83 FR 25640 - Request for Applications for Veteran Farmer Streamlined Eligibility Pilot Program

DEPARTMENT OF AGRICULTURE
Farm Service Agency

Federal Register Volume 83, Issue 107 (June 4, 2018)

The Farm Service Agency (FSA) is announcing the opportunity for interested veterans to apply for a new pilot program, Veteran Farmer Streamlined Eligibility Pilot Program (``Pilot Program''), which will assist veterans in meeting the management experience requirements at a faster pace for either a Microloan or Downpayment Loan through the Farm Ownership Loan (FO) Program. As set forth in a cooperative agreement between FSA and Texas A&M University, Texas A&M AgriLife Extension program employees will expand their existing veterans training program, ``Battleground to Breaking Ground,'' to incorporate the requirements of the Pilot Program through a cooperative agreement with FSA. FSA will be involved in helping develop and review curriculum, review applications, participate in orientation, and monitor participants' progress throughout the Pilot Program. The purpose of the Pilot Program is to provide an educational opportunity for veterans so that they can obtain agricultural production, financial, and managerial training at an accelerated pace that will then result in the veteran to be considered conditionally eligible for either a Microloan or Downpayment Loan through the FO Program.

[Federal Register Volume 83, Number 107 (Monday, June 4, 2018)]
[Notices]
[Pages 25640-25642]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11873]


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Federal Register / Vol. 83, No. 107 / Monday, June 4, 2018 / 
Notices

[[Page 25640]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency


Request for Applications for Veteran Farmer Streamlined 
Eligibility Pilot Program

AGENCY: Farm Service Agency, USDA.

ACTION: Notice and request for applications.

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SUMMARY: The Farm Service Agency (FSA) is announcing the opportunity 
for interested veterans to apply for a new pilot program, Veteran 
Farmer Streamlined Eligibility Pilot Program (``Pilot Program''), which 
will assist veterans in meeting the management experience requirements 
at a faster pace for either a Microloan or Downpayment Loan through the 
Farm Ownership Loan (FO) Program. As set forth in a cooperative 
agreement between FSA and Texas A&M University, Texas A&M AgriLife 
Extension program employees will expand their existing veterans 
training program, ``Battleground to Breaking Ground,'' to incorporate 
the requirements of the Pilot Program through a cooperative agreement 
with FSA. FSA will be involved in helping develop and review 
curriculum, review applications, participate in orientation, and 
monitor participants' progress throughout the Pilot Program. The 
purpose of the Pilot Program is to provide an educational opportunity 
for veterans so that they can obtain agricultural production, 
financial, and managerial training at an accelerated pace that will 
then result in the veteran to be considered conditionally eligible for 
either a Microloan or Downpayment Loan through the FO Program.

DATES: The application period will open on June 15, 2018, and close on 
July 20, 2018 no later than 11 p.m. CST.

