BILL ANALYSIS
SENATE AGRICULTURE & WATER RESOURCES COMMITTEE
Senator Jim Costa, Chairman
BILL NO: AB 1242 HEARING: 7/3/01
AUTHOR: Wiggins FISCAL: Yes
VERSION: 5/31/01 CONSULTANT: Jane Leonard
Brown
Dennis
Albiani
Farming: Intergenerational Farm Transfers
BACKGROUND AND EXISTING LAW
The 1997 Census of Agriculture reports that 26% of California
farmers are over 65 years of age. This age group totals
approximately 30% of all farmers in California. California
farmers over age 65 outnumber farmers under age 25 by about 60
to one. California's owner operated farms decreased by
approximately 11% from 1987 to 1997. During this period, there
was a 51% drop in the number of farm operators under the age of
35.
Currently, 25 states are involved in farm linking programs that
connect retiring farmers to prospective buyers. In 20 of these
states, there is an active role taken by agricultural nonprofit
organizations to link two parties together. They conduct
workshops, oversee apprenticeships, create and distribute
educational materials, and provide one-on-one consultation.
In California there is not an official government role or agency
required to research trends in farm ownership, provide
assistance in farm transfers, or support efforts that facilitate
farm transfers.
PROPOSED LAW
This bill would require the California Department of Food and
Agriculture (CDFA) to promote and facilitate intergenerational
farm transfers by researching trends that resulted in both
successes and failures, developing training materials, and
supporting the efforts of organizations that would provide
training.
This bill would permit CDFA to contract with nonprofit
organizations that have experience in intergenerational farm
transfers. These organizations would promote strategies
including:
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Outreach seminars, workshops, and grassroots meetings in the
agricultural community.
One-on-one technical assistance addressing business planning,
family lands mediation, estate planning, and other farm
succession planning.
Mentoring program activities.
Innovative farm transfer techniques combining estate planning
strategies with land conservation strategies and similar
techniques.
Maintaining a database of retiring and aspiring farmers and
facilitating preliminary meetings between the parties.
Serving as a clearinghouse of professional services, business
planners, financial planners succession planners, real estate
agents, and others experienced with family farm transfers.
This measure appropriates two hundred fifty thousand dollars
from the General Fund to CDFA to implement the provisions in
this bill including $50,000 for personnel expenditures.
COMMENTS
1.The economic future of California's agriculture depends on the
continuing practice of farming. Trends over the last few
years, however, reveal that the proportion of aspiring young
farmers is small and decreasing. Accordingly, the author
addresses these challenges by facilitating transitions of
family farms from one generation to the next.
2.Similar efforts to promote farm transfers already exist
through nonprofit organizations such as California Farmlinks.
California Farmlinks' objective is to connect prospective
farmers with retiring farmers. They also offer free
information and technical assistance regarding estate
planning, conservation easements, and other techniques to
retain land for agricultural purposes.
PRIOR ACTIONS
Assembly Floor 73-0
Assembly Appropriations15-6
Assembly Agriculture12-0
SUPPORT
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California Cattlemen's Association
California Farmlink
California Women for Agriculture
Community Alliance With Family Farmers
OPPOSITION
None received.