The "New Producer Economic Security Act" establishes a program to award grants and cooperative agreements to entities that improve land, capital, and market access for new and underserved farmers, ranchers, and forest owners.
Nicole (Nikki) Budzinski
Representative
IL-13
The "New Producer Economic Security Act" establishes a program within the Farm Service Agency to award grants and cooperative agreements to eligible entities. These funds will support projects aimed at improving access to land, capital, and markets for farmers, ranchers, and forest owners with less than 10 years of experience, those operating on rented land, or those with low incomes. The program prioritizes projects offering direct financial assistance, promoting collaborative networks, and supporting land transitions to new farmers. This act aims to strengthen food system security by supporting the next generation of agricultural producers.
New Bill Proposes Grant Program to Boost Land and Capital Access for America's Next Generation Farmers
This legislation, the 'New Producer Economic Security Act,' sets up a fresh program under the Farm Service Agency aimed squarely at helping new and underserved folks get a foothold in farming, ranching, or forestry. The core idea is to award grants and cooperative agreements to organizations—think state or local governments, community development groups, non-profits, universities, and tribal entities—that can then channel support directly to the people who need it.
Breaking Down Barriers: Who Gets Help?
The program targets 'qualified beneficiaries.' This isn't just anyone; it specifically includes farmers, ranchers, or forest owners who are just starting out (less than 10 years under their belt), operate primarily on rented land, or face economic hurdles (income below 200% of the poverty line or half the county median). It also covers folks considered 'economically disadvantaged.' The goal is to support those actively managing the operation, not just passive investors. The types of land eligible are broad, covering typical agricultural land but also urban plots, shoreline areas, and land held in trust, though natural areas are excluded.
Putting Funds to Work: From Application to Action
So, how does the money help? Eligible organizations receiving funds must use them for 'covered projects' designed to get these new producers established and keep them viable. This can mean direct financial assistance for buying land, covering down payments, subsidizing interest rates, or securing clear land titles. Funds can also go towards land improvements, infrastructure (like barns or irrigation), business planning, succession planning, accessing USDA programs, market analysis, and even specialized legal or tax advice. Technical assistance, including translation services, is a key component. The bill prioritizes projects that offer direct financial aid, foster collaboration, support tribal rights regarding land sales, keep land affordable for farming long-term, and promote conservation.
The Fine Print & The Big Picture
There are some guardrails. A stakeholder committee will advise on funding decisions. Organizations getting funds generally have five years to use them, though projects involving land acquisition might get more time. Crucially, these organizations must pass the assistance directly to the qualified farmers and ranchers through grants, loans, or other payments. Foreign corporations can't be the go-between entities receiving these funds. Ultimately, the program aims to strengthen the overall food system by making it easier for a more diverse group of people to start and sustain agricultural businesses, tackling key barriers like access to land and capital head-on.