Rural Coalition

Untitled

For further information, please contact Lorette Picciano, lpicciano@ruralco.org, Savi Horne, Policy Team Chair, savi@landloss.org, Quinton Robinson, qrobinson@ruralco.org, or Michael Harris, khubaka@yahoo.com by email or at the address at the bottom of this page.

House Version of the Farm Bill Includes Critical and Long Sought Advances for Socially Disadvantaged Farmers and Ranchers, More Sought as Debate Moves to the Senate

Our nation's agricultural producers are becoming increasingly ethnically diverse, yet USDA programs and services have historically underserved socially disadvantaged farmers and ranchers, and have failed to recognize farmworkers as a part of agriculture. The provisions as passed in the House version of the Farm Bill (HR 2419) would help counteract lasting patterns of past discrimination and emphasize the importance of investing in these producers. The bill includes specific measures that direct more benefits to Socially Disadvantaged Farmers and Ranchers (SDFR), as well as taking steps to hold the USDA accountable for monitoring and removing gaps in service.

The leaders of the Food and Farm Policy Diversity Initiative noted that the package included more than was ever done before and that for the first time, both the Administration and Congress recognized the need for improvement for socially disadvantaged farmers and ranchers. The leaders also strongly felt the farm bill package could and should be improved by also directing more resources to allow socially disadvantaged producers to catch up and more fully participate in the USDA programs from which they have long been excluded and in providing a place at the table for farmworkers. The group proposed one new program to improve access and other measures to set aside funds in a variety of other USDA programs.

What's In HR 2419?

As a whole, HR 2419 made numerous improvements in how USDA serves minority farmers. The bill also includes a total of about $500 million in mandatory funds specifically set aside to assist socially disadvantaged farmers and ranchers in conservation, marketing, outreach, technical assistance, and other services.

HR 2419 as passed by the House of Representatives:

Improves and increases funding for the 2501 SDFR Outreach and Technical Assistance Program. (Made mandatory with $15 million provided per year for 5 years)
Provides a new avenue for court consideration of late filed or unresolved claims in the Pigford v. Glickman Consent Decree with a $100 million fund established for settlements Increases Requirements for Transparency and Accountability for Socially Disadvantaged Farmers and Ranchers.
Establishes a Farmworker Coordinator in the USDA Office of Outreach.
Provides more accurate tracking of Socially Disadvantaged Farmers and Ranchers in the Ag Census
Provides a 5% set-aside of the funds for the Environmental Quality Incentives Program to benefit Socially Disadvantaged Farmers and Ranchers ($430 Million Over 5 Years)
Provides a 10% Set-Aside for Value Added Marketing Program to Benefit Socially Disadvantaged Farmers and Ranchers ($3 Million Over 5 Years)
Provides a 20% Set Aside for Cooperative Development for to Benefit Socially Disadvantaged Farmers and Ranchers (When at least $7.5 Million is appropriated during a given fiscal year)
Increases funding and support for Minority Serving Institutions

The attached Diversity Initiative report reviews the provisions included in HR 2419 that will directly affect socially disadvantaged farmers and ranchers and farmworkers.

What Still Needs Action in the Senate

Although many Diversity Initiative priorities were included in the House bill, the debate now moves to the Senate after the August recess. Goals now include retaining what was achieved in the House Bill and seeking to include some priorities that still need to be added.

A brief overview of key priorities the Diversity Initiative that should be added in the Senate:

Halting foreclosures, accelerations and adverse actions against socially disadvantaged farmers and ranchers.
Establishment of the Comprehensive Socially Disadvantaged Producers Initiative to open the doors of USDA and provide support to these producers.
Establishment of an office of Advocacy and Access to coordinate USDA Services to socially disadvantaged farmers and ranchers.
Farm and Ranch Land Protection improvements and10 % set aside for socially disadvantaged farmers in all Conservation Programs.
Set aside 10% of Specialty Crops funding to promote involvement of diverse producers in supplying fresh foods.
Increase funding to at least $50 million per year for the Minority Farmer and Rancher Outreach and Technical Assistance Program.
Establish a standing emergency fund for farmworkers in times of disasters.
Improve Forestry programs to respect cultural uses of land and to include landowners of diverse cultures in decision-making.
Establish Policy Centers to serve Socially Disadvantaged Producers and Rural Communities.

