BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 2574 Hearing Date: 6/21/16 ----------------------------------------------------------------- |Author: |Chávez | |-----------+-----------------------------------------------------| |Version: |6/15/16 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- Subject: Veteran farmers and ranchers SUMMARY : This bill would define "veteran farmer or rancher" and require, by July 1, 2017, state departments to develop the New Veteran Farmer and Rancher Outreach and Assistance Plan to inform veterans in California about agricultural education, training, and assistance programs available through government agencies or other public or private resources. BACKGROUND AND EXISTING LAW : The federal Agricultural Act of 2014, known as the 2014 Farm Bill, directs the United States Department of Agriculture (USDA) to assist beginning farmers and ranchers with overcoming hurdles to entering the agriculture industry (H.R. 2642; Public Law 113-79). USDA achieves this by providing loans, education, apprenticeships, and training and also partners with other organizations and nonprofits to provide additional resources and support. Specific to veterans, the USDA Military Veterans Agricultural Liaison provides information, resources, and support for active duty military and veterans interested in agriculture. The AB 2574 (Chávez) Page 2 of ? Liaison focuses on fully leveraging USDA programs to support veterans and their families. A short list of these programs and resources include: USDA loans: Provide funds for land, capital, equipment, supplies, or land improvements. Transition Incentive Program: Provides for the transfer of expiring Conservation Reserve Program land from a retiring owner to veterans or other new farmers or ranchers. Value-Added Producer Grant: Supports the development of business plans, new products, and marketing activities. Environmental Quality Incentives Program (EQIP): Provides financial and technical assistance to help implement conservation practices. Beginning Farmer and Rancher Development Grant: Provides grants to organizations providing training, education, outreach, and technical assistance to beginning farmers and ranchers with a priority for veterans. Hiring our Heroes: USDA partnered with this nationwide initiative to help veterans access farming and ranching opportunities. On the state level, the California Department of Veterans Affairs Home Loans Program assists veterans in purchasing farm properties that will provide a livelihood for veterans and their families. However, programs that assist veterans entering the agricultural sector by providing education, technical support, and agricultural expertise exist mainly through non-profit organizations and other private entities. PROPOSED LAW : This bill: 1) States findings and declarations in regards to the need for an adequate food supply, farmer demographics, value of the agriculture industry, and the need to identify new populations of future farmers, such as veterans. 2) Defines "veteran farmer or rancher" to mean a farmer or rancher who has not operated a farm or ranch for more than 10 years and has served in the Armed Forces of the United States. AB 2574 (Chávez) Page 3 of ? 3) Requires, by July 1, 2017, that state departments, including CDFA, Labor and Workforce Development Agency, and the Department of Veterans Affairs, develop the New Veteran Farmer and Rancher Outreach and Assistance Plan to inform veterans about agricultural education, training, and assistance programs available through government agencies or other public or private resources. ARGUMENTS IN SUPPORT: According to the author, "There is a big lack of knowledge about federal funding through the Federal Farm bill of 2014 to help veterans become farmers and ranchers. While the state has a program, the home and farm loan program (act of 1974), this federal money is going greatly under-utilized and not being drawn down to help California veterans and California as a whole. With 33% of farmers and ranchers, nationwide, reaching 65 years of age we need to start finding and encouraging creative ways to incentivize (with the readily available federal money) and support a new generation of farmers and ranchers. Farming and ranching can also be a very good future career for former military, being helpful for some suffers of PTSD and other service related issues." COMMENTS : Farmer and veteran demographics. According to USDA, rural Americans comprise only 16% of the population but about 40% of our military. According to the 2012 USDA Census of Agriculture, over 33% of farmers are 65 years or older, and the average age of the American farmer is 58. These demographics demonstrate the presence of veterans in rural areas as well as the opportunity and the need for the agricultural sector to attract and train new farmers and ranchers. USDA loans. According to USDA, they are referred to as the "Lender of First Opportunity" because they make and guarantee loans to beginning farmers and ranchers, including veterans, who might otherwise not be able to secure a loan through traditional means. USDA offers four different types of loans: 1) farm ownership loans; 2) operating loans (to purchase livestock, equipment, supplies); 3) microloans; and 4) farm storage facility loans to build or improve on-farm storage (silos, barns). AB 2574 (Chávez) Page 4 of ? PRIOR ACTIONS : ------------------------------------------------------------------ |Senate Veterans Affairs Committee: | 5 - 0 | |Assembly Floor: |76 - 0 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |16 - 0 | |--------------------------------------+---------------------------| |Assembly Labor and Employment | 7 - | |Committee: |0 | | | | ------------------------------------------------------------------ SUPPORT : California Guild (Sponsor) American Legion, Department of California AMVETS, Department of California California Workforce Association Center for Land-Based Learning Military Officers Association of America, California Council of Chapters Organic Sacramento Rudolph Steiner College Rural County Representatives of California VFW, Department of California Vietnam Veterans of America, California State Council OPPOSITION : None received -- END --