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News from Rep. Stephanie Herseth Sandlin and Rep. Tim Walz
For Immediate Release
Contact: Russ Levsen, 202-226-4449 (Herseth Sandlin)
Chip Weiskotten, 202-226-8553 (Herseth Sandlin)
Meredith Salsbery, 507-388-2149 (Walz)
Gordie Loewen, 202-225-2472 (Walz)

HERSETH SANDLIN, WALZ INTRODUCE BEGINNING FARMER AND RANCHER OPPORTUNITY ACT

May 17, 2007, Washington, D.C. – Representatives Stephanie Herseth Sandlin (D-SD) and Tim Walz (D-MN01) this week introduced the Beginning Farmer and Rancher Opportunity Act to help address the unique needs of young producers seeking to enter agriculture as a career.

“There are twice as many farmers over the age of 65 as there are under the age of 35.” said Rep. Walz. “The face of American agriculture will change dramatically over the next few years as the majority of our producers approach retirement. If we want to keep young people on the land, we need to make a deliberate effort to help them get started.”

“Beginning farmers and ranchers face different challenges than do established producers,” said Rep. Herseth Sandlin. “Even with a parent willing to lend a hand, new producers can find that agriculture is a tough and expensive field in which to get started. We need to do more, not less, to ensure Americans continue to have a safe, affordable food supply by providing incentives to young producers seeking to enter agriculture.”

Herseth Sandlin and Walz said that they’ve met with hundreds of producers in recent months to discuss the debate over the new Farm Bill and the issue of helping beginning producers was a topic that consistently came up in their meetings. Unfortunately, the high prices of land and equipment are often a barrier to entry for young farmers and ranchers. Additionally, limited access to capital can make it hard to invest in the technologies and production systems needed to turn a profit in agriculture today.

“To survive in agriculture, producers need a federal farm program that includes a strong safety net. But beginning farmers and ranchers also need policy specifically targeted at giving real help to newly established small and mid-scale producers,” said Rep. Walz.

“If we want to encourage a new generation to pursue a career in agriculture, we must design public policy with the unique needs of beginning farmers and ranchers in mind,” said Rep. Herseth Sandlin. She added, “The heartland remains America’s breadbasket, but increasingly, our producers are growing energy as well as food and fiber – so this investment is more important than ever.”

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

The Beginning Farmer and Rancher Opportunity Act includes the following provisions:

• Conservation Funding Set-Aside: 10 percent of total funds for each farm bill conservation program are reserved for beginning and socially disadvantaged producers. Within that set-aside, an increased percentage is provided for technical assistance to help address the conservation planning needs of new farmers.
  
• CRP Transition: For land that may be leaving the Conservation Reserve program, incentives are provided to encourage transfer of that land to beginning or socially disadvantaged producers.
  
• Beginning Farmer Land Contract Pilot Project: The Land Contract guaranteed loan pilot program is made permanent and applied nationwide to encourage private land sales that transfer farms from retiring farmers to new farmers.
  
• Beginning Farmer Research Priority: A new national competitive grants program is established to support research, education and extension related to beginning, socially disadvantaged, and immigrant farmers and ranchers.
  
• Risk Management Education: The current risk management education and partnerships program is amended to include a special emphasis targeted at beginning and immigrant farmers and ranchers; farmers and ranchers who are preparing to retire and are using transition strategies to help new farmers and ranchers get started; and new and established farmers and ranchers who are converting their production and marketing systems to pursue new markets.
  
• Beginning Farmer and Rancher Down Payment Loan Program: Several improvements are made to the Down Payment Loan Program, including a reduced interest rate set at 4 percent below the regular direct farm ownership interest rates or 1 percent, whichever is greater. In addition, borrower’s minimum down payment contribution is decreased from 10 to 5 percent of the purchase price, and the initial payment is deferred for one year.

Herseth Sandlin and Walz both serve on the House Agriculture Committee.

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