H.R. 2536: New Producer Economic Security Act

This bill proposes the establishment of the **New Producer Economic Security Program** through the U.S. Department of Agriculture's Farm Service Agency. The objective of this program is to provide grants and other support to certain farmers and ranchers, specifically those who fall into the category of "qualified beneficiaries." These beneficiaries may have limited experience or resources and typically include individuals who have not operated a farm or ranch for more than ten consecutive years or those who are economically disadvantaged.

Definitions

The bill defines several key terms:

• Authorized legal entity: An organization like a corporation or cooperative that is not a foreign entity and has a maximum of 25 owners involved in farm management.
• Qualified beneficiary: A farmer or rancher who meets specific criteria regarding their ownership and experience in farming or ranching.
• Eligible land: Various types of land that can include agricultural, urban, or public land, but exclude natural areas.

Program Establishment

The Secretary of Agriculture will set up the program, which will be competitive. The program aims to strengthen food system security in the U.S. by:

• Investing in community-led solutions that enhance access to land and financial resources for qualified beneficiaries.
• Supporting projects that ensure the long-term viability of farms and ranchers.

Application and Selection Process

Entities seeking assistance under this program must submit an application with detailed project plans showing how they will benefit qualified beneficiaries. A stakeholder committee will help evaluate these applications, ensuring a broad representation of agricultural perspectives. Priority will be given to projects that:

• Provide direct financial assistance to beneficiaries.
• Involve collaboration between multiple organizations.
• Include provisions for land transition to beneficiaries.

Covered Projects

Eligible entities can use the funds from the program for various activities, including:

• Acquisition of agricultural land or property.
• Improving financial accessibility through grants or loans.
• Technical assistance for understanding agricultural operations or legal issues.

Funding Mechanism

The program will be funded via grants, cooperative agreements, and loans. The Secretary of Agriculture is authorized to determine the necessary funds to fulfill the goals of the program.

Compliance and Repayment

If an eligible entity fails to comply with the program requirements, they are obligated to repay the assistance received.

Relevant Companies

None found.