2018 Farm Bill Primer: Beginning Farmers and Ranchers

2018 Farm Bill Primer: Beginning Farmers and Ranchers

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May 28, 2019
2018 Farm Bill Primer: Beginning Farmers and Ranchers
Food and agriculture policy in the United States provides
Figure 1. Share of BFRs, by Primary Activity (2017)
support and resources for farms operated by new and
beginning farmers and ranchers (BFRs). Although BFRs are
eligible for all programs administered by the U.S.
Department of Agriculture (USDA), recent farm bills have
provided targeted support specifically addressing the needs
of new and beginning producers. The farm bill also
provides targeted support to related producer groups,
including those based on certain demographic
characteristics (e.g., age, race, and gender) as well as
groups that have been historically underserved (e.g., limited
resource and socially disadvantaged farmers). The 2018

farm bill (Agriculture Improvement Act of 2018, P.L. 115-
334) reauthorized and expanded these programs.
Figure 2. Share of BFRs, by Market Value Sold (2017)
Beginning Farmers and Ranchers (BFRs)
BFRs are defined as persons who have not operated a farm
or ranch or who have operated a farm or ranch for not more
than 10 years and meet other criteria as established by
USDA (7 U.S.C. §2279). According to the most recent
2017 Census of Agriculture, there were over 516,000 farms
where the “principal producer is a new and beginning
producer,” representing about one-fourth of all U.S. farm
operations in 2017. Compared to 2012, the number of BFRs
has increased by about 5%. Sales of agricultural products

