FARM BILL WILL HELP IOWA'S BEGINNING
FARMERS TUESDAY, MAY 21, 2002 WASHINGTON –
Beginning farmers in Iowa and across the nation will
receive significant new help under the new farm bill
which was crafted by Senator Tom Harkin (D-IA) and
signed into law last week by President Bush. The bill
responds to the enormous costs and obstacles facing
young and beginning farmers and will help Iowa continue
its rich heritage of family farming.
"The future of our state’s agriculture is closely
tied to the available opportunities for young farm
families," said Harkin. "As the average age of Iowa
farmers continues to increase, young farmers are
becoming few and far between. We must look for ways to
ensure that new generations of Iowans can take their
place working in production agriculture in our state."
Farm bill provisions which will help beginning
farmers become more successful include:
Improves USDA’s Down Payment Loan Program to lend
down payment money for purchasing farmland. USDA will
now lend 40%, up from 30%, of purchase price for 15
years, up from 10 years.
Establishes a pilot project to provide U.S.
Department of Agriculture (USDA) loan guarantees on
contract land sales to beginning farmers and ranchers.
This will help beginning farmers in states like Iowa
where a majority of their agricultural land is sold
through land sale contracts.
Reserves funding specifically for beginning
farmers for direct and guaranteed farm ownership and
operating loans and for reduced interest rates.
Increases opportunity for beginning farmers to buy
land held by USDA in its inventory.
Grants the Secretary of Agriculture new authority
to provide beginning farmers and ranchers enhanced
incentives to participate in conservation programs.
This will not only provide new farm opportunities for
beginning farmers but it will also encourage long-term
land stewardship.
Increases beginning farmer cost share for the
Environmental Quality Incentives Program and the new
Conservation Security Program. Beginning farmers will
receive an increased level of cost-share, up to 90%
instead of a 75% cost share which is available to all
producers.
Creates a new research and extension program to
provide comprehensive training, education, outreach,
and technical assistance to beginning farmers and
ranchers so they can adopt the latest in innovative
farming and marketing approaches.
"Supporting farmers and beginning farmers is what the
farm bill is all about. We must help those who need the
most help getting their feet on the ground, and in
today’s agricultural climate those are beginning
farmers. The long term success of rural Iowa depends on
the next generation of farmers and this farm bill will
help them make a go of it," said Harkin.