The "New Producer Economic Security Act" establishes a program to support new and underserved farmers, ranchers, and forest owners by increasing their access to land, capital, and markets through grants and cooperative agreements to eligible entities.
Tina Smith
Senator
MN
The New Producer Economic Security Act establishes a program within the Farm Service Agency to provide grants and support to organizations that help new and underserved farmers, ranchers, and forest owners gain access to land, capital, and markets. This program aims to strengthen U.S. food systems by investing in community-led solutions, supporting farm viability, and promoting innovative land access methods. Priority is given to projects offering direct financial assistance, fostering collaboration, and promoting sustainable practices. The Act authorizes necessary funding to carry out these initiatives.
New Bill Proposes Grants to Help Beginning Farmers Access Land and Capital
This legislation, the "New Producer Economic Security Act," sets up a new program under the Farm Service Agency designed to give a leg up to folks just starting out in farming, ranching, or forestry. The core idea is to channel grants, cooperative agreements, or other financial support through various organizations—like state or local governments, community development financial institutions (CDFIs), certain non-profits, and tribal entities—to help new producers overcome major hurdles.
Planting the Seeds: Who Gets Help and How?
The program targets what the bill calls "qualified beneficiaries." Think farmers, ranchers, or forest owners with less than 10 years under their belt, those operating solely on rented land, individuals earning below 200% of the poverty line or half their county's median income, or those considered economically disadvantaged. The goal is to fund projects that boost access in three key areas: land, capital (money), and markets. Eligible organizations, which notably exclude foreign-owned corporations, would apply for funding to run these projects.
To get the green light, these organizations need to show their project directly helps qualified beneficiaries, supports their long-term financial stability, benefits the community, and includes a plan to track results. The bill prioritizes projects offering direct cash assistance, fostering collaboration between groups, promoting land conservation, providing technical support (including translation services), and helping transition land to new producers, potentially with restrictions to keep it affordable for farming.
Cultivating Opportunity: What Can the Funds Do?
The money isn't just for administrative overhead; it's meant to flow directly to new producers. Approved uses cover a wide range: helping with down payments or outright purchasing land, subsidizing loan interest rates, securing clear land titles (especially for complex 'heirs property' situations), funding land surveys or improvements, building or repairing necessary infrastructure like barns or irrigation, and assisting with business or succession planning. Funds can also establish revolving loan funds specifically for new producers or cover costs for technical assistance, like navigating USDA programs or specialized training.
The Lay of the Land: Oversight and Funding
A stakeholder committee, representing diverse agricultural backgrounds, will be set up within 180 days to advise the Secretary of Agriculture on distributing funds and selecting applications. However, the Secretary ultimately holds significant authority in determining specific eligible partners and activities beyond those explicitly listed. While the bill authorizes "necessary sums" for funding, the actual amount appropriated will depend on future budget decisions. Eligible groups generally have 5 years to use the funds they receive. This structure aims to empower community-led efforts but relies heavily on effective implementation and clear guidance from the Secretary to ensure the support reaches those who need it most.