2018 Farm Bill Primer: Veteran Farmers and Ranchers

2018 Farm Bill Primer: Veteran Farmers and Ranchers

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February 4, 2019
2018 Farm Bill Primer: Veteran Farmers and Ranchers
The enacted 2018 farm bill (Agriculture Improvement Act
guaranteed loans, disaster assistance coverage, and federal
of 2018, P.L. 115-334) provides additional support for U.S.
crop insurance (§12306). The 2018 farm bill also targets
military veterans transitioning into agriculture by expanding
veteran farmers and ranchers for increased focus in USDA
on programs authorized in the 2014 farm bill (Agricultural
research and educational programs. Specifically, it expands
Act of 2014, P.L. 113-79). Programs administered by the
existing support for veterans transitioning into agriculture
U.S. Department of Agriculture (USDA) provide financial
by creating the Farming Opportunities Training and
and resource management support to help U.S. veterans
Outreach (FOTO) program, consolidating into a single new
transition to farming or ranching and to assist them in
program two formerly separate programs: (1) the Outreach
maintaining successful businesses as part of a larger effort
and Assistance for Socially Disadvantaged and Veteran
to support beginning farmers and ranchers (BFRs).
Farmers Program (also known as the Section 2501 program
based on its location in the 1990 farm bill) and (2) the (now
Data from USDA indicate that the rural post-9/11 veteran
renamed) Beginning Farmer and Rancher Development
population increased from 200,000 in 2006 to more than
Grant Program.
400,000 in 2016, raising the post-9/11 veteran population to
about 13% of the total rural veteran population, up from
FOTO consolidates these two programs into a single
about 4% in 2006. Nevertheless, overall, the rural veteran
program but maintains these two programs with certain
population has been decreasing. USDA data also indicate
modifications. These programs both provide resources,
that working-age veterans tend to rely more on employment
training, outreach, and technical assistance to veteran
in manufacturing and far less on agriculture compared to
farmers or ranchers (among other eligible entities) through
elder veterans. Data are not available on the number of
grants, contracts, and other agreements. Grants under these
veterans who wish to enter farming or ranching (Figure 1).
programs support a range of activities, including farm and
financial management and marketing. Consolidation of
Figure 1.Employment Among Veteran Groups, 2015
these programs into FOTO along with other changes are
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
Source: USDA, Amber Waves, September 2015.
evenly split between the two programs. Mandatory funding
is set at $30 million for each of FY2019-FY2020, $35
Farm Bill Support for Veterans
million for FY2021, $40 million for FY2022, and $50
The term veteran farmer or rancher is defined in statute to
million in FY2023 and each year thereafter. Thus, the farm
mean a farmer or rancher who has served in the Armed
bill gives FOTO permanent funding, providing it with
Forces—covering the U.S. Army, Navy, Marine Corps, Air
baseline funding into the future. Additionally, it authorizes
Force, Coast Guard, and the reserves (as defined elsewhere
$50 million in annual appropriations through FY2023.
in the U.S. Code)—who “has not operated a farm or ranch;
The 2018 farm bill further expands the responsibilities of
or ... has operated a farm or ranch for not more than 10
the Military Veterans Agricultural Liaison position at
years” or who first obtained status as a veteran “during the
USDA, which was authorized in the 2014 farm bill. These
most recent 10-year period” (7 U.S.C. §2279(e)(7), as
changes are intended to improve coordination between
amended). The 2018 farm bill further includes veteran
USDA and other federal agencies through data collection
farmers and ranchers as part of a new definition of an
and the creation of a dedicated website with information for
underserved producer (§11108), providing them with
veterans about agricultural programs so they can start a new
additional assistance in the federal crop insurance program.
farming career (§12402). The farm bill also expands on
USDA advocacy and outreach to further extend services to
The 2018 farm bill specifically clarifies the availability of
veteran farmers and ranchers, among other underserved
USDA programs for veteran farmers and ranchers,
groups, while also expanding monitoring and reporting of
including down payment loans, reduced interest rates on
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2018 Farm Bill Primer: Veteran Farmers and Ranchers
program outcomes (§12406). It also establishes a National
Veteran farmers and ranchers also receive certain
Beginning Farmer and Rancher Coordinator to provide
preferences under most USDA farm credit and farmland
outreach and technical assistance to help BFRs participate
conservation programs. They are eligible for increased cost
in USDA farm programs (§12304).
share assistance, additional financial incentives, and
2018 Farm Bill Provisions Addressing Veterans
funding preferences for engaging in conservation efforts.

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

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2018 Farm Bill Primer: Veteran Farmers and Ranchers

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