Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2536 Compare Versions

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11 I
22 119THCONGRESS
33 1
44 STSESSION H. R. 2536
55 To establish the New Producer Economic Security Program within the Farm
66 Service Agency Office of Outreach and Education.
77 IN THE HOUSE OF REPRESENTATIVES
88 APRIL1, 2025
99 Ms. B
1010 UDZINSKI(for herself, Mr. NUNNof Iowa, Mr. COURTNEY, Mr. DAVIS
1111 of North Carolina, Mr. S
1212 ORENSEN, Ms. TOKUDA, and Mr. VASQUEZ) in-
1313 troduced the following bill; which was referred to the Committee on Agri-
1414 culture
1515 A BILL
1616 To establish the New Producer Economic Security Program
1717 within the Farm Service Agency Office of Outreach and
1818 Education.
1919 Be it enacted by the Senate and House of Representa-1
2020 tives of the United States of America in Congress assembled, 2
2121 SECTION 1. SHORT TITLE. 3
2222 This Act may be cited as the ‘‘New Producer Eco-4
2323 nomic Security Act’’. 5
2424 SEC. 2. NEW PRODUCER ECONOMIC SECURITY PROGRAM. 6
2525 (a) D
2626 EFINITIONS.—In this section: 7
2727 (1) A
2828 UTHORIZED LEGAL ENTITY .—The term 8
2929 ‘‘authorized legal entity’’ means any corporation, 9
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3333 business trust, estate, trust, partnership, limited li-1
3434 ability company, association, joint venture, public 2
3535 corporation, cooperative, pension or investment fund, 3
3636 or any other legal or commercial entity organized or 4
3737 created under the laws of any State that meets each 5
3838 of the following requirements: 6
3939 (A) The entity is not a subsidiary of, or 7
4040 owned in any part by, a multilayered subsidiary 8
4141 entity. 9
4242 (B) The shareholders, partners, members, 10
4343 or beneficial owners of the entity do not exceed 11
4444 25 individuals. 12
4545 (C) The shareholders, partners, members, 13
4646 or beneficial owners of the entity are all natural 14
4747 persons who— 15
4848 (i) regularly and frequently make, or 16
4949 take an important part in making, man-17
5050 agement decisions substantially contrib-18
5151 uting to or affecting the operation of a 19
5252 farm or forest; or 20
5353 (ii) perform physical work that signifi-21
5454 cantly contributes to cultivation, steward-22
5555 ship, crop or livestock production, or food 23
5656 production. 24
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6060 (2) COVERED PROJECT .—The term ‘‘covered 1
6161 project’’ means a project described in subsection (e). 2
6262 (3) E
6363 LIGIBLE ENTITY.— 3
6464 (A) I
6565 N GENERAL.—The term ‘‘eligible enti-4
6666 ty’’ means an entity that— 5
6767 (i) has demonstrated experience in 6
6868 serving qualified beneficiaries; and 7
6969 (ii) is— 8
7070 (I) a State, local, or territorial 9
7171 government; 10
7272 (II) an Indian Tribe or Tribal or-11
7373 ganization (as those terms are defined 12
7474 in section 4 of the Indian Self-Deter-13
7575 mination and Education Assistance 14
7676 Act (25 U.S.C. 5304)); 15
7777 (III) a Native community devel-16
7878 opment financial institution certified 17
7979 by the Secretary of the Treasury; 18
8080 (IV) a community development 19
8181 financial institution (as defined in sec-20
8282 tion 103 of the Community Develop-21
8383 ment Banking and Financial Institu-22
8484 tions Act of 1994 (12 U.S.C. 4702)) 23
8585 certified by the Secretary of the 24
8686 Treasury, acting through the Director 25
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9090 of the Community Development Fi-1
9191 nancial Institutions Fund established 2
9292 under section 104(a) of that Act (12 3
9393 U.S.C. 4703(a)); 4
9494 (V) an organization described in 5
9595 paragraph (2) or (3) of section 501(c) 6
9696 of the Internal Revenue Code of 1986 7
9797 and exempt from tax under section 8
9898 501(a) of such Code; 9
9999 (VI) a foundation; 10
100100 (VII) a cooperative entity; 11
101101 (VIII) an institution of higher 12