FOR FURTHER INFORMATION CONTACT: Erin Kimbrough, Texas A&M AgriLife 
Extension program, 979-847-6185, [email protected] or Russ 
Clanton, FSA, 202-690-0214, [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    FSA is an agency of the U.S. Department of Agriculture (USDA) and 
its farm loan programs are authorized by the Consolidated Farm and 
Rural Development Act of 1972, as amended (CONACT, Pub. L. 92-419). 
Farmers or ranchers may be able to get a loan or loan guarantee through 
FSA's Farm Loan Programs (FLP) if they are unable to obtain credit 
elsewhere to start, purchase, sustain, or expand a farm. Unlike loans 
from a commercial lender, FSA loans are temporary in nature with the 
goal of graduating loans to commercial credit. Direct loans through the 
FO Program are used to purchase or enlarge a farm or ranch, construct a 
new or improve existing farm or ranch buildings, and for soil and water 
conservation and protection purposes. Downpayment loans and Microloans 
are types of loans available through the FO Program. Microloans are 
limited to $50,000.00. See definition of Microloan in 7 CFR 761.2.
    Currently, in order to be eligible for either Microloans or 
Downpayment Loan through the FO Program, the applicant must have 
participated in the business operations of a farm for at least 3 years 
out of the 10 years prior to the date the application is submitted. In 
addition, section 302(b)(1) of the CONACT (7 U.S.C. 1922) provides the 
Secretary with the flexibility to determine ``other acceptable 
experience for a period of time.'' For example, FSA currently allows 1 
of the 3 years to be substituted with leadership or management 
experience while serving in any branch of the military (see 7 CFR 
764.152(d)(3)). For the Pilot Program, FSA is building on the CONACT's 
flexibility in order to allow veterans to qualify for FSA's managerial 
experience in a quicker timeframe.
    Section 333D of the CONACT (7 U.S.C. 1983d) provides FSA with the 
authority to conduct a pilot program in order to evaluate its current 
processes in order to improve the efficiency and effectiveness of the 
farm loan programs. The Congressional Directives in the explanatory 
statement for the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2017 (Division 
A, Pub. L. 115-31) directs FSA to support a certified training program 
for veteran farmers to be prequalified for direct FOs (see page H3331 
(https://www.congress.gov/crec/2017/05/03/CREC-2017-05-03-bk2.pdf).
    The purpose of this Pilot Program is to provide an educational 
opportunity to veteran farmers so that they can obtain production, 
financial, and managerial training and other required experiences as 
specified in 7 CFR 764.101 and 764.152 to potentially qualify for 
either a Microloan or Downpayment Loan through the FO Program in 12-18 
months rather than the current timeline of 2 years. FSA's goal through 
the use of the Pilot Program is that there will be a better educated 
applicant, better customer service for the applicant and the seller of 
the farm, more efficient loan approval process for the loan officer and 
a more successful farm borrower. The agency will review the outcome of 
the Pilot Program to determine if this is a cost effective approach 
that leads to greater borrower success. A successful Pilot Program may 
lead to a broader use of this approach with other universities or with 
other applicants.
    FSA strongly encourages American Veterans who are seeking a career 
in agriculture to apply to for the Pilot Program. The most challenging 
barriers for new or beginning farmer or ranchers, including veterans 
who desire to enter into agriculture businesses, are access to both 
land and capital. Access to capital is not limited to the availability 
of credit, but also to the ability of an applicant to meet the 
eligibility requirements for either a Microloan or Downpayment Loan 
through the FO Program. This includes having the requisite managerial 
experience and ability to develop and present a viable business plan. 
By offering specific agricultural production and financial training, as 
well as hands on mentoring in the veteran's chosen area of agriculture, 
a conditional loan eligibility will be earned upon on the completion of 
the Pilot Program.
    FSA has found that veterans are very interested in starting a 
farming or ranching business, which led to developing the Pilot 
Program. Specifically, in response to the request for comments about 
farm loan pilot projects after the 2014 Farm Bill (79 FR 60805-60807, 
October 8, 2014), two of

[[Page 25641]]

the comments that FSA received focused specifically on helping 
veterans. One of those comments specifically recommended a pilot 
training program.
    Texas A&M AgriLife Extension program is already operating under the 
heading ``Battleground to Breaking Ground.'' FSA's Pilot Program 
expands on the existing program curriculum to prepare veterans for 
financing from FSA. The Pilot Program will be a combination of written 
course work offered online, an individual education plan that includes 
hands on agricultural production workshops, and mentorships. Upon 
conclusion of the course, a veteran will meet the business operation 
requirement as specified in 7 CFR 764.101 and 764.152 for eligibility 
up to 1 year sooner and will be considered conditionally eligible for 
either a Microloan or Downpayment Loan through FO Program.

