S3288

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

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

1. As used in this act:

“Secretary” means the Secretary of Agriculture.

“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).

“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.

2. a. The Department of Agriculture shall establish a Farm Vitality Planning Reimbursement Grant Program to reimburse the owners and operators of farms 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 owner or operator of a farm, 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 owner or operator of the farm 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 owner or operator of a farm 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. The owner or operator of a farm 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 pursuant to section 6 of this act and any other moneys as may be appropriated or 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 owner or operator of a farm 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 or viability;

(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 owner or operator who is unrelated to the current owner or operator;

(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 owner or operator; 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 costs shall be eligible for reimbursement 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 costs shall be ineligible for reimbursement 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 owner or operator of a farm, 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 grant 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 grant 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. There is appropriated from the General Fund to the Department of Agriculture the sum of $1,000,000 for the purposes of financing reimbursement grants under the Farm Vitality Planning Reimbursement Grant Program, established pursuant to this act.

7. This act shall take effect immediately.

STATEMENT

This bill would require the Department of Agriculture (DOA) to establish a Farm Vitality Planning Reimbursement Grant Program to reimburse the owners and operators of farms 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 would be authorized to award grants, under the program, of up to $7,500 for each eligible plan that is developed or implemented by the owner or operator of a farm, in order to reimburse up to 75 percent of the total eligible costs thereof. Any remaining costs would need to be financed by the owner or operator of the farm 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. An eligible plan is defined by the bill to mean: (1) a business plan or management strategy that is specifically designed to enhance a farm’s long-term economic stability or viability; (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 owner or operator who is unrelated to the current owner or operator; (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 owner or operator; 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.

Costs would be eligible for reimbursement under the Farm Vitality Planning Reimbursement Grant Program if they are directly incurred by the owner or operator of a farm in association with the hiring, contracting, or employment of any of the following professionals for the purposes of developing or implementing an eligible plan: (1) an accountant, a certified public accountant, a business consultant, or a financial planner; (2) an appraiser; (3) an attorney; (4) a professional facilitator; or (5) a professional mediator who is assisting with a farm succession conflict.

The following costs would be ineligible for reimbursement under the program: (1) capital improvement costs; (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 owner or operator of a farm, or by any of the professionals that are hired to develop or implement the eligible plan. A program grant may not be used to reimburse any ineligible costs or any eligible costs that are already being paid for or reimbursed with funds made available from another federal or State grant program.

Grants under the Farm Vitality Planning Reimbursement Grant Program would be awarded on a first come, first served basis, within the limits of available funds, to each owner or operator of a farm 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 would be required to consider grant applications in the order in which they were received.

The bill would provide an initial appropriation of $1 million, from the General Fund, to finance grants being issued under the program. The bill would also require 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 grant 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.