Provisions Affecting Socially Disadvantaged Farmers and Ranchers (SDFR), Indian Tribes, Farmworkers and Minority Serving Institutions in HR 2419, the 2007 Reauthorization of the Farm Bill

Report by the Farm and Food Policy Diversity Initiative

Updated 7/31/07

Late update: The House version of the 2007 Farm Bill passed the House Floor on July 26, 2007
Manager's Amendment included:

Allows farmers with discrimination claims not resolved or heard under the current Pigford v. Veneman case to have a day in court, and establishes a $100 million fund to settle these claims.
Expands a program to help resolve fractionated ownership of land.
Removes a 25% match requirement added in Committee to the minority farm outreach program.

The House Version of the Farm Bill Provides Farmers who Filed Requests Under the Pigford Case a Chance to Get their Day in Court (added to Managers Amendment)

The Pigford v. Veneman Lawsuit involved claims of discrimination in USDA programs against black farmers.

The case was settled and black farmers were guaranteed some funds in the consent degree.
Due to inadequate notice and arbitrary deadlines, many farmers did not get their day in court.
The bill provides that day in court and establishes a $100 million fund that can be replenished by Congress to settle these claims.

The House Version of the Farm Bill Strengthens USDA Outreach, Technical Assistance, Transparency and Accountability

Strengthening the Socially Disadvantaged Farmers and Ranchers Outreach and Technical Assistance Program (Miscellaneous Title)

Outreach focused on socially disadvantaged farmers and ranchers, with real transparency and accountability, are essential to achieving equity at USDA. The Section 2501 Outreach and Technical Assistance Program remains a core partnership between USDA and community based organizations and minority serving institutions, which have helped socially disadvantaged producers remain on their land. This section increases program funding to $15 million per year for 5 years for a total of $75 million. It also makes this funding mandatory from the Commodity Credit Corporation

Furthermore, this section amends the 2501 program to better meet the needs of Socially Disadvantaged Farmers and Ranchers by:

Enhancing the coordination of the outreach, technical assistance, and educational efforts authorized under agriculture programs.
Assisting the Secretary in reaching and improving participation of prospective Socially Disadvantaged Farmers and Ranchers.
Allowing any agency in the USDA to make grants and enter in to contracts with Community Based Organizations.
Requiring the Secretary within 18 months to develop a plan to join and relocate the Office of Outreach and the 2501 program, with a report to Congress.
The Committee Bill included an onerous requirement not previously a part of the program that eligible entities must provide a 25% match to all grants, which was removed in the Manager's amendment on the House Floor.
Requiring of the Secretary an annual report to the House and Senate Agriculture Committees that includes the following:

List of recipients of funds made available by the program
The activities undertaken and services provided
The number of producers served and outcomes of such service
The problems and barriers identified by entities in trying to increase Socially Disadvantaged Farmer and Ranchers participation

Program Relocation to the USDA Office of Outreach (Miscellaneous Title)

This section moves the 2501 Outreach and Technical Assistance Program (1990) and the 7405 Beginning Farmer and Rancher Development Program (2002) to the Office of Outreach in the Department of Agriculture.

Transparency, and Accountability for Socially Disadvantaged Farmers and Ranchers (Miscellaneous Title)

This section improves requirements to allow monitoring of participation of producers in USDA programs by requiring the following of the Secretary of Agriculture:

Provide an annual compilation of application and participation rate data for Socially Disadvantaged Farmers and Ranchers in each program that serves farmers nationally and by State and by County/Parish including:

The raw number of applicants and participants by race, ethnicity, and gender, as a percentage of the total participation rate of all agricultural producers and landowners

This section also gives authority and requires all heads of the agencies of the Department of Agriculture to collect and transmit any data to the Secretary, including data on race, gender, and ethnicity. Furthermore, this section requires of the Secretary to develop a report that provides the application and participation rate data in a form that is readily available to the public via the USDA website.

