I 113th CONGRESS 1st Session H. R. 1727 IN THE HOUSE OF REPRESENTATIVES April 25, 2013 Mr. Walz (for himself, Mr. Fortenberry , Mr. Gibson , and Mr. Peterson ) 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 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 expand and improve opportunities for beginning farmers and ranchers, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Beginning Farmer and Rancher Opportunity Act of 2013 . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. 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. Indexing of direct farm ownership loans. Sec. 204. Joint financing arrangement. Sec. 205. Loan terms for down payment loan program. Sec. 206. Limited resource loan rate. Sec. 207. 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. Direct loans for beginning farmers and ranchers. Title III—RURAL DEVELOPMENT Sec. 301. Value-added producer grants. 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. Risk management partnership programs. Title VI—MISCELLANEOUS Sec. 601. Military Veterans Agricultural Liaison. Sec. 602. Budgetary effects. Sec. 603. Effective date. I CONSERVATION A Conservation Reserve Program 101. Extension of conservation reserve program (a) In general Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 2012 and inserting 2018 . (b) Land eligible for enrollment in conservation 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 2013 . (c) Maximum enrollment of acreage in conservation reserve Section 1231(d) of the Food Security 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 2018 . (d) Pilot program for enrollment of wetland and buffer acreage in conservation reserve 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 2018 ; and (2) in subsection (b)(1)(C), by striking 2002 through 2007 and inserting 2008 through 2012 . 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 respect 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 production methods that meet or exceed the resource 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 disadvantaged farmer or rancher, or limited resource farmer or rancher who is or will be actively engaged in farming or ranching with respect to the land transferred under this subsection ; 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 conservation plan that addresses all resource concerns and meets such sustainability criteria as the Secretary may establish; (D) provide to the covered farmer or rancher an opportunity to enroll in the conservation stewardship program or the environmental quality incentives program at any time beginning on the date that is 1 year before the date of termination of the contract, including technical and financial assistance in the development 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 farmland 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 operator who is a family member (as defined in section 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. . B Farmland Protection Program 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 period 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 encourage farm viability for future generations; (ii) easements that exercise an option 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 nongovernmental organization that will be sold to a qualified beginning farmer or rancher; (v) contemporaneous farm transfers of eligible land to qualified beginning farmers and ranchers that may not occur without the financial assistance of the program; and (vi) other similar mechanisms to maintain the affordability of farm and ranch land for successive generations of farmers and ranchers; and . C Environmental Quality Incentives Program 121. Establishment and administration of environmental quality incentives program Section 1240B of the Food Security Act of 1985 ( 16 U.S.C. 3839aa–2 ) is amended— (1) in subsection (a), by striking 2014 and inserting 2018 ; (2) in subsection (d)(4)(B), by striking 30 percent and inserting 50 percent ; and (3) in subsection (f), by striking 2012 and inserting 2018 . 122. Conservation innovation grants and payments 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 participation by beginning farmers and ranchers and socially disadvantaged farmers and ranchers. ; and (2) in subsection (b)(2), by striking 2012 and inserting 2018 . D Funding and Administration 131. Funding of conservation programs under Food Security Act of 1985 Section 1241(a) of the Food Security Act of 1985 ( 16 U.S.C. 3841(a) ) is amended— (1) in the matter preceding paragraph (1), by inserting and through fiscal year 2018 in the case of the program described in paragraph (1)(B) after (7) ; and (2) in paragraph (1), by striking subparagraph (B) and inserting the following: (B) $50,000,000 for the period of fiscal years 2014 through 2018 to carry out section 1235(f) to facilitate the transfer of land subject to contracts from retired or retiring owners and operators to beginning farmers or ranchers, socially disadvantaged farmers or ranchers, or limited resource farmers or ranchers. . 132. Assistance to certain farmers or ranchers for conservation access Section 1241(g) of the Food Security Act of 1985 ( 16 U.S.C. 3841(g) ) is amended— (1) in paragraph (1), by striking 2012 and inserting 2018 ; and (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 socially disadvantaged farmers and ranchers 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 beginning farmers or ranchers and socially disadvantaged farmers or ranchers to establish conservation plans. . 