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Congressional Research Service
lnform~ng the legislative debate since 1914


0


                                                                                                   February 4, 2019

2018 Farm Bill Primer: Veteran Farmers and Ranchers


The enacted 2018 farm bill (Agriculture Improvement Act
of 2018, P.L. 115-334) provides additional support for U.S.
military veterans transitioning into agriculture by expanding
on programs authorized in the 2014 farm bill (Agricultural
Act of 2014, P.L. 113-79). Programs administered by the
U.S. Department of Agriculture (USDA) provide financial
and resource management  support to help U.S. veterans
transition to farming or ranching and to assist them in
maintaining successful businesses as part of a larger effort
to support beginning farmers and ranchers (BFRs).

Data from USDA   indicate that the rural post-9/11 veteran
population increased from 200,000 in 2006 to more than
400,000 in 2016, raising the post-9/11 veteran population to
about 13%  of the total rural veteran population, up from
about 4% in 2006. Nevertheless, overall, the rural veteran
population has been decreasing. USDA data also indicate
that working-age veterans tend to rely more on employment
in manufacturing and far less on agriculture compared to
elder veterans. Data are not available on the number of
veterans who wish to enter farming or ranching (Figure 1).

Figure  I.Employment   Among   Veteran  Groups,  2015


       Manut.ctung     N
   EducatIion and HealIth
WholeaaI. and reta I rade ,
Trastation ond uit~his~ r
   Public arlitao
Profesiona and busies
       Other service.
  Leisur and hospitallty
         Agric~ldtu
         Information
     Financial Service
            Mining


Sourcea iAmrW
Source: USDA, Amber Wave


Vorking-age rural veterans
Ider rural veterans


    5   10     is~     20     25
          Perceh
s, September 2015.


Farm Bill Support for Veterans
The term veteran farmer or rancher is defined in statute to
mean  a farmer or rancher who has served in the Armed
Forces-covering  the U.S. Army, Navy, Marine Corps, Air
Force, Coast Guard, and the reserves (as defined elsewhere
in the U.S. Code)-who  has not operated a farm or ranch;
or ... has operated a farm or ranch for not more than 10
years or who first obtained status as a veteran during the
most recent 10-year period (7 U.S.C. §2279(e)(7), as
amended). The  2018 farm bill further includes veteran
farmers and ranchers as part of a new definition of an
underserved producer (§ 11108), providing them with
additional assistance in the federal crop insurance program.

The 2018  farm bill specifically clarifies the availability of
USDA   programs for veteran farmers and ranchers,
including down payment  loans, reduced interest rates on


guaranteed loans, disaster assistance coverage, and federal
crop insurance (§12306). The 2018 farm bill also targets
veteran farmers and ranchers for increased focus in USDA
research and educational programs. Specifically, it expands
existing support for veterans transitioning into agriculture
by creating the Farming Opportunities Training and
Outreach (FOTO)  program, consolidating into a single new
program two  formerly separate programs: (1) the Outreach
and Assistance for Socially Disadvantaged and Veteran
Farmers Program  (also known as the Section 2501 program
based on its location in the 1990 farm bill) and (2) the (now
renamed) Beginning  Farmer and Rancher Development
Grant Program.

FOTO   consolidates these two programs into a single
program but maintains these two programs with certain
modifications. These programs both provide resources,
training, outreach, and technical assistance to veteran
farmers or ranchers (among other eligible entities) through
grants, contracts, and other agreements. Grants under these
programs support a range of activities, including farm and
financial management and marketing. Consolidation of
these programs into FOTO  along with other changes are
supported by the National Sustainable Agriculture Coalition
(an advocacy group) which asserts these changes will make
the programs more effective. Changes in the 2018 farm bill
aim to provide for increased transparency, accountability,
and responsiveness to stakeholders by requiring external
review and additional reporting. Other changes are to
expand eligibility for projects serving retiring farmers and
non-farming landlords, establish a waiver for the matching
funds requirement, and establish priorities on food safety
and succession planning, among other changes.


The 2018 farm bill provides mandatory funding for FOTO
through the Commodity  Credit Corporation, which is to be
evenly split between the two programs. Mandatory funding
is set at $30 million for each of FY2019-FY2020, $35
million for FY2021, $40 million for FY2022, and $50
million in FY2023 and each year thereafter. Thus, the farm
bill gives FOTO permanent funding, providing it with
baseline funding into the future. Additionally, it authorizes
$50 million in annual appropriations through FY2023.
The 2018 farm bill further expands the responsibilities of
the Military Veterans Agricultural Liaison position at
USDA,   which was authorized in the 2014 farm bill. These
changes are intended to improve coordination between
USDA   and other federal agencies through data collection
and the creation of a dedicated website with information for
veterans about agricultural programs so they can start a new
farming career (§12402). The farm bill also expands on
USDA   advocacy and outreach to further extend services to
veteran farmers and ranchers, among other underserved
groups, while also expanding monitoring and reporting of


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