102102 education (as defined in section 101 13
103103 of the Higher Education Act of 1965 14
104104 (20 U.S.C. 1001)); 15
105105 (IX) a financial institution de-16
106106 scribed in section 1.7(b)(1)(B) of the 17
107107 Farm Credit Act of 1971 (12 U.S.C. 18
108108 2015(b)(1)(B)); and 19
109109 (X) any other appropriate part-20
110110 ner, as determined by the Secretary. 21
111111 (B) E
112112 XCLUSION.—The term ‘‘eligible enti-22
113113 ty’’ does not include a corporation that is for-23
114114 eign-based or foreign-owned. 24
115115 (4) E
116116 LIGIBLE LAND.— 25
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120120 (A) IN GENERAL.—The term ‘‘eligible 1
121121 land’’ means— 2
122122 (i) agricultural land; 3
123123 (ii) private land; 4
124124 (iii) urban land; 5
125125 (iv) public land, including Federal, 6
126126 State, and municipally owned or managed 7
127127 land; 8
128128 (v) lands held in common that are 9
129129 controlled and managed by groups of indi-10
130130 viduals; 11
131131 (vi) lands held in trust; 12
132132 (vii) multiple parcels of land described 13
133133 in any of clauses (i) through (vi) that are 14
134134 noncontiguous; and 15
135135 (viii) public or private shoreline or 16
136136 intertidal zone areas, which may be wholly 17
137137 or partially underwater. 18
138138 (B) E
139139 XCLUSION.—The term ‘‘eligible land’’ 19
140140 does not include a natural area (as defined in 20
141141 section 650.23(a) of title 7, Code of Federal 21
142142 Regulations (or successor regulations)). 22
143143 (5) P
144144 ROGRAM.—The term ‘‘program’’ means 23
145145 the New Producer Economic Security Program es-24
146146 tablished under subsection (b). 25
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150150 (6) QUALIFIED BENEFICIARY.— 1
151151 (A) I
152152 N GENERAL.—The term ‘‘qualified 2
153153 beneficiary’’ means a farmer, a rancher, or a 3
154154 forest owner who— 4
155155 (i) is a natural person; 5
156156 (ii) is— 6
157157 (I) a shareholder in an author-7
158158 ized legal entity; 8
159159 (II) an officer, director, or em-9
160160 ployee of an authorized legal entity; 10
161161 (III) a member or manager of an 11
162162 authorized legal entity; 12
163163 (IV) a partner in an authorized 13
164164 legal entity; 14
165165 (V) a beneficiary or trustee of an 15
166166 authorized legal entity; or 16
167167 (VI) any other individual who— 17
168168 (aa) regularly and frequently 18
169169 makes, or takes an important 19
170170 part in making, management de-20
171171 cisions substantially contributing 21
172172 to or affecting the operation of a 22
173173 farm or forest; or 23
174174 (bb) performs physical work 24
175175 that significantly contributes to 25
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179179 cultivation, stewardship, crop or 1
180180 livestock production, or food pro-2
181181 duction; and 3
182182 (iii)(I) has never operated, or has not 4
183183 operated for more than 10 consecutive 5
184184 years, a farm or a ranch; 6
185185 (II) operates only on rented or leased 7
186186 land; 8
187187 (III) has an income that is at or 9
188188 below 200 percent of the national poverty 10
189189 level or half of the median household in-11
190190 come of the county in which the natural 12
191191 person is located; or 13
192192 (IV) is economically disadvantaged, as 14
193193 determined by the Secretary. 15
194194 (B) E
195195 XCLUSION.—The term ‘‘qualified 16
196196 beneficiary’’ does not include a natural person 17
197197 who solely provides capital to an authorized 18
198198 legal entity that is not a qualified beneficiary 19
199199 described in subparagraph (A). 20
200200 (7) S
201201 ECRETARY.—The term ‘‘Secretary’’ means 21
202202 the Secretary of Agriculture. 22
203203 (b) E
204204 STABLISHMENT.—The Secretary shall establish 23
205205 within the Farm Service Agency a competitive program, 24
206206 to be known as the ‘‘New Producer Economic Security 25