Eligibility Information

    The applicant must meet the following eligibility requirements and 
will self-certify to the following when applying online for Texas A&M's 
Battleground to Breaking Ground program and provide additional 
documentation where specified below:
    1. The applicant is a veteran. After being selected for the Pilot 
Program, applicants will need certain documentation such as DD Form 
214, Certificate of Release or Discharge from Active Duty, or other 
military ID to verify veteran status to participate in the Pilot 
Program and to apply for either a Microloan or Downpayment Loan through 
the FO Program;
    2. The applicant meets all FSA farm loan program eligibility 
requirements under 7 CFR 764.101 and 764.152, except the farm 
experience requirement which will be expedited by the Pilot Program;
    3. The applicant is not ineligible for Federal benefits based on a 
conviction of any Federal or State controlled substance offense (see 7 
CFR 764.101(a));
    4. The applicant is of legal age, and has mental capacity and 
authority to enter into a legally binding agreement (see 7 CFR 
764.101(b));
    5. The applicant meets citizenship requirements (see 7 CFR 
764.101(c));
    6. The applicant provides a credit report from one of the three 
main credit reporting agencies at the time of orientation to the Pilot 
Program. If a history of failures to repay past debts as they came due 
was out of the control of the applicant, the applicant may wish to 
submit a written description of the circumstances for the consideration 
of the committee. Lack of credit history or isolated incidents of 
delinquent payments is not considered poor credit. Credit scores are 
not used to make a determination of credit worthiness (see 7 CFR 
764.101(d));
    7. The applicant has properly fulfilled prior obligations to other 
parties, including other agencies of the Federal Government (see 7 CFR 
764.101(d)(2));
    8. The applicant is unable to obtain sufficient credit elsewhere to 
finance actual needs at reasonable rates and terms. When the loan 
application is filed, FSA will evaluate the ability to obtain credit 
based on factors including, but not limited to:
    a. Loan amounts, rates, and terms available in the marketplace; and
    b. Property interests, income, and significant non-essential assets 
(see 7 CFR 764.101(e));
    9. The applicant meets the unpaid Federal judgement and delinquent 
Federal debt requirements in 7 CFR 764.101(f) and (g);
    10. The applicant meets the Federal Crop Insurance Violations 
requirements in 7 CFR 764.101(h); and
    11. The applicant meets the prior debt forgiveness requirements in 
7 CFR 764.152(b).

Application and Submission Information

    Each veteran must complete an electronic application for the 
Battleground to Breaking Ground Program through Texas A&M's website, 
http://txagrability.tamu.edu/. In addition, in order to participate in 
the Pilot Program, the applicant must self-certify to the eligibility 
requirements discussed above and provided at the Texas A&M website. The 
application period will open June 15, 2018, and close on July 20, 2018 
no later than 11 p.m. CST. No applications will be accepted after the 
due date.

Application Review Information

    Texas A&M AgriLife Extension program employees will score and rank 
the ``Battlefield to Breaking Ground'' applications using the Texas A&M 
AgriLife Extension program matrix. FSA will look at the top ranked 
applicants from the Texas A&M AgriLife Extension program scoring and 
will select, in order of ranking, the top 15 to 18 applications. FSA 
will then confirm eligibility on the selected applications for 
participation in the Pilot Program. In the case of a tied score for the 
Pilot Program selection, FSA will review the applicant's narrative 
addressing the applicant's readiness to farm to make a selection. The 
readiness to farm question is part of the Texas A&M AgriLife Extension 
program application. Applicants not selected for the Pilot Program due 
to FSA's loan eligibility criteria will still have the option to 
participate in the ``Battleground to Breaking Ground'' program at the 
discretion of Texas A&M AgriLife Extension program. Texas A&M AgriLife 
Extension program will notify all applicants by email.
    Applicants will not be considered a participant in the Pilot 
Program until after they have signed an expectation agreement supplied 
by Texas A&M AgriLife Extension program as part of its existing 
veterans ``Battleground to Breaking Ground'' program. The expectation 
agreement specifies the requirements for completion of the 
``Battleground to Breaking Ground'' program.

Program Completion

    Successful completion of the Pilot Program will result in the 
veteran receiving a certificate from FSA as well as a developed 
business plan. Successful completion will also result in the veteran 
being conditionally eligible for either a Microloan or Downpayment Loan 
through the FO Program. The veteran should apply for the loan within 2 
years of successfully completing the Pilot Program, unless the business 
plan is based on a later start date.
    Participants who do not complete the Pilot Program may not be 
considered conditionally eligible for either a Microloan or Downpayment 
Loan through the FO Program.

Other Provisions

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication should contact the USDA Target Center at (202) 720-2600 
(voice). Additionally, program information may be made available in 
languages other than English.

[[Page 25642]]

    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.ascr.usda.gov/filing-program-discrimination-complaint-usda-customer, and at any USDA office or write a letter addressed to USDA 
and provide in the letter all of the information requested in the form. 
To request a copy of the complaint form, you may call (866) 632-9992. 
You may submit your completed form or letter to any of the following 
options:
     Mail: U.S. Department of Agriculture, Office of the 
Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410;
     Fax: (202) 690-7442; or
     Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Richard Fordyce,
Administrator, Farm Service Agency.
[FR Doc. 2018-11873 Filed 6-1-18; 8:45 am]
 BILLING CODE 3410-05-P