BILL NUMBER: AB 1242	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2001

INTRODUCED BY   Assembly Member Wiggins
    (Coauthors:  Assembly Members Aroner, Florez, Maldonado,
Matthews, and Wyman) 

                        FEBRUARY 23, 2001

   An act to add Article 11 (commencing with Section 600.5) to
Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code,
relating to farming, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1242, as amended, Wiggins.  Farming:  intergenerational farm
transfers.
   Existing law requires that the Legislature review the impact of
actions taken on specified factors relating to agriculture, including
family owned farms.
   This bill would make findings and declarations on the importance
to the state of encouraging a new generation to enter farming.  This
bill would require the Department of Food and Agriculture to take
primary responsibility for facilitating intergenerational family farm
transfers.  This bill would also permit the Department of Food and
Agriculture to contract with nonprofit organizations to promote this
goal, as specified.
   This bill would appropriate $1,000,000 from the General Fund to
the Department of Food and Agriculture, to be allocated over 5 years,
for the purposes of these provisions, to be spent as specified.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares as follows:
   (a) The economic future of California's agriculture depends on the
ability of a new generation to enter farming.  The 1997 Census of
Agriculture reported that 22,179, or approximately 30 percent of
California's farmers, were over 65 years of age.  This percentage has
increased steadily for over a decade.  California's farmers age 65
and over outnumber farmers under age 25 by approximately 60 to one.
The census also reported that 65,000 owner operated farms can be
found in California; this number decreased approximately 11 percent
from 1987 to 1997.  During this same period, there was a 51 percent
drop in the number of farm operators under 35 years of age.
   (b) Because farming is the cornerstone of agricultural communities
throughout California, the state should act to promote the future of
family farming, ensure that crucial knowledge of farming is passed
on to the next generation of farmers, and preserve California
farmland.
   (c) Beginning farmers face challenges which include:
   (1) Identifying viable farm entry opportunities.
   (2) Lack of access to technical assistance and information about
available loan programs.
   (3) Learning about financing techniques.
   (4) Learning about business planning for appropriate
capitalization.
   (d) Retiring farmers interested in transferring a family farm face
challenges which include:
   (1) Finding a qualified aspiring farmer interested in taking over
the farm business.
   (2) Lack of information about techniques and tools for effective
management of tax burdens due to capital gains estate taxes which may
include using conservation easements and other long-term farmland
protection tools.
   (e) Because these issues affect states throughout the nation and
laws have been enacted in at least six other states to facilitate
family farm transfers, the Department of Food and Agriculture should
act on the issue of intergenerational family farm transfers.
  SEC. 2.  Article 11 (commencing with Section 600.5) is added to
Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code,
to read:

      Article 11.  The Farm Futures Act of 2001.

   600.5.  The Department of Food and Agriculture shall take primary
responsibility for:
   (a) Researching trends in farm transfers.
   (b) Developing training materials to promote intergenerational
farm transfers.
   (c) Supporting efforts of organizations providing training
designed to facilitate intergenerational farm transfers.
   (d) Researching factors for success and barriers to transfer.
   600.6.  The Department of Food and Agriculture shall contract with
 an   one or more  appropriate nonprofit
 organization   organizations  with
capacity and experience in promoting intergenerational farm transfers
throughout California through strategies which include, but are not
limited to:
   (a) Outreach to the agricultural community through seminars,
workshops, and grassroots meeting.
   (b) Technical assistance provided in an one-on-one format
addressing business planning, family lands mediation, estate
planning, and other  farm succession  planning.
   (c) Sponsoring mentorship program activities.
   (d) Promoting innovative techniques to facilitate farm transfers,
which may combine estate planning strategies with land conservation
strategies and similar techniques.
   (e) Maintaining a data base of names of retiring and aspiring
farmers and facilitating preliminary meetings between the parties.
   (f) Serving as a clearinghouse of professional services, business
planners, financial planners, succession planners, real estate
agents, and others experienced with or committed to facilitating
family farm transfers.
  SEC. 3.  The sum of one million dollars ($1,000,000) is hereby
appropriated from the General Fund to the Department of Food and
Agriculture to implement the provisions of this article.  That sum
shall be allocated annually for five years in installments of two
hundred thousand dollars ($200,000).  Of this sum, one full-time
equivalent (up to fifty thousand dollars ($50,000)), may be spent on
Department of Food and Agriculture personnel per year; the remainder
shall be allocated through contracts to qualified nonprofit
organizations.                                ____ CORRECTIONS
Heading -- Line 2.  Text -- Pages 2 and 3.
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