Receipt for Service or Denial of Service (Miscellaneous Title)

This section requires the Department of Agriculture of provide a receipt or service or denial of service in any case in which a producer or landowner, or prospective producer or landowner, requests from the Department any benefit or service offered. The receipt shall include the following information:

Date, place, and subject of the request
Action taken, or not taken, or recommendations made in response to the request for service

Accurate Tracking of Socially Disadvantaged Farmers and Ranchers in the Ag Census (Miscellaneous Title)

This section requires the Secretary to ensure, to the maximum extent practicable, that the Census of Agriculture and studies carried out by the ERS accurately document the number, location, and economic contributions of Socially Disadvantaged Farmers and Ranchers in agricultural production.

Office of Farmworker Coordination (Miscellaneous Title)

An Office of Farmworker Coordination is established in the Office of Outreach of the USDA to be led by a Farmworker Coordinator. The responsibilities of the Office and Coordinator include but are not limited to the following:

Administering the Emergency Grants to Farmworker Program (7 USC 2281) contained in the Food, Agriculture, Conservation, and Trade Act of 1990.
Serving as a liaison to Community Based Non-Profit Organization's and Minority Serving Institutions that represent and serve the needs of farm-workers.
Coordinating with the USDA and State and local agencies to assure that the needs of Farm-workers are assessed and met during times of declared disasters and other emergency situations.
Consulting with the Office of Small Farm Coordination, Office of Outreach, Outreach Coordinators, and other entities to better integrate Farm-worker perspectives, concerns, and interests into the ongoing programs of the Department.
Consulting with Hispanic Serving Institutions on research, program improvements, or agriculture education opportunities that assist low-income and migrant seasonal Farm-workers.
Assuring that Farmworkers have access to services and support to enter agriculture as producers.

USDA Offices on Indian Reservations (Miscellaneous Title)

This title removes the language that prohibits the USDA from funding the establishment of local USDA Agency Offices on Indian Reservations.

Minority Farmer Advisory Committee (Miscellaneous Title)

This section establishes the "Advisory Committee on Minority Farmers", in the Office of Outreach of the Department of Agriculture. The responsibilities of said committee include but are not limited to the following:

Reviewing all civil rights cases to ensure that they are processed in a timely manner
Ensuring that the processing of civil rights cases complies with applicable laws
Reporting quarterly to the Secretary of Agriculture on civil rights enforcement and outreach
Monitoring and annually report to Congress on compliance with all civil rights and related laws by all agencies and under all programs of the Department
Recommending to the Secretary corrective actions to prevent civil rights violations
Reviewing the operations of the outreach and technical assistance program established under section 2501 of the Food, Agriculture, Conservation, and trade Act of 1990.

The committee will be composed of at least 9 members including the following:

Three members appointed by the Secretary of Agriculture
Two members appointed by the Chairman of the Senate Ag Committee
Two members appointed by the Chairman of the House Ag Committee
A civil rights professional
A Socially Disadvantaged Farmer or Rancher
Any other persons or professional as determined by the Secretary to be appropriate

Targeting Risk Management Education For Beginning Farmers and Socially Disadvantaged Farmers and Ranchers (Miscellaneous Title)

Provides special emphasis on risk management strategies and education and outreach specifically targeted at Socially Disadvantaged, Immigrant, Transition and Beginning Farmers and Ranchers.

The House Version of the Farm Bill Improves Access to Conservation Programs

Access to Conservation Programs (Conservation Title)

Socially Disadvantaged Farmers and Ranchers participate at low rates in most conservation programs.

This section improves their participation by establishing a 5% set-aside of funds in the EQIP program for socially disadvantaged farmers and ranchers. ($430 Million in Mandatory Funds over 5 years)

This section also establishes a global cost share rate across all Conservation programs of 90% for socially disadvantaged farmers and ranchers.

Recognition of Indian Tribes as an official Partner for the Water Enhancement Program (Conservation Title)

This section recognizes Indian Tribes as partners with the Secretary to carry out regional water enhancement activities.

Simplified Application Process for Conservation Programs (Conservation Title)

Under this title the NRCS is required to make available a single, simplified application process to produces and landowners in initially requesting assistance under conservation programs.

This section simplifies the application process by:

Eliminating the requirement of information that duplicates information and resources that are already available to the Secretary.
Streamlining the process to minimize complexity and redundancy.

