New Producer Economic Security Act
This bill establishes the New Producer Economic Security Program within the Farm Service Agency (FSA) to provide funding and grants to help new farmers, ranchers, and forest owners.
Specifically, the FSA must make competitive grants to, enter into cooperative agreements with, or provide other capital support to eligible entities (e.g., state or local governments, Indian tribes, nonprofit organizations, and institutions of higher education). These entities must provide direct assistance to qualified farmers, ranchers, and forest owners (e.g., those who have not operated a farm or ranch for more than 10 consecutive years or are economically disadvantaged). The bill specifically excludes from assistance any foreign-based or foreign-owned corporation.
The direct assistance may include payments to qualified beneficiaries to acquire real property (including air rights and water rights), secure clear title on heirs' property, and improve or remediate land, water, and soil. Eligible entities may also use grants (1) to provide direct assistance to qualified beneficiaries in assessing, purchasing, acquiring, or retaining eligible land; (2) for activities designed to support farm establishment and long-term viability; and (3) to provide technical assistance.
The FSA must establish a stakeholder committee, and in collaboration with the committee, develop a process for evaluating and selecting applications submitted by eligible entities. The stakeholder committee must include perspectives reflecting the complexity of the rural and urban U.S. agricultural landscapes and the wide variety of agricultural production models.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2536 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2536
To establish the New Producer Economic Security Program within the Farm
Service Agency Office of Outreach and Education.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2025
Ms. Budzinski (for herself, Mr. Nunn of Iowa, Mr. Courtney, Mr. Davis
of North Carolina, Mr. Sorensen, Ms. Tokuda, and Mr. Vasquez)
introduced the following bill; which was referred to the Committee on
Agriculture
_______________________________________________________________________
A BILL
To establish the New Producer Economic Security Program within the Farm
Service Agency Office of Outreach and Education.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``New Producer Economic Security
Act''.
SEC. 2. NEW PRODUCER ECONOMIC SECURITY PROGRAM.
(a) Definitions.--In this section:
(1) Authorized legal entity.--The term ``authorized legal
entity'' means any corporation, business trust, estate, trust,
partnership, limited liability company, association, joint
venture, public corporation, cooperative, pension or investment
fund, or any other legal or commercial entity organized or
created under the laws of any State that meets each of the
following requirements:
(A) The entity is not a subsidiary of, or owned in
any part by, a multilayered subsidiary entity.
(B) The shareholders, partners, members, or
beneficial owners of the entity do not exceed 25
individuals.
(C) The shareholders, partners, members, or
beneficial owners of the entity are all natural persons
who--
(i) regularly and frequently make, or take
an important part in making, management
decisions substantially contributing to or
affecting the operation of a farm or forest; or
(ii) perform physical work that
significantly contributes to cultivation,
stewardship, crop or livestock production, or
food production.
(2) Covered project.--The term ``covered project'' means a
project described in subsection (e).
(3) Eligible entity.--
(A) In general.--The term ``eligible entity'' means
an entity that--
(i) has demonstrated experience in serving
qualified beneficiaries; and
(ii) is--
(I) a State, local, or territorial
government;
(II) an Indian Tribe or Tribal
organization (as those terms are
defined in section 4 of the Indian
Self-Determination and Education
Assistance Act (25 U.S.C. 5304));
(III) a Native community
development financial institution
certified by the Secretary of the
Treasury;
(IV) a community development
financial institution (as defined in
section 103 of the Community
Development Banking and Financial
Institutions Act of 1994 (12 U.S.C.
4702)) certified by the Secretary of
the Treasury, acting through the
Director of the Community Development
Financial Institutions Fund established
under section 104(a) of that Act (12
U.S.C. 4703(a));
(V) an organization described in
paragraph (2) or (3) of section 501(c)
of the Internal Revenue Code of 1986
and exempt from tax under section
501(a) of such Code;
(VI) a foundation;
(VII) a cooperative entity;
(VIII) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001));
(IX) a financial institution
described in section 1.7(b)(1)(B) of
the Farm Credit Act of 1971 (12 U.S.C.
2015(b)(1)(B)); and
(X) any other appropriate partner,
as determined by the Secretary.
(B) Exclusion.--The term ``eligible entity'' does
not include a corporation that is foreign-based or
foreign-owned.
(4) Eligible land.--
(A) In general.--The term ``eligible land'' means--
(i) agricultural land;
(ii) private land;
(iii) urban land;
(iv) public land, including Federal, State,
and municipally owned or managed land;
(v) lands held in common that are
controlled and managed by groups of
individuals;
(vi) lands held in trust;
(vii) multiple parcels of land described in
any of clauses (i) through (vi) that are
noncontiguous; and
(viii) public or private shoreline or
intertidal zone areas, which may be wholly or
partially underwater.
