The New Producer Economic Security Act[1] (H.R.2536, S.1237 ) was introduced in both the U.S. House and Senate on April 1, 2025. If included in the next farm bill, the legislation would create the New Producer Economic Security Program housed within the United State Department of Agriculture (USDA) Farm Service Agency (FSA) Office and Education.
The bill seeks to address key obstacles faced by beginning farmers, including access to land, capital and markets by funding projects that:
- support farm establishment and long-term farm business viability,
- support financial viability of eligible farmers and ranchers,
- increase land access,
- prevent land loss,
- establish innovative ways to make land accessible,
- transition land from existing landowners to qualified beneficiaries,
- support farmer/rancher physical and mental health, and
- provide technical assistance for all of the above.
As the agency responsible for facilitating the New Producer Economic Security Program, FSA, would provide funding to “eligible entities” for projects in line with priorities listed above. The eligible entities (discussed below) would then provide support and distribute funding in the form of grants, loans and other direct payments to beginning and economically disadvantaged farmers, ranchers, and forest owners. As written, FSA would not make payments directly to farmers. Farmers would access support and funding through the intermediary eligible entities.
Eligible Entities
Eligible entities would apply to FSA with a project proposal and request funding to operate projects. The type of organization that could receive funding is broad, and includes: state, local, territorial, and Tribal[2] governments; community development financial institutions;[3] Native community development financial institutions;[4] institutions of higher education;[5] certain tax exempt organizations;[6] foundations; cooperatives; agricultural lenders;[7] and, any other appropriate partner as determined by the Secretary of Agriculture. Regardless of organization type, an eligible entity must demonstrate experience serving beginning and economically disadvantaged farmers, ranchers, and forest owners.
Qualified Beneficiaries - Farmers, Ranchers, Forest Owners
The farmers, ranchers, and forest owners intended to ultimately benefit from the program through funds and assistance provided by the eligible entities are “qualified beneficiaries.” A qualified beneficiary must regularly and frequently make or be involved in management decisions for a farm or forest operation, or they must perform physical work that significantly contributes to “cultivation, stewardship, crop or livestock production, or food production.”[8]
A shareholder, member, partner, beneficiary or trustee of a business entity, such as corporation, LLC, partnership or trust may be a qualified beneficiary as long as the business entity does not exceed 25 people, is not a subsidiary of another entity, and the owners participate in farm management decisions or physical labor.
To be a qualified beneficiary, the individual must also meet one of the following criteria:
- has not operated a farm or ranch for more than 10 consecutive years,
- operates only on rented or leased land,
- has income that is below either 200% of the national poverty level or half of the median household income for their county, or
- is economically disadvantaged as determined by USDA.
Required Use of Funds
The bill lists both required uses of funds and permissible activities by the eligible entities. The eligible entities must provide direct assistance to beginning and underserved farmers, ranchers, and forest owners to facilitate land, capital and markets. This may include payments to purchase farmland. It may also include payments to assess, survey, and pay for closing costs; assist with downpayments; subsidize interest rates and mortgage principal payments; construct or repair infrastructure; improve or remediate land, water and soil; secure clear title on heirs’ property; support acquisition of a USDA farm number; carry out Tribal consultations; and any other activities as determined by USDA.
More generally, eligible entities could use funds for activities associated with strengthening the economic security of qualified beneficiaries by increasing access to markets and capital and supporting farm establishment and long-term viability. They could also use funds to establish a revolving loan fund or other financial mechanism to invest in projects beyond the initial timeline. In addition, they could also use funds to provide technical assistance for specialized consultation, training, and capacity building focused on: accessing land; comprehension of, preparation to apply for and complying with USDA programs; farm succession planning; market planning and risk analysis; cooperative development; legal and tax issues; business plan development; financial planning and recordkeeping; enterprise, business and labor management.
Project Review, Stakeholder Committee
The proposed legislation requires USDA to form a stakeholder committee, and in collaboration with the new committee, develop a competitive review process for applications submitted by the eligible entities, the organizations that will serve the farmers. The stakeholder committee would provide input on application evaluation, selection and funds distribution. The bill directs USDA to ensure the stakeholder committee includes individuals with perspectives on the complexity of rural and urban landscapes and the wide variety of production models used by beginning and economically disadvantaged farmers.
In developing its review process, USDA is directed to prioritize applications for projects that-
- provide direct financial assistance to eligible farmers, ranchers, and forest owners.
- involve substantial and effective collaborative network or partnership of public or private entities.
- include right of first refusal for Tribal citizens or governments when land becomes available on or near Tribal communities.
- include mechanisms to protect land for agricultural use such as deed restrictions or conservation easements.
- support voluntary transition from existing producers to qualified beneficiaries.
- provide technical assistance.
- include activities to support farm workers.
- support long-term adoption of conservation practices consistent with NRCS conservation practice standards.
As of this writing, this bill has been introduced only. We will keep an eye on its status and update if there are any changes.
[1] H.R.2536, S.1237,119th Cong. (2025)
[2]“[A]n Indian Tribe or Tribal organization (as those terms are defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304).” S.1237 Sec. 2 (a)(3)(A)(ii)(II).
[3] As defined in 12 U.S.C. 4702 and certified by the Secretary of the Treasury. S.1237 Sec. 2 (a)(3)(A)(ii)(IV)
[4] Certified by the Secretary of the Treasury. S.1237 Sec. 2 (a)(3)(A)(ii)(III)
[5] As defined in section 101 of the Higher Education Act of 1965. S.1237 Sec. 2 (a)(3)(A)(ii)(VIII)
[6] Includes 501(c)(2) and 501(c)(3) organizations that are tax exempt under I.R.C. Sec. 501(a). S.1237 Sec. 2 (a)(3)(A)(ii)(V)
[7] “[A] financial institution described in section 1.7(b)(1)(B) of the Farm Credit Act of 1971 (12 U.S.C. 2015(b)(1)(B)).” S. 1237 Sec. 2 (a)3) (A)(ii)(IX). [A]ny national bank, State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, credit union, or any association of agricultural producers engaged in the making of loans to farmers and ranchers, and any corporation engaged in the making of loans to producers or harvesters of aquatic products.” 12 U.S.C. 2015(b)(1)(B).