,,ii #aaith ,,congress #ast ,session ,s4 #abcg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #a 7legislative day1 ,march #ca71 #bjbe,ms4 ,smith introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to establish the ,new ,producer ,economic ,security ,program within the ,farm ,service ,agency ,office of ,outreach and ,education4 #a4 ,short title ,this ,act may be cited as the ,new ,producer ,economic ,security ,act4 #b4 ,new ,producer ,economic ,security ,program 7a7 ,definitions ,in this section3 7#a7 ,authorized legal entity ,the term authorized legal entity means any corporation1 business trust1 estate1 trust1 partnership1 limited liability company1 association1 joint venture1 public corporation1 cooperative1 pension or investment fund1 or any other legal or commercial entity organized or created under the laws of any ,state that meets each of the following requirements3 7,a7 ,the entity is not a subsidiary of1 or owned in any part by1 a multilayered subsidiary entity4 7,b7 ,the shareholders1 partners1 members1 or beneficial owners of the entity do not exceed #be individuals4 7,c7 ,the shareholders1 partners1 members1 or beneficial owners of the entity are all natural persons who-- 7i7 regularly and frequently make1 or take an important part in making1 management decisions substantially contributing to or affecting the operation of a farm or forest2 or 7ii7 perform physical work that significantly contributes to cultivation1 stewardship1 crop or livestock production1 or food production4 7#b7 ,covered project ,the term covered project means a project described in subsection 7e74 7#c7 ,eligible entity 7,a7 ,in general ,the term eligible entity means an entity that-- 7i7 has demonstrated experience in serving qualified beneficiaries2 and 7ii7 is-- 7,i7 a ,state1 local1 or territorial government2 7,,ii7 an ,indian ,tribe or ,tribal organization 7as those terms are defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd772 7,,iii7 a ,native community development financial institution certified by the ,secretary of the ,treasury2 7,,iv7 a community development financial institution 7as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 certified by the ,secretary of the ,treasury1 acting through the ,director of the ,community ,development ,financial ,institutions ,fund established under section #ajd7;a7 of that ,act 7#ab ,u4,s4,c4 #dgjc7;a772 7,v7 an organization described in paragraph 7#b7 or 7#c7 of section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code2 7,,vi7 a foundation2 7,,vii7 a cooperative entity2 7,,viii7 an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja772 7,,ix7 a financial institution described in section #a4g7;b77#a77;,b7 of the ,farm ,credit ,act of #aiga 7#ab ,u4,s4,c4 #bjae7;b77#a77;,b772 and 7,x7 any other appropriate partner1 as determined by the ,secretary4 7,b7 ,exclusion ,the term eligible entity does not include a corporation that is foreign-based or foreign-owned4 7#d7 ,eligible land 7,a7 ,in general ,the term eligible land means-- 7i7 agricultural land2 7ii7 private land2 7iii7 urban land2 7iv7 public land1 including ,federal1 ,state1 and municipally owned or managed land2 7v7 lands held in common that are controlled and managed by groups of individuals2 7vi7 lands held in trust2 7vii7 multiple parcels of land described in any of clauses 7i7 through 7vi7 that are noncontiguous2 and 7viii7 public or private shoreline or intertidal zone areas1 which may be wholly or partially underwater4 7,b7 ,exclusion ,the term eligible land does not include a natural area 7as defined in section #fej4bc7;a7 of title #g1 ,code of ,federal ,regulations 7or successor regulations774 7#e7 ,program ,the term program means the ,new ,producer ,economic ,security ,program established under subsection 7b74 7#f7 ,qualified beneficiary 7,a7 ,in general ,the term qualified beneficiary means a farmer1 a rancher1 or a forest owner who-- 7i7 is a natural person2 7ii7 is-- 7,i7 a shareholder in an authorized legal entity2 7,,ii7 an officer1 director1 or employee of an authorized legal entity2 7,,iii7 a member or manager of an authorized legal entity2 7,,iv7 a partner in an authorized legal entity2 7,v7 a beneficiary or trustee of an authorized legal entity2 or 7,,vi7 any other individual who-- 7aa7 regularly and frequently makes1 or takes an important part in making1 management decisions substantially contributing to or affecting the operation of a farm or forest2 or 7bb7 performs physical work that