BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 2574         Hearing Date:  6/21/16
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          |Author:    |Chávez                                               |
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          |Version:   |6/15/16                                              |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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                       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  :
                         
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          |Senate Veterans Affairs Committee:    |  5 - 0                    |
          |Assembly Floor:                       |76 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Appropriations Committee:    |16 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Labor and Employment         |  7 -                      |
          |Committee:                            |0                          |
          |                                      |                           |
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           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

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