H.R. 1727: Beginning Farmer and Rancher Opportunity Act of 2013

113th Congress, 2013–2015. Text as of Apr 25, 2013 (Introduced).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

I

113th CONGRESS

1st Session

H. R. 1727

IN THE HOUSE OF REPRESENTATIVES

April 25, 2013

(for himself,Mr. Fortenberry,Mr. Gibson, andMr. Peterson) introduced the following bill; which was referred to theCommittee on Agriculture, and in addition to the Committee on theBudget, 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 striking2012and inserting2018.

(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 strikingFood, Conservation, and Energy Act of 2008and 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 striking2010, 2011, and 2012and inserting2010 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)

insubsection (a)(1), by striking2012and inserting2018; and

(2)

insubsection (b)(1)(C), by striking2002 through 2007and inserting2008 through 2012.

102.

Contracts

Section 1235 of the Food Security Act of 1985(16 U.S.C. 3835)is amended—

(1)

insubsection (c)(1)(B), by strikingclause (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)

insubsection (f)(1)

(A)

in the matter precedingsubparagraph (A), by strikingor socially disadvantaged farmer or rancherand insertingsocially 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 strikingsubparagraphs (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 insection 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)

insubsection (b), by insertingto promote farm viability for future generationsbefore the period at the end; and

(2)

insubsection (g)(4)

(A)

insubparagraph (B), by strikingandat the end;

(B)

by redesignatingsubparagraph (C)assubparagraph (D); and

(C)

by inserting aftersubparagraph (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)

insubsection (a), by striking2014and inserting2018;

(2)

insubsection (d)(4)(B), by striking30 percentand inserting50 percent; and

(3)

insubsection (f), by striking2012and inserting2018.

122.

Conservation innovation grants and payments

Section 1240H of the Food Security Act of 1985(16 U.S.C. 3839aa–8)is amended—

(1)

insubsection (a)(2)

(A)

insubparagraph (C), by striking; andand inserting a semicolon;

(B)

insubparagraph (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)

insubsection (b)(2), by striking2012and inserting2018.

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 precedingparagraph (1), by insertingand through fiscal year 2018 in the case of the program described inparagraph (1)(B) after(7); and

(2)

inparagraph (1), by strikingsubparagraph (B)and inserting the following:

(B)

$50,000,000 for the period of fiscal years 2014 through 2018 to carry outsection 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)

inparagraph (1), by striking2012and inserting2018; and

(2)

inparagraph (2), by inserting(but not earlier than 120 days after the date that funding for the fiscal year is allocated to the States)afterSecretary;

(3)

inparagraph (3), by inserting(but not earlier than 120 days after the date that acres for the fiscal year are allocated to the States)afterSecretary; 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 underparagraph (1).

(5)

Technical assistance

Within the funds reserved underparagraph (1), theSecretaryshall allocate to theNatural Resources Conservation Servicefunding 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, theSecretaryshall provide technical and financial assistance using resources available under the environmental quality incentives program, conservation stewardship program, or such other programs as theSecretarymay 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 theSecretarymay 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 precedingsubparagraph (A)by insertingor has other acceptable experience for a period of time, as determined by the Secretary,after3 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)

insubsection (c)(2)

(A)

by strikingshall meetand inserting

shall—

(A)

meet

;

(B)

insubparagraph (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)

insubsection (e)

(A)

by strikingThe portionand inserting the following:

(1)

In general

Except as provided inparagraph (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 theSecretarymay guarantee under this section shall be 95 percent of the principal amount of the loan.

; and

(3)

by strikingsubsection (h)and inserting the following:

(h)

Funding

(1)

In general

TheSecretarymay 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 than1/2shall be used for direct loans and not more than1/2shall 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 underparagraph (1), theSecretaryshall 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 underparagraph (1), theSecretaryshall 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 theSecretary, 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 striking4and inserting1.5.

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$500,000and 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 striking5and inserting1.5.

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 strikingmedianand insertingaverage.

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 toparagraph (2), theSecretarymay 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, theSecretaryshall limit the administrative burdens and streamline the application and approval process for microloans under this subsection.

(4)

Cooperative lending projects

(A)

In general

Subject tosubparagraph (B), theSecretarymay enter into a contract with one or more community-based and nongovernmental organizations, State entities, or other intermediaries, as theSecretarydetermines 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 insubparagraph (A), theSecretary

(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 theSecretarymay require, an entity described insubparagraph (A)that enters into a contract with theSecretaryunder 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 strikingparagraph (2)and inserting the following:

(2)

Exceptions

In this subsection, the termdirect operating loanshall not include—

(A)

a loan made to a youth undersubsection (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 precedingparagraph (1)by inserting(including a microloan, as defined by theSecretary)afterA 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 precedingsubparagraph (A)by insertinga microloan to a beginning farmer or rancher or military veteran farmer or rancher orafterThe 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 strikingsubsection (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 theCommodity Credit Corporation, theSecretaryshall 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)

inparagraph (1)

(A)

insubparagraph (A), by striking the semicolon at the end and inserting; and;

(B)

insubparagraph (B), by striking; orat the end and inserting a period; and

(C)

by strikingsubparagraph (C); and

(2)

by strikingparagraphs (3)and(4)and inserting the following:

(3)

Term limits

Subject toparagraph (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 theSecretaryunder this section for the next year.