significantly contributes to cultivation1 stewardship1 crop or livestock production1 or food production2 and 7iii7 7,i7 has never operated1 or has not operated for more than #aj consecutive years1 a farm or a ranch2 7,,ii7 operates only on rented or leased land2 7,,iii7 has an income that is at or below #bjj percent of the national poverty level or half of the median household income of the county in which the natural person is located2 or 7,,iv7 is economically disadvantaged1 as determined by the ,secretary4 7,b7 ,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 7,a74 7#g7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7b7 ,establishment ,the ,secretary shall establish within the ,farm ,service ,agency a competitive program1 to be known as the ,new ,producer ,economic ,security ,program1 to make grants to1 enter into cooperative agreements with1 or provide other capital support to eligible entities to carry out covered projects in accordance with subsection 7e74 7c7 ,purpose ,the purposes of the program are-- 7#a7 to strengthen the food systems security of the ,united ,states by efficiently investing in community-led solutions to increasing access to land1 capital1 and markets for qualified beneficiaries2 and 7#b7 to support projects that-- 7,a7 support farm establishment and long-term farm business viability2 7,b7 support the financial viability of qualified beneficiaries2 7,c7 support the physical and mental health of qualified beneficiaries2 7,d7 increase land access2 7,e7 prevent land loss2 7,f7 establish innovative ways to make land accessible to qualified beneficiaries2 7,g7 transition farmland from existing landowners to qualified beneficiaries2 and 7,h7 provide appropriate technical assistance related to permissible activities described in subsection 7e77#b74 7d7 ,selection 7#a7 ,application requirements ,to be eligible to receive assistance under the program1 an eligible entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require1 including-- 7,a7 information demonstrating that the covered project the eligible entity seeks to carry out is designed-- 7i7 to serve qualified beneficiaries2 and 7ii7 to meet the purposes of the program described in subsection 7c72 7,b7 a description of how project activities will support the long-term financial viability of qualified beneficiaries2 7,c7 a plan for notification and consultation with local ,tribal governments for the future sale of land1 if applicable2 7,d7 an analysis of anticipated benefits to the community and the agricultural economy within the project area2 and 7,e7 a plan for evaluation1 data management1 communication1 and reporting of project findings and results4 7#b7 ,evaluation and selection of applications 7,a7 ,evaluation process ,the ,secretary shall develop a process for evaluating and selecting applications submitted under paragraph 7#a7 in collaboration with the stakeholder committee established under subparagraph 7,b74 7,b7 ,stakeholder committee 7i7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 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 7#a74 7ii7 ,consideration ,the ,secretary shall ensure that the stakeholder committee established under clause 7i7 includes perspectives reflecting-- 7,i7 the complexity of the rural and urban agricultural landscapes of the ,united ,states2 and 7,,ii7 the wide variety of agricultural production models employed by qualified beneficiaries4 7,c7 ,priority ,in selecting applications submitted under paragraph 7#a71 the ,secretary shall give priority to applications for covered projects that-- 7i7 provide direct financial assistance to qualified beneficiaries2 7ii7 involve a substantial and effective collaborative network or partnership of public or private entities2 7iii7 include a right of first refusal for ,tribal citizens or governments when land becomes available on or near ,tribal communities2 7iv7 involve mechanisms1 such as a deed restriction or conservation easement1 that restrict the resale value of eligible land to protect the land for agricultural use2 7v7 support the voluntary transition of agricultural land from existing producers to qualified beneficiaries2 7vi7 provide technical assistance1 including translation and interpretation services2 7vii7 include activities under subsection 7e7 designed to support farmworkers2 or 7viii7 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 outcomes4 7e7 ,covered projects 7#a7 ,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 land1 capital1 