BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1242
                                                                  Page  1

          Date of Hearing:   May 16, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                   AB 1242 (Wiggins) - As Amended:  April 23, 2001 

          Policy Committee:                               
          AgricultureVote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill establishes a mechanism at the Department of Food and  
          Agriculture (CDFA) for encouraging intergenerational family farm  
          transfers (IFFTs).  Specifically, this bill: 

          1)Requires the CDFA to research farm transfer trends, develop  
            training materials, support efforts to facilitate IFFTs and  
            research factors for success and barriers to transfer.

          2)Requires the CDFA to contract with nonprofits specializing in  
            the promotion of IFFTs.

           FISCAL EFFECT  

          Appropriates $1 million from the General Fund to the CDFA to  
          implement this program; these funds are to be allocated equally  
          over a five-year period starting in FY 2001-02 with a maximum of  
          $50,000 annually set aside for CDFA personnel needs.

           COMMENTS  

           Rationale .  The author is concerned that not enough young people  
          are going into farming to eventually replace the aging  
          generations of current farmers.  She points out that about 30%  
          of California's farmers are over 65 years of age, while less  
          than 1% are under age 25.  In addition, from 1987 to 1997, there  
          was a 51% reduction in the number of farm operators under 35  
          years of age.  By focusing the CDFA's resources on IFFTs, the  
          author hopes to encourage more activity between the generations  
          with regard to farm transfers.









                                                                  AB 1242
                                                                  Page  2

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081