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 planning In carrying out this subsection, the Secretary shall provide technical and financial assistance using resources available under the environmental quality incentives program, conservation stewardship program, or such other programs as the Secretary may determine to covered persons who request the assistance to develop a comprehensive conservation plan for the farming or ranching operation of the covered person that addresses all resource concerns and meets such sustainability criteria as the Secretary may establish. . II CREDIT A Farm Ownership Loans 201. Direct farm ownership experience requirement Section 302(b)(1) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1922(b)(1) ) is amended in the matter preceding subparagraph (A) by inserting or has other acceptable experience for a period of time, as determined by the Secretary, after 3 years . 202. Conservation loan and loan guarantee program Section 304 of the Consolidated Farm and Rural Development 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 designated), 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 larger than a family farm. ; (2) in subsection (e)— (A) by striking The portion and inserting the following: (1) In general Except as provided in paragraph (2), the portion ; and (B) by adding at the end the following: (2) Beginning and socially disadvantaged farmers and ranchers In the case of beginning farmers or ranchers and socially disadvantaged farmers or ranchers, the portion of the loan the Secretary may guarantee under this section shall 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 2018, 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 reserve 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. . 203. Indexing of direct farm ownership loans Section 305(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1925(a) ) is amended by inserting (increased, beginning with fiscal year 2014, by the inflation percentage, as determined by the Secretary, applicable to the fiscal year in which the loan is made) after $300,000 . 204. Joint financing arrangement Section 307(a)(3)(D) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(D)) is amended by striking 4 and inserting 1.5 . 205. Loan terms for down payment loan program 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 . 206. Limited resource loan rate Section 316(a)(2)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)(2)(B)) is amended by striking 5 and inserting 1.5 . 207. 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 . B Operating Loans 211. Young beginning farmer or rancher microloans (a) In general Section 311 of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1941 ) is amended by adding at the end the following: (d) Microloans (1) In general Subject to paragraph (2), the Secretary may establish a program to make or guarantee microloans. (2) Limitation The Secretary shall not make or guarantee a microloan under this subsection that— (A) exceeds $35,000; or (B) would cause the total principal indebtedness outstanding at any time for microloans under this subsection to any 1 borrower to exceed $70,000. (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. (4) Cooperative lending projects (A) In general Subject to subparagraph (B), the Secretary may enter into a contract with one or more community-based and nongovernmental organizations, State entities, or other intermediaries, as the Secretary determines appropriate— (i) to make or guarantee a microloan under this subsection; and (ii) to provide business, financial, marketing, and credit management services to borrowers. (B) Requirements Before entering into a contract with an entity described in subparagraph (A), the Secretary— (i) shall review and approve— (I) the loan loss reserve fund for microloans established by the entity; and (II) the underwriting standards for microloans of the entity; and (ii) establish such other requirements for contracting with the entity as the Secretary determines to be necessary. (C) Revolving fund Under such conditions as the Secretary may require, an entity described in subparagraph (A) that enters into a contract with the Secretary under this paragraph may elect to convert the loan loss reserve fund for microloans established by the entity into a revolving loan fund to carry out the purposes of this paragraph. . (b) Exceptions for direct loans Section 311(c) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1941(c) ) is amended by striking paragraph (2) and inserting the following: (2) Exceptions In this subsection, the term direct operating loan shall not include— (A) a loan made to a youth under subsection (b); or (B) a microloan made to a young beginning farmer or rancher or a military veteran farmer or rancher, as defined by the Secretary. . (c) Purposes of loans Section 312(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1942(a) ) is amended in the matter preceding paragraph (1) by inserting (including a microloan, as defined by the Secretary) after A direct loan . (d) Determination of interest rates Section 316(a)(2) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1946(a)(2) ) is amended in the matter preceding subparagraph (A) by inserting a microloan to a beginning farmer or rancher or military veteran farmer or rancher or after The interest rate on . C Administrative Provisions 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, 2013, and on each October 1 thereafter through October 1, 2017, 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. . 