Access to Land and Credit for Socially Disadvantaged Farmers and Ranchers, Including New Entry/Transition and Succession Producers (Credit Title)

Current access-to-credit programs and loan servicing options do not meet needs of socially disadvantaged producers.

HR 2419 attempts to improve the current situation by:

Establishing annual performance goals to promote the use of down payment loan programs and other joint financial participation loans.
Requiring the Secretary to guarantee a loan made by a private seller of a farm or ranch to a qualified Beginning and Socially Disadvantaged Farmer and Rancher on a contract land sales basis.
Establishing a loan guarantee program to help farmers carry out conservation programs

Creates a program that allows USDA to provide loans to farmers and ranchers to carry out conservation projects
Requires the Secretary, when making or guaranteeing loans for soil and water conservation and protection to give priority to:

Qualified beginning farmers or ranchers;
Socially disadvantaged farmers or ranchers;
Producers who use the loans to build conservation structures or establish conservation practices.

Prioritizing Socially Disadvantaged and Beginning Farmers and Ranchers in Credit Programs

Increases the amount of direct farm ownership loans, guaranteed farm ownership loans, direct farm ownership loans reserved for down payment and direct operating loans for beginning farmers and ranchers.
Makes adjustments to the Beginning Farmer and Rancher Down Payment Loan Program, including fixing the interest rate at 4% below the regular direct farm ownership loan interest rates or 1%, whichever is greater; maximum allowable sales price is increased from $250,000 to $500,000; the borrower down payment requirement is reduced to not less than 5%; the FSA portion is increased to 45%; and the term of the loan is changed from 15 years to 20 years;
Makes Socially Disadvantaged farmers and ranchers eligible for the Beginning Farmer and Rancher Down Payment Loan Program.
Restores priority given to socially disadvantaged farmers and ranchers whenever the Secretary of Agriculture sells or leases property.
Extends the right of first refusal to reacquire a homestead property to members for the immediate family member of borrower-owners who are socially disadvantaged farmers or ranchers.

Expanding the Land Contract Pilot Program

Extends the current 2-year limit on payment guarantees to 3 years.
Provides land sellers the option of choosing either the 3 year guarantee or a standard 90% guarantee
Makes Socially Disadvantaged Farmers and Ranchers eligible for the program
Program Basics:

The program provides loan guarantees to sellers who self-finance the sale of land to beginning farmers and ranchers.

Improving the Tribal Land Acquisitions Loan Program

Provides additional tools to help Native American producers keep tribal lands in agricultural production.
Amends the current program to allow individual tribal members to utilize the program.

Loans to Purchasers of Highly Fractioned Lands (Credit Title)

Authorizes the Secretary of Agriculture to make and insure loans as provided in section 309 of the Consolidated Farm and Rural Development Act to eligible purchasers of highly fractionated land.

The 2007 Farm Bill Increases Opportunities for Socially Disadvantaged Farmers and Ranchers to Purchase Farmland by:

Allowing beginning or socially disadvantaged farmers or ranchers to purchase land with pre-existing Conservation Reserve Program (CRP) contracts to return land to grazing or crop production.
The 2007 Farm Bill includes a new provision to allow retired landowners participating in CRP to modify their contracts if the land is being sold to a beginning or socially disadvantaged farmer or rancher. This would allow a beginning or socially disadvantaged farmer or rancher to return some of this land to grazing or crop production before the CRP contract expires.
Restoring the priority given to socially disadvantaged farmers and ranchers whenever the Secretary of Agriculture sells or leases property.
Extending the right of first refusal to reacquire a homestead property to members for the immediate family member of borrower-owners who are socially disadvantaged farmers or ranchers

The House Version of the Farm Bill Targets Rural Development Funds to High Priority Areas

Rural Cooperative Development Grants (Rural Development Title)

This section provides authority to award multi-year grants to Rural Cooperative Development centers that have successfully met the goals of the program. The Pomeroy Amendment to reserve 20% of the funds for cooperatives serving Socially Disadvantaged Farmers and Ranchers in years when more than $7.5 million is appropriated was also adopted.

