Updated November 27, 2023
Farm Bill Primer: Beginning and Underserved Producers
U.S. food and agriculture policy provides support for farms
many SDFRs. USDA data indicate that SDFRs excluding
and ranches operated by beginning, small and limited
non-Hispanic White women accounted for about 9% of all
resource, and historically underserved farmers and ranchers.
farms, 10% of all farmed acres, and 8% of sales.
Although these producers generally are eligible for U.S.
Department of Agriculture (USDA) programs, recent farm
Selected Terms and Definitions
bills have provided targeted support addressing their needs.
The 2018 farm bill (P.L. 115-334) reauthorized and
Beginning farmer or rancher—a “term as defined by the
expanded existing support and expanded support for
Secretary” whereas a qualified beginning farmer or rancher
beginning, veteran, and socially disadvantaged producers.
means “an applicant ... who is eligible for assistance...who has
In addition, Congress has provided additional targeted
not operated a farm or ranch, or who has operated a farm or
support for these producer groups in recent Agriculture
ranch for not more than 10 years” among other requirements
appropriations and ad hoc emergency spending laws. (See
(7 U.S.C. §1991(a)(8) and (11)). For the purposes of crop
text box for selected descriptions in the U.S. Code.)
insurance, a beginning producer is “a farmer or rancher who
has not actively operated and managed a farm or ranch with a
Beginning and Underserved Producers
bona fide insurable interest in a crop or livestock as an
Beginning, veteran, limited resource and smaller-sized, and
owner-operator, landlord, tenant, or sharecropper for more
historically underserved farmers and ranchers represent a
than 5 crop years.... ” (7 U.S.C. §1502(b)(3)).
diverse, growing, and recognized share of all U.S.
Underserved producer—“an individual (including a member
agricultural producers. This includes socially disadvantaged
of an Indian Tribe) that is - (I) a beginning farmer or rancher;
farmers or ranchers (SDFRs) or producers who are a
(II) a veteran farmer or rancher; or (III) a socially
member of a group whose members have been subjected to
disadvantaged farmer or rancher” (7 U.S.C. §1508(a)(7)(A)(i )).
racial, ethnic, or gender discrimination.
Veteran farmer or rancher—“a farmer or rancher who has
served in the Armed Forces (as defined in section 101(10) of
Beginning and veteran farmers and ranchers are those who
title 38) and who - (A) has not operated a farm or ranch; (B)
have operated a farm or ranch for not more than 10 years
has operated a farm or ranch for not more than 10 years; or
and in the case of veterans, also have served in the Armed
(C) is a veteran (as defined in section 101 of that title) who
Forces. Limited-resource farm households are those with
has first obtained status as a veteran (as so defined) during the
two consecutive years of low farm sales and low household
most recent 10-year period” (7 U.S.C. §2279(A)(7)). For the
income, defined by USDA as direct or indirect gross farm
purposes of crop insurance, a veteran producer is “a farmer
sales of not more than $180,300 (FY2020) and household
or rancher who ... has operated a farm or ranch for not more
income below the national poverty line for a family of four.
than 5 years” (7 U.S.C. §1502(b)(14)).
Socially disadvantaged farmer or rancher—“a farmer or
The most recent 2017 Census of Agriculture reports there
rancher who is a member of a socially disadvantaged group”
were 516,000 farms where the “principal producer is a new
where, depending on the program, a social y disadvantaged
and beginning producer,” representing about one-fourth of
group means either “a group whose members have been
all U.S. farm operations. Agricultural products sold by
subjected to racial or ethnic prejudice because of their
beginning producers totaled $60.4 billion or about 15% of
identity as members of a group without regard to their
total U.S. farm-level sales in 2017. Land in farms operated
individual qualities” (7 U.S.C. §2279(a)(6), or “a group whose
by beginning producers accounted for about 16% of all land
members have been subjected to racial, ethnic, or gender
in farming. These data may include some veteran, small and
prejudice because of their identity as members of a group
limited resource, and historically underserved producers.
without regard to their individual qualities” (7 U.S.C.
§2003(e)(1)).
USDA estimates about 7% of farm households were
classified as limited-resource operations in 2016. Limited
Indian—“a person who is a member of an Indian tribe” where
resource operations tend to be smaller-sized, operated by
an “Indian Tribe” means “any Indian tribe, band, nation, or
older or retired persons, or have lost money farming
other organized group or community, including any Alaska
(measured on a cash basis). USDA reports more than
Native vil age or regional or vil age corporation as defined in
370,000 producers who either served or are serving in the
or established pursuant to the Alaska Native Claims
military, account for 11% of all U.S. producers in 2017.
Settlement Act (85 Stat. 688) [43 U.S.C. 1601 et seq.], which
is recognized as eligible for the special programs and services
SDFRs (including women, regardless of race and ethnicity)
provided by the United States to Indians because of their
accounted for about 30% of all U.S. farm operators, 21% of
status as Indians” (25 U.S.C. §5304(d)-(e); Indian Self-
all farmed acres, and 13% of the value of all agricultural
Determination and Education Assistance Act (P.L. 93-638)).
sales in 2017, according to Government Accountability
Office analysis. Non-Hispanic White women account for
USDA program eligibility depends on specific and
sometimes different definitions. For example, a beginning
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Farm Bill Primer: Beginning and Underserved Producers
or veteran producer generally is defined as having engaged
S. 2912) and other services (H.R. 1450/S. 697, H.R. 3307,
in farming for no more than 10 years, but eligibility for
H.R. 3964). Some bills would expand USDA programs or