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)— (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 inserting the following: (3) Term limits Subject to paragraph (4), if a farmer or rancher has received a direct operating loan pursuant to this section in each of 9 consecutive years, the farmer or rancher may not receive a direct operating loan from the Secretary under this section for the next year. (4) Waivers for farm and ranch operations 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 jurisdiction of an Indian tribe and whose loan is secured by one 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 eligible for guaranteed assistance Section 319 of the 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 eligible 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. . 223. 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 following: (III) Priority In order to maximize the number of borrowers served under this clause, the Secretary— (aa) shall give priority to borrowers who apply under the down payment loan program under section 310E or joint financing arrangements under section 307(a)(3)(D); and (bb) may offer other financing options only if the Secretary determines that down payment 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 . III RURAL DEVELOPMENT 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 In awarding grants under this subsection, the Secretary shall— (A) in the case of grants awarded under paragraph (1)(A), give priority to— (i) operators of small- and medium-sized farms and ranches that are structured as family farms; or (ii) beginning farmers or ranchers or socially disadvantaged farmers or ranchers; and (B) in the case of grants awarded under paragraph (1)(B), give priority to projects that, as determined through peer review, best contribute— (i) to increasing opportunities for operators of small- and medium-sized farms and ranches that are structured as family farms; or (ii) to creating opportunities for beginning farmers and ranchers or socially disadvantaged farmers and ranchers. ; and (2) by redesignating paragraph (7) as paragraph (8); (3) by inserting after paragraph (6) the following: (7) Outreach and technical assistance The Secretary shall develop and implement an outreach and technical assistance strategy to assist recipients of a grant under this subsection reach and serve underserved States and communities (as determined by the Secretary). ; and (4) in paragraph (8) (as redesignated by paragraph (3))— (A) in subparagraph (A)— (i) by striking October 1, 2008 and inserting October 1, 2012, and each October 1 thereafter through October 1, 2017 ; and (ii) by striking $15,000,000 and inserting $20,000,000 ; (B) in subparagraph (B), by striking 2012 and inserting 2018 ; and (C) by striking subparagraph (C) and inserting the following: (C) Priority funding (i) In general In accordance with clause (ii), the Secretary shall, to the maximum extent practicable, reserve not less than 2/3 of the amounts made available for each fiscal year under this paragraph to award grants with respect to which priority is given under paragraph (6). (ii) Reservation of funds (I) In general Of the amounts reserved under clause (i) for each fiscal year, the Secretary shall reserve a total of 10 percent to award grants to recipients described in subparagraphs (A)(ii) and (B)(ii) of paragraph (6). (II) Mid-tier value chains Of the total amount of funds made available for each fiscal year under this paragraph, the Secretary shall reserve 10 percent to fund applications of eligible recipients described in paragraph (1) that propose to develop mid-tier value chains. (III) Unobligated amounts Any amounts reserved for a fiscal year under subclause (I) or (II) that are not obligated by the date on which the Secretary completes the review process for applications submitted under this section in that fiscal year shall be available to the Secretary to make grants under this subsection to eligible recipients in any State, as determined by the Secretary. . IV RESEARCH, EDUCATION, AND EXTENSION 401. Beginning farmer and rancher development program Section 7405 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 3319f ) is amended— (1) in subsection (c)— (A) in paragraph (1), by striking subparagraphs (A) through (R) and inserting the following; (A) basic livestock, forest management, and crop farming practices; (B) innovative farm, ranch, and private nonindustrial forest land transfer strategies; (C) entrepreneurship and business training; (D) financial and risk management training (including the acquisition and management of agricultural credit); (E) natural resource management and conservation planning; (F) diversification and marketing strategies; (G) curriculum development; (H) mentoring, apprenticeships, and