Bill > A727

Introduced Session

This bill would require the Department of Agriculture (DOA) to establish a Farm Vitality Planning Reimbursement Grant Program to reimburse the owners and operators of farms in the State for the eligible costs incurred thereby in the development and implementation of certain plans that are designed to ensure future and long-term farm viability. The DOA would be authorized to award grants, under the program, of up to $7,500 for each eligible plan that is developed or implemented by the owner or operator of a farm, in order to reimburse up to 75 percent of the total eligible costs thereof. Any remaining costs would need to be financed by the owner or operator of the farm through monetary means, rather than in-kind contributions. Grant moneys awarded under the program may be used only to reimburse the eligible costs that were directly incurred and paid by the grant applicant in developing or implementing an eligible plan. An eligible plan is defined by the bill to mean: (1) a business plan or management strategy that is specifically designed to enhance a farm's long-term economic stability or viability; (2) a business plan that is specifically designed to diversify or expand an existing agricultural or horticultural operation to include new or different forms of agricultural or horticultural products or new, more efficient, or more sustainable production methods; (3) a business plan or business expansion plan that is specifically designed to facilitate the expansion or growth of a farm; (4) a farm ownership transition plan that is designed to facilitate the efficient transfer of ownership and operation of a farm to a new owner or operator who is unrelated to the current owner or operator; (5) a family ownership transition plan that is designed to facilitate the transfer of ownership and operation of a farm to an immediate family member or other relative of the farm's current owner or operator; or (6) a preserved farmland maintenance plan that is specifically designed to maintain and facilitate the long-term economic viability of, or protect the investment of public funds in, preserved farmland. Costs would be eligible for reimbursement under the Farm Vitality Planning Reimbursement Grant Program if they are directly incurred by the owner or operator of a farm in association with the hiring, contracting, or employment of any of the following professionals for the purposes of developing or implementing an eligible plan: (1) an accountant, a certified public accountant, a business consultant, or a financial planner; (2) an appraiser; (3) an attorney; (4) a professional facilitator; or (5) a professional mediator who is assisting with a farm succession conflict. The following costs would be ineligible for reimbursement under the program: (1) capital improvement costs; (2) the costs associated with developing or implementing a conservation plan or practice, an erosion or sediment control plan, a manure management plan, or a nutrient management plan; (3) the costs associated with surveying and subdividing farmland, regardless of whether such costs are related to a farm succession analysis; (4) State or federal taxes, regardless of whether such taxes are paid upon the transfer of farmland; (5) insurance premiums and related insurance costs; and (6) the costs of meals, mileage, and other travel expenses incurred by the owner or operator of a farm, or by any of the professionals that are hired to develop or implement the eligible plan. A program grant may not be used to reimburse any ineligible costs or any eligible costs that are already being paid for or reimbursed with funds made available from another federal or State grant program. Grants under the Farm Vitality Planning Reimbursement Grant Program would be awarded on a first come, first served basis, within the limits of available funds, to each owner or operator of a farm who submits an application therefor, so long as the application establishes that reimbursement is being sought for eligible costs incurred, by the applicant, in association with the development or implementation of an eligible plan. Among other things, a grant application is to include receipts or other verifiable documentation certifying the total amount of eligible costs directly incurred for each eligible plan and demonstrating that those eligible costs were paid by the applicant within the two year period preceding the date on which the grant application was submitted, or within another reasonable period of time, as determined by DOA rule or regulation. The Secretary of Agriculture would be required to consider grant applications in the order in which they were received. The bill would provide an initial appropriation of $1 million, from the General Fund, to finance grants being issued under the program. The bill would also require the secretary to annually submit a written program report, to the Governor and Legislature, which includes program-specific data, as well as a recommendation as to whether the grant program should be continued in future years, and, if so, a related recommendation for additional appropriations necessary to ensure the program's continued operation and success.

AI Summary

Committee Categories

Mike Torrissi (R)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/09/2024)

Official Document