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Congre &onaI fRese
hnfarming Ih leg ilive deba


3rch  Service
since 1914


                                                                                                August 18, 2023

Outreach for Socially Disadvantaged Producers (2501 Program)


The 2018 farm bill (Agriculture Improvement Act of 2018,
P.L. 115-334) reauthorized and expanded support for
socially disadvantaged farmers or ranchers (SDFRs) within
programs administered by the U.S. Department of
Agriculture (USDA). Specifically, Congress expanded
support within a long-standing USDA program supporting
SDFRs-the   2501 Program  (also known as the Outreach
and Assistance for Socially Disadvantaged and Veteran
Farmers and Ranchers Program)-and  also expanded
support for SDFRs under some other USDA programs.
Congress may consider additional changes to the 2501
Program and support for SDFRs and other underserved
producer groups as it considers farm bill reauthorization.

Definitions in Statute
Under the 2501 Program, an SDFR (as defined at 7 U.S.C.
§2279) refers to a farmer or rancher who is a member of a
group whose members  have been subjected to racial or
ethnic discrimination. This statutory definition includes
underserved producer groups (not limited to) farmers and
ranchers that identify as Native American, Alaska Native,
Black or African American, Asian American, Native
Hawaiian and Pacific Islanders, Hispanic or Latino, or are
refugee and immigrant producers belonging to these groups.
Over time, the definition of eligible producer groups has
expanded to include veteran farmers or ranchers (VFRs).
VFRs  include those who have served in the U.S. Armed
Forces (as defined in 38 U.S.C. 101(10)) during the most
recent 10-year period and were discharged or released
under conditions other than dishonorable; VFRs include
those who also meet the definition of a beginning farmer or
rancher (BFR) and have not operated a farm or ranch for
more than 10 years or previously operated a farm or ranch.

Available race and ethnicity data suggest that SDFRs
meeting the definition at 7 U.S.C. §2279 accounted for 9%
of all farms, 10% of all farmed acres, and 8% of farm sales
reported in the 2017 Census ofAgriculture data-the most
recent year available from USDA. These data do not
include White non-Hispanic women who are also included
under an alternative SDFR definition (7 U.S.C. §2003).
Including all women, regardless of race and ethnicity, about
30%  of all U.S. farms in 2017 would be considered to be
SDFRs.  Which of these two statutory definitions apply may
vary by USDA  program. (For more background, see CRS
Report R46727, Defining a Socially Disadvantaged Farmer
or Rancher (SDFR): In Brief.) Reported SDFR data also
might not include VFRs eligible under the 2501 Program.

Legislative History of the 250          Program
Congress first added support for SDFRs in the late 1980s in
order to improve access to USDA farm credit and loan
programs by agricultural producers who may have been
subjected to discrimination based on race, ethnicity, or


gender (P.L. 100-233; 7 U.S.C. §2003). This action was
followed by subsequent actions in periodic omnibus farm
bill legislation starting in the 1990 farm bill (Food,
Agriculture, Conservation, and Trade Act of 1990; P.L.
101-624, §2501). Specifically, the 1990 farm bill included
Section 2501 (Outreach and Assistance for Socially
Disadvantaged Farmers and Ranchers) establishing the
2501 Program to support USDA's commitment  to ensuring
underserved and veteran farmers, ranchers, and foresters
can equitably participate in USDA programs. The provision
further established a narrower definition of SFDRs (7
U.S.C. §2279) based on race and ethnicity only (excluding
White non-Hispanic women).

The 1990 farm bill authorized annual appropriations to
carry out the 2501 Program and for USDA to award grants
and enter into cooperative agreements with eligible entities.
The 2002 farm bill (Farm Security and Rural Investment
Act of 2002; P.L. 107-171) and the 2008 farm bill (Food,
Conservation, and Energy Act of 2008; P.L. 110-246)
reauthorized appropriations and made further clarifying
changes to the 2501 Program. However, congressional
appropriations during this time remained well below
authorized levels and USDA only began awarding grants
under the 2501 Program in 2010. This followed the 2008
farm bill, which authorized mandatory Commodity Credit
Corporation (CCC) funds of $15 million for FY2009 and
$20 million annually for FY2010-FY2012 (§14004).
Mandatory funding is not subject to annual appropriations.

The 2008 farm bill also created the Office of Advocacy and
Outreach within USDA's  executive operations to improve
access to USDA programs by underserved groups such as
SDFRs  as well as small farms and ranches and
beginning farmers or ranchers (§14013). The 2014 farm
bill (Agricultural Act of 2014; P.L. 113-79) expanded
eligibility under the 2501 Program to include VFRs
(§12201). It also authorized funding to establish an SDFR
policy research center at an 1890 institution-referring to
the historically Black land-grant universities established in
the Second Morrill Act of 1890 (7 U.S.C. 321 et seq.)
(§12203). Congress provided mandatory funding of $10
million annually for FY2014-FY2018 (§12201). In
FY2013,  the 2501 Program was not operational while
Congress continued to debate farm bill reauthorization and
program funding had lapsed.

The 2018 farm bill made additional 2501 Program changes.
It renamed the Office of Advocacy and Outreach to the
Office of Partnerships and Public Engagement (OPPE)
(§12406). It merged the existing 2501 Program and the
existing Beginning Farmer and Rancher Development
Program as the two subprograms of the newly created
Farming Opportunities Training and Outreach (FOTO)


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