A bill to amend section 502 (c) of the Rural Development Act to assist small farmers in upgrading their farming operations.

Provides that small farm extension and research and development programs under the Rural Development Act of 1972 shall consist of: (1) a comprehensive study and survey with procedures for updating such survey to identify small farmers and determine their resources, abilities, education, experience and willingness to upgrade their farm operations through improved agricultural production techniques, farm machinery, products and cooperative agricultural marketing practices; (2) the development and implementation of a program for improving the operations of such farmers; (3) procedures to evaluate the social and economic consequences of such program; (4) research and development for updating small farm operations; and (5) an annual report by the Secretary of Agriculture to specified Congressional committees regarding the extent and effectiveness of the objectives of such program.

Defines "small farmer" as anyone who depends on farming as their primary source of income, and whose gross annual sales from farming operations is less than $20,000 and whose nonfarm income is less than $5,000.