Bill > S1879

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 value-added agricultural product loan program, which would be called the "Value-added Agriculture Loan Program," to help farmers enter into activities directly related to the processing or marketing of value-added products. Each loan would be in an amount between $5,000 and $10,000. The goal of the program would be to generate new products, create and expand marketing opportunities, and increase producer income. Under the bill, a "value-added product" means a change in the physical state or form of the food or other agricultural product; the production of food or other agricultural product in a manner that enhances its value; or the physical segregation of an agricultural commodity, food, or other agricultural product in a manner that results in the enhancement of the value of that commodity, food, or agricultural product. To qualify for a loan under the program, a farmer would need to: 1) be a resident of the State; 2) use the loan for a farm located within the state of New Jersey; 3) use the loan for planning activities or for working capital expenses related to the production and marketing of a value-added agricultural product, which planning activities may include the conducting of feasibility studies and the development of business plans, and which working capital expenses may include processing costs, marketing and advertising expenses, and some inventory and salary expenses; 4) materially and substantially participate in farming; and 5) satisfy any other criteria established in the EDA's rules and regulations. The bill would require an EDA-approved loan to a farmer to be made pursuant to a loan agreement with the authority, to bear interest at rates and terms deemed appropriate by the EDA, and to contain other terms and conditions considered appropriate by the EDA that are consistent with the purposes of the bill and the EDA's regulations. The EDA may require a farmer who receives a loan under the program to submit an audited financial statement to the EDA in order to ensure the 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 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, the 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 farmer loan program to facilitate the economic sustainability of commercial farming. Direct marketing and value-added products are two of the best strategies farmers can employ to improve net profitability. Value-added products can open new markets, enhance the public's appreciation for the farm, and extend the marketing season.

AI Summary

Committee Categories

Parker Space (R)*, 

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

Official Document