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210210 Program’’, to make grants to, enter into cooperative 1
211211 agreements with, or provide other capital support to eligi-2
212212 ble entities to carry out covered projects in accordance 3
213213 with subsection (e). 4
214214 (c) P
215215 URPOSE.—The purposes of the program are— 5
216216 (1) to strengthen the food systems security of 6
217217 the United States by efficiently investing in commu-7
218218 nity-led solutions to increasing access to land, cap-8
219219 ital, and markets for qualified beneficiaries; and 9
220220 (2) to support projects that— 10
221221 (A) support farm establishment and long- 11
222222 term farm business viability; 12
223223 (B) support the financial viability of quali-13
224224 fied beneficiaries; 14
225225 (C) support the physical and mental health 15
226226 of qualified beneficiaries; 16
227227 (D) increase land access; 17
228228 (E) prevent land loss; 18
229229 (F) establish innovative ways to make land 19
230230 accessible to qualified beneficiaries; 20
231231 (G) transition farmland from existing land-21
232232 owners to qualified beneficiaries; and 22
233233 (H) provide appropriate technical assist-23
234234 ance related to permissible activities described 24
235235 in subsection (e)(2). 25
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239239 (d) SELECTION.— 1
240240 (1) A
241241 PPLICATION REQUIREMENTS .—To be eligi-2
242242 ble to receive assistance under the program, an eligi-3
243243 ble entity shall submit to the Secretary an applica-4
244244 tion at such time, in such manner, and containing 5
245245 such information as the Secretary may require, in-6
246246 cluding— 7
247247 (A) information demonstrating that the 8
248248 covered project the eligible entity seeks to carry 9
249249 out is designed— 10
250250 (i) to serve qualified beneficiaries; and 11
251251 (ii) to meet the purposes of the pro-12
252252 gram described in subsection (c); 13
253253 (B) a description of how project activities 14
254254 will support the long-term financial viability of 15
255255 qualified beneficiaries; 16
256256 (C) a plan for notification and consultation 17
257257 with local Tribal governments for the future 18
258258 sale of land, if applicable; 19
259259 (D) an analysis of anticipated benefits to 20
260260 the community and the agricultural economy 21
261261 within the project area; and 22
262262 (E) a plan for evaluation, data manage-23
263263 ment, communication, and reporting of project 24
264264 findings and results. 25
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268268 (2) EVALUATION AND SELECTION OF APPLICA -1
269269 TIONS.— 2
270270 (A) E
271271 VALUATION PROCESS .—The Sec-3
272272 retary shall develop a process for evaluating 4
273273 and selecting applications submitted under 5
274274 paragraph (1) in collaboration with the stake-6
275275 holder committee established under subpara-7
276276 graph (B). 8
277277 (B) S
278278 TAKEHOLDER COMMITTEE .— 9
279279 (i) I
280280 N GENERAL.—Not later than 180 10
281281 days after the date of enactment of this 11
282282 Act, the Secretary shall establish and con-12
283283 vene a stakeholder committee to provide 13
284284 input on the distribution of funds and the 14
285285 evaluation and selection of applications 15
286286 submitted under paragraph (1). 16
287287 (ii) C
288288 ONSIDERATION.—The Secretary 17
289289 shall ensure that the stakeholder com-18
290290 mittee established under clause (i) includes 19
291291 perspectives reflecting— 20
292292 (I) the complexity of the rural 21
293293 and urban agricultural landscapes of 22
294294 the United States; and 23
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298298 (II) the wide variety of agricul-1
299299 tural production models employed by 2
300300 qualified beneficiaries. 3
301301 (C) P
302302 RIORITY.—In selecting applications 4
303303 submitted under paragraph (1), the Secretary 5