(B) Exclusion.--The term ``eligible land'' does not
include a natural area (as defined in section 650.23(a)
of title 7, Code of Federal Regulations (or successor
regulations)).
(5) Program.--The term ``program'' means the New Producer
Economic Security Program established under subsection (b).
(6) Qualified beneficiary.--
(A) In general.--The term ``qualified beneficiary''
means a farmer, a rancher, or a forest owner who--
(i) is a natural person;
(ii) is--
(I) a shareholder in an authorized
legal entity;
(II) an officer, director, or
employee of an authorized legal entity;
(III) a member or manager of an
authorized legal entity;
(IV) a partner in an authorized
legal entity;
(V) a beneficiary or trustee of an
authorized legal entity; or
(VI) any other individual who--
(aa) regularly and
frequently makes, or takes an
important part in making,
management decisions
substantially contributing to
or affecting the operation of a
farm or forest; or
(bb) performs physical work
that significantly contributes
to cultivation, stewardship,
crop or livestock production,
or food production; and
(iii)(I) has never operated, or has not
operated for more than 10 consecutive years, a
farm or a ranch;
(II) operates only on rented or leased
land;
(III) has an income that is at or below 200
percent of the national poverty level or half
of the median household income of the county in
which the natural person is located; or
(IV) is economically disadvantaged, as
determined by the Secretary.
(B) Exclusion.--The term ``qualified beneficiary''
does not include a natural person who solely provides
capital to an authorized legal entity that is not a
qualified beneficiary described in subparagraph (A).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Establishment.--The Secretary shall establish within the Farm
Service Agency a competitive program, to be known as the ``New Producer
Economic Security Program'', to make grants to, enter into cooperative
agreements with, or provide other capital support to eligible entities
to carry out covered projects in accordance with subsection (e).
(c) Purpose.--The purposes of the program are--
(1) to strengthen the food systems security of the United
States by efficiently investing in community-led solutions to
increasing access to land, capital, and markets for qualified
beneficiaries; and
(2) to support projects that--
(A) support farm establishment and long-term farm
business viability;
(B) support the financial viability of qualified
beneficiaries;
(C) support the physical and mental health of
qualified beneficiaries;
(D) increase land access;
(E) prevent land loss;
(F) establish innovative ways to make land
accessible to qualified beneficiaries;
(G) transition farmland from existing landowners to
qualified beneficiaries; and
(H) provide appropriate technical assistance
related to permissible activities described in
subsection (e)(2).
(d) Selection.--
(1) Application requirements.--To be eligible to receive
assistance under the program, an eligible entity shall submit
to the Secretary an application at such time, in such manner,
and containing such information as the Secretary may require,
including--
(A) information demonstrating that the covered
project the eligible entity seeks to carry out is
designed--
(i) to serve qualified beneficiaries; and
(ii) to meet the purposes of the program
described in subsection (c);
(B) a description of how project activities will
support the long-term financial viability of qualified
beneficiaries;
(C) a plan for notification and consultation with
local Tribal governments for the future sale of land,
if applicable;
(D) an analysis of anticipated benefits to the
community and the agricultural economy within the
project area; and
(E) a plan for evaluation, data management,
communication, and reporting of project findings and
results.
(2) Evaluation and selection of applications.--
(A) Evaluation process.--The Secretary shall
develop a process for evaluating and selecting
applications submitted under paragraph (1) in
collaboration with the stakeholder committee
established under subparagraph (B).
(B) Stakeholder committee.--
(i) In general.--Not later than 180 days
after the date of enactment of this Act, the
Secretary shall establish and convene a
stakeholder committee to provide input on the
distribution of funds and the evaluation and
selection of applications submitted under
paragraph (1).
(ii) Consideration.--The Secretary shall
ensure that the stakeholder committee
established under clause (i) includes
perspectives reflecting--
(I) the complexity of the rural and
urban agricultural landscapes of the
United States; and
(II) the wide variety of
agricultural production models employed
by qualified beneficiaries.
