Farm Bill Primer: Support for Veteran Farmers and Ranchers

Farm Bill Primer: Support for Veteran Farmers and Ranchers

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Updated January 16, 2019
Farm Bill Primer: Support for Veteran Farmers and Ranchers
The enacted 2018 farm bill (Agriculture Improvement Act
crop insurance (§12306). The 2018 farm bill also targets
of 2018, P.L. 115-334) provides additional support for U.S.
veteran farmers and ranchers for increased focus in USDA
military veterans transitioning into agriculture by expanding
research and educational programs. Specifically, it expands
on programs authorized in the 2014 farm bill (Agricultural
existing support for veterans transitioning into agriculture
Act of 2014, P.L. 113-79). Programs administered by the
by creating the Farming Opportunities Training and
U.S. Department of Agriculture (USDA) provide financial
Outreach (FOTO) program, consolidating into a single new
and resource management support to help U.S. veterans
program two formerly separate programs: (1) the Outreach
transition to farming or ranching and to assist them in
and Assistance for Socially Disadvantaged and Veteran
maintaining successful businesses as part of a larger effort
Farmers Program (also known as the Section 2501 program
to support beginning farmers and ranchers (BFRs).
based on its location in the 1990 farm bill) and (2) the (now
renamed) Beginning Farmer and Rancher Development
Data from USDA indicate that the rural post-9/11 veteran
Grant Program.
population increased from 200,000 in 2006 to more than
400,000 in 2016, raising the post-9/11 veteran population to
FOTO consolidates these two programs into a single
about 13% of the total rural veteran population, up from
program but maintains these two programs with certain
about 4% in 2006. Nevertheless, overall, the rural veteran
modifications. These programs both provide resources,
population has been decreasing. USDA data also indicate
training, outreach, and technical assistance to veteran
that working-age veterans tend to rely more on employment
farmers or ranchers (among other eligible entities) through
in manufacturing and far less on agriculture compared to
grants, contracts, and other agreements. Grants under these
elder veterans. Data are not available on the number of
programs support a range of activities, including farm and
veterans who wish to enter farming or ranching (Figure 1).
financial management and marketing. Consolidation of
these programs into FOTO along with other changes are
Figure 1.Employment Among Veteran Groups, 2015
supported by the National Sustainable Agriculture Coalition
(an advocacy group) which asserts these changes will make
the programs more effective. Changes in the 2018 farm bill
aim to provide for increased transparency, accountability,
and responsiveness to stakeholders by requiring external
review and additional reporting. Other changes are to
expand eligibility for projects serving retiring farmers and
non-farming landlords, establish a waiver for the matching
funds requirement, and establish priorities on food safety
and succession planning, among other changes.
The 2018 farm bill provides mandatory funding for FOTO
through the Commodity Credit Corporation, which is to be
evenly split between the two programs. Mandatory funding
Source: USDA, Amber Waves, September 2015.
is set at $30 million for each of FY2019-FY2020, $35
million for FY2021, $40 million for FY2022, and $50
Farm Bill Support for Veterans
million in FY2023 and each year thereafter. Thus, the farm
The term veteran farmer or rancher is defined in statute to
bill gives FOTO permanent funding, providing it with
mean a farmer or rancher who has served in the Armed
baseline funding into the future. Additionally, it authorizes
Forces—covering the U.S. Army, Navy, Marine Corps, Air
$50 million in annual appropriations through FY2023.
Force, Coast Guard, and the reserves (as defined elsewhere
The 2018 farm bill further expands the responsibilities of
in the U.S. Code)—who “has not operated a farm or ranch;
the Military Veterans Agricultural Liaison position at
or ... has operated a farm or ranch for not more than 10
USDA, which was authorized in the 2014 farm bill. These
years” or who first obtained status as a veteran “during the
changes are intended to improve coordination between
most recent 10-year period” (7 U.S.C. §2279(e)(7), as
USDA and other federal agencies through data collection
amended). The 2018 farm bill further includes veteran
and the creation of a dedicated website with information for
farmers and ranchers as part of a new definition of an
veterans about agricultural programs so they can start a new
underserved producer (§11108), providing them with
farming career (§12402). The farm bill also expands on
additional assistance in the federal crop insurance program.
USDA advocacy and outreach to further extend services to
veteran farmers and ranchers, among other underserved
The 2018 farm bill specifically clarifies the availability of
groups, while also expanding monitoring and reporting of
USDA programs for veteran farmers and ranchers,
program outcomes (§12406). It also establishes a National
including down payment loans, reduced interest rates on
Beginning Farmer and Rancher Coordinator to provide
guaranteed loans, disaster assistance coverage, and federal

