the United States to 
acquire farms and participate in agricultural production, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2017

 Mr. Sean Patrick Maloney of New York (for himself and Mr. Costello of 
Pennsylvania) introduced the following bill; which was referred to the 
Committee on Agriculture, and in addition to the Committee on Oversight 
 and Government Reform, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To improve the ability of beginning farmers in the United States to 
acquire farms and participate in agricultural production, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives 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 ``Young and 
Beginning Farmers Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    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. Prequalification of prospective applicants for credit from 
                            Farm Service Agency programs.
Sec. 104. Increase in limitation on amount of direct farm ownership 
                            loans; inflation indexation of limit.
Sec. 105. Report and action plan 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. Beginning farmer and rancher development program to provide 
                            training, education, outreach, and 
                            technical assistance initiatives.
Sec. 205. Reauthorization of beginning farmer and rancher individual 
                            development accounts pilot program.
Sec. 206. Sale of surplus farm equipment or property to socially 
                            disadvantaged farmers or ranchers, veteran 
                            farmers or ranchers, and beginning farmers 
                            or ranchers.
        TITLE III--INVESTMENT IN LOCAL AND REGIONAL FOOD SYSTEMS

Sec. 301. Mandatory funding for farmers' market and local food 
                            promotion program.
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 Security Act of 1985 
(16 U.S.C. 3865b) is amended by adding at the end the following:
    ``(e) Land Trusts.--
            ``(1) Eligibility for assistance.--Notwithstanding section 
        1001D(b), an eligible entity that is a qualified land trust, as 
        determined by the Secretary, may receive assistance under this 
        section.
            ``(2) Assistance for reservation of easement.--The 
        Secretary may provide assistance to an eligible entity that is 
        a qualified land trust to supplement the sale price of eligible 
        land to a farmer or rancher, who is not ineligible to receive 
        assistance under section 1001D, if the eligible entity that is 
        a qualified land trust reserves for itself an agricultural land 
        easement in the eligible land.''.
    (b) Conforming Amendment.--Section 1001D(b)(1) of the Food Security 
Act of 1985 (7 U.S.C. 1308-3a(b)(1)) is amended by striking 
``Notwithstanding'' and inserting ``Except as provided in section 
1265B(e), notwithstanding''.

SEC. 102. PRIORITY FOR OPTION TO PURCHASE AT AGRICULTURAL VALUE IN 
              AGRICULTURAL LAND EASEMENTS.

    Section 1265B(b)(3) of the Food Security Act of 1985 (16 U.S.C. 
3865b(b)(3)) is amended by adding at the end the following:
                    ``(D) Priority.--In evaluating applications under 
                the program, the Secretary shall give priority to an 
                application for the purchase of an agricultural land 
                easement that, as determined by the Secretary--
                            ``(i) maintains agricultural viability;
                            ``(ii) includes, as a condition of the 
                        easement, a requirement that any subsequent 
                        purchase of the land subject to the easement 
                        shall be at agricultural value; or
                            ``(iii) achieves the objectives of both 
                        clauses (i) and (ii).''.

SEC. 103. PREQUALIFICATION OF PROSPECTIVE APPLICANTS FOR CREDIT FROM 
              FARM SERVICE AGENCY PROGRAMS.

    Not later than October 1, 2018, the Secretary of Agriculture shall 
develop and implement procedures to ensure that the Farm Service Agency 
is prepared, in advance, to respond to a request by a prospective loan 
applicant (other than a request for preapproval) for a preliminary 
determination on--
            (1) whether the prospective applicant would likely qualify 
        for credit under any program administered by the Farm Service 
        Agency; or
            (2) the amount of credit for which the prospective 
        applicant would likely qualify under any such program.

