H.R. 2536

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2536 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 2536

To establish the New Producer Economic Security Program within the Farm 
Service Agency Office of Outreach and Education.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 1, 2025

Ms. Budzinski (for herself, Mr. Nunn of Iowa, Mr. Courtney, Mr. Davis 
of North Carolina, Mr. Sorensen, Ms. Tokuda, and Mr. Vasquez) 
introduced the following bill; which was referred to the Committee on 
Agriculture

_______________________________________________________________________

A BILL

To establish the New Producer Economic Security Program within the Farm 
Service Agency Office of Outreach and Education.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``New Producer Economic Security 
Act''.

SEC. 2. NEW PRODUCER ECONOMIC SECURITY PROGRAM.

(a) Definitions.--In this section:
(1) Authorized legal entity.--The term ``authorized legal 
entity'' means any corporation, business trust, estate, trust, 
partnership, limited liability company, association, joint 
venture, public corporation, cooperative, pension or investment 
fund, or any other legal or commercial entity organized or 
created under the laws of any State that meets each of the 
following requirements:
(A) The entity is not a subsidiary of, or owned in 
any part by, a multilayered subsidiary entity.
(B) The shareholders, partners, members, or 
beneficial owners of the entity do not exceed 25 
individuals.
(C) The shareholders, partners, members, or 
beneficial owners of the entity are all natural persons 
who--
(i) regularly and frequently make, or take 
an important part in making, management 
decisions substantially contributing to or 
affecting the operation of a farm or forest; or
(ii) perform physical work that 
significantly contributes to cultivation, 
stewardship, crop or livestock production, or 
food production.
(2) Covered project.--The term ``covered project'' means a 
project described in subsection (e).
(3) Eligible entity.--
(A) In general.--The term ``eligible entity'' means 
an entity that--
(i) has demonstrated experience in serving 
qualified beneficiaries; and
(ii) is--
(I) a State, local, or territorial 
government;
(II) an Indian Tribe or Tribal 
organization (as those terms are 
defined in section 4 of the Indian 
Self-Determination and Education 
Assistance Act (25 U.S.C. 5304));
(III) a Native community 
development financial institution 
certified by the Secretary of the 
Treasury;
(IV) a community development 
financial institution (as defined in 
section 103 of the Community 
Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 
4702)) certified by the Secretary of 
the Treasury, acting through the 
Director of the Community Development 
Financial Institutions Fund established 
under section 104(a) of that Act (12 
U.S.C. 4703(a));
(V) an organization described in 
paragraph (2) or (3) of section 501(c) 
of the Internal Revenue Code of 1986 
and exempt from tax under section 
501(a) of such Code;
(VI) a foundation;
(VII) a cooperative entity;
(VIII) an institution of higher 
education (as defined in section 101 of 
the Higher Education Act of 1965 (20 
U.S.C. 1001));
(IX) a financial institution 
described in section 1.7(b)(1)(B) of 
the Farm Credit Act of 1971 (12 U.S.C. 
2015(b)(1)(B)); and
(X) any other appropriate partner, 
as determined by the Secretary.
(B) Exclusion.--The term ``eligible entity'' does 
not include a corporation that is foreign-based or 
foreign-owned.
(4) Eligible land.--
(A) In general.--The term ``eligible land'' means--
(i) agricultural land;
(ii) private land;
(iii) urban land;
(iv) public land, including Federal, State, 
and municipally owned or managed land;
(v) lands held in common that are 
controlled and managed by groups of 
individuals;
(vi) lands held in trust;
(vii) multiple parcels of land described in 
any of clauses (i) through (vi) that are 
noncontiguous; and
(viii) public or private shoreline or 
intertidal zone areas, which may be wholly or 
partially underwater.
(B) Exclusion.--The term ``eligible land'' does not 
include a natural area (as defined in section 650.23(a) 
of title 7, Code of Federal Regulations (or successor 
regulations)).
(5) Program.--The term ``program'' means the New Producer 
Economic Security Program established under subsection (b).
(6) Qualified beneficiary.--
(A) In general.--The term ``qualified beneficiary'' 
means a farmer, a rancher, or a forest owner who--
(i) is a natural person;
(ii) is--
(I) a shareholder in an authorized 
legal entity;
(II) an officer, director, or 
employee of an authorized legal entity;
(III) a member or manager of an 
authorized legal entity;
(IV) a partner in an authorized 
