Farm Bill Primer: Federal Programs Supporting New Farmers

Farm Bill Primer: Federal Programs Supporting New Farmers

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Updated February 6, 2018
Farm Bill Primer: Federal Programs Supporting New Farmers
Beginning farmers and ranchers (BFRs)—generally defined
training/education, tax benefits, conservation, and programs
as having operated a farm or ranch for no more than 10
to match retiree landowners with buyers. Many of these
years (7 U.S.C. 3319f)—comprise an important part of the
programs are available to all U.S. farmers, while others
U.S. agricultural sector. Not only do they contribute to rural
specifically target new farmers. These programs have been
and non-rural economies, but they are considered to be
periodically reviewed in omnibus farm bill legislation.
critical given ongoing concerns about the aging U.S. farm
population, the so-called “disappearing middle” (i.e., mid-
Figure 1. BFRs, Share of All Farm Assets/Sales, 2012
sized farms both in terms of farm number and value of
sales), and general trends toward increasing consolidation
and fewer, larger farms. The 2014 farm bill (Agricultural
Act of 2014, P.L. 113-79) reauthorized and expanded
programs supporting new farmers and ranchers,
administered by the U.S. Department of Agriculture
(USDA). These programs target new farmers within
specific farm demographic groups based on age, race, and
gender, as well as socially disadvantaged (underserved)
farmers and farmers who are military veterans.
BFRs Data and Characteristics
USDA’s latest 2012 Census of Agriculture reports that there
were 522,000 BFRs, representing about one-fourth of the

2.1 million U.S. farms (Figure 1). Compared to the 2007
Census, however, the number of new farmers has declined
Figure 2. BFRs, Share of Farm Commodity Sales, 2012
by 20% (when there were a reported 650,000 new farmers).
These same trends held regardless of whether the operation
had been in business for fewer than five years or between
six and 10 years. (For the purposes of crop insurance
assistance, BFRs are alternatively defined as having
operated for no more than five years (7 U.S.C. 1502(b).)
According to USDA, new farmers were, on average,
younger than more established farmers. Among established
farmers (with more than 10 years in operation), about 40%
were 65 years or older, while 11% of farmers operating
their current farm five years or fewer were 65 or older. The
average age of farmers is 47 years for those in operation
five years or fewer, 51 years for those in operation six to 10

years, and 61 years for established farmers. Compared to
established farmers, new farmers were also more likely to
Figure 3. BFRs, Share of All Farmers, by County, 2012
be female, more likely to be minority, more likely to spend
some time working off the farm, and less likely to consider
farming their primary occupation.
As a share of total U.S. production value, new farmers are
more widely engaged in cattle, poultry, milk, fruits and tree
nuts (Figure 2). Figure 3 maps out where most new
farmers are concentrated throughout the nation.
USDA Programs and the Farm Bill
A number of resources identify existing USDA programs
and financial support, along with information on how to
start and plan a new farm. These include USDA’s new
farmer toolkit (https://newfarmers.usda.gov/) and resources

from the National Sustainable Agriculture Coalition
Source: USDA, 2012 Census data (farms operating under 10 years).
(NSAC) and other organizations. Existing federal programs
with new farmer provisions include crop insurance, disaster
Policies supporting new farmers can be traced back to the
assistance, loans and grants, loan repayment assistance,
early 1990s. Both the 1996 farm bill (P.L. 104-127) and
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Farm Bill Primer: Federal Programs Supporting New Farmers
2002 farm bill (P.L. 107-171) established certain provisions
Selected Farm Bill Provisions (P.L. 113-79)
supporting new farmers, including loan and grant programs.


One authorized program—the Beginning Farmer and
Beginning Farmer or Rancher Access to Crop
Insurance (§11016)—Added term beginning farmer or
Rancher Development Program (BFRDP)—remained
rancher (defined as operating under five years) to the
inactive for years but was later funded, and grants under the
Federal Crop Insurance Act. Improved access to crop
program were awarded in the late 2000s. Subsequent farm
insurance through reduced premiums and waived fees for
bills in 2008 (P.L. 110-246) and 2014 (P.L. 113-79)
catastrophic-level policies, among other administrative
reauthorized and expanded existing programs supporting
changes.
new and underserved farmers. The text box provides a list