304304 shall give priority to applications for covered 6
305305 projects that— 7
306306 (i) provide direct financial assistance 8
307307 to qualified beneficiaries; 9
308308 (ii) involve a substantial and effective 10
309309 collaborative network or partnership of 11
310310 public or private entities; 12
311311 (iii) include a right of first refusal for 13
312312 Tribal citizens or governments when land 14
313313 becomes available on or near Tribal com-15
314314 munities; 16
315315 (iv) involve mechanisms, such as a 17
316316 deed restriction or conservation easement, 18
317317 that restrict the resale value of eligible 19
318318 land to protect the land for agricultural 20
319319 use; 21
320320 (v) support the voluntary transition of 22
321321 agricultural land from existing producers 23
322322 to qualified beneficiaries; 24
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326326 (vi) provide technical assistance, in-1
327327 cluding translation and interpretation serv-2
328328 ices; 3
329329 (vii) include activities under sub-4
330330 section (e) designed to support farm-5
331331 workers; or 6
332332 (viii) support long-term adoption of 7
333333 conservation practices that are consistent 8
334334 with conservation practice standards of the 9
335335 Natural Resources Conservation Service 10
336336 and designed to achieve conservation out-11
337337 comes. 12
338338 (e) C
339339 OVEREDPROJECTS.— 13
340340 (1) R
341341 EQUIRED USE OF FUNDS .—An eligible en-14
342342 tity that receives assistance under the program shall 15
343343 provide direct assistance to qualified beneficiaries in 16
344344 order to facilitate access to land, capital, and mar-17
345345 kets, which may include payments— 18
346346 (A) to acquire real property (including air 19
347347 rights, water rights, and other interests there-20
348348 in), including closing costs; 21
349349 (B) to subsidize interest rates and mort-22
350350 gage principal amounts for qualified bene-23
351351 ficiaries; 24
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355355 (C) to provide down payment assistance to 1
356356 decrease farm mortgages; 2
357357 (D) to secure clear title on heirs’ property; 3
358358 (E) to conduct surveys and assessments of 4
359359 eligible land; 5
360360 (F) to improve or remediate land, water, 6
361361 and soil; 7
362362 (G) to construct or repair infrastructure; 8
363363 (H) to support land use planning; 9
364364 (I) to acquire succession planning assist-10
365365 ance; 11
366366 (J) to carry out Tribal consultation; 12
367367 (K) to support acquisition of a Department 13
368368 of Agriculture farm number; and 14
369369 (L) for any other activities, as determined 15
370370 by the Secretary. 16
371371 (2) P
372372 ERMISSIBLE ACTIVITIES.—An eligible enti-17
373373 ty that receives assistance under the program may 18
374374 use the funds— 19
375375 (A) for activities associated with strength-20
376376 ening the economic security of qualified bene-21
377377 ficiaries by increasing access to markets and 22
378378 capital; 23
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382382 (B) to provide direct assistance to qualified 1
383383 beneficiaries in assessing, purchasing, acquir-2
384384 ing, or retaining eligible land; 3
385385 (C) for activities designed to support farm 4
386386 establishment and long-term viability; 5
387387 (D) to establish a revolving loan fund or 6
388388 other innovative financial mechanism designed 7
389389 for the purpose of investing in covered projects 8
390390 beyond the initial project timeline; and 9
391391 (E) to provide technical assistance that 10
392392 meets the specific needs of, and is accessible to 11
393393 qualified beneficiaries, including— 12
394394 (i) providing translation and interpre-13
395395 tation services; 14
396396 (ii) developing and carrying out strat-15
397397 egies to identify unique needs and gaps in 16
398398 access, knowledge, and services; and 17
