S. 1237

119th CONGRESS 1st Session

To establish the New Producer Economic Security Program within the Farm Service Agency Office of Outreach and Education.

IN THE SENATE OF THE UNITED STATES · April 1 (legislative day, March 31), 2025 · Sponsor: Ms. Smith · Committee: Committee on Agriculture, Nutrition, and Forestry

Table of contents

• S. 1237
  • SEC. 1. Short title
  • SEC. 2. New Producer Economic Security Program

SEC. 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:
    • 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:
    • The term covered project means a project described in subsection (e).
    • The term program means the New Producer Economic Security Program established under subsection (b).
    • 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 , 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). New Producer Economic Security Program
• (c) Purpose
  • The purposes of the program are—
    • 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
    • to support projects that—
      • support farm establishment and long-term farm business viability;
      • support the financial viability of qualified beneficiaries;
      • support the physical and mental health of qualified beneficiaries;
      • increase land access;
      • prevent land loss;
      • establish innovative ways to make land accessible to qualified beneficiaries;
      • transition farmland from existing landowners to qualified beneficiaries; and
      • 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—
      • 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);
      • a description of how project activities will support the long-term financial viability of qualified beneficiaries;
      • a plan for notification and consultation with local Tribal governments for the future sale of land, if applicable;
      • an analysis of anticipated benefits to the community and the agricultural economy within the project area; and
      • 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) 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) The Secretary shall ensure that the stakeholder committee established under clause (i) includes perspectives reflecting—
      • the complexity of the rural and urban agricultural landscapes of the United States; and
      • 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—
      • to acquire real property (including air rights, water rights, and other interests therein), including closing costs;
      • to subsidize interest rates and mortgage principal amounts for qualified beneficiaries;
      • to provide down payment assistance to decrease farm mortgages;
      • to secure clear title on heirs’ property;
      • to conduct surveys and assessments of eligible land;
      • to improve or remediate land, water, and soil;
      • to construct or repair infrastructure;
      • to support land use planning;
      • to acquire succession planning assistance;
      • to carry out Tribal consultation;
      • to support acquisition of a Department of Agriculture farm number; and
      • 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—
      • for activities associated with strengthening the economic security of qualified beneficiaries by increasing access to markets and capital;
      • to provide direct assistance to qualified beneficiaries in assessing, purchasing, acquiring, or retaining eligible land;
      • for activities designed to support farm establishment and long-term viability;
      • 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
      • 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—
        • accessing, purchasing, acquiring, or retaining eligible land;
        • comprehension of, preparation to apply for, and complying with Department of Agriculture programs;
        • succession planning;
        • market planning and risk analysis;
        • cooperative development;
        • legal and tax issues;
        • developing business plans and feasibility studies;
        • financial planning and recordkeeping;
        • enterprise, business, and labor management; and
        • 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.