Op-Ed: Incentives for Beginning Farmers and Ranchers
By Rep. Stephanie Herseth Sandlin (South Dakota) and Rep. Tim Walz (Minnesota – 1st District)
May 22, 2007

American agriculture has a dramatic shift waiting for it in the near future: in the next 10 years, half of all farmers are expected to retire. Nationwide, there are twice as many farmers today over the age of 65 as there are under the age of 35.

Those statistics are startling, and lead to the realization that we need to do more to ensure Americans continue to have a safe, affordable food supply by providing incentives to young producers seeking to enter agriculture. In the past, we could count on a large number of beginning farmers to replace those retirees. But today, beginning farmers and ranchers make up just 10 percent of America’s producers.

As members of the House Agriculture Committee representing South Dakota and Minnesota’s First District, we are proud to introduce new legislation to address these concerns: The Beginning Farmer and Rancher Opportunity Act.

Beginning farmers and ranchers have different needs than more established producers. Even with a parent willing to lend a hand, the high prices of land and equipment are a barrier to entry. Moreover, limited access to capital can make it hard to invest in the technologies and production systems necessary today.

Starting with the 1990 Farm Bill, Congress has created programs to help beginning farmers and ranchers. These efforts have usually focused on improving their access to credit. But to succeed, new producers also need access to training, technical assistance, land and markets.

This year, as we craft the 2007 Farm Bill, we recognize that we have a unique opportunity to help a new generation of producers get their start on the land.

Our bill contains provisions to improve the Beginning Farmer and Rancher Down Payment Loan Program, reducing interest rates and down payment requirements for new producers. It would also make permanent the Beginning Farmer Land Contract Pilot Project, which encourages private land sales that transfer farms from retiring farmers to new farmers.

Further, our bill establishes a competitive grant program to support research and education related to beginning farmers and ranchers, and includes a provision to enhance Risk Management Education for those producers. Finally, for land that may be leaving the Conservation Reserve program, incentives are provided to encourage transfer of that land to beginning producers.

Increasingly, the heartland is not only America’s breadbasket - it’s also a major energy source. These common sense incentives for new producers will help ensure that rural America’s agriculture economy will continue to play a vital role in providing cheap, safe and abundant food as well as clean, renewable homegrown energy for generations to come.