SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 1560

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 10, 2025

      The Senate Economic Growth Committee reports favorably and with committee amendments Senate Bill No. 1560.

      As amended and reported, this bill requires the Department of Agriculture (DOA) to establish a Farm Vitality Planning Reimbursement Grant Program (program) to reimburse farmers in the State for the eligible costs incurred thereby in the development and implementation of certain plans that are designed to ensure future and long-term farm viability.  The DOA is authorized to award grants, under the program, of up to $7,500 for each eligible plan that is developed or implemented by the farmer, in order to reimburse up to 75 percent of the total eligible costs thereof.  Any remaining costs are required to be financed by the farmer through monetary means, rather than in-kind contributions.

      Grant moneys awarded under the program may be used only to reimburse the eligible costs that were directly incurred and paid by the grant applicant in developing or implementing an eligible plan.  The bill provides that an eligible plan is:  (1) a business plan or management strategy that is specifically designed to enhance a farm’s long-term economic stability, viability, or vitality; (2) a business plan that is specifically designed to diversify or expand an existing agricultural or horticultural operation to include new or different forms of agricultural or horticultural products or new, more efficient, or more sustainable production methods; (3) a business plan or business expansion plan that is specifically designed to facilitate the expansion or growth of a farm; (4) a farm ownership transition plan that is designed to facilitate the efficient transfer of ownership and operation of a farm to a new farmer who is unrelated to the current farmer; (5) a family ownership transition plan that is designed to facilitate the transfer of ownership and operation of a farm to an immediate family member or other relative of the farm’s current farmer; or (6) a preserved farmland maintenance plan that is specifically designed to maintain and facilitate the long-term economic viability of, or protect the investment of public funds in, preserved farmland.

      The bill provides that costs are reimbursable as eligible costs under the program if they are directly incurred by the farmer in association with the hiring, contracting, or employment of a professional mediator assisting with a farm succession conflict or any of the following professionals for the purposes of developing or implementing an eligible plan:  (1) an accountant, certified public accountant, business consultant, or financial planner; (2) an appraiser; (3) an attorney; or (4) a professional facilitator.  The bill also provides that certain costs are not reimbursable under the program.

      Grants under the program are to be awarded on a first come, first served basis, within the limits of available funds, to each farmer who submits an application therefor, so long as the application establishes that reimbursement is being sought for eligible costs incurred, by the applicant, in association with the development or implementation of an eligible plan.  Among other things, a grant application is to include receipts or other verifiable documentation certifying the total amount of eligible costs directly incurred for each eligible plan and demonstrating that those eligible costs were paid by the applicant within the two year period preceding the date on which the grant application was submitted, or within another reasonable period of time, as determined by DOA rule or regulation.  The Secretary of Agriculture (secretary) is required to consider grant applications in the order in which they are received.

      The bill also requires the secretary to annually submit a written program report, to the Governor and Legislature, which includes program-specific data, as well as a recommendation as to whether the program should be continued in future years, and, if so, a related recommendation for additional appropriations necessary to ensure the program’s continued operation and success.

      This bill was prefiled for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  remove the $1 million appropriation;

      (2)  include a defined term for “farmers” and replace references to “owners and operators of farms” with “farmers” for consistency; and

      (3)  make technical changes to the bill, including updates to the title and synopsis.