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Opportunities for Historically Underserved Clients
The Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) continues to
address the unique circumstances and concerns of socially disadvantaged farmers
and ranchers, as well as beginning and limited resource farmers and ranchers. It
provides for voluntary participation, offers incentives, and focuses on equity
in accessing U.S. Department of Agriculture (USDA) programs and services.
Enhancements include streamlined delivery of technical and financial
assistance; improved programs and services; and flexibility in decision making.
Some programs offer higher practice payments to participants who belong to a
group identified as historically underserved.
The term "historically underserved" refers to groups that have not
participated in or that in the past have received limited benefits from USDA
programs. These are:
Beginning Farmer or Rancher
A Beginning Farmer or Rancher means an individual or entity who:
- Has not operated a farm or ranch, or who has operated a farm or ranch
for not more than 10 consecutive years. This requirement applies to all
members of an entity, AND
- Will materially and substantially participate in the operation of the
farm or ranch.
- In the case of a contract with an individual, individually or with
the immediate family, material and substantial participation requires
that the individual provide substantial day-to-day labor and management
of the farm or ranch, consistent with the practices in the county or
State where the farm is located.
- In the case of a contract with an entity, all members must
materially and substantially participate in the operation of the farm or
ranch. Material and substantial participation requires that each of the
members provide some amount of the management, or labor and management
necessary for day-to-day activities, such that if each of the members
did not provide these inputs, operation of the farm or ranch would be
seriously impaired.
Limited Resource Farmer or Rancher
A Limited Resource Farmer or Rancher or Forest Owner is an applicant:
- With direct or indirect gross farm sales not more than the current
indexed value in each of the previous 2 years, and
- Who has a total household income at or below the national poverty level
for a family of four, or less than 50 percent of county median household
income in each of the previous 2 years.
An entity or joint operation can be a Limited Resource Farmer or Rancher if
all individual members independently qualify
To help assess whether you fit into this description, visit the online
USDA Limited Resource
Farmer Tool.
Socially Disadvantaged Producers
According to Section 2501(e)(2) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 USC 2279(e)(2)), a Socially disadvantaged farmer or rancher
(SDA) is defined as a farmer or rancher who is a member of a “Socially
Disadvantaged Group." Therefore a "Socially Disadvantaged Farmer or Rancher" is
defined as:
Socially disadvantaged group - a
group whose members have been subjected to racial or ethnic prejudice because of
their identity as members of a group without regard to their individual
qualities. The definition that applies to Titles I, V, and VI includes members
of a group subject to gender prejudice, while the definition that applies to
Titles II, IX, XII, and XV does not. Title XIV and the Education and Risk
Management Assistance provision in Title XII do not make specific reference to
the statutory definition of socially disadvantaged farmer or rancher.
Socially disadvantaged Farmer or Rancher
- a farmer or rancher who has been subjected to racial or ethnic prejudices
because of their identity as a member of a group without regard to their
individual qualities. This term means a farmer or rancher who is a member of a
socially disadvantaged group. Specifically, a group whose members have been
subjected to racial or ethnic prejudice because of their identity as members of
a group without regard to their individual qualities. Those groups include:
- African Americans
- American Indians
- Alaskan natives
- Hispanics
- Asians
- Pacific Islanders
More Information
For more information about these and other Farm Bill topics, please refer to
the U.S. Department of Agriculture Web site at:
http://www.usda.gov/farmbill or the
Natural Resources Conservation Service Web site at:
http://www.nrcs.usda.gov/programs.
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