,i #aaith ,,congress #ast ,session ,h4 ,r4 #ecfg ,,in ,,the ,,house ,,of ,,representatives ,september #ae1 #bjbe,ms4 ,strickland 7for herself1 ,ms4 ,adams1 ,mr4 ,panetta1 ,ms4 ,sewell1 ,mr4 ,figures1 and ,mr4 ,carter of ,louisiana7 introduced the following bill2 which was referred to the ,committee on ,agriculture ,a ,,bill ,to amend the ,consolidated ,farm and ,rural ,development ,act to provide for a pilot program under which development loans and loan guarantees may be made to beginning farmers and ranchers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,capital for ,beginning ,farmers and ,ranchers ,act of #bjbe4 #b4 ,findings ,congress finds that-- 7#a7 beginning farmers and ranchers often pursue business models featuring diverse and specialized production and marketing strategies2 7#b7 diverse and specialized agricultural businesses typically require substantial early-stage investments which will benefit the operation for years to come2 and 7#c7 programs in effect as of #bjbe often finance those multi-year investments as annual operating loans1 resulting in beginning farmers and ranchers under-investing in critical start-up capacities1 limiting the ability of beginning farmers and ranchers to accumulate working capital1 and increasing the difficulties faced by beginning farmers and ranchers in meeting the terms of those loans4 #c4 ,beginning farmer and rancher development loan pilot program ,subtitle ,b of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aida et seq47 is amended by adding at the end the following3 #cbj4 ,beginning farmer and rancher development loan pilot program 7a7 ,definition of development expenditure 7#a7 ,in general ,in this section1 the term development expenditure means a capital investment that benefits a farming or ranching business of a qualified beginning farmer or rancher for more than #a year4 7#b7 ,inclusions ,in this section1 the term development expenditure includes an expenditure-- 7,a7 for the acquisition or development of-- 7i7 initial assets2 or 7ii7 intangible infrastructure2 7,b7 to increase long-term soil fertility1 establish perennials1 or develop breeding stock2 7,c7 to establish an appropriate foundation of small equipment1 tools1 or supplies2 7,d7 to develop branding and reputation1 establish commercial relationships with suppliers and key service providers1 access new markets1 or refine product offerings2 7,e7 to establish a bookkeeping system sufficient to support invoicing multiple clients and managing profitability with respect to diverse crops and livestock2 7,f7 to establish payroll and implement legally compliant labor practices2 7,g7 to establish other business management practices relating to food safety1 environmental1 or other regulatory compliance2 or 7,h7 for such other items as the ,secretary determines appropriate4 7b7 ,establishment ,not later than #b years after the date of enactment of this section1 the ,secretary shall establish a pilot program to make or guarantee development loans to qualified beginning farmers and ranchers to finance development expenditures4 7c7 ,terms and conditions 7#a7 ,in general ,notwithstanding any other provision of law1 a development loan made or guaranteed under this section-- 7,a7 shall have a repayment term of-- 7i7 not less than #c years2 and 7ii7 not more than #aj years2 7,b7 may be used only to cover development expenditures2 7,c7 shall not exceed #ajj1jjj2 7,d7 shall have a collateral requirement of not more than #ajj percent loan-to-value1 subject to paragraph 7#b72 7,e7 shall have an interest rate1 determined by the ,secretary1 of-- 7i7 not less than zero percent2 and 7ii7 not more than #c percent2 7,f7 shall require the participating qualified beginning farmer or rancher to make annual interest payments for the full amount of interest due2 and 7,g7 shall include flexible principal repayment1 subject to the condition that not less than #a percent of the remaining balance shall be due annually on a date determined by the ,secretary4 7#b7 ,collateral requirement ,the collateral requirement described in paragraph 7#a77;,d7 may be reduced by the lender based on the farming or ranching experience and expertise of the borrower4 7#c7 ,treatment ,a development loan made or guaranteed under this section-- 7,a7 shall not count toward the limitations described in subparagraphs 7,b7 and 7,c7 of section #caa7;c77#a72 7,b7 shall be considered to be-- 7i7 a direct operating loan or a guaranteed operating loan1 as applicable1 for purposes of section #cdf7;b77#b72 and 7ii7 an operating loan under section #cab for purposes of section #cdc7;a77#aj72 and 7,c7 except as otherwise provided in this section1 shall be subject to all applicable provisions of law relating to1 as applicable-- 7i7 direct operating loans under this title2 7ii7 guaranteed operating loans under this title2 or 7iii7 farmer program loans4 7d7 ,borrower training 7#a7 ,in general ,the ,secretary shall provide to borrowers of development loans made or guaranteed under this section comprehensive training and support addressing farm and ranch management issues4 7#b7 ,requirements ,the training and support provided under paragraph 7#a7 shall address1 to the maximum extent practicable-- 7,a7 bookkeeping1 taxation1 credit1 and regulatory compliance2 and 7,b7 cash flow1 profitability1 and risk management4 7#c7 ,provision ,the ,secretary shall provide training and support under paragraph 7#a7 through-- 7,a7 entities with which the ,secretary has entered into a contract under section #cei2 7,b7 entities that receive funding through the beginning farmer and rancher development grant program established under section #beja7;d7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7;d772 7,c7 entities that receive funding through the risk management education program established under section #ebd7;a77#b7 of the ,federal ,crop ,insurance ,act 7#g ,u4,s4,c4 #aebd7;a77#b772 or 7,d7 other relevant programs1 as determined by the ,secretary1 including qualified programs that request such a determination4 7e7 ,evaluation and reports ,the ,secretary shall-- 7#a7 evaluate the pilot program established under subsection 7b7 on an ongoing basis2 and 7#b7 biennially submit to the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and the ,committee on ,agriculture of the ,house of ,representatives a written report describing the operation and outcomes of the pilot program4 4