internships; (I) assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers; (J) food safety training; (K) agricultural rehabilitation and vocational training for veterans; and (L) other similar subject areas of use to beginning farmers or ranchers. ; (B) in paragraph (4)— (i) by striking To be eligible and inserting the following: (A) In general Except as provided in subparagraph (B), to be eligible ; and (ii) by adding at the end the following: (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 following: (D) military veteran beginning farmers and ranchers. ; and (D) by adding at the end the following: (11) Indirect costs To help facilitate participation in the program under this subsection by nongovernmental and community-based nonprofit organizations, the Secretary shall provide for an optional 10 percent indirect cost option in lieu of a higher negotiated rate. ; and (2) in subsection (h)— (A) in paragraph (1)— (i) in the paragraph heading, by striking FOR FISCAL YEARS 2009 THROUGH 2012 ; and (ii) by striking section— and all that follows through the period at the end and inserting section $20,000,000 for each of fiscal years 2014 through 2018. ; (B) in paragraph (2)— (i) in the paragraph heading, by striking FOR FISCAL YEARS 2009 THROUGH 2012 ; and (ii) by striking 2008 through 2012 and inserting 2013 through 2018 ; and (C) by striking paragraph (3). 402. Agriculture and Food Research Initiative Subsection (b) of the Competitive, Special, and Facilities Research Grant Act ( 7 U.S.C. 450i(b) ) is amended— (1) in paragraph (1), by striking food and agricultural sciences and all that follows through the period at the end and inserting the following: food and agricultural sciences (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))— (A) in the case of grant made under paragraph (6), to an entity described in subparagraphs (A), (B), (C), or (D) of that paragraph; and (B) in the case of any other grant made under this subsection, to any eligible entity described in paragraph (7), including a grant made for— (i) fundamental research (as defined in section 251(f)(1) of the Department of Agriculture Reorganization Act of 1994 ( 7 U.S.C. 6971(f)(1) ); (ii) applied research (as defined in that section); (iii) integrated research conducted pursuant to section 406 of the Agricultural Research, Extension, and Education Reform Act of 1998 ( 7 U.S.C. 7626 ); or (iv) integrated research described in clause (iii) that is applied or fundamental research. ; (2) 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 following: (iii) new farming opportunities, including young, beginning, socially disadvantaged, and immigrant issues and farm transition, farm transfer, farm entry, and beginning farmer profitability issues; ; (3) in paragraph (7), in the matter preceding subparagraph (A), by inserting projects (including integrated projects) after education ; and (4) in paragraph (11)(A), in the matter preceding clause (i), by striking 2008 through 2012 and inserting 2013 through 2018 . V CROP INSURANCE 501. Risk management partnership programs Section 522(d) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(d) ) is amended— (1) in paragraph (1)— (A) by striking priority given to risk and inserting priority given to— (A) risk ; (B) by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (B) underserved producers, including beginning farmers and ranchers and socially disadvantaged farmers and ranchers. ; (2) in paragraph (2)— (A) by striking options for producers and inserting “options for— (A) producers (B) by striking the period at the end and inserting ; and (B) by adding at the end the following: (B) underserved producers, including beginning farmers and ranchers and socially disadvantaged farmers and ranchers. ; and (3) by adding at the end the following: (4) Requirements In carrying out the programs established under paragraphs (2) and (3), the Secretary shall place special emphasis on risk management 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 agricultural 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 ranchers that are converting production and marketing systems to pursue new markets. . VI MISCELLANEOUS 601. Military Veterans Agricultural Liaison (a) In general Subtitle A of the Department of Agriculture Reorganization Act of 1994 is amended by inserting after section 218 (7 U.S.C. 6918) the following: 219. Military veterans agricultural liaison (a) Authorization The Secretary shall establish in the Department the position of Military Veterans Agricultural Liaison. (b) Duties The Military Veterans Agricultural Liaison shall— (1) provide information to returning veterans about, and connect returning veterans with, beginning 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 benefits 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 particular 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 agricultural programs; and (4) advocating on behalf of veterans in interactions with employees of the Department. . (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. . 602. 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 House Budget Committee, provided that such statement has been submitted prior to the vote on passage. 603. Effective date This Act and the amendments made by this Act take effect on October 1, 2013.