legal entity;
(V) a beneficiary or trustee of an 
authorized legal entity; or
(VI) any other individual who--
(aa) regularly and 
frequently makes, or takes an 
important part in making, 
management decisions 
substantially contributing to 
or affecting the operation of a 
farm or forest; or
(bb) performs physical work 
that significantly contributes 
to cultivation, stewardship, 
crop or livestock production, 
or food production; and
(iii)(I) has never operated, or has not 
operated for more than 10 consecutive years, a 
farm or a ranch;
(II) operates only on rented or leased 
land;
(III) has an income that is at or below 200 
percent of the national poverty level or half 
of the median household income of the county in 
which the natural person is located; or
(IV) is economically disadvantaged, as 
determined by the Secretary.
(B) 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 (A).
(7) Secretary.--The term ``Secretary'' means the Secretary 
of Agriculture.
(b) Establishment.--The Secretary shall establish within the Farm 
Service Agency a competitive program, to be known as the ``New Producer 
Economic Security Program'', to make grants to, enter into cooperative 
agreements with, or provide other capital support to eligible entities 
to carry out covered projects in accordance with subsection (e).
(c) Purpose.--The purposes of the program are--
(1) to strengthen the food systems security of the United 
States by efficiently investing in community-led solutions to 
increasing access to land, capital, and markets for qualified 
beneficiaries; and
(2) to support projects that--
(A) support farm establishment and long-term farm 
business viability;
(B) support the financial viability of qualified 
beneficiaries;
(C) support the physical and mental health of 
qualified beneficiaries;
(D) increase land access;
(E) prevent land loss;
(F) establish innovative ways to make land 
accessible to qualified beneficiaries;
(G) transition farmland from existing landowners to 
qualified beneficiaries; and
(H) provide appropriate technical assistance 
related to permissible activities described in 
subsection (e)(2).
(d) Selection.--
(1) Application requirements.--To be eligible to receive 
assistance under the program, an eligible entity shall submit 
to the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may require, 
including--
(A) information demonstrating that the covered 
project the eligible entity seeks to carry out is 
designed--
(i) to serve qualified beneficiaries; and
(ii) to meet the purposes of the program 
described in subsection (c);
(B) a description of how project activities will 
support the long-term financial viability of qualified 
beneficiaries;
(C) a plan for notification and consultation with 
local Tribal governments for the future sale of land, 
if applicable;
(D) an analysis of anticipated benefits to the 
community and the agricultural economy within the 
project area; and
(E) a plan for evaluation, data management, 
communication, and reporting of project findings and 
results.
(2) Evaluation and selection of applications.--
(A) Evaluation process.--The Secretary shall 
develop a process for evaluating and selecting 
applications submitted under paragraph (1) in 
collaboration with the stakeholder committee 
established under subparagraph (B).
(B) Stakeholder committee.--
(i) In general.--Not later than 180 days 
after the date of enactment of this Act, 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 (1).
(ii) Consideration.--The Secretary shall 
ensure that the stakeholder committee 
established under clause (i) includes 
perspectives reflecting--
(I) the complexity of the rural and 
urban agricultural landscapes of the 
United States; and
(II) the wide variety of 
agricultural production models employed 
by qualified beneficiaries.
(C) Priority.--In selecting applications submitted 
under paragraph (1), the Secretary shall give priority 
to applications for covered projects that--
(i) provide direct financial assistance to 
qualified beneficiaries;
(ii) involve a substantial and effective 
collaborative network or partnership of public 
or private entities;
(iii) include a right of first refusal for 
Tribal citizens or governments when land 
becomes available on or near Tribal 
communities;
(iv) involve mechanisms, such as a deed 
restriction or conservation easement, that 
restrict the resale value of eligible land to 
protect the land for agricultural use;
(v) support the voluntary transition of 
agricultural land from existing producers to 
qualified beneficiaries;
(vi) provide technical assistance, 
including translation and interpretation 
services;
(vii) include activities under subsection 
(e) designed to support farmworkers; or
