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AB-552 Farmer Equity Act of 2017: Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program.(2023-2024)



Current Version: 09/18/23 - Enrolled

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AB552:v93#DOCUMENT

Enrolled  September 18, 2023
Passed  IN  Senate  September 12, 2023
Passed  IN  Assembly  September 13, 2023
Amended  IN  Senate  September 08, 2023
Amended  IN  Senate  August 14, 2023
Amended  IN  Senate  July 13, 2023
Amended  IN  Assembly  May 18, 2023
Amended  IN  Assembly  March 06, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 552

Introduced by Assembly Member Bennett
(Coauthors: Assembly Members Aguiar-Curry, Connolly, Villapudua, and Wood)
(Coauthors: Senators Becker and Min)

February 08, 2023

An act to add and repeal Section 515 of the Food and Agricultural Code, relating to agriculture.


LEGISLATIVE COUNSEL'S DIGEST


AB 552, Bennett. Farmer Equity Act of 2017: Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program.
The Cannella Environmental Farming Act of 1995 requires the Department of Food and Agriculture to establish and oversee an environmental farming program to provide incentives to farmers whose practices promote the well-being of ecosystems, air quality, and wildlife and their habitat. The act also requires the department to establish the Healthy Soils Program and a technical assistance grant program, as specified.
Existing law, the Farmer Equity Act of 2017, requires the department to ensure the inclusion of socially disadvantaged farmers and ranchers, as defined, in the development, adoption, implementation, and enforcement of food and agriculture laws, regulations, and policies and programs, as specified.
This bill would require the department, upon appropriation by the Legislature and in collaboration with certain entities, to establish the Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program as part of the Farmer Equity Act of 2017 to provide financial and technical assistance to support regional farm equipment sharing and enhance cooperative benefits first for socially disadvantaged farmers and ranchers and, if funding is available, for limited resource farmers and ranchers or eligible entities that serve socially disadvantaged or limited resource farmers and ranchers, as specified. The bill would specify the entities eligible for financial assistance under the program and would require that applications for financial assistance to develop and expand equipment sharing programs include certain information. The bill would repeal these provisions on January 1, 2029.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares the following:
(1) In California, 75 percent of farms operate with net cash farm income gains under $25,000 or with net losses.
(2) After land, the purchase of farm equipment and infrastructure is the second largest capital investment producers face, but such a purchase is often inaccessible for small- to mid-scale, underserved, and limited resource farmers and ranchers.
(3) Equipment sharing programs allow farmers to borrow or lease high-value equipment and can facilitate conservation practices, help alleviate financial barriers to equipment, reduce greenhouse gas emissions, and provide necessary resources to build regional food economies.
(b) It is the intent of the Legislature that the Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program established by this act do both of the following:
(1) Primarily serve historically underserved farmers and ranchers, including socially disadvantaged farmers and ranchers and limited resource farmers and ranchers.
(2) Uplift regional economies and inspire greater farmer collaboration and collective work by resourcing and supporting farmer cooperative technical assistance.

SEC. 2.

 Section 515 is added to the Food and Agricultural Code, to read:

515.
 (a) Upon appropriation by the Legislature for purposes of this section, the department, in collaboration with the Department of Conservation, the BIPOC Producer Advisory Committee, and the Small-Scale Producer Advisory Committee, shall establish the Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program to provide financial and technical assistance to support regional farm equipment sharing and enhance cooperative benefits for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers.
(b) Activities eligible for funding pursuant to this section include all of the following:
(1) Developing and expanding equipment sharing programs, including, but not limited to, the purchase and repair of tools, equipment, and infrastructure, and associated administrative costs, to do both of the following:
(A) Support environmental farming practices, including, but not limited to, practices that promote soil health, water conservation, wildlife and their habitat, and wildfire resilience.
(B) Enhance regional food and fiber systems for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers.
(2) Providing technical assistance and support, including, but not limited to, any of the following:
(A) Training on the use and maintenance of tools, equipment, and infrastructure.
(B) Outreach to ensure direct and meaningful benefits to socially disadvantaged farmers or ranchers and limited resource farmers or ranchers.
(C) Small farm tool demonstrations.
(3) (A) Providing a direct grant to an entity that will assist in cooperative development for farmers.
(B) The entity described in subparagraph (A) shall have relevant cooperative development expertise and be able to provide meaningful benefits to socially disadvantaged farmers or ranchers and limited resource farmers or ranchers.
(c) The program established pursuant to this section shall do both of the following:
(1) (A) Provide financial assistance for projects that primarily benefit socially disadvantaged farmers or ranchers.
(B) If there are moneys available after providing financial assistance pursuant to subparagraph (A), provide financial assistance for projects that primarily benefit limited resource farmers or ranchers.
(C) If there are moneys available after providing financial assistance pursuant to subparagraphs (A) and (B), provide financial assistance to eligible entities that serve socially disadvantaged farmers or ranchers or limited resource farmers or ranchers.
(2) Prioritize financial assistance for projects that primarily benefit farms or ranches that are 500 acres or less.
(d) Entities eligible for financial assistance under the program shall include resource conservation districts, county agricultural commissioners, the University of California Cooperative Extension, tribal entities, small and underserved farmer cooperatives, and nonprofit organizations serving socially disadvantaged farmers or ranchers or limited resource farmers or ranchers, or both.
(e) An application for financial assistance pursuant to paragraph (1) of subdivision (b) shall include, but is not limited to, a description of how the applicant will operate an equipment sharing program, including all of the following:
(1) A list and description of the tools, equipment, and infrastructure the applicant will purchase.
(2) A description of the lending program, including safeguards for the long-term benefits of any tools, equipment, or infrastructure purchased, expected benefits of the lending program, and the types of farmers or ranchers the applicant aims to serve, including specific outreach that will be provided to socially disadvantaged farmers or ranchers and limited resource farmers or ranchers.
(3) A description of how the lending program will be maintained after the period of the financial assistance expires.
(f) The Farm Equity Advisor at the department shall ensure that the pilot program meets the objectives of this article.
(g) For purposes of this section, “limited resource farmer or rancher” has the same definition as in Section 760.107 of Title 7 of the Code of Federal Regulations.
(h) For the purposes of this section, “financial assistance” shall not include a loan.
(i) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.