A bipartisan-backed bill in Congress seeks to help young farmers and ranchers gain better access to farmland, responding to a growing challenge recently highlighted by Investigate Midwest.
The New Producer Economic Security Act would increase access to low- and no-interest loans for new farmers, support state and Tribal governments in purchasing land to be made available to young producers, and fund access to legal services related to land acquisition.
“If we are going to revitalize and strengthen American agriculture for generations to come, we need to take steps now to ensure young farmers can succeed,” said U.S. Rep. Nikki Budzinski of Illinois, a Democrat and sponsor of H.R. 2536.
Last year, Investigate Midwest reported that rising farmland prices have led to a decrease in farmers, especially young producers. According to a 2022 National Young Farmers Coalition survey, 59% of farmers under 40 said finding affordable land was “very or extremely challenging.”
Multiple factors contribute to the increase in farmland prices, including the growth of investment firms paying top dollar for land and reselling some property at amounts as much as five times higher than the regional average.
“The biggest competition (for farmland) used to be from the person who wanted a hobby farm but maybe wasn’t farming full time,” said Vanessa Garcia Polanco, a policy campaign director with the National Young Farmers Coalition. “Today, the biggest threat we see is from corporations and hedge funds.”
Investigate Midwest also found that some investment firms have targeted aging farmers for expanding their portfolio.
“An aging farmer generation, fractional family ownership structure and technological advances requiring sizable capital investment will naturally transition farmland holdings from individuals to institutions,” stated a report from PGIM, a $10 billion property asset management company run by Prudential Financial.
Five Democrats and one Republican are co-sponsoring the bill. In addition to encouraging a new generation of farmers, supporters of the bill believe it’s needed to strengthen rural communities and improve food security.
U.S. Sen. Tina Smith, a Minnesota Democrat, said the aging farmer population — averaging 58 nationally and 57 in Minnesota — underscores the need to support young producers.
“To keep Minnesota’s agriculture economy thriving, we need to invest in the next generation of farmers,” she said. “This is a matter of national security, food security, and the strength and vitality of rural America. This legislation would help remove barriers for new and beginning farmers as they try to start up their businesses.”
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