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1 [1] (May 28, 2019)

handle is hein.crs/govzwe0001 and id is 1 raw text is: Congressional R search Service NFS May 28, 2019 2018 Farm Bill Primer: Beginning Farmers and Ranchers Food and agriculture policy in the United States provides support and resources for farms operated by new and beginning farmers and ranchers (BFRs). Although BFRs are eligible for all programs administered by the U.S. Department of Agriculture (USDA), recent farm bills have provided targeted support specifically addressing the needs of new and beginning producers. The farm bill also provides targeted support to related producer groups, including those based on certain demographic characteristics (e.g., age, race, and gender) as well as groups that have been historically underserved (e.g., limited resource and socially disadvantaged farmers). The 2018 farm bill (Agriculture Improvement Act of 2018, P.L. 115- 334) reauthorized and expanded these programs. Beginning Farmers and Ranchers (BFRs) BFRs are defined as persons who have not operated a farm or ranch or who have operated a farm or ranch for not more than 10 years and meet other criteria as established by USDA (7 U.S.C. §2279). According to the most recent 2017 Census ofAgriculture, there were over 516,000 farms where the principal producer is a new and beginning producer, representing about one-fourth of all U.S. farm operations in 2017. Compared to 2012, the number of BFRs has increased by about 5%. Sales of agricultural products sold by BFRs totaled $60.4 billion, or about 15% of total U.S. farm-level sales in 2017. Land in farms operated by new or beginning producers accounted for about 16% of all land in farming. About 27% of farms operated by new or beginning producers were engaged primarily in cattle production in 2017, with another 10% engaged in other meat and dairy production (Figure 1). Another 9% of farms were engaged in either aquaculture or grain/oilseed production. A combined 10% of farms were engaged in specialty crop production, with the remaining 34% engaged in other crop production (tobacco, cotton, sugarcane, sugar beets, peanuts, agave, herbs, hay, and grass seeds). Farms with new or beginning producers tend to be smaller in size, both in terms of acres and value of production. In 2017, two-thirds of all BFRs reported a total market value of agricultural products sold (including government payments) of less than $10,000 (Figure 2). Nearly 30% of all BFRs have sales of less than $1,000 annually. Only about 15% of farms operated by new or beginning producers had farm-level sales exceeding $50,000 in 2017. Beyond sales, BFRs contribute to the U.S. agricultural sectors, for example, by supporting rural and non-rural economies, providing additional capacity to an aging U.S. farm population, and helping to stem the decline in farm numbers amid general trends toward increasing consolidation and fewer, larger farms. Figure I. Share of BFRs, by Primary Activity (2017) 9% 9% M Oilseeds, grains * Vegetables, ne lons III Greenoose, oursery Other crops Beef cattle SOter rn eat, poultry * Aquacul Lure Figure 2. Share of BFRs, by Market Value Sold (2017) Source: CRS from 2017 Census of Agriculture (Table 69). Categories as classified under the North American Industry Classification System. Numbers may not add to 100% due to rounding. Provisions in the 2018 Farm Bill The 2018 farm bill builds on previous support for BFRs and other underserved groups addressed in the previous two farm bills-the Agricultural Act of 2014 (P.L. 113-79) and the Food, Conservation, and Energy Act of 2008 (P.L. 110- 246). Existing federal programs with new farmer provisions include crop insurance, disaster assistance, loans and grants, training/education, tax benefits, conservation, and programs to match landowners with new farm buyers. While many programs are available to all U.S. farmers, these specifically target new farmers. For more information, see CRS In Focus IF10641, Farm Bill Primer: Federal Programs Supporting New Farmers. The leading 2018 farm bill program in terms of its operational breadth and funding supporting new and beginning farmers and ranchers is the newly authorized Farming Opportunities Training and Outreach (FOTO) (§12301). FOTO combines and expands the existing (renamed) Beginning Farmer and Rancher Development Grant Program (BFRDGP) and the Outreach and Assistance to Socially Disadvantaged Farmers and Ranchers (OASDFR). This provision also directs USDA's National Institute of Food and Agriculture to make competitive grants to support new and established local training, education, outreach, and technical assistance initiatives for https://crsreports.congress.go w Less than $1,000 $1,000 to $2,499 m$2,50to $4,999 *$5,000to $9,999 MA$10,Q00to $24,999 . $25,000 to $49,999 E $50,000 or more

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