399399 (iii) specialized consultation, training, 18
400400 coaching, capacity building, and mentoring 19
401401 focused on— 20
402402 (I) accessing, purchasing, acquir-21
403403 ing, or retaining eligible land; 22
404404 (II) comprehension of, prepara-23
405405 tion to apply for, and complying with 24
406406 Department of Agriculture programs; 25
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410410 (III) succession planning; 1
411411 (IV) market planning and risk 2
412412 analysis; 3
413413 (V) cooperative development; 4
414414 (VI) legal and tax issues; 5
415415 (VII) developing business plans 6
416416 and feasibility studies; 7
417417 (VIII) financial planning and rec-8
418418 ordkeeping; 9
419419 (IX) enterprise, business, and 10
420420 labor management; and 11
421421 (X) any other activities as deter-12
422422 mined by the Secretary. 13
423423 (3) S
424424 UBCONTRACT.—An eligible entity may 14
425425 subcontract with an organization to carry out a use 15
426426 or activity under paragraph (1) or (2) if the services 16
427427 of the subcontractor are necessary. 17
428428 (4) F
429429 UNDING MECHANISM .— 18
430430 (A) E
431431 LIGIBLE ENTITIES.—The Secretary 19
432432 shall make funding available under the program 20
433433 to eligible entities in the form of— 21
434434 (i) grants; 22
435435 (ii) cooperative agreements; 23
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439439 (iii) capitalization loans, in the case of 1
440440 an activity described in paragraph (2)(D); 2
441441 or 3
442442 (iv) other means, as determined by 4
443443 the Secretary. 5
444444 (B) Q
445445 UALIFIED BENEFICIARIES .—In car-6
446446 rying out covered projects under the program, 7
447447 an eligible entity shall provide direct assistance 8
448448 to qualified beneficiaries in the form of— 9
449449 (i) grants; 10
450450 (ii) loans (both long-term and in-11
451451 terim); or 12
452452 (iii) other direct payments or assist-13
453453 ance, as determined by the Secretary. 14
454454 (5) R
455455 EPAYMENT OF FUNDS IN CASE OF NON -15
456456 COMPLIANCE.—An eligible entity that violates the 16
457457 terms or conditions of assistance provided under the 17
458458 program shall reimburse the Secretary for that as-18
459459 sistance. 19
460460 (f) F
461461 UNDING.— 20
462462 (1) A
463463 UTHORIZATION OF APPROPRIATIONS .— 21
464464 There are authorized to be appropriated to the Sec-22
465465 retary such sums as are necessary to carry out this 23
466466 section. 24
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470470 (2) AGENCY CONTRIBUTION ACCOUNT .—In ad-1
471471 dition to amounts otherwise made available under 2
472472 paragraph (1), the Secretary may use funds avail-3
473473 able through 1 or more contribution accounts estab-4
474474 lished under section 1241(f)(1) of the Food Security 5
475475 Act of 1985 (16 U.S.C. 3841(f)(1)). 6
476476 (3) A
477477 DMINISTRATION.—Of the amounts made 7
478478 available to carry out the program, the Secretary 8
479479 may use an appropriate amount for the costs of im-9
480480 plementing and administering the program. 10
481481 (4) D
482482 ISTRIBUTION OF FUNDS.— 11
483483 (A) L
484484 IMITATION.—An eligible entity that 12
485485 receives assistance under the program shall ob-13
486486 ligate the amounts for a covered project by not 14
487487 later than 5 years after the date on which the 15
488488 funds are made available to the eligible entity, 16
489489 unless the Secretary determines otherwise. 17
490490 (B) E
491491 XCLUSION.—In the case of a covered 18
492492 project to support qualified beneficiaries in as-19
493493 sessing, purchasing, acquiring, or retaining eli-20
494494 gible land for a period longer than the 5-year 21
495495 period described in subparagraph (A), section 22
496496 200.311 of title 2, Code of Federal Regulations 23
497497 (or a successor regulation) shall not apply. 24
498498 Æ
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