119-s1237

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1237 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1237

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

 Ms. Smith introduced the following bill; which was read twice and 
 referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

 A BILL

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

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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:

    (1) Authorized legal entity.--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:
        (A) The entity is not a subsidiary of, or owned in 
 any part by, a multilayered subsidiary entity.
        (B) The shareholders, partners, members, or 
 beneficial owners of the entity do not exceed 25 
 individuals.
            (C) The shareholders, partners, members, or 
 beneficial owners of the entity are all natural persons 
 who--
            (i) regularly and frequently make, or take 
 an important part in making, management 
 decisions substantially contributing to or 
 affecting the operation of a farm or forest; or
            (ii) perform physical work that 
 significantly contributes to cultivation, 
 stewardship, crop or livestock production, or 
 food production.

    (2) Covered project.--The term ``covered project'' means a 
 project described in subsection

    (e) .

    (3) Eligible entity.--
        (A) In general.--The term ``eligible entity'' means 
 an entity that--
            (i) has demonstrated experience in serving 
 qualified beneficiaries; and
            (ii) is--
            (I) a State, local, or territorial 
 government;
            (II) an Indian Tribe or Tribal 
 organization (as those terms are 
 defined in 

section 4 of the Indian 
 Self-Determination and Education 
 Assistance Act (25 U.S.C. 5304));
            (III) a Native community 
 development financial institution 
 certified by the Secretary of the 
 Treasury;
            (IV) a community development 
 financial institution (as defined in 
 

section 103 of the Community 
 Development Banking and Financial 
 Institutions Act of 1994 (12 U.S.C. 
 4702)) certified by the Secretary of 
 the Treasury, acting through the 
 Director of the Community Development 
 Financial Institutions Fund established 
 under 

section 104

    (a) of that Act (12 
 U.S.C. 4703

    (a) );
            (V) an organization described in 
 paragraph

    (2) or

    (3) of 

section 501
            (c) of the Internal Revenue Code of 1986 
 and exempt from tax under 

section 501

    (a) of such Code;
            (VI) a foundation;
            (VII) a cooperative entity;
            (VIII) an institution of higher 
 education (as defined in 

section 101 of 
 the Higher Education Act of 1965 (20 
 U.S.C. 1001));
            (IX) a financial institution 
 described in 

section 1.7

    (b)

    (1)
        (B) of 
 the Farm Credit Act of 1971 (12 U.S.C. 
 2015

    (b)

    (1)
        (B) ); and
            (X) any other appropriate partner, 
 as determined by the Secretary.
        (B) Exclusion.--The term ``eligible entity'' does 
 not include a corporation that is foreign-based or 
 foreign-owned.

    (4) Eligible land.--
        (A) In general.--The term ``eligible land'' means--
            (i) agricultural land;
            (ii) private land;
            (iii) urban land;
            (iv) public land, including Federal, State, 
 and municipally owned or managed land;
            (v) lands held in common that are 
 controlled and managed by groups of 
 individuals;
            (vi) lands held in trust;
            (vii) multiple parcels of land described in 
 any of clauses
            (i) through
            (vi) that are 
 noncontiguous; and
            (viii) public or private shoreline or 
 intertidal zone areas, which may be wholly or 
 partially underwater.
        (B) Exclusion.--The term ``eligible land'' does not 
 include a natural area (as defined in 

section 650.23

    (a) of title 7, Code of Federal Regulations (or successor 
 regulations)).

    (5) Program.--The term ``program'' means the New Producer 
 Economic Security Program established under subsection

    (b) .