SEC. 104. INCREASE IN LIMITATION ON AMOUNT OF DIRECT FARM OWNERSHIP 
              LOANS; INFLATION INDEXATION OF LIMIT.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended to read as follows:

``SEC. 305. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    ``(a) In General.--The Secretary shall make or insure no loan under 
section 302, 303, 304, 310D, or 310E of this title that would cause the 
unpaid indebtedness under such sections of any 1 borrower to exceed the 
smaller of--
            ``(1) the value of the farm or other security; or
            ``(2)(A) in the case of a loan other than a loan guaranteed 
        by the Secretary, $500,000 (increased, beginning with the 
        fiscal year 2019, by the regional farm real estate inflation 
        percentage applicable to the region where the farm involved is 
        located for the fiscal year in which the loan is made, and 
        decreased by the amount of any unpaid indebtedness of the 
        borrower on direct loans under subtitle B); or
            ``(B) in the case of a loan guaranteed by the Secretary, 
        $700,000 (increased, beginning with fiscal year 2000, by the 
        cost inflation percentage applicable to the fiscal year in 
        which the loan is guaranteed and reduced by the amount of any 
        unpaid indebtedness of the borrower on loans under subtitle B 
        that are guaranteed by the Secretary).
    ``(b) Determination of Value.--In determining the value of the 
farm, the Secretary shall consider appraisals made by competent 
appraisers under rules established by the Secretary.
    ``(c) Cost Inflation Percentage.--For purposes of this section, the 
cost inflation percentage applicable to a fiscal year is the percentage 
(if any) by which--
            ``(1) the average of the Prices Paid By Farmers Index (as 
        compiled by the National Agricultural Statistics Service of the 
        Department of Agriculture) for the 12-month period ending on 
        August 31 of the immediately preceding fiscal year; exceeds
            ``(2) the average of such index (as so defined) for the 12-
        month period ending on August 31, 1996.
    ``(d) Regional Farm Real Estate Inflation Percentage.--
            ``(1) In general.--For purposes of this section, the 
        regional farm real estate inflation percentage applicable to a 
        farm for a fiscal year is the percentage (if any) by which--
                    ``(A) the regional farm real estate inflation index 
                developed under paragraph (2) for the region in which 
                the farm is located, for the 12-month period ending on 
                August 31 of the immediately preceding fiscal year; 
                exceeds
                    ``(B) the average of the index (as so defined) for 
                the 12-month period ending on August 31, 2018.
            ``(2) Development.--The Secretary shall develop a regional 
        farm real estate inflation index for measuring periodic changes 
        in the price of farm real estate in each geographic region of 
        the United States, using data from the National Agricultural 
        Statistics Service.
    ``(e) Microloans.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may establish a program to make or guarantee microloans.
            ``(2) Limitations.--The Secretary shall not make or 
        guarantee a microloan under this subsection that would cause 
        the total principal indebtedness outstanding at any 1 time for 
        microloans made under this subtitle to any 1 borrower to exceed 
        $50,000.
            ``(3) Applications.--To the maximum extent practicable, the 
        Secretary shall limit the administrative burdens and streamline 
        the application and approval process for microloans under this 
        subsection.''.

SEC. 105. REPORT AND ACTION PLAN ON AGRICULTURAL CONSERVATION EASEMENT 
              PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that the 
agricultural conservation easement program established under section 
1265(a) of the Food Security Act of 1985 (16 U.S.C. 3865(a)) remains a 
valuable program in assisting beginning farmers and ranchers in 
acquiring farmland for productive use.
    (b) Report and Plan Required.--Not later than one year after the 
date of the enactment of this Act, the Chief of the Natural Resources 
Conservation Service shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that includes--
            (1) an evaluation of the extent in which the agricultural 
        conservation easement program supports beginning farmers or 
        ranchers in acquiring farmland; and
            (2) a plan to address any shortcomings identified through 
        the evaluation for the purpose of furthering the goals of the 
        agricultural conservation easement program to protect farmland 
        and help farmers access farmland for productive use.

  TITLE II--IMPROVED ACCESS TO DEPARTMENT OF AGRICULTURE TRAINING AND 
                                PROGRAMS

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 Department of 
        Agriculture and beginning farmers or ranchers (as defined in 
        section 206(b)) located in such State; and
            (2) increase the access of such beginning farmers or 
        ranchers to apprenticeship programs, farm loan programs, and 
        land available for purchase.
    (b) Use of Current Employees.--The assignment of beginning farmer 
coordinators in compliance with subsection (a) may be accomplished 
through the designation of current employees of the Department of 
Agriculture and does not require the hiring of additional employees.
    (c) 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 BEGINNING FARMERS AND 
              RANCHERS TO JURISDICTION 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 
Secretary of Agriculture shall coordinate the activities of the Farm 
Service Agency with the Advisory Committee on Beginning Farmers and 
Ranchers established under section 5(b) of the Agricultural Credit 
Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554).''.

