New Producer Economic Security Act
- Bill Number
- H.R. 2536
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-04-18: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
- Last Updated
- 2026-06-05T08:07:29Z
AI-Generated Summary
Purpose
The New Producer Economic Security Act (H.R. 2536) aims to create a program that bolsters U.S. food system security by funding community-driven efforts to help new or disadvantaged farmers, ranchers, and forest owners gain access to land, capital, and markets. It focuses on supporting the startup and long-term success of these producers, including preventing land loss and improving their financial and personal well-being.
Key Provisions
- Definitions: Key terms include:
- Qualified beneficiary: A natural person who is a beginning farmer/rancher (less than 10 years of experience), operates on rented land, has low income (at or below 200% of poverty level or half the county median), or is economically disadvantaged; excludes those only providing capital.
- Authorized legal entity: Small-scale U.S.-based businesses (e.g., partnerships, cooperatives) with no more than 25 natural person owners who actively manage or work on farms/forests.
- Eligible entity: Governments, tribes, nonprofits, financial institutions, universities, or cooperatives experienced in serving these beneficiaries; excludes foreign-owned corporations.
- Eligible land: Broadly includes agricultural, urban, public, private, or trust lands (even non-contiguous or underwater areas), but excludes certain natural protected areas.
- Program Establishment: The Secretary of Agriculture must set up the New Producer Economic Security Program within the Farm Service Agency's Office of Outreach and Education. It provides grants, cooperative agreements, or other funding to eligible entities for "covered projects."
- Selection Process: Eligible entities apply with details on project design, community benefits, and evaluation plans. A stakeholder committee (including diverse rural/urban and production perspectives) advises on fund distribution. Priorities include direct aid to beneficiaries, collaborations, tribal rights of first refusal on land, land protections for agriculture, transitions from current owners, technical assistance (e.g., translation), farmworker support, and conservation practices.
- Covered Projects:
- Required Uses: Funds must directly assist qualified beneficiaries, such as buying land (including rights to air/water), subsidizing loans/mortgages, clearing property titles (e.g., heirs' property), land improvements, infrastructure, planning, tribal consultations, and obtaining USDA farm numbers.
- Permissible Activities: Market/capital access, land acquisition/retention, farm viability support, revolving loan funds, and tailored technical assistance (e.g., business planning, legal/tax advice, mentoring on USDA programs).
- Subcontracting is allowed if necessary, and funding can be grants, loans, or payments to beneficiaries.
- Funding and Administration: Authorizes necessary appropriations, plus use of existing USDA contribution accounts. Up to 5 years to obligate funds (with exceptions for long-term land projects). Noncompliance requires repayment. Administrative costs can be covered from program funds.
Significant Changes to Existing Law
This bill introduces a entirely new competitive grant program within the Farm Service Agency, which did not previously exist. It builds on existing frameworks like the Community Development Financial Institutions Act and Farm Credit Act but adds novel elements, such as priorities for tribal land rights, innovative financial tools (e.g., revolving funds), and broad definitions of eligible land (including urban and underwater areas). It does not amend prior laws directly but references them for definitions and exclusions.
Potential Impacts
- Government Agencies: The U.S. Department of Agriculture (USDA), particularly the Farm Service Agency, will need to administer the program, form a stakeholder committee, evaluate applications, and track outcomes, potentially increasing workload and requiring new resources.
- Citizens: Beginning, low-income, or disadvantaged producers (especially in rural, urban, or tribal areas) gain better access to land, financing, and support services, which could reduce barriers to entry in farming and promote diverse, sustainable agriculture. Communities may see economic boosts from viable local farms.
- International Relations: No direct impacts; the program is domestic-focused and excludes foreign entities from eligibility.
Main Stakeholders Affected
- Qualified Beneficiaries: New or underserved farmers, ranchers, forest owners, and farmworkers who benefit from direct aid and technical support.
- Eligible Entities: State/local/tribal governments, nonprofits, community development financial institutions, universities, cooperatives, and certain banks that apply for and distribute funds.
- USDA and Secretary of Agriculture: Responsible for program oversight, funding decisions, and collaboration with stakeholders.
- Existing Landowners and Communities: Affected through land transitions, conservation easements, and local economic analyses required in applications.
Notable Legal, Constitutional, or Political Implications
- Legal: Emphasizes compliance with existing USDA and conservation standards; includes repayment clauses for misuse of funds and exceptions to federal spending rules for long-term land projects, ensuring accountability. Broad land definitions could expand access but require careful title/survey processes to avoid disputes.
- Constitutional: Aligns with Congress's spending power to promote general welfare (e.g., food security); prioritizes tribal consultations and rights, supporting federal trust responsibilities to Native communities without raising sovereignty issues.
- Political: Bipartisan sponsorship (from Democrats and Republicans) suggests cross-aisle appeal for rural equity and small-farm support. It addresses systemic barriers (e.g., land loss in heirs' property, common in minority communities) but could spark debates on federal spending priorities versus private market solutions in agriculture.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Budzinski, Nikki [D-IL-13]
Cosponsors (11)
Rep. Nunn, Zachary [R-IA-3], Rep. Courtney, Joe [D-CT-2], Rep. Davis, Donald G. [D-NC-1], Rep. Sorensen, Eric [D-IL-17], Rep. Tokuda, Jill N. [D-HI-2], Rep. Vasquez, Gabe [D-NM-2], Rep. Riley, Josh [D-NY-19], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Harder, Josh [D-CA-9], Rep. Davids, Sharice [D-KS-3], Rep. Schneider, Bradley Scott [D-IL-10]
Recent Actions
- 2025-04-18: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
- 2025-04-01: Referred to the House Committee on Agriculture.
- 2025-04-01: Introduced in House
- 2025-04-01: Introduced in House
Bill Versions
- New Producer Economic Security Act — issued 2025-04-01 — PDF (17 pages)