federal crop insurance limits the time period to five years.
establish set-asides for beginning, SDFRs, and other
SDFR status also depends on the program. In general,
underserved producers to support agricultural resiliency
USDA defines SDFRs as belonging to African Americans,
related to climate change (H.R. 1840/S. 1016) or would
American Indians, Alaskan Natives, Asians, Hispanics,
provide other types of emergency relief. Another proposal
Pacific Islanders, refugees, immigrants, and groups as
would require USDA to raise beginning, veteran, and SDFR
determined by the Secretary of Agriculture. USDA
participation in farm-to-school programs (S. 3129). Others
regulations further define eligible entities under some
would provide additional training and support for veteran
programs to include 1890 Institutions (historically Black
and beginning producers (H.R. 3084, S. 2614) or would
land-grant colleges and universities), 1994 Institutions
expand SNAP benefits for disabled veterans (H.R. 3698).
(Alaska Native and American Indian tribal colleges and
universities), and Hispanic-serving colleges and
Congress may consider these and other program changes in
universities. Some SDFR-focused programs cover women.
the next farm bill. Topics may include expanded support for
Many USDA programs relating to commodity support,
beginning and small/mid-sized farms, including creating
credit, noninsured crop assistance, and rural development
additional income opportunities, providing more equal
that support SDFRs apply the SDFR definition that includes
access to USDA programs and resources, and facilitating
women. In contrast, some USDA programs relating to
entry to farming and transition to sustainable and organic
grants, conservation, and energy tend to reference the
agricultural practices. Some seek to amend the statutory
SDFR definition that excludes non-Hispanic White women.
definitions of veteran producers that generally restrict most
USDA program benefits to those engaged in farming during
Farm Bill Programs and Provisions
the past 10 years (or five years for federal crop insurance).
Title XII, Subtitle C, of the 2018 farm bill (Historically
Underserved Producers) addresses USDA support for
Congress may consider ongoing efforts to expand racial,
beginning, veteran, and socially disadvantaged producers.
ethnic, and gender equity in USDA’s delivery of services
The subtitle expands training and outreach to these
and support. Topics and related debate may include the
producer groups under the Farming Opportunities Training
following: if and how to amend USDA programs to address
and Outreach program, merging two formerly separate
historical discrimination of underserved producers and
USDA programs, the Beginning Farmer and Rancher
provide more equal access to assistance; loan forgiveness
Development Grant Program and the Outreach and
and access to credit for certain targeted producer groups;
Assistance to Socially Disadvantaged and Veteran Farmers
and prioritization of underserved producers in competitive
and Ranchers (2501 Program). The subtitle provides new
grant programs and increased investment in Historically
support and grant funding for urban agricultural producers
Black Colleges and Universities, Hispanic-Serving
and supports tribal and veteran producers, among other
Institutions, and Tribal Colleges and Universities. Congress
changes. These, along with provisions in other farm bill
also may consider expanding self-governance authority for
titles, expand on existing USDA programs and policies
Indian tribes, including addressing potential barriers to
initiated in previously enacted omnibus farm bills for
implementing USDA’s food and nutrition programs and
beginning, veteran, and socially disadvantaged producers.
certain land use policies.
Considerations for the Next Farm Bill
Information in Other CRS Products
Some in Congress seek to expand support for underserved,
CRS In Focus IF12475, Outreach for Socially Disadvantaged
beginning, and veteran farmers and ranchers. As Congress
Producers (2501 Program)
debates the next farm bill, it might consider various
CRS Report R46727, Defining a Socially Disadvantaged Farmer or
legislation. Among the bills introduced in the 118th
Rancher (SDFR): In Brief
Congress are proposals to address historical discrimination
and racial inequities toward some producer groups in
CRS In Focus IF12160, Farm Bill Primer: Support for Native
accessing USDA services and assistance (e.g., through loan
Agricultural Producers
forgiveness or deferment, targeted assistance, and/or
CRS In Focus IF11287, 2018 Farm Bill Primer: Support for Indian
instituting reforms at USDA [H.R. 5296/S. 96]). Congress
Tribes
had provided farm loan debt forgiveness provision for
CRS In Focus IF11227, 2018 Farm Bill Primer: Beginning Farmers
SDFRs as part of the American Rescue Plan Act (P.L. 117-
and Ranchers
2), but various courts have blocked implementation because
of how it directed benefits based on race. The Inflation
CRS In Focus IF11093, 2018 Farm Bill Primer: Veteran Farmers
Reduction Act of 2022 (P.L. 117-169, §22006) later
and Ranchers
reoriented financial assistance based on economic criteria to
CRS Report R47066, Racial and Ethnic Equity in U.S. Agriculture:
provide $3.1 billion to help certain distressed farm loan
Selected Current Issues
borrowers and $375 million of technical assistance and land
CRS memoranda (available to congressional clients from
loss assistance for various underserved producers.
author upon request): Selected USDA Programs and Policies that
Address Beginning and Historically Underserved Producers; and
Other bills would expand financial and technical assistance
Selected USDA Programs and Policies that Address Indian Tribes
for certain producer groups. Some proposals would increase

Indian tribes’ control over administration of supplemental
nutrition assistance program (SNAP) benefits (H.R. 5970,
Renée Johnson, Specialist in Agricultural Policy
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Farm Bill Primer: Beginning and Underserved Producers

IF12096


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