(viii) 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 outcomes.
(e) Covered Projects.--
(1) 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 land, capital, and markets, which may include 
payments--
(A) to acquire real property (including air rights, 
water rights, and other interests therein), including 
closing costs;
(B) to subsidize interest rates and mortgage 
principal amounts for qualified beneficiaries;
(C) to provide down payment assistance to decrease 
farm mortgages;
(D) to secure clear title on heirs' property;
(E) to conduct surveys and assessments of eligible 
land;
(F) to improve or remediate land, water, and soil;
(G) to construct or repair infrastructure;
(H) to support land use planning;
(I) to acquire succession planning assistance;
(J) to carry out Tribal consultation;
(K) to support acquisition of a Department of 
Agriculture farm number; and
(L) for any other activities, as determined by the 
Secretary.
(2) Permissible activities.--An eligible entity that 
receives assistance under the program may use the funds--
(A) for activities associated with strengthening 
the economic security of qualified beneficiaries by 
increasing access to markets and capital;
(B) to provide direct assistance to qualified 
beneficiaries in assessing, purchasing, acquiring, or 
retaining eligible land;
(C) for activities designed to support farm 
establishment and long-term viability;
(D) to establish a revolving loan fund or other 
innovative financial mechanism designed for the purpose 
of investing in covered projects beyond the initial 
project timeline; and
(E) to provide technical assistance that meets the 
specific needs of, and is accessible to qualified 
beneficiaries, including--
(i) providing translation and 
interpretation services;
(ii) developing and carrying out strategies 
to identify unique needs and gaps in access, 
knowledge, and services; and
(iii) specialized consultation, training, 
coaching, capacity building, and mentoring 
focused on--
(I) accessing, purchasing, 
acquiring, or retaining eligible land;
(II) comprehension of, preparation 
to apply for, and complying with 
Department of Agriculture programs;
(III) succession planning;
(IV) market planning and risk 
analysis;
(V) cooperative development;
(VI) legal and tax issues;
(VII) developing business plans and 
feasibility studies;
(VIII) financial planning and 
recordkeeping;
(IX) enterprise, business, and 
labor management; and
(X) any other activities as 
determined by the Secretary.
(3) Subcontract.--An eligible entity may subcontract with 
an organization to carry out a use or activity under paragraph 
(1) or (2) if the services of the subcontractor are necessary.
(4) Funding mechanism.--
(A) Eligible entities.--The Secretary shall make 
funding available under the program to eligible 
entities in the form of--
(i) grants;
(ii) cooperative agreements;
(iii) capitalization loans, in the case of 
an activity described in paragraph (2)(D); or
(iv) other means, as determined by the 
Secretary.
(B) Qualified beneficiaries.--In carrying out 
covered projects under the program, an eligible entity 
shall provide direct assistance to qualified 
beneficiaries in the form of--
(i) grants;
(ii) loans (both long-term and interim); or
(iii) other direct payments or assistance, 
as determined by the Secretary.
(5) 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 assistance.
(f) Funding.--
(1) Authorization of appropriations.--There are authorized 
to be appropriated to the Secretary such sums as are necessary 
to carry out this section.
(2) Agency contribution account.--In addition to amounts 
otherwise made available under paragraph (1), the Secretary may 
use funds available through 1 or more contribution accounts 
established under section 1241(f)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3841(f)(1)).
(3) Administration.--Of the amounts made available to carry 
out the program, the Secretary may use an appropriate amount 
for the costs of implementing and administering the program.
(4) Distribution of funds.--
(A) Limitation.--An eligible entity that receives 
assistance under the program shall obligate the amounts 
for a covered project by not later than 5 years after 
the date on which the funds are made available to the 
eligible entity, unless the Secretary determines 
otherwise.
(B) Exclusion.--In the case of a covered project to 
support qualified beneficiaries in assessing, 
purchasing, acquiring, or retaining eligible land for a 
period longer than the 5-year period described in 
subparagraph (A), section 200.311 of title 2, Code of 
Federal Regulations (or a successor regulation) shall 
not apply.
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