S245

An Act concerning the reimbursement of farmers for certain costs expended in developing and implementing certain long-term farm viability plans and supplementing Title 4 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

“Department” means the Department of Agriculture.

“Eligible costs” means costs, as identified in subsection b. of section 3 of this act, which are reimbursable under the Farm Vitality Planning Reimbursement Grant Program.

“Eligible plan” means a farm viability plan, as identified in subsection a. of section 3 of this act, a portion of the eligible costs of which are reimbursable under the Farm Vitality Planning Reimbursement Grant Program.

“Farm” means a commercial farm, as defined in section 3 of P.L.1983, c.31 (C.4:1C-3).

“Farmer” means an owner or operator of a farm in New Jersey.

“Ineligible costs” means costs, as identified in subsection c. of section 3 of this act, which are not reimbursable under the Farm Vitality Planning Reimbursement Grant Program.

“Preserved farmland” means land on which a development easement was conveyed to, or retained by, the State Agriculture Development Committee, a county agriculture development board, a county, a municipality, or a qualifying tax exempt nonprofit organization pursuant to the provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland preservation purposes.

“Secretary” means the Secretary of Agriculture.

2. a. The Department of Agriculture shall establish a Farm Vitality Planning Reimbursement Grant Program to reimburse farmers in the State for the eligible costs incurred in the development and implementation of eligible plans that are designed to ensure future and long-term farm viability. The purpose of the program shall be to enhance the long-term economic stability, viability, and vitality of farms in the State by facilitating and funding the development and implementation, by farmers, of sound business plans, strategies, and practices that are designed to facilitate the diversification or resiliency of agricultural production, the effective and efficient transfer of farm ownership, and the strategic expansion of farms and farming operations in the State. The department shall be authorized to award grants, under the program, of up to $7,500 for each eligible plan developed or implemented by the farmer, in order to reimburse up to 75 percent of the total eligible costs thereof. Any remaining costs associated with the development or implementation of an eligible plan shall be financed by the farmer through monetary means, rather than in-kind contributions.

b. Grant moneys awarded pursuant to the Farm Vitality Planning Reimbursement Grant Program shall:

(1) 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;

(2) not be used to reimburse any ineligible costs; and

(3) not be used to reimburse any eligible costs that are already being paid for or reimbursed with funds made available from another federal or State grant program. In any case where another federal or State agency or program is financing a portion of the eligible costs incurred by the farmer in the development or implementation of an eligible plan, the total eligible costs used to determine the amount of the grant to be awarded, under the Farm Vitality Planning Reimbursement Grant Program, shall be reduced by the amount of the federal or State contribution.

c. A farmer who wishes to obtain a grant under the Farm Vitality Planning Reimbursement Grant Program shall submit an application therefor, in a form and manner prescribed by the secretary. The grant application shall include the following information:

(1) a statement indicating the types of eligible plans for which grant reimbursement is being sought, summarizing each eligible plan’s purpose and goals, and, to the extent known, identifying the potential or actual effects of each eligible plan on the farm’s future and long-term economic stability, viability, and vitality;

(2) receipts or other verifiable documentation certifying the total amount of eligible costs directly incurred by the applicant for each eligible plan for which reimbursement is being sought, 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 rule or regulation adopted pursuant to section 5 of this act;

(3) a list of other financial resources, including, but not limited to, other federal or State grant awards, that have been received by, or may be available to, the applicant to finance the eligible costs of each eligible plan for which reimbursement is being sought;

(4) a list of the permits and approvals that have been obtained, or that are required to be obtained, by the applicant in implementing each eligible plan for which reimbursement is being sought; and

(5) any other information required by the secretary.

d. Grants under the Farm Vitality Planning Reimbursement Grant Program shall be awarded on a first come, first served basis, to each applicant who submits an application therefor pursuant to this section, within the limits of moneys appropriated or otherwise made available to the department for the program’s purposes, provided that the applicant establishes, to the department’s satisfaction, that reimbursement is being sought, under the program, for eligible costs incurred by the applicant in association with the applicant’s development or implementation of an eligible plan. The secretary shall:

(1) consider grant applications, under the program, in the order in which they were received;

(2) determine the appropriate amount of each reimbursement grant to be awarded, up to the maximum authorized grant amount, for each eligible plan; and

(3) allocate reimbursement grant funds to grant recipients in a timely manner.

e. The Farm Vitality Planning Reimbursement Grant Program shall be funded with moneys appropriated to the department and any other moneys as may be otherwise made available to the department for the program’s purposes.

