Bill > S1881

Introduced Session

This bill would require the New Jersey Economic Development Authority ("EDA"), in consultation with the Department of Agriculture, to develop and administer a beginning farmer loan program to facilitate the acquisition of agricultural land, agricultural improvements, or depreciable agricultural property by beginning farmers. Under the bill, a "beginning farmer" is defined as any person with a low or moderate net worth, as determined by the department, who engages in farming or wishes to engage in farming. An "agricultural improvement" is defined as any improvement, building, structure, or fixture suitable for use in farming which is located on agricultural land. "Depreciable agricultural property" is defined as personal property suitable for use in farming for which an income tax deduction for depreciation is allowable under federal law, such as farm machinery and trucks. To qualify for a loan under the program, a beginning farmer would have to meet the following requirements: 1) the beginning farmer must be a resident of the State; 2) the agricultural land, agricultural improvements, or depreciable agricultural property the beginning farmer proposes to purchase must be located in the State; 3) the beginning farmer must have sufficient education, training, or experience in the type of farming for which the beginning farmer requests the loan; 4) if the loan is for the acquisition of agricultural land, the beginning farmer must have access to adequate working capital, farm equipment, machinery, or livestock; 5) if the loan is for the acquisition of depreciable agricultural property, the beginning farmer must have access to adequate working capital or agricultural land; 6) the beginning farmer must materially and substantially participate in farming; 7) the agricultural land and agricultural improvements must only be used for farming by, or under the direction of, the beginning farmer; and 8) any other criteria established by the authority pursuant to regulation. The bill provides that an EDA-approved loan to a beginning farmer is to be made pursuant to a loan agreement with the authority, is to bear interest at rates and terms deemed appropriate by the EDA, and is to contain other terms and conditions considered appropriate by the EDA that are consistent with the purposes of the bill and the regulations adopted by the EDA. The authority could require a beginning farmer that receives a loan under the program to submit an audited financial statement to the authority in order to ensure the beginning farmer's continued viability, and may, either by regulation or through the terms of the loan agreement, establish terms governing the incidence of default by a beginning farmer who receives a loan under the program. The EDA would have the authority to participate in programs of the United States Department of Agriculture Consolidated Farm Service Agency, Federal Land Bank, or any other federal or State agency in the administration of this program. The purpose of this bill is to develop and administer a beginning farmer loan program to facilitate the acquisition of agricultural land, agricultural improvements, or depreciable agricultural property by beginning farmers. New Jersey cannot rest on the success of land preservation, but must take further action to preserve its farmers as well. Currently, the average age of a farmer in the United States is 57.5 years. The national average age has increased by 1.6 percent annually since 1994, on average, according to the 2017 Census of Agriculture conducted by the United States Department of Agriculture. The average age of a New Jersey farmer is 59.7 years, according to the same report. The Statewide average age has increased more drastically at 2.72 percent annually since 2002, on average.

Committee Categories

Parker Space (R)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/09/2024)

Official Document