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Farm Bill Primer: Support for Veteran Farmers and Ranchers
outreach and technical assistance to help BFRs participate
Veteran farmers and ranchers also receive certain
in USDA farm programs (§12304).
preferences under most USDA farm credit and farmland
2018 Farm Bill Provisions Addressing Veterans
conservation programs. They are eligible for increased cost


share assistance, additional financial incentives, and
Availability of USDA programs for veteran farmers and
ranchers (§12306)—Amends the definition of veteran and
funding preferences for engaging in conservation efforts.
extends benefits to veterans for down payment loans, reduced
Changes enacted in the 2018 farm bill are to allow new
interest rates on guaranteed loans, disaster assistance coverage,
farmers and veterans enrolling in USDA conservation
and increased educational focus from the Food Safety Outreach
programs the option to receive 50% of their cost-share
Program and the Federal Crop Insurance Education Program.
payment up front (§2204). It also requires USDA to collect
 Farming Opportunities Training and Outreach (FOTO)
data on land access and farmland ownership to identify
(§12301)—Consolidates two existing farm bil programs: the
barriers that prevent new farmers, including veterans, from
Outreach and Assistance for Socially Disadvantaged and
acquiring or accessing farmland (§12607). Veterans and
Veteran Farmers Program and the (renamed) Beginning Farmer
new farmers also benefit from preferential rules on USDA’s
and Rancher Development Grant Program.
farm credit and microloan program. The 2018 farm bill also
 Underserved producers (§11108)—Includes veteran farmers
expands state agricultural grants to support mediation
and ranchers as part of a new definition of an underserved
services related to credit counseling and other issues
producer, providing veterans (and other underserved groups)
requiring mediation. Other changes address USDA’s crop
with additional assistance in obtaining federal crop insurance.
insurance and disaster assistance. (See text box.)
 Payment acres (§1104)—Adds veterans to the current law
exception from the minimum 10 base acre test under the Price
In general, USDA programs support veteran farmers and
Loss Coverage and the Agriculture Risk Coverage programs.
ranchers as part of broader efforts that support BFRs.
 Supplemental agricultural disaster assistance (§1501)—
Policies supporting BFRs generally date back to the early
Increases cost sharing to 75% for veterans and other BFRs.
1990s and have continued to be part of subsequent farm
 USDA conservation programs (Title II)—Provides
bills. USDA programs that specifically support BFRs
preferences under certain programs, including the
include crop insurance, disaster assistance, loans and grants,
Environmental Quality Incentives Program, the Conservation
loan repayment assistance, tax benefits, conservation
Reserve Program Transition Incentives Program, and the
assistance, training and education, transition assistance to
Regional Conservation Partnership Program, among others.
convert to certified organic agriculture, and programs to
 Pilot programs (§2204)—Adds preference for veterans
match retiree landowners with buyers. Veterans are also
receiving financial and technical conservation assistance.
eligible for and served by other farm bill programs in other
 Employment and training for Supplemental Nutrition
USDA mission areas, but these benefits and services are not
Assistance Program (§4005)—Makes Department of Labor
specific to veteran farmers and ranchers. For instance, low-
and Department of Veterans Affairs programs eligible to satisfy
income veterans may be eligible for USDA food and
work requirements for veterans under the Supplemental
nutrition assistance, and veterans living in rural areas may
Nutrition Assistance Program.
be eligible for housing, employment, and community
 BFR individual development accounts pilot program
services under USDA’s rural development programs.
(§5301)—Provides business and financial education.
Veterans who produce value-added products may also be
 State agricultural mediation programs (§5402)—Expands
eligible to receive priority consideration for available
state agricultural grants to support mediation services related
USDA value-added producer grants.
to credit counseling and other issues requiring mediation.
 Assistive technology program for farmers with
USDA also partners with other federal agencies to support
disabilities (§7214)—Reauthorizes demonstration grants to
veterans. For example, the Department of Defense–USDA
individuals with disabilities engaged in farming or farm-related
Partnership for Military Families project supports a range of
occupations, including veterans pursuing farming opportunities.
professional development and workforce development
 Competitive, Special, and Facilities Research Grant Act
opportunities for veterans and their families. Services are
(§7504)—Adds barriers to entry for veteran and underserved
delivered through land-grant universities and the state
farmers and ranchers to USDA’s priority research areas.
Cooperative Extension System, which provide a range of
 Reports on land access and farmland ownership data
educational and technical assistance to new farmers and
collection (§12607)—Requires USDA to submit a public
assistive technologies for farmers with disabilities.
report (within a year of enactment) on barriers that prevent
BFRs from acquiring or accessing farmland.
Other Federal Agency Support
 BFR coordinator (§12304)—Establishes a National BFR
Other federal agencies also provide a range of services
Coordinator to provide outreach and technical assistance to
supporting veteran farmers and ranchers that generally fall
help BFRs participate in USDA farm programs.
outside the parameters of the farm bill. Examples include
 Military veterans agricultural liaison (§12402)—Requires
the Small Business Administration’s Boots to Business
additional data collection and a dedicated USDA website with
program, which provides support to veterans through
information for veterans about USDA programs and support.
entrepreneurial education and training. The Department of
 Office of Partnerships and Public Engagement
Veterans Affairs provides entrepreneurial development,
(§12406)—Expands USDA advocacy and outreach to veteran
education and training, and business services through the
farmers and ranchers, among other underserved groups, and
requires additional monitoring and reporting.
Post-9/11 GI Bill. On-farm training is also available.

Renée Johnson, rjohnson@crs.loc.gov, 7-9588
IF10826
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