(4)

Waivers for farm and ranch operations on tribal land

The Secretary shall waive the limitation underparagraph (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 theSecretarydetermines 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 strikingsubsection (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 theSecretaryfor 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)

inclause (i), by adding at the end the following:

(III)

Priority

In order to maximize the number of borrowers served under this clause, theSecretary

(aa)

shall give priority to borrowers who apply under the down payment loan program undersection 310Eor joint financing arrangements undersection 307(a)(3)(D); and

(bb)

may offer other financing options only if theSecretarydetermines that down payment or other participation loan options are not a viable approach for a particular borrower.

; and

(2)

inclause (ii)(III), by strikingeach of fiscal years 2008 through 2012and insertingfiscal 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 strikingparagraph (6)and inserting the following:

(6)

Priority

In awarding grants under this subsection, the Secretary shall—

(A)

in the case of grants awarded underparagraph (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 underparagraph (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 redesignatingparagraph (7)asparagraph (8);

(3)

by inserting afterparagraph (6)the following:

(7)

Outreach and technical assistance

TheSecretaryshall 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 theSecretary).

; and

(4)

inparagraph (8)(as redesignated byparagraph (3))—

(A)

insubparagraph (A)

(i)

by strikingOctober 1, 2008and insertingOctober 1, 2012, and each October 1 thereafter through October 1, 2017; and

(ii)

by striking$15,000,000and inserting$20,000,000;

(B)

insubparagraph (B), by striking2012and inserting2018; and

(C)

by strikingsubparagraph (C)and inserting the following:

(C)

Priority funding

(i)

In general

In accordance withclause (ii), theSecretaryshall, to the maximum extent practicable, reserve not less than2/3of the amounts made available for each fiscal year under this paragraph to award grants with respect to which priority is given underparagraph (6).

(ii)

Reservation of funds

(I)

In general

Of the amounts reserved underclause (i)for each fiscal year, the Secretary shall reserve a total of 10 percent to award grants to recipients described insubparagraphs (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, theSecretaryshall reserve 10 percent to fund applications of eligible recipients described inparagraph (1)that propose to develop mid-tier value chains.

(III)

Unobligated amounts

Any amounts reserved for a fiscal year undersubclause (I)or(II)that are not obligated by the date on which theSecretarycompletes the review process for applications submitted under this section in that fiscal year shall be available to theSecretaryto make grants under this subsection to eligible recipients in any State, as determined by theSecretary.

.

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)

insubsection (c)

(A)

inparagraph (1), by strikingsubparagraphs (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)

inparagraph (4)

(i)

by strikingTo be eligibleand inserting the following:

(A)

In general

Except as provided insubparagraph (B), to be eligible

; and

(ii)

by adding at the end the following:

(B)

Exceptions

TheSecretarymay waive or modify the matching requirement insubparagraph (A)if theSecretarydetermines a waiver or modification is necessary to effectively reach an underserved area or population.

;

(C)

inparagraph (8)

(i)

insubparagraph (B), by strikingandafter the semicolon at the end;

(ii)

insubparagraph (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, theSecretaryshall provide for an optional 10 percent indirect cost option in lieu of a higher negotiated rate.

; and

(2)

insubsection (h)

(A)

inparagraph (1)

(i)

in the paragraph heading, by strikingFOR FISCAL YEARS 2009 THROUGH 2012; and

(ii)

by strikingsection—and all that follows through the period at the end and insertingsection $20,000,000 for each of fiscal years 2014 through 2018.;

(B)

inparagraph (2)

(i)

in the paragraph heading, by strikingFOR FISCAL YEARS 2009 THROUGH 2012; and

(ii)

by striking2008 through 2012and inserting2013 through 2018; and

(C)

by strikingparagraph (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)

inparagraph (1), by strikingfood and agricultural sciencesand all that follows through the period at the end and inserting the following:

(A)

in the case of grant made underparagraph (6), to an entity described insubparagraphs (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 inparagraph (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 inclause (iii)that is applied or fundamental research.

;

(2)

inparagraph (2)(F)

(A)

by redesignatingclauses (iii) through (vi)asclauses (iv) through (vii), respectively; and

(B)

by inserting afterclause (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)

inparagraph (7), in the matter precedingsubparagraph (A), by insertingprojects (including integrated projects)aftereducation; and

(4)

inparagraph (11)(A), in the matter precedingclause (i), by striking2008 through 2012and inserting2013 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)

inparagraph (1)

(A)

by strikingpriority given to riskand 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)

inparagraph (2)

(A)

by strikingoptions for producersand 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 underparagraphs (2)and(3), theSecretaryshall 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 1994is amended by inserting after section 218(7 U.S.C. 6918)the following:

219.

Military veterans agricultural liaison

(a)

Authorization

TheSecretaryshall establish in theDepartmentthe 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 theDepartment.

.

(b)

Conforming amendments

Section 296(b) of the Department of Agriculture Reorganization Act of 1994( 7 U.S.C. 7014(b) )is amended—

(1)

inparagraph (6), by strikingorafter the semicolon at the end;

(2)

inparagraph (7), by striking the period at the end and inserting; or; and

(3)

by adding at the end the following:

(8)

the authority of theSecretaryto establish in theDepartmentthe position of Military Veterans Agricultural Liaison in accordance withsection 219.

.

602.

Budgetary effects

The budgetary effects of this Act, for the purpose of complying with theStatutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titledBudgetary Effects of PAYGO Legislationfor this Act, submitted for printing in the Congressional Record by theChairman 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.