USDA Action. FSA issues annual notices to all field offices on this issue. 

Status: Fully implemented (code 1). Will continue to issue notices each year. 

USDA Action. FSA loan servicing regulations currently provide for transfer and assumption of its farm loans by the children of borrowers if they meet creditworthiness, security, repayment, and other regulatory requirements. 

Agency loan servicing regulations contain provisions to facilitate such transfers in cases when existing Shared Appreciation and Net Recovery Buyout Recapture Agreements might otherwise present barriers to the assumption of these debts.  

Discussions have been held between the Under Secretary for Farm and Foreign Agricultural Services and FCS to discuss transfers and assumptions. 

Status: Partially implemented (code 2). Will proceed to implement action plan. 

USDA Action. The FSA has proposed legislation to accomplish this. The Secretary has indicated his support for this recommendation in meetings with several State Department of Agriculture Finance Authority representatives.  

Recent discussions have been held with OMB and Treasury on this issue. While OMB has taken a more favorable view than in the past, Treasury does not support the proposed changes.

Status: Unable to be implemented (code 3). Legislative action proposed but not enacted by Congress.

USDA Action. The Farm Service Agency (FSA) issued a final rule revising and streamlining its guaranteed loan regulations to give lenders and FSA more flexibility to serve applicants and borrowers. The regulations were published in February 1999. 

These revised regulations were developed after FSA held a guaranteed loan stakeholders meeting to solicit input on how to make the program work better. Both commercial banks and the Farm Credit System were represented at these meetings.  

With regards to the second part of the recommendation, that legislation be developed requiring the Food Credit System to make 15 percent of its loans to low-equity beginning farmers, Food Credit Agency (FCA) records indicate that approximately 19 percent of Food Credit Service loans are being made to low-equity beginning farmers. 

Status. Fully implemented.  

USDA Action. To achieve this recommendation, Farm Service Agency (FSA), through the FSA Outreach Program Staff, has approved and funded 6 national outreach projects. These projects provide outreach and technical assistance to assist beginning farmers (minority and underserved) to participate in FSA programs. The 6 projects include: 

1. The Intertribal Agriculture Council (IAC): We are currently at the end of the second year of a five year project to outreach agency programs to Indian Country. This project is currently funded by five USDA agencies, FSA, FAS, NRCS, APHIS, and RMA. The FSA amount for the third year for FSA was $100,000.  

2. The Stone Child College (located on the Rockey Boy Reservation in Montana, a 1994 Native American Land Grant Institution): We are currently at the end of the second year of a five year project to outreach FSA Farm Loan programs to American Indians on the seven federally recognized reservations in Montana. The amount for the third year is $207.111. 

3. The Fond du Lac Tribal and Community College (located in Minnesota is a 1994 Native American Land Grant Institution): We are currently at the end of the second year of a three year project to outreach FSA Farm Loan programs to the American Indians within a 200-mile radius of the college. The amount for the third year is $52,750. 

4. National Tribal Development Association (NTDA) (located at Box Elder, Montana): An annual project to outreach our County Committee election to Native Americans. throughout Indian County. The amount for this project is $58,373. 

5. The Puerto Rico Small Farmer Outreach and Technical Assistance Program. We are at the end of the second year of this five year project with the University of Puerto Rice, a 1862 Land Grant Institution. The third year amount for this project is $280,000. 

6. Minnesota Food Association (MFA): We are at the end of the first year of this five year project which is a New Immigrant Agriculture Project for African Refugees, Hmongs, and Hispanics. The second year amount for this project is $160,200. 

Status: Partially implemented (code 2). Ongoing. Will continue to implement. 

USDA Action. Legislation is required to give the Farm Service Agency the authority to make grants. Submitted proposed legislation in FY2000, but it was not passed by Congress.

Status: Unable to be implemented (code 3). Legislation proposed but not enacted by Congress.

USDA Action. ERS expanded a planned review of the tax code effects on agriculture to include issues raised by recommendation 5.7. An assessment of data needed for the study was completed, resulting in the development of a request to IRS for special tabulations of tax data to supplement ERS farm survey data. 

Status: Partially implemented (code 2). The special tabulations of tax data requested from IRS was obtained in October of 1998. The data has been analyzed and a draft of the report is nearing completion. 

1. Research and educational programs on low-capital options for getting started, acquiring capital, business planning, farm management, and marketing skills; 

2. Outreach with educational forums for rural communities focusing on information about share leases, selling land on contract where the interest is tax exempt, trading of labor for use of equipment, and community-based financing; 

3. Collaborative partnerships with community-based organizations to train and assist beginning farmers. 

USDA Action. This initiative could be incorporated under the direction of the Office of Small Farms and a Council on Small Farms. Secretary Glickman appointed members to the Advisory Committee on Beginning Farmers and Ranches in January 1999 for a two-year term. 

The Committee met in September 1999 and April 2000. The Secretary appointed 19 members to a new 2-year term in January 2001.

Status: Fully implemented (code 1).

USDA Action. Approximately $30 million in "mandatory" funding is identified by CSREES in the FY 2000 President's budget. If funded, (1) include initiatives for small farms in RFPs, (2) include people with small farm interest as reviewers on panels, and (3) accept projects that provide for participation by small farm operators and partnerships with nonprofit organizations. 

Status: Partially implemented (code 2). Solicitations for proposals will soon appear in the Federal Register (Spring, 2001)

USDA Action. ERS attended the National Farm Transition Network Annual meeting in June of 1999 to obtain information and research the issues involving the transferring of farms from retiring to beginning farmers. 

ERS also presented a poster at the Second National Small Farms Conference in October 1999 on government credit program service to small farms. 

Status: Partially implemented (code 2). Ongoing. ERS will use the information gathered from these meetings and conferences along with other research as the basis for an Agency report on alternative financial and legal methods for the intergenerational transfer of farm assets. 

USDA Action. Action plan proposes that RBS initiate cooperative research agreements in FY 1999 to assess membership policies and models, and assess the nature and extent of barriers. Studies will be completed during the fourth quarter of FY 2000 within current funds and staffing. 

Status: Fully implemented (code 1). 

USDA Action. Priority factors for farmland preservation are spelled out in the Request for Proposals (RFP) that was published in the Federal Register. They are used by most State and local government entities. 

Status: Fully implemented (code 1). 

USDA Action. The Office of General Counsel (OGC) provided a reading January 29, 1997. OGC advised USDA that when program eligibility criteria are met and the Federal investment is protected, a non-governmental entity may hold title to a conservation easement acquired, in part, with Federal funds through the FPP as long as certain conditions are met including NRCS approval.  

Since authorized funding levels were reached in 1998, new funding authority is being proposed in FY 2000. 

Status: Partially implemented (code 2).  NRE proposed legislative changes for FY 1999, FY 2000 and FY 2001 to include State, local, Tribal and other eligible non-governmental entities. 

The Agricultural Risk Protection Act of FY 2000 provided $10 million for conservation easements on farmlands. The $10 million allows for the participation of state, local, & Tribal governments as well as for non-governmental organizations.