(C) Priority.--In selecting applications submitted
under paragraph (1), the Secretary shall give priority
to applications for covered projects that--
(i) provide direct financial assistance to
qualified beneficiaries;
(ii) involve a substantial and effective
collaborative network or partnership of public
or private entities;
(iii) include a right of first refusal for
Tribal citizens or governments when land
becomes available on or near Tribal
communities;
(iv) involve mechanisms, such as a deed
restriction or conservation easement, that
restrict the resale value of eligible land to
protect the land for agricultural use;
(v) support the voluntary transition of
agricultural land from existing producers to
qualified beneficiaries;
(vi) provide technical assistance,
including translation and interpretation
services;
(vii) include activities under subsection
(e) designed to support farmworkers; or
(viii) support long-term adoption of
conservation practices that are consistent with
conservation practice standards of the Natural
Resources Conservation Service and designed to
achieve conservation outcomes.
(e) Covered Projects.--
(1) Required use of funds.--An eligible entity that
receives assistance under the program shall provide direct
assistance to qualified beneficiaries in order to facilitate
access to land, capital, and markets, which may include
payments--
(A) to acquire real property (including air rights,
water rights, and other interests therein), including
closing costs;
(B) to subsidize interest rates and mortgage
principal amounts for qualified beneficiaries;
(C) to provide down payment assistance to decrease
farm mortgages;
(D) to secure clear title on heirs' property;
(E) to conduct surveys and assessments of eligible
land;
(F) to improve or remediate land, water, and soil;
(G) to construct or repair infrastructure;
(H) to support land use planning;
(I) to acquire succession planning assistance;
(J) to carry out Tribal consultation;
(K) to support acquisition of a Department of
Agriculture farm number; and
(L) for any other activities, as determined by the
Secretary.
(2) Permissible activities.--An eligible entity that
receives assistance under the program may use the funds--
(A) for activities associated with strengthening
the economic security of qualified beneficiaries by
increasing access to markets and capital;
(B) to provide direct assistance to qualified
beneficiaries in assessing, purchasing, acquiring, or
retaining eligible land;
(C) for activities designed to support farm
establishment and long-term viability;
(D) to establish a revolving loan fund or other
innovative financial mechanism designed for the purpose
of investing in covered projects beyond the initial
project timeline; and
(E) to provide technical assistance that meets the
specific needs of, and is accessible to qualified
beneficiaries, including--
(i) providing translation and
interpretation services;
(ii) developing and carrying out strategies
to identify unique needs and gaps in access,
knowledge, and services; and
(iii) specialized consultation, training,
coaching, capacity building, and mentoring
focused on--
(I) accessing, purchasing,
acquiring, or retaining eligible land;
(II) comprehension of, preparation
to apply for, and complying with
Department of Agriculture programs;
(III) succession planning;
(IV) market planning and risk
analysis;
(V) cooperative development;
(VI) legal and tax issues;
(VII) developing business plans and
feasibility studies;
(VIII) financial planning and
recordkeeping;
(IX) enterprise, business, and
labor management; and
(X) any other activities as
determined by the Secretary.
(3) Subcontract.--An eligible entity may subcontract with
an organization to carry out a use or activity under paragraph
(1) or (2) if the services of the subcontractor are necessary.
(4) Funding mechanism.--
(A) Eligible entities.--The Secretary shall make
funding available under the program to eligible
entities in the form of--
(i) grants;
(ii) cooperative agreements;
(iii) capitalization loans, in the case of
an activity described in paragraph (2)(D); or
(iv) other means, as determined by the
Secretary.
(B) Qualified beneficiaries.--In carrying out
covered projects under the program, an eligible entity
shall provide direct assistance to qualified
beneficiaries in the form of--
(i) grants;
(ii) loans (both long-term and interim); or
(iii) other direct payments or assistance,
as determined by the Secretary.
(5) Repayment of funds in case of noncompliance.--An
eligible entity that violates the terms or conditions of
assistance provided under the program shall reimburse the
Secretary for that assistance.
(f) Funding.--
(1) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are necessary
to carry out this section.
(2) Agency contribution account.--In addition to amounts
otherwise made available under paragraph (1), the Secretary may
use funds available through 1 or more contribution accounts
established under section 1241(f)(1) of the Food Security Act
of 1985 (16 U.S.C. 3841(f)(1)).
(3) Administration.--Of the amounts made available to carry
out the program, the Secretary may use an appropriate amount
for the costs of implementing and administering the program.
(4) Distribution of funds.--
(A) Limitation.--An eligible entity that receives
assistance under the program shall obligate the amounts
for a covered project by not later than 5 years after
the date on which the funds are made available to the
eligible entity, unless the Secretary determines
otherwise.
(B) Exclusion.--In the case of a covered project to
support qualified beneficiaries in assessing,
purchasing, acquiring, or retaining eligible land for a
period longer than the 5-year period described in
subparagraph (A), section 200.311 of title 2, Code of
Federal Regulations (or a successor regulation) shall
not apply.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
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