§ 1285-R — State beginning farmer program

§ 1285-r. State beginning farmer program. 1. Notwithstanding the\nprovisions of any general or special law to the contrary, the\ncorporation shall undertake to provide financial assistance to beginning\nfarmers to purchase agricultural land, improvements and other\nagricultural property at or for any agricultural facility as set forth\nin this section.\n 2. For purposes of this section, and notwithstanding any provision of\nlaw to the contrary, as used in this section:\n (a) "Agricultural facility" shall mean a facility used for the\nproduction for sale of crops, livestock and livestock products as those\nterms are defined in subdivision two of section three hundred one of the\nagriculture and markets law.\n (b) "Beginning farmer" shall mean a person who engages in farming or\ndesires to engage in farming and who qualifies as a first time farmer\npursuant to 26 United States code section 147(c)(2).\n (c) "Lender" shall mean any state or federally-chartered savings bank,\nsavings and loan association, state or federally chartered savings banks\nand savings and loan associations, farm credit system institution, or\nstate or federally chartered commercial banks or trust companies\nauthorized to do business in this state.\n (d) "Project" shall mean the purchase of agricultural land,\nimprovements and other agricultural property at or for any agricultural\nfacility to be owned and operated by a beginning farmer.\n 3. The corporation is hereby authorized to enter into any contract,\nfinancing or loan agreement, or other instrument in connection with a\nloan made by a lender to a beginning farmer for a project.\n 4. In order to effectuate the purposes of this section, the\ncorporation may extend credit to or on behalf of a beginning farmer for\nthe construction or acquisition of a project, or for the reimbursement\nfor costs incurred by a beginning farmer in connection with a project,\nprovided such beginning farmer has received a commitment to receive from\na lender a loan or other financial assistance acceptable to the\ncorporation. In the exercise of the powers granted in this section in\nconnection with a project for a beginning farmer, the corporation may\nrequire the inclusion in any contract, loan agreement or other\ninstrument of such provisions for the financing of such project and such\nother financial and other covenants as may apply to such beginning\nfarmers as the corporation may deem desirable and/or appropriate and to\ndo all things necessary to execute any instrument in connection and\ndesirable with such financing.\n 5. In connection with the issuance of any bond or note issued in\nconnection with or for the beginning farmer program, the corporation may\nfix and collect any fees and charges, including but not limited to\nreimbursement of all costs of financing incurred by the corporation, as\nthe corporation shall determine to be reasonable.\n 6. In connection with the extension of credit and the issuance of a\nbond or note for the construction or acquisition of a project as\nprovided in this section, a beginning farmer shall submit to the\ncorporation an application for the extension of credit or a loan. The\ncorporation may deny such application for any reason it deems\nappropriate in the public interest.\n 7. Any bonds or notes issued to finance the provisions of this section\nshall be special limited obligations of the corporation payable solely\nout of the revenue derived from any loan or finance agreement, debt\nobligation or sales contract, collateral or other property received in\nconnection with the beginning farmer program. All assets and liabilities\ncreated through the issuance of bonds or notes under this section shall\nbe separate from all other assets and liabilities of the corporation.\nThe corporation shall have no moral or legal obligation or liability to\nany beginning farmer or other person under this section except as\nexpressly provided by written contract. No funds in the beginning farmer\nprogram may be commingled with any other funds of the corporation.\n 8. (a) The corporation shall promulgate regulations, developed in\nconsultation with the commissioner of agriculture and markets, for the\npurpose of carrying out its responsibilities under this section,\nincluding establishing the criteria and standards for evaluating the\nproject to be financed and the eligibility of the beginning farmer.\n (b) The corporation shall consult with the commissioner of agriculture\nand markets regarding promotion of the program and agriculturally\nrelated questions regarding the program or applications.\n