SEC. 203. DEPARTMENT OF AGRICULTURE ON-LINE CUSTOMER SELF-SERVICE 
              PORTAL.

    (a) Customer Self-Service Portal.--The Secretary 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 information 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 Congress 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.--For the three-fiscal year 
period beginning on October 1, 2018, there are authorized to be 
appropriated to the Secretary of Agriculture to carry out subsection 
(a)--
            (1) not less than $6,000,000; and
            (2) such additional amounts as are considered appropriate.

SEC. 204. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM TO PROVIDE 
              TRAINING, EDUCATION, OUTREACH, AND TECHNICAL ASSISTANCE 
              INITIATIVES.

    Section 7405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3319f) is amended by striking subsection (h) and inserting 
the following new subsections:
    ``(h) Individual Development Accounts.--
            ``(1) Transfer of funds authorized.--Of the funds made 
        available under subsection (i), the Secretary may transfer up 
        to $10,000,000 per year, plus allocable administrative costs, 
        for individual development accounts as authorized under section 
        333B of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1983b).
            ``(2) Administrative costs.--The Secretary may not use more 
        than 4 percent of the funds transferred under this subsection 
        for administrative costs incurred in implementing the 
        individual development accounts authorized under section 333B 
        of the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1983b).
    ``(i) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available to carry 
        out this section--
                    ``(A) $20,000,000 for fiscal year 2018;
                    ``(B) $30,000,000 for each of fiscal years 2019 and 
                2020;
                    ``(C) $40,000,000 for each of fiscal years 2021 and 
                2022; and
                    ``(D) $50,000,000 for fiscal year 2023 and each 
                fiscal year thereafter.
            ``(2) Authorization of appropriations.--In addition to 
        funds provided under paragraph (1), there is authorized to be 
        appropriated to carry out this section $30,000,000 for fiscal 
        year 2018 and each fiscal year thereafter.
            ``(3) Availability.--Amounts made available under this 
        subsection shall remain available until expended.''.

SEC. 205. REAUTHORIZATION OF BEGINNING FARMER AND RANCHER INDIVIDUAL 
              DEVELOPMENT ACCOUNTS PILOT PROGRAM.

    Subsection (h) of section 333B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983b) is amended to read as follows:
    ``(h) Authorization of Appropriations.--In addition to any amounts 
provided under section 7405 of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 3319f), there is authorized to be appropriated to 
carry out this section $5,000,000 for each of fiscal years 2018 through 
2023.''.

SEC. 206. SALE OF SURPLUS FARM EQUIPMENT OR PROPERTY TO SOCIALLY 
              DISADVANTAGED FARMERS OR RANCHERS, VETERAN FARMERS OR 
              RANCHERS, AND BEGINNING FARMERS OR RANCHERS.

    (a) Sale Authorized.--The Administrator of General Services, under 
regulations prescribed by the Administrator, 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 individual 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 materially 
        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 disadvantaged farmer or rancher'' 
        and ``veteran farmer or rancher'' have the meanings given those 
        terms in section 2501(e) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).

        TITLE III--INVESTMENT IN LOCAL AND REGIONAL FOOD SYSTEMS

SEC. 301. MANDATORY FUNDING FOR FARMERS' MARKET AND LOCAL FOOD 
              PROMOTION PROGRAM.

    Section 6(g)(1) of the Farmer-to-Consumer Direct Marketing Act of 
1976 (7 U.S.C. 3005(g)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) in subparagraph (D), by striking ``2018.'' and 
        inserting ``2017; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) $50,000,000 for each of fiscal years 2018 
                through 2023.''.

SEC. 302. GRANTS TO SUPPORT FARM VIABILITY PROGRAMS.

    (a) Grants Authorized.--The Secretary of Agriculture may make 
competitive grants to support a farm viability program developed by a 
public or private entity that is designed--
            (1) to improve the economic viability and integrity of 
        farms participating in the program through the development and 
        implementation of a farm viability plans; and
            (2) to provide participating farmers with technical, legal, 
        marketing, and business planning assistance to expand, upgrade, 
        and modernize their agricultural operations and assist in land 
        access and transfer.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Agriculture to make grants under this 
section $5,000,000 for each of fiscal years 2018 through 2023.
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