Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Authorizes county agriculture development boards to acquire agricultural equipment for lease to new and beginning farmers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning agricultural equipment leasing by county agriculture development boards and supplementing Title 4 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the “County Agriculture Equipment Leasing Act.”
2. As used in this act:
“Board” means a county agriculture development board established pursuant to section 7 of P.L.1983, c.32 (C.4:1C-14).
“Farmer” means the same as the term is defined in R.S.39:3-25.
“Agricultural equipment” means machinery, implements, and tools used in farm operations, including, but not limited to, tractors, tillage equipment, planters, harvesters, balers, irrigation systems, drones, or post-harvest processing equipment.
“Lease” means the same as the term is defined in N.J.S.12A:2A-103.
“Acquire” means the same as the term is defined in section 2 of P.L.2017, c.297 (C.48:24-2).
3. a. A board may:
(1) acquire agricultural equipment by purchase, long-term lease, donation, shared-use agreements, or through other lawful means, subject to the availability of funds. A board may also develop agreements or incentive programs with established farmers or agricultural businesses to facilitate the leasing of privately owned equipment to new and beginning farmers; and
(2) lease agricultural equipment to farmers under terms and conditions it deems appropriate. These terms and conditions may include, but are not limited to, payment schedules, usage rules, lease duration, maintenance obligations, and insurance requirements.
4. a. Each board that establishes a program for lease agreements entered into pursuant to this act shall:
(1) give priority to agreements that:
(a) support new and beginning farmers or farmers with demonstrated financial need;
(b) promote efficient, innovative, or sustainable agricultural practices; and
(c) provide access to equipment that is otherwise cost-prohibitive for individual farmers to purchase.
(2) establish, and publish on the board’s Internet website, procedures for inspecting the equipment, enforcing lease terms, assessing damages, and resolving disputes;
(3) maintain records of all lease agreements; and
(4) annually submit a report to the State Agriculture Development Committee summarizing:
(a) the number of leases executed;
(b) types of equipment leased;
(c) the average lease duration;
(d) farmer participation by county and farm size; and
(e) program revenues and expenditures.
b. Each lease agreement entered into pursuant to this act:
(1) shall require the farmer to maintain the leased equipment in good working order, subject to normal wear and tear, and to return the equipment in similar condition; and
(2) may:
(a) require the payment of a refundable security deposit, to be held by the board and returned upon satisfactory inspection of the equipment at the end of the lease term, less any amounts necessary to cover damage beyond normal wear and tear; and
(b) be structured to recover the costs of acquisition, maintenance, storage, transportation, insurance, and administration, or may be subsidized through State, county, or federal funds.
5. The Department of Agriculture, in consultation with the State Agriculture Development Committee, may establish programs or incentives including, but not limited to, tax credits, liability protections, and cost-share arrangements, to encourage established farmers and equipment owners to make equipment available to boards or to new and beginning farmers through leasing programs established by a board pursuant to this act.
6. a. A board may apply for, and the State Agriculture Development Committee may provide, grants or other financial assistance to support the acquisition or long-term lease of agricultural equipment for the purposes of this act.
b. The State Agriculture Development Committee may allocate available appropriations, or any other funds made available for this purpose, to support county agriculture development board programs established pursuant to this act.
c. Funds provided by the State Agriculture Development Committee may be used by a board for equipment acquisition, storage, maintenance, transportation, insurance, and administrative costs related to the implementation of equipment leasing programs authorized under this act.
d. The State Agriculture
Development Committee may establish application procedures, eligibility
criteria, and reporting requirements for boards seeking financial assistance
under this section.
7. The Department of Agriculture, in consultation with the State Agriculture Development Committee and the boards, shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) adopt rules and regulations as necessary to implement this act, including but not limited to:
a. standard lease terms and conditions;
b. eligibility criteria for farmer participants;
c. reporting requirements; and
d. oversight and auditing procedures for participating county agricultural development boards.
8. This act shall take effect immediately.
STATEMENT
This bill, titled the “County Agriculture Equipment Leasing Act,” authorizes county agriculture development boards to acquire agricultural equipment and lease it to new and beginning farmers in New Jersey.
Under the bill, a county agriculture development board may acquire agricultural equipment through purchase, long-term lease, donation, or shared-use agreements, and may also develop incentive programs or agreements with established farmers and businesses to facilitate the leasing of privately owned equipment to beginning farmers. The board may lease equipment under terms it deems appropriate, including payment schedules, maintenance obligations, and insurance requirements.
The bill requires participating boards to prioritize leases that assist new or financially vulnerable farmers, promote efficient and sustainable agricultural practices, and improve access to cost-prohibitive equipment. Boards must publish program procedures, maintain lease records, and report annually to the State Agriculture Development Committee (SADC) on participation and financial activity.
The bill allows the Department of Agriculture, in consultation with the SADC, to establish incentives such as tax credits, liability protections, or cost-sharing to encourage equipment availability for new farmers. It also authorizes the SADC to issue grants or financial support to boards, and for boards to use those funds for acquisition, storage, maintenance, and administrative costs.
The concept of providing assistance with agricultural equipment purchasing or leasing was identified as a key recommendation in The Next Generation of Farming in New Jersey report, which highlighted the importance of improving access to equipment for new and beginning farmers as a means of promoting farm viability and intergenerational succession.