A4029

An Act concerning private markets for the purchase and sale of agricultural products 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:

“Agricultural product aggregator” means a non-public vendor that is a duly-organized business or non-profit organization authorized to do business in this State, which may enter into a contract with a board for the purchase of agricultural products, and offers a centralized source of agricultural resources or assets, on behalf of multiple end-use farmers.

“Board” means a county agriculture development board established by a county pursuant to section 7 of P.L.1983, c.32 (C.4:1C-14), which develops and adopts programs for the long-term encouragement of the agricultural business in the State. “Committee” means the State Agriculture Development Committee established pursuant to section 4 of the “Right to Farm Act,” P.L.1983, c.31 (C.4:1C-4).

“Department” means the Department of Agriculture.

“Farmer Supply Link Program” or “program” means the program for purchase of discounted agricultural supplies for sale to eligible New Jersey farmers, established pursuant to section 2 of this act.

“Opportunity buying” means the purchasing of agricultural products from vendors at a significant discount that are only available for a short period of time before the agricultural products become unavailable for purchase.

2. a. The committee, in consultation with the department, shall develop a bulk purchasing program designed to reduce individual farmers’ supply costs, to be called the “Farmer Supply Link Program.” The program shall be administered by the boards, and may be organized by a third party, certified non-profit agency. The purpose of the program is to support New Jersey farmers in purchasing agricultural supplies, developing agricultural capital, and accessing agricultural assets. The goal of this program shall be to mitigate the costs of starting and managing a farm business, and to maintain and improve the resilience of the farming industry.

b. Through the program, boards may enter into contracts with experienced agricultural product aggregators, whose sale price is most advantageous to the board in accordance with subsection d. of this section, for the purchase of bulk agricultural supplies. New Jersey farmers may then pre-order and purchase agricultural supplies. These supplies may include but are not limited to equipment, compost, fertilizer, fuel, farm infrastructure, seeds, livestock, and pesticides. A board shall not arrange for such a contract unless those agricultural supplies are provided at a discounted or reduced rate.

c. The order and sale of agricultural products through this program shall be exclusive to eligible New Jersey farmers, as determined by the department and the committee.

d. Each board shall develop rules, fee schedules, goals, and formats for the distribution of agricultural supplies. The rules must establish guidelines for practicing opportunity buying strategies for off-contract purchases of agricultural supplies from an agricultural product aggregator. The rules must establish specific, reasonable, and measurable benchmarks towards achieving the procurement goals. Fees established by each board shall be reasonable, adjusted annually in direct proportion to the percentage change in the Consumer Price Index, and not less than the amount necessary to allow the board to recover all costs associated with the implementation and enforcement of the purchasing contract, including direct, indirect, and administrative costs. Any revenue collected by the board from purchasing agricultural supplies through the program in excess of the minimum fees established by the board shall be deposited as a credit to the Preserve New Jersey Farmland Preservation Fund.

e. In the first year a board participates in the program, the board shall request grants from the committee, which shall make awards from the Preserve New Jersey Farmland Preservation Fund. The committee shall establish eligibility and prioritization criteria for award of funds to eligible boards. Subsequent to the first year of the program, any contract by a board with an agricultural product aggregator for the purchase of agricultural supplies shall be payable only from amounts derived from the collection of the fees established under subsection d. of this section.

f. Boards are authorized, either through the adoption of rules and regulations, or through the terms of the purchase agreements made pursuant to subsection b. of this section, to establish terms governing the use of agricultural supplies purchased through the program. These rules and regulations may include, but are not limited to, prioritization systems for new and beginning farmers or farmers with demonstrated financial need.

3. Boards are authorized to participate in programs of the United States Department of Agriculture, or any other agency or instrumentality of the federal government, or with any program of any other State agency, in the administration of the program.

4. The department, the committee, and boards may adopt, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary to implement this act.

5. This act shall take effect immediately.

STATEMENT

This bill would establish a “Farmer Supply Link Program” (program) to support New Jersey farmers in purchasing bulk agricultural supplies, developing agricultural capital, and accessing agricultural assets at a discounted rate. The goal of this program is to mitigate the costs of starting and managing a farm business, and to maintain and improve the resilience of the farming industry. This bill addresses recommendations from the New Jersey Department of Agriculture’s report, “The Next Generation of Farming in New Jersey.”

The bill authorizes the State Agricultural Development Committee and Department of Agriculture to develop a bulk purchasing program designed to reduce individual farmers’ supply costs, to be called the “Farmer Supply Link Program.” The program is to be administered by county agricultural development boards (boards). The bill establishes several definitions specific to the program, such as for strategic purchasing practices required in each boards’ procurement and goal setting efforts.

Under the program, boards would be authorized to enter into contracts or purchase agreements with established agricultural product aggregators to purchase discounted bulk agricultural supplies. Agricultural party aggregators would participate in the “Farmer Supply Link Program” under the oversight of a third party, non-profit agency. Agricultural supplies may include equipment, compost, fertilizer, fuel, farm infrastructure, seeds, livestock, and pesticides. Supplies would then be ordered by and sold to farmers.

The bill authorizes boards to establish rules, regulations, fee schedules, and formats for the distribution of agricultural supplies. Fees are required to be reasonable, Consumer-Price-Adjusted, and sufficient to recover all costs associated with the implementation and enforcement of the purchasing contract, including direct, indirect, and administrative costs. Boards are also authorized to establish terms governing the use of agricultural supplies purchased through the program. Any excess revenue collected by a board from the purchase of agricultural supplies through the “Farmer Supply Link Program” in excess of the minimum fees established by the board are to be deposited as a credit to the Preserve New Jersey Farmland Preservation Fund. In establishing rules and regulations for auctions and product distribution, boards are authorized to include prioritization of new and beginning farmers, or farmers with demonstrated financial need. Boards are also authorized to participate in programs administered by federal departments and agencies in implementing the “Farmer Supply Link Program.”

In the first year a board participates in the program, boards are to request grants from the committee, which shall then make awards from the Preserve New Jersey Farmland Preservation Fund. The committee shall establish eligibility and prioritization criteria for award of funds to eligible boards. Subsequent to the first year of the program, any contract by a board with a agricultural product aggregator for the purchase of agricultural supplies shall be payable only from amounts derived from the collection of auction fees.