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S1913Senate2017-2018 SessionSame asA4481

Low-Interest Loans for Farmers

Official title

“Relates to the beginning farmer revolving loan fund program”

Sponsor Patty RitchieSD-48+11 co-sponsorsAffects Economy
Status
In Senate Committee
Agriculture
Impact
7/10
Significant
Passage
0%

Bill progress

Step 2 of 7

In committee · Agriculture

What's happening

This bill creates a revolving loan program to provide low-interest loans to beginning farmers in New York State.

Why it matters

  1. Targets new and aspiring farmers. By defining "beginning farmer" as someone with less than 10 years of experience, the bill specifically aims to help those just starting out, who often face barriers accessing traditional credit and capital.

  2. Promotes farmland preservation and environmental benefits. The program encourages keeping land in active agricultural use, which the bill links to watershed protection and open space preservation—highlighting broader environmental and community benefits beyond just supporting individual farmers.

  3. Shapes who gets help and how much. The bill gives the commissioner significant discretion to set eligibility, prioritization, loan amounts, and repayment terms through regulation. This flexibility can tailor support to evolving needs but also means the program’s impact will depend heavily on how these rules are written and implemented.

  4. Seeks to strengthen rural economies. By supporting new small agribusinesses, the program could help sustain rural communities, generate local jobs, and support New York’s agricultural sector continuity as older farmers retire.

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Who cares

Headline styles

Low-Interest Loans for Farmers

Plain English, a few words. Used as the page title.

Sponsors

History

  1. Referred to agriculture
  2. Reported and committed to finance
  3. Referred to agriculture

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A4481Assembly

Low-Interest Loans for New Farmers

In Assembly Committee · Agriculture · Sponsor William Magee

Impact 7 · Significant0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1913

2017-2018 Regular Sessions

IN SENATE

January 11, 2017

Introduced by Sens. RITCHIE, BONACIC, DeFRANCISCO, GALLIVAN, LARKIN, MARCHIONE, O'MARA, ORTT, RANZENHOFER, SEWARD, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Agriculture

AN ACT to amend the agriculture and markets law, in relation to the beginning farmer revolving loan fund program

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 328 of the agriculture and markets law is amended by adding a new subdivision 5 to read as follows:

5. "Beginning farmer" shall mean a farmer who has not produced an "agricultural product" as defined in this section, for more than ten consecutive years, and who will materially and substantially participate in the production of an agricultural product within a region of the state.

§ 2. The agriculture and markets law is amended by adding a new section 330-a to read as follows:

§ 330-a. Beginning farmer revolving loan program. 1. The commissioner shall establish and maintain a beginning farmer revolving loan program to provide low interest loans to beginning farmers for the purposes of supporting beginning farmers, encouraging the growth of small agribusiness, preserving farmland as a working agricultural landscape, and providing open space benefits for all residents of the state. Properly managed farmland has been demonstrated to be the best environmental usage of land for watershed protection, so it is in the best interest of the state to maintain agricultural land. Such program shall, from any appropriation made available for this purpose, provide low interest loans to beginning farmers as the commissioner shall deem to be eligible pursuant to rule or regulation.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD07454-01-7

S. 1913 2

2. The commissioner shall promulgate rules and regulations for the purpose of carrying out the provisions of this section, including establishing:

a. an application process whereby beginning farmers may apply for loans;

b. criteria and standards for determining a beginning farmer's eligibility for a loan;

c. criteria and standards for determining the priority to be granted among beginning farmer applicants;

d. criteria and standards for determining the amount of financial assistance to be provided to a beginning farmer; and

e. criteria and standards to be used in determining the loan repayment periods and the terms of any repayment agreement.

§ 3. This act shall take effect on the first of April next succeeding the date on which it shall have become a law; provided, however, that any rules and regulations necessary to implement the provisions of this act on its effective date are authorized to be made on or before such date.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the agriculture and markets law, in relation to the beginning farmer revolving loan fund program

Purpose

To establish a beginning farmer revolving loan fund program within the Agriculture and Markets Law.

Summary of provisions

Section 1 amends Section 328 of the Agriculture and Markets Law to define the term "beginning farmer." Section 2 adds a new Subdivision 330-a to the Agriculture and Markets law to create the beginning farmer revolving loan fund program. Section 3 provides for the effective date.

Existing law

Article 25-AAAA of the Agriculture and Markets law was enacted to promote the agriculture industry in New York, an industry which has a substantial impact on the overall economic health and wellbeing of our state. State farms preserve approximately 7.7 million acres of open space as working landscapes, thus contributing to the overall quality of the state's environment. Preserving farmland as a working agricultural landscape provides open space benefits for all residents of the state, and maintains the land as a natural habitat for animals. Additionally, properly managed farmland has been demonstrated to be the best environmental usage of land for watershed protection. For these reasons, it is in the best interest of the state to promote agricultural uses of the state's lands. While numerous other revolving loan programs exist under New York law, a revolving loan program for beginning farmers does not currently exist.

Justification

New York state law provides revolving loan programs for many other groups, to incentivize residents of the state to take up a certain profession. Taking steps to recruit young, new, and beginning farmers to the agricultural profession is certainly one area in need of incentives such as a revolving loan fund program.

Agriculture is the leading industry in New York yet, New York's farm community is aging and it has become increasingly difficult to attract young people to fanning and to encourage them to consider a farming career. The average age of farm operators in New York is 59, and is expected to continue to increase unless steps are taken to reverse this trend. The U.S. Secretary of Agriculture has set a goal of recruiting 100,000 new farmers across the country to replace those who are retiring. By enacting a revolving loan fund program for beginning farmers, New York can take one small step at helping that recruitment effort.

Farming is a difficult business and there are many barriers to beginning farmers who might otherwise consider entering the profession. The agricultural industry has a substantial impact on the overall economic health and wellbeing of the state, and it is in the best interest of the state to ensure that enough producers are recruited and retained in agricultural production. Additionally, the recent increase in demand for quality fresh locally grown foods and beverages highlight the importance of assisting new farmers to enter the profession.

Legislative history

2015-2016: S.1793 Passed the Senate/A.4352 Referred to Agriculture. 2013-2014: S.6880-A/ A.9288-A

Fiscal implications

This bill is subject to funds being appropriated for the purposes of the program.

Effective date

This act shall take effect on the first of April next succeeding the date on which it shall have become a law. Provided, however, that any rules and regulations necessary to implement the provisions of this act on its effective date are authorized to be made on or before such date.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.