7 U.S.C. § 1983b: Beginning farmer and rancher individual development accounts pilot program

The term “demonstration program” means a demonstration program carried out by a qualified entity under the pilot program established in subsection (b)(1). lacks significant financial resources or assets; and 80 percent of the median income of the State in which the farmer or rancher resides; or 200 percent of the most recent annual Federal Poverty Income Guidelines published by the Department of Health and Human Services for the State. The term “individual development account” means a savings account described in subsection (b)(4)(A). described in section 501(c)(3) of title 26 ; and exempt from taxation under section 501(a) of such title; or a State, local, or tribal government submitting an application jointly with an organization described in clause (i). An organization described in subparagraph (A)(i) may collaborate with a financial institution or for-profit community development corporation to carry out the purposes of this section. of at least 5 years in duration; and in at least 15 States. The Secretary shall operate the pilot program through, and in coordination with the farm loan programs of, the Farm Service Agency. A qualified entity carrying out a demonstration program under this section shall establish a reserve fund consisting of a non-Federal match of 50 percent of the total amount of the grant awarded to the demonstration program under this section. After the qualified entity has deposited the non-Federal matching funds described in subparagraph (A) in the reserve fund, the Secretary shall provide the total amount of the grant awarded under this section to the demonstration program for deposit in the reserve fund. may use up to 10 percent for administrative expenses; and shall use the remainder in making matching awards described in paragraph (4)(B)(ii)(I). Any interest earned on amounts in a reserve fund established under subparagraph (A) may be used by the qualified entity as additional matching funds for, or to administer, the demonstration program. The Secretary shall issue guidance regarding the investment requirements of reserve funds established under this paragraph. the amount of Federal funds deposited in the reserve fund under subparagraph (B) that were not used for administrative expenses; divided by the total amount of funds deposited in the reserve fund. A qualified entity receiving a grant under this section shall establish and administer individual development accounts for eligible participants. to deposit a certain amount of funds of the eligible participant in a personal savings account, as prescribed by the contractual agreement between the eligible participant and the qualified entity; to use the funds described in subclause (I) only for 1 or more eligible expenditures described in paragraph (5)(A); and to complete financial training; and to deposit, not later than 1 month after an amount is deposited pursuant to clause (i)(I), at least a 100-percent, and up to a 200-percent, match of that amount into the individual development account established for the eligible participant; and with uses of funds proposed by the eligible participant. A qualified entity administering a demonstration program under this section may provide not more than $6,000 for each fiscal year in matching funds to the individual development account established by the qualified entity for an eligible participant. An amount provided under clause (i) shall not be considered to be a gift or loan for mortgage purposes. to purchase farmland or make a down payment on an accepted purchase offer for farmland; to make mortgage payments on farmland purchased pursuant to clause (i), for up to 180 days after the date of the purchase; to purchase breeding stock, fruit or nut trees, or trees to harvest for timber; and for other similar expenditures, as determined by the Secretary. An eligible participant may make an eligible expenditure at any time during the 2-year period beginning on the date on which the last matching funds are provided under paragraph (4)(B)(ii)(I) to the individual development account established for the eligible participant. At the end of the period described in clause (i), any funds remaining in an individual development account established for an eligible participant shall revert to the reserve fund of the demonstration program under which the account was established. A qualified entity that seeks to carry out a demonstration program under this section may submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may prescribe. the degree to which the demonstration program described in the application is likely to aid eligible participants in successfully pursuing new farming opportunities; the experience and ability of the qualified entity to responsibly administer the demonstration program; the experience and ability of the qualified entity in recruiting, educating, and assisting eligible participants to increase economic independence and pursue or advance farming opportunities; the aggregate amount of direct funds from non-Federal public sector and private sources that are formally committed to the demonstration program as matching contributions; the adequacy of the plan of the qualified entity to provide information relevant to an evaluation of the demonstration program; and such other factors as the Secretary considers to be appropriate. a track record of serving clients targeted by the program, including, as appropriate, socially disadvantaged farmers or ranchers (as defined in section 2003(e)(2) of this title ); and expertise in dealing with financial management aspects of farming. Not later than 1 year after the date of enactment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary considers appropriate. If the Secretary approves an application to carry out a demonstration program, the Secretary shall authorize the applicant to carry out the project for a period of 5 years, plus an additional 2 years to make eligible expenditures in accordance with subsection (b)(5)(B). The Secretary shall make a grant to a qualified entity authorized to carry out a demonstration program under this section. The aggregate amount of grant funds provided to a demonstration program carried out under this section shall not exceed $250,000. on the awarding of the grant; or pursuant to such payment plan as the qualified entity may specify. an evaluation of the progress of the demonstration program; information about the demonstration program, including the eligible participants and the individual development accounts that have been established; and such other information as the Secretary may require. A qualified entity shall submit each report required under subparagraph (A) to the Secretary. Not later than 1 year after the date on which all demonstration programs under this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings of all reports and evaluations carried out under this section. to assess the financial soundness of the qualified entity; and to determine the use of grant funds made available to the qualified entity under this section. the termination of demonstration programs; control of the reserve funds in the case of such a termination; transfer of demonstration programs to other qualified entities; and remissions from a reserve fund to the Secretary in a case in which a demonstration program is terminated without transfer to a new qualified entity. There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2023.