sold by BFRs totaled $60.4 billion, or about 15% of total
Source: CRS from 2017 Census of Agriculture (Table 69). Categories
U.S. farm-level sales in 2017. Land in farms operated by
as classified under the North American Industry Classification
new or beginning producers accounted for about 16% of all
System. Numbers may not add to 100% due to rounding.
land in farming.
Provisions in the 2018 Farm Bill
About 27% of farms operated by new or beginning
The 2018 farm bill builds on previous support for BFRs and
producers were engaged primarily in cattle production in
other underserved groups addressed in the previous two
2017, with another 10% engaged in other meat and dairy
farm bills—the Agricultural Act of 2014 (P.L. 113-79) and
production (Figure 1). Another 9% of farms were engaged
the Food, Conservation, and Energy Act of 2008 (P.L. 110-
in either aquaculture or grain/oilseed production. A
246). Existing federal programs with new farmer provisions
combined 10% of farms were engaged in specialty crop
include crop insurance, disaster assistance, loans and grants,
production, with the remaining 34% engaged in other crop
training/education, tax benefits, conservation, and programs
production (tobacco, cotton, sugarcane, sugar beets,
to match landowners with new farm buyers. While many
peanuts, agave, herbs, hay, and grass seeds).
programs are available to all U.S. farmers, these
specifically target new farmers. For more information, see
Farms with new or beginning producers tend to be smaller
CRS In Focus IF10641, Farm Bill Primer: Federal
in size, both in terms of acres and value of production. In
Programs Supporting New Farmers.
2017, two-thirds of all BFRs reported a total market value
of agricultural products sold (including government
The leading 2018 farm bill program in terms of its
payments) of less than $10,000 (Figure 2). Nearly 30% of
operational breadth and funding supporting new and
all BFRs have sales of less than $1,000 annually. Only
beginning farmers and ranchers is the newly authorized
about 15% of farms operated by new or beginning
Farming Opportunities Training and Outreach (FOTO)
producers had farm-level sales exceeding $50,000 in 2017.
(§12301). FOTO combines and expands the existing
Beyond sales, BFRs contribute to the U.S. agricultural
(renamed) Beginning Farmer and Rancher Development
sectors, for example, by supporting rural and non-rural
Grant Program (BFRDGP) and the Outreach and Assistance
economies, providing additional capacity to an aging U.S.
to Socially Disadvantaged Farmers and Ranchers
farm population, and helping to stem the decline in farm
(OASDFR). This provision also directs USDA’s National
numbers amid general trends toward increasing
Institute of Food and Agriculture to make competitive
consolidation and fewer, larger farms.
grants to support new and established local training,
education, outreach, and technical assistance initiatives for
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2018 Farm Bill Primer: Beginning Farmers and Ranchers
BFRs. BFRDGP authorizes project grants of up to $250,000
match retiree landowners with buyers. BFRs are eligible for
per year for up to three years (matching funds are required).
increased cost-share assistance and other financial
OASDFR authorizes project grants ranging from $100,000
incentives and funding preferences for engaging in certain
to $400,000 per year for up to three years (with no
conservation efforts. The farm bill also requires USDA to
matching requirements). FOTO is authorized to receive
collect data on land access and farmland ownership to
annual mandatory funding of $30 million (FY2019-
identify barriers that prevent new farmers, including
FY2020), $35 million (FY2021), $40 million (FY2022),
veterans, from acquiring or accessing farmland (§12607).
and $50 million in FY2023 and each year thereafter.
For provisions supporting BFRs, see the text box below.
(Mandatory funding is through the Commodity Credit
Corporation and is not subject to appropriations.)
Considerations for Congress
Additional appropriations are authorized at $50 million
USDA is in the process of implementing the 2018 farm bill
annually (FY2019-FY2023).
provisions. Congress may continue to track USDA’s
progress in implementing these provisions as part of its
By consolidating BFRDGP and OASDFR into a single
general oversight of the farm bill’s implementation.
program (FOTO), along with other legislative changes,
Congress addressed previous concerns regarding funding
2018 Farm Bill Provisions Supporting BFRs
availability to continue these programs beyond the 2018
 Farming Opportunities Training and Outreach (§12301).
farm bill. Previously, both BFRDGP and OASDFR were
Combines and expands the existing Beginning Farmer and
“programs without baseline.” Baseline refers to the
Rancher Development Grant Program and the Outreach and
Congressional Budget Office’s projection at a particular
Assistance to Socially Disadvantaged Farmers and Ranchers.
point in time of future federal spending on mandatory
Authorizes competitive grants to support training, education,
programs under current law. Having a baseline gives
outreach, and technical assistance. Provides annual mandatory
funding of $30 mil ion (FY2019), rising to $50 mil ion (FY2023),
programs built-in future funding if policymakers decide that
and authorizes $50 mil ion in annual appropriations.
the programs should continue. Previously, even though the
2014 farm bill authorized mandatory funding for both
 Local Agriculture Market Program (§10102). Combines
and expands the existing Farmers’ Market and Local Food
BFRDGP and OASDFR, these programs were among the
Promotion Program and the Value-Added Agricultural Product
programs in that farm bill that did not have baseline beyond
Market Development Grants. Provides $50 mil ion annually in
FY2018. This meant that even though Congress
mandatory funds and reserves 10% of grant funding for BFRs
reauthorized these programs beyond FY2018, mandatory
and other historically underserved producers.
funding for these programs was not assured and came at a
 Underserved Producers (§11108). Establishes a definition of
cost (or score). This also meant that because of delays in
underserved producer. Provides additional assistance to certain
reauthorizing the farm bill in 2012-2013, both BFRDGP
underserved groups in obtaining federal crop insurance.
and OASDFR did not receive funding in the one-year farm
 Tree Assistance Program (§1501). Increases cost sharing to
bill extension in FY2013. Funding changes and
75% for BFRs and other producers.
consolidation of these programs into FOTO provides both
 USDA Conservation Programs (Title II). Provides
new funding and permanent baseline for these programs,
preferences for BFRs and other historically underserved
thus ensuring that they have future funding if policymakers
producers under some programs (§2204, §2403, §2501, §2706).
decide that the programs should continue beyond FY2023.
 BFR Individual Development Accounts Pilot Program
For information about baseline issues, see CRS Report
(§5301). Reauthorizes appropriations for the program, which,
R45425, Budget Issues That Shaped the 2018 Farm Bill.
to date, has never been funded or implemented.
 Farm Credit Programs (Title V). Provides additional
The 2018 farm bill (§10102) reserves 10% of available
support for, and requires additional reporting regarding, BFRs
grant funding for BFRs under the newly created Local
and historically underserved producers to gain access to credit
Agriculture Market Program (LAMP). LAMP combines
(§5104, §5306, §5413, §5316).
and expands the existing Farmers’ Market and Local Food
 State Agricultural Mediation Programs (§5402). Expands
Promotion Program and the Value-Added Agricultural
state agricultural grants to support mediation services related
Product Market Development Grants to support market
to credit counseling and other issues requiring mediation.
development, cooperative extension, and regional
 Competitive, Special, and Facilities Research Grant Act
partnerships. LAMP receives annual mandatory funding of
(§7504). Requires USDA priority research areas to consider
$50 million for FY2019 and each fiscal year thereafter.
barriers to entry for underserved farmers and ranchers.
 Reports on Land Access and Farmland Ownership Data
The 2018 farm bill requires USDA to establish a National
Collection (§12607). Requires USDA to submit a public
BFR coordinator position to provide outreach and technical
report within a year of enactment on barriers that prevent
assistance to help BFRs participate in USDA farm
BFRs from acquiring or accessing farmland.
programs (§12304). The national BFR coordinator is
 BFR Coordination (§12304)—Establishes a national BFR
required to designate a state BFR coordinator for each state.
coordinator to provide outreach and technical assistance to
Other provisions in the 2018 farm bill allow for BFRs and
help BFRs participate in USDA farm programs.
historically underserved producer groups to receive
increased benefits under select USDA programs, including

crop insurance, disaster assistance, farm credit and loan
Renée Johnson, Specialist in Agricultural Policy
assistance, tax benefits, farmland conservation assistance,
program grants, training and education, transition assistance
Tadlock Cowan, Analyst in Natural Resources and Rural
to convert to certified organic agriculture, and programs to
Development
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2018 Farm Bill Primer: Beginning Farmers and Ranchers

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