of current programs. In addition to these targeted programs,
Noninsured Crop Disaster Assistance Program
(§12305)—Enhanced provision of catastrophic-level risk
new farmers also benefit from other federal farm programs,
protection through reduced premiums and waived fees for
including those targeting local and regional food systems.
beginning farmers who are producers of commodities that
The 2014 farm bill provided more than $180 million in
do not have an insurance product available.
mandatory funding for BFRs (FY2014-FY2018) across
 Beginning Farmer and Rancher Development
three programs: BFRDP ($100 million), Outreach and
Program (BFRDP) (§7409)—Funded training, education,
Assistance for Socially Disadvantaged Farmers and
outreach, and technical assistance to beginning farmers and
Ranchers and Veteran Farmers and Ranchers ($50 million),
ranchers.
and the Conservation Reserve Program Transition
 Conservation Reserve Program Transition
Incentives Program (CRP-TIP) ($33 million). Additional
Incentives Program (CRP-TIP) (§2006(b))—Facilitated
mandatory funding was provided for federal crop insurance
transfers of CRP land enrolled in an expiring contract from
premium reductions for new farmers. Discretionary funding
retired/retiring farmer to a beginning, veteran, or
for certain programs was also authorized.
underserved farmer or rancher who returns land to
Other Policy Proposals
production.
 Managed Haying and Grazing of Conservation
The 2014 farm bill incorporated some of the provisions
Reserve Program Lands (§2004)—Waived the 25%
from the Beginning Farmer and Rancher Opportunity Act
payment reduction for beginning farmers.
(H.R. 1727, S. 837, 113th Congress). Some have indicated
 Conservation Loan and Loan Guarantee Program
that a reworked version of this bill could be reintroduced as
(§5002)—Increased the maximum conservation loan
a marker bill for the next farm bill debate. Provisions that
guarantee amount from 75% to 90% of the total loan
might be included in such a bill could further facilitate
amount for producers qualifying as beginning farmers or
farmers’ access to land and markets, farm credit and risk
ranchers.
management, training, tax incentives, and other policies.
 Microloans to Beginning Farmers and Ranchers
Other proposed legislation would facilitate greater BFR
(§5106)—Made permanent the USDA’s microloan program,
access to grants and loans (e.g., H.R. 51 and H.R. 831, 115th
exempting beginning and veteran farmers from term limits
Congress and H.R. 5733, 114th Congress), access to
that otherwise apply on direct operating loans.
equipment, and land and training (H.R. 5280 and H.R.
 Beginning Farmer/Rancher Individual Development
5857, 114th Congress). Other bills would amend certain tax
Accounts (§5301)—Extended pilot program through
code provisions or allow loan forgiveness in some cases
FY2018.
(e.g., H.R. 1750 and H.R. 1060, 115th Congress). Other bills
 Definition of a Qualified Beginning Farmer or
seek to specifically expand support for veteran farmers and
Rancher (§5303)—Changed the definition of a “qualified
ranchers, for example, by supporting mentorship and
beginning farmer” in ways that could expand eligibility to
apprenticeship opportunities (e.g., H.R. 4339) or through
more beginning farmers for direct farm ownership loans.
technical assistance and information (e.g., H.R. 3667).
 Down Payment Loan Assistance (§5005)—Expanded
assistance to new farmers seeking to purchase real
The Beginning Farmers and Ranchers Advisory Committee
property by increasing the maximum loan made under the
(BFRAC) has proposed other policy recommendations.
program.
BFRAC was created by the Agricultural Credit
 Value-Added Producer Grants (§6203)—Gave
Improvement Act of 1992 (P.L. 102-554) and has advised
beginning farmers, including veterans, who produce value-
USDA on policies supporting new farmers since the late
added products priority consideration for grants.
1990s. BFRAC’s recommendations have covered a range of
 Outreach to Military Veterans (§12304)—Established a
topics, including fiscal support for direct and guaranteed
USDA position of Military Veterans Agricultural Liaison to
credit programs, guarantees on state agricultural loans
help veterans prepare for a career in farming or ranching.
(“aggie bonds”), assessment of existing programs, and
Source: CRS from USDA information.
USDA staffing needs to support loan activity and provide

outreach and technical assistance for minority farmers. In
August 2015, BFRAC released a report on land tenure and
Renée Johnson, Specialist in Agricultural Policy
access and farm business transitions for new farmers. Its
Tadlock Cowan, Analyst in Natural Resources and Rural
recommendations included creating a new Commission on
Development
Land Tenure, improving outreach and incentives to
Jim Monke, Specialist in Agricultural Policy
landowners regarding land transfer strategies, and
Megan Stubbs, Specialist in Agricultural Conservation and
improving existing programs.
Natural Resources Policy
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Farm Bill Primer: Federal Programs Supporting New Farmers

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