Bill Text: CA AB552 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Farmer Equity Act of 2017: Regional Farmer Equipment and Cooperative Resources Assistance Pilot Program.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Vetoed) 2024-01-25 - Consideration of Governor's veto stricken from file. [AB552 Detail]

Download: California-2023-AB552-Amended.html

---

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)
(Coauthor: Senator Min)(Coauthors: Senators Becker and Min)

February 08, 2023

---

An act to add and repeal Section 571 of the Food and Agricultural Code, relating to agriculture.

LEGISLATIVE COUNSEL'S DIGEST

AB 552, as amended, Bennett. Cannella Environmental Farming Act of 1995: 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 continuously appropriates the moneys deposited into the Climate Smart Agriculture Account to the department for purposes of the Cannella Environmental Farming Act of 1995.

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 Cannella Environmental Farming Act of 1995 to provide grants 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, ranchers or eligible entities that serve socially disadvantaged or limited resource farmers and ranchers, as specified. The bill would specify the entities eligible to receive grants under the program and would require an applicant for a grant to provide the department with certain information, including a description of the farm equipment lending program. The bill would repeal these provisions on January 1, 2029.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

---

Bill Text

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.

SECTION 1.SEC. 2.

 Section 571 is added to the Food and Agricultural Code, to read:

571.

 (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 grants 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 of tools, equipment, and infrastructure 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 and cooperative resources 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) Application assistance.

(B) Cooperative development.

(C) Training on the use and maintenance of tools, equipment, and infrastructure.

(D) Outreach to ensure direct and meaningful benefits to socially disadvantaged farmers or ranchers and limited resource farmers or ranchers.

(E) Small farm tool demonstrations.

(c) The program established pursuant to this section shall do both of the following:

(1) (A) Provide grants for projects that primarily benefit socially disadvantaged farmers or ranchers.

(B) If there are moneys available after providing grants pursuant to subparagraph (A), provide grants for projects that primarily benefit limited resource farmers or ranchers.

(C) If there are moneys available after providing grants pursuant to subparagraphs (A) and (B), provide grants to eligible entities that serve socially disadvantaged farmers or ranchers or limited resource farmers or ranchers.

(2) Prioritize grants for projects that primarily benefit farms or ranches that are 500 acres or less.

(d) Entities eligible for grant funding 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) In order to be eligible for a grant under the program, an applicant shall provide the department all of the following information:

(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 grant expires.

(4) Documentation that the lending program’s tools, equipment, and infrastructure will be primarily used on farms or ranches that are 500 acres or less.

(5) The type of technical assistance to be provided during the grant period.

(f) The Farm Equity Advisor at the department shall ensure that the pilot program meets the objectives of Article 6 (commencing with Section 510).

(g) Notwithstanding Section 569.5, moneys in the Climate Smart Agriculture Account shall only be available for the program established pursuant to this section only upon appropriation by the Legislature.

(h) For purposes of this section, the following definitions apply:

(1) “Limited resource farmer or rancher” has the same definition as in Section 760.107 of Title 7 of the Code of Federal Regulations.

(2) “Socially disadvantaged farmer or rancher” has the same meaning as defined in Section 512.

(i) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.