3. a. A grant under the Farm Vitality Planning Reimbursement Grant Program may be awarded for the purposes of reimbursing a portion of the eligible costs, up to the maximum amount authorized pursuant to subsection a. of section 1 of this act, which are incurred by the farmer in association with the development or implementation of any of the following eligible types of farm viability plans:

(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.

b. The following shall be eligible costs reimbursable under the Farm Vitality Planning Reimbursement Grant Program:

(1) the costs associated with hiring, contracting, or employing an accountant, a certified public accountant, a business consultant, or a financial planner, including the costs associated with such person’s preparation, and provision to the grant applicant, of profitability and feasibility studies, financial guidance, business planning documents or services, professional business software or software services, and income statements, cash flow statements, balance sheets, and other financial statements or documents, as necessary to develop or implement an eligible plan;

(2) the costs associated with hiring, contracting, or employing an appraiser, as necessary to develop or implement an eligible plan;

(3) the costs associated with hiring, contracting, or employing an attorney, including the costs associated with the attorney’s preparation, provision to the grant applicant, or official filing, of contracts and other legal or business documents necessary to develop or implement an eligible plan;

(4) the costs associated with hiring, contracting, or employing a professional facilitator, including costs associated with the facilitator’s engagement in relevant meetings and communications, as necessary to develop or implement an eligible plan; and

(5) the costs associated with hiring, contracting, or employing a professional mediator to assist in dealing with a farm succession conflict.

c. The following shall be ineligible costs not reimbursable under the Farm Vitality Planning Reimbursement Grant Program:

(1) capital improvement costs, including, but not limited to, the costs associated with: the purchase of a farm or farmland; the purchase, construction, maintenance, repair, renovation, or remodeling of farm facilities, buildings, or equipment; and the installation, repair, or replacement of building fixtures;

(2) the costs associated with developing or implementing a conservation plan or practice, an erosion or sediment control plan, a manure management plan, or a nutrient management plan;

(3) the costs associated with surveying and subdividing farmland, regardless of whether such costs are related to a farm succession analysis;

(4) State or federal taxes, regardless of whether such taxes are paid upon the transfer of farmland;

(5) insurance premiums and related insurance costs; and

(6) the costs of meals, mileage, and other travel expenses incurred by the farmer, or by any of the professionals identified in subsection b. of this section.

4. a. One year after the effective date of this act, and annually thereafter until program funding is exhausted, the secretary shall submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, on the implementation and effectiveness of the Farm Vitality Planning Reimbursement Grant Program.

b. Each annual report submitted pursuant to this section shall, at a minimum:

(1) identify the total number and dollar amount of grant awards issued during the reporting period;

(2) identify the type of eligible plan for which each grant was awarded during the reporting period, and describe the anticipated or actual economic impacts associated with implementation of the eligible plan;

(3) evaluate whether, and the extent to which, the program has been successful in facilitating the long-term economic stability, viability, and vitality of farms in the State;

(4) include a recommendation as to whether the program should be continued in future years; and

(5) identify the amount of previously appropriated funds that remains unexpended and available to finance future grant awards under the program, and, to the extent that the report recommends continuation of the program, recommend additional appropriations, as deemed by the secretary to be necessary to ensure the program’s continued operation and ongoing success.

5. The Department of Agriculture shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to implement this act and the Farm Vitality Planning Reimbursement Grant Program established pursuant thereto.

6. This act shall take effect immediately.

STATEMENT

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 the Legislature, which includes program-specific data, as well as recommendations 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.