GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1560

Short Title:  Small Family Farms Act.	(Public)

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Sponsors: Representatives Mitchell; Baker, Buchanan, Cansler, Culp, Davis, Hackney, Hiatt, Justus, Kiser, Owens, Sexton, Sherrill, Tolson, G. Wilson, and Wood.

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Referred to:  Agriculture, if favorable, Appropriations.

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May 28, 1998

A BILL TO BE ENTITLED
AN ACT TO PROVIDE ASSISTANCE FOR SMALL, FAMILY-OWNED FARMS THROUGH GRANTS AND LOANS.
The General Assembly of North Carolina enacts:
Section 1.  Legislative Findings. – The General Assembly recognizes the economic and environmental advantages in maintaining and promoting small tracts of land for agricultural production.  Small-farm families are providing necessary food and fiber for North Carolina citizens.  Small farms provide beautiful land and open spaces for the enjoyment of all North Carolina citizens.  By using best management practices, farmers of small, family-owned farms are actively working to protect the environment.  At the same time, they provide valuable products to our citizens and preserve a way of life important to our cultural heritage.  The Department of Agriculture and Consumer Services should offer assistance for small, family-owned farms through grants and loans.
Section 2.  (a) There is appropriated from the General Fund to the North Carolina Rural Rehabilitation Corporation within the  Department of Agriculture and Consumer Services the sum of twelve million dollars ($12,000,000) for the 1998-99 fiscal year to be used to make loans to those farmers of small, family-owned farms having financial difficulty as shown by their inability to obtain affordable conventional loans from other sources. 
(b)	Priority for loans from the funds appropriated under this section shall be extended for the following small, family-owned farms:  
(1)	Dairy farms with fewer than 300 dairy cows.
(2)	Turkey farms that have lost contracts with integrators for reasons not related to having violated environmental laws or rules.
(3)	Swine farms of fewer than 500 swine at any time.
(4)	Peach or apple farms that have lost fifty percent (50%) or more of their fruit crop due to frost or freeze damage.
(c)	The term of the loans under this section shall not exceed 20 years.   These loans shall be provided in accordance with the lending requirements of the North Carolina Rural Rehabilitation Corporation pursuant to Article 2 of Chapter 137 of the General Statutes.
(d)	The Department of Agriculture and Consumer Services shall adopt rules to implement this section.
Section 3.  (a) There is appropriated from the General Fund to the Department of Agriculture and Consumer Services the sum of two million dollars ($2,000,000) for the 1998-99 fiscal year to be used for grants to farmers of family-owned dairies for the purchase of equipment that is a component of an animal waste management system and that is used solely for the purpose of transporting, storing, or distributing animal waste.  This equipment shall be limited to: pumps, spraying equipment, scrape blades, box blades, storage equipment, and any transport equipment, including tanks, spreaders, and applicators.
(b)	No funds appropriated under this section shall be used to enlarge anaerobic lagoons or for the maintenance of anaerobic lagoons.
(c)	The Department shall adopt rules that establish guidelines for disbursing the funds in a fair and equitable manner and any other rules needed to implement this section.  Each recipient of grant funds under this section shall enter into a contract with the Department that contains provisions of the loan that are consistent with these guidelines.  This contract shall provide for the enforcement of the terms of the contract.  This contract shall provide that the recipient continue to operate at the current level of dairy production for a period of at least five years.  This contract shall provide that if the recipient reduces the number of dairy cows or ceases operation in fewer than five years, the recipient shall repay the Department of Agriculture and Consumer Services a prorated share of the grant funds received by that recipient.
(d)	Only dairies with fewer than 300 dairy cows that were in operation prior to January 1, 1998, are eligible for grants under this section. 
Section 4.  There is appropriated from the General Fund to the Department of Agriculture and Consumer Services the sum of two hundred fifty thousand dollars ($250,000) for the 1998-99 fiscal year to be used as grants to local farmers markets for the purpose of promoting or selling farm products produced by local small, family-owned farms.  The Department shall establish guidelines and procedures for disbursing these grants in a fair and equitable manner.  The Department shall adopt any rules needed to implement this section.
Section 5.  This act becomes effective July 1, 1998.