10% Set Aside of Value-Added Market Development Funds for Socially Disadvantaged Farmers and Ranchers (Rural Development Title)

This section extends the Value-Added Agricultural Product Market Development Grant program with $30 million per year in mandatory funding while establishing a 10% set-aside of program funds for socially disadvantaged and beginning farmers and ranchers.

Rural Development Programs are also improved by:

Requiring the Secretary to assess the varying definitions of rural used by the U.S. Department of Agriculture and to make recommendations to Congress to better target funds through rural development programs.
Requiring USDA Rural Development funds to be used more effectively to prioritize the areas that are the most rural, with lower median household incomes.
Connecting rural areas with the rest of the world through broadband access
Improving access to broadband telecommunications services in rural areas with a greater focus on the rural communities of greatest need.
Authorizing the Community Connect Grant Program to provide grants to finance broadband transmission in rural areas to currently unserved rural communities.
Enhancing economic development and quality of life in high-priority regions
Extending the Delta Regional Authority, a federal-state partnership with Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri and Tennessee that has funded 334 projects in its first five years and led to the investment of more than $750 million in the region.
Advancing economic development in rural communities by supporting new businesses, improving access to technology, and capturing new markets
Authorizing a technology transfer program that provides technical information and resources for farmers practicing or transitioning to sustainable and organic farming practices.
Creating a new Rural Entrepreneur and Micro-enterprise Assistance Program to provide technical and financial assistance to micro-enterprises and small businesses in rural areas with less than 10 employees.

The House Version of the Farm Bill Provides Forestry Career Opportunities for Socially Disadvantaged Farmers and Ranchers (Forestry Title)

This section creates new opportunities for socially disadvantaged workers by:

Establishes a grant program to recruit and train Hispanics and underserved groups for careers in forestry and related fields.

The House Version of the Farm Bill Increases Equity for Minority Serving Institutions

Grants to Minority Serving Institutions to Expand Extension Capacity (Research Title)

This section encourages prioritization of additional funding for Historically Black Colleges and Universities (the 1890 institutions), Native American Colleges and Universities (the 1994 institutions), and small land grant universities.

EQUITY FOR 1890 LAND GRANT COLLEGES

Extension at 1890 Land Grant Colleges (Research Title)

This section increases the funding for Extension at1890 Land Grant Colleges from 15 to 20 percent of total funds.

Research at 1890 Land Grant Colleges (Research Title)

This section increases the funding for Research at 1890 Land Grant Colleges from 25 to 30 percent of total funds.

Grants to Upgrade Agriculture and Food Sciences Facilities at the 1890 Land Grant Colleges (Research Title)

This section extends a grant program to upgrade agricultural and food science research facilities at the 1890 Land Grant Colleges, including Tuskegee.

EQUITY FOR HISPANIC SERVING INSTITUTIONS

Expands access to funding, authority and eligibility for research and extension dollars for Hispanic Serving Agricultural Colleges and Universities. (Research Title)

Hispanic Americans make up the largest minority group population in the US, yet the colleges and universities that serve them are vastly under-funded.

HR 2419 addresses this disparity by:

Creating an endowment fund, institutional capacity building program to promote agriculture and sciences, and competitive grant proposal for Hispanic Serving Agricultural Colleges and Universities
Expanding extension capabilities for Hispanic Serving Agricultural Colleges and Universities
Amending existing authorities to ensure that Hispanic Serving Agricultural Colleges and Universities are eligible for such programs as the International Ag Research and Extension Program

EQUITY FOR 1994 INDIAN TRIBAL COLLEGES

Equity in Educational Land-Grant Status Act of 1994 (Research Title)

This Section extends the Endowment, Institutional Capacity Building and Research Grants programs for the 1994 Land-Grant Colleges.

UNIVERSITY OF THE DISTRICT OF COLUMBIA

Grants to Upgrade Agriculture and Food Sciences Facilities at the District of Columbia

This section provides $750,000 in budget authority for grants to the University of the District of Columbia to upgrade agricultural research facilities and includes the District of Columbia in the Smith-Lever Act and in the Hatch Act.

International Agriculture (Research Title)

This section includes Hispanic Serving Agricultural Colleges under the International Agriculture Research, Extension and Education Policy Act.