and markets1 which may include payments-- 7,a7 to acquire real property 7including air rights1 water rights1 and other interests therein71 including closing costs2 7,b7 to subsidize interest rates and mortgage principal amounts for qualified beneficiaries2 7,c7 to provide down payment assistance to decrease farm mortgages2 7,d7 to secure clear title on heirs' property2 7,e7 to conduct surveys and assessments of eligible land2 7,f7 to improve or remediate land1 water1 and soil2 7,g7 to construct or repair infrastructure2 7,h7 to support land use planning2 7,i7 to acquire succession planning assistance2 7,j7 to carry out ,tribal consultation2 7,k7 to support acquisition of a ,department of ,agriculture farm number2 and 7,l7 for any other activities1 as determined by the ,secretary4 7#b7 ,permissible activities ,an eligible entity that receives assistance under the program may use the funds-- 7,a7 for activities associated with strengthening the economic security of qualified beneficiaries by increasing access to markets and capital2 7,b7 to provide direct assistance to qualified beneficiaries in assessing1 purchasing1 acquiring1 or retaining eligible land2 7,c7 for activities designed to support farm establishment and long-term viability2 7,d7 to establish a revolving loan fund or other innovative financial mechanism designed for the purpose of investing in covered projects beyond the initial project timeline2 and 7,e7 to provide technical assistance that meets the specific needs of1 and is accessible to qualified beneficiaries1 including-- 7i7 providing translation and interpretation services2 7ii7 developing and carrying out strategies to identify unique needs and gaps in access1 knowledge1 and services2 and 7iii7 specialized consultation1 training1 coaching1 capacity building1 and mentoring focused on-- 7,i7 accessing1 purchasing1 acquiring1 or retaining eligible land2 7,,ii7 comprehension of1 preparation to apply for1 and complying with ,department of ,agriculture programs2 7,,iii7 succession planning2 7,,iv7 market planning and risk analysis2 7,v7 cooperative development2 7,,vi7 legal and tax issues2 7,,vii7 developing business plans and feasibility studies2 7,,viii7 financial planning and recordkeeping2 7,,ix7 enterprise1 business1 and labor management2 and 7,x7 any other activities as determined by the ,secretary4 7#c7 ,subcontract ,an eligible entity may subcontract with an organization to carry out a use or activity under paragraph 7#a7 or 7#b7 if the services of the subcontractor are necessary4 7#d7 ,funding mechanism 7,a7 ,eligible entities ,the ,secretary shall make funding available under the program to eligible entities in the form of-- 7i7 grants2 7ii7 cooperative agreements2 7iii7 capitalization loans1 in the case of an activity described in paragraph 7#b77;,d72 or 7iv7 other means1 as determined by the ,secretary4 7,b7 ,qualified beneficiaries ,in carrying out covered projects under the program1 an eligible entity shall provide direct assistance to qualified beneficiaries in the form of-- 7i7 grants2 7ii7 loans 7both long-term and interim72 or 7iii7 other direct payments or assistance1 as determined by the ,secretary4 7#e7 ,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 assistance4 7f7 ,funding 7#a7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary such sums as are necessary to carry out this section4 7#b7 ,agency contribution account ,in addition to amounts otherwise made available under paragraph 7#a71 the ,secretary may use funds available through #a or more contribution accounts established under section #abda7;f77#a7 of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chda7;f77#a774 7#c7 ,administration ,of the amounts made available to carry out the program1 the ,secretary may use an appropriate amount for the costs of implementing and administering the program4 7#d7 ,distribution of funds 7,a7 ,limitation ,an eligible entity that receives assistance under the program shall obligate the amounts for a covered project by not later than #e years after the date on which the funds are made available to the eligible entity1 unless the ,secretary determines otherwise4 7,b7 ,exclusion ,in the case of a covered project to support qualified beneficiaries in assessing1 purchasing1 acquiring1 or retaining eligible land for a period longer than the #e-year period described in subparagraph 7,a71 section #bjj4caa of title #b1 ,code of ,federal ,regulations 7or a successor regulation7 shall not apply4