    (6) Qualified beneficiary.--
        (A) In general.--The term ``qualified beneficiary'' 
 means a farmer, a rancher, or a forest owner who--
            (i) is a natural person;
            (ii) is--
            (I) a shareholder in an authorized 
 legal entity;
            (II) an officer, director, or 
 employee of an authorized legal entity;
            (III) a member or manager of an 
 authorized legal entity;
            (IV) a partner in an authorized 
 legal entity;
            (V) a beneficiary or trustee of an 
 authorized legal entity; or
            (VI) any other individual who--

    (aa) regularly and 
 frequently makes, or takes an 
 important part in making, 
 management decisions 
 substantially contributing to 
 or affecting the operation of a 
 farm or forest; or

    (bb) performs physical work 
 that significantly contributes 
 to cultivation, stewardship, 
 crop or livestock production, 
 or food production; and
            (iii) 
            (I) has never operated, or has not 
 operated for more than 10 consecutive years, a 
 farm or a ranch;
            (II) operates only on rented or leased 
 land;
            (III) has an income that is at or below 200 
 percent of the national poverty level or half 
 of the median household income of the county in 
 which the natural person is located; or
            (IV) is economically disadvantaged, as 
 determined by the Secretary.
        (B) Exclusion.--The term ``qualified beneficiary'' 
 does not include a natural person who solely provides 
 capital to an authorized legal entity that is not a 
 qualified beneficiary described in subparagraph
        (A) .

    (7) Secretary.--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 ``New Producer 
Economic Security Program'', 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) .
            (c) === Purpose ===
-The purposes of the program are--

    (1) 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

    (2) to support projects that--
        (A) support farm establishment and long-term farm 
 business viability;
        (B) support the financial viability of qualified 
 beneficiaries;
            (C) support the physical and mental health of 
 qualified beneficiaries;
            (D) increase land access;
        (E) prevent land loss;
        (F) establish innovative ways to make land 
 accessible to qualified beneficiaries;
        (G) transition farmland from existing landowners to 
 qualified beneficiaries; and
        (H) 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--
        (A) 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) ;
        (B) a description of how project activities will 
 support the long-term financial viability of qualified 
 beneficiaries;
            (C) a plan for notification and consultation with 
 local Tribal governments for the future sale of land, 
 if applicable;
            (D) an analysis of anticipated benefits to the 
 community and the agricultural economy within the 
 project area; and
        (E) 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) In general.--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) Consideration.--The Secretary shall 
 ensure that the stakeholder committee 
 established under clause
            (i) includes 
 perspectives reflecting--
            (I) the complexity of the rural and 
 urban agricultural landscapes of the 
 United States; and
            (II) 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--
        (A) to acquire real property (including air rights, 
 water rights, and other interests therein), including 
 closing costs;
        (B) to subsidize interest rates and mortgage 
 principal amounts for qualified beneficiaries;
            (C) to provide down payment assistance to decrease 
 farm mortgages;
            (D) to secure clear title on heirs' property;
        (E) to conduct surveys and assessments of eligible 
 land;
        (F) to improve or remediate land, water, and soil;
        (G) to construct or repair infrastructure;
        (H) to support land use planning;
            (I) to acquire succession planning assistance;
        (J) to carry out Tribal consultation;
        (K) to support acquisition of a Department of 
 Agriculture farm number; and
            (L) 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--
        (A) for activities associated with strengthening 
 the economic security of qualified beneficiaries by 
 increasing access to markets and capital;
        (B) to provide direct assistance to qualified 
 beneficiaries in assessing, purchasing, acquiring, or 
 retaining eligible land;
            (C) for activities designed to support farm 
 establishment and long-term viability;
            (D) 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
        (E) 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--
            (I) accessing, purchasing, 
 acquiring, or retaining eligible land;
            (II) comprehension of, preparation 
 to apply for, and complying with 
 Department of Agriculture programs;
            (III) succession planning;
            (IV) market planning and risk 
 analysis;
            (V) cooperative development;
            (VI) legal and tax issues;
            (VII) developing business plans and 
 feasibility studies;
            (VIII) financial planning and 
 recordkeeping;
            (IX) enterprise, business, and 
 labor management; and
            (X) 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.
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