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A4979
ASSEMBLY, No. 4979
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 7, 2026
Sponsored by:
Assemblywoman� DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
���� Requires NJEDA to establish "Value-added
Agriculture Loan Program" to assist farmers in developing value-added
products.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
establishing a �Value-added Agriculture Loan
Program,� and supplementing Title 34 of the Revised Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in this act:
���� �Authority� means the New
Jersey Economic Development Authority, established pursuant to section 4 of
P.L.1974, c.80 (C.34:1B-4).
���� �Department� means the
Department of Agriculture.�
���� �Farming� means the
cultivation of land for the production of agricultural crops, the raising of
poultry, the production of eggs, the production of milk, the production of
fruit or other horticultural crops, grazing, the production of livestock,
aquaculture, or hydroponics, the production of forest products, or other
activities designated by the department pursuant to rules and regulations.
���� �Value-added product� means a
change in the physical state or form of the food or other agricultural product;
the production of food or other agricultural product in a manner that enhances
its value; or the physical segregation of an agricultural commodity, food, or other
agricultural product in a manner that results in the enhancement of the value
of that commodity, food, or agricultural product.
���� 2.� a.� The New Jersey
Economic Development Authority, in consultation with the Department of
Agriculture, shall develop and administer a value-added agricultural product
loan program, to be called the �Value-added Agriculture Loan Program,� to help farmers,
cooperatives, and farmer-owned corporations or partnerships enter into
activities related to the processing or marketing of value-added products. Each
loan shall be in an amount between $5,000 and $10,000. The goal of the program
shall be to generate new products, create and expand marketing opportunities,
and increase producer income.
���� b.��� (1)� A farmer seeking a loan
pursuant to this section shall apply to the authority, in a form and manner as
determined by the authority, and shall include such information as the
authority determines is necessary, in consideration of the provisions of this
act.
���� (2)�� In order to receive a loan
from the authority, pursuant to this act, the farmer shall:
���� (a)�� be a resident of the
State;
���� (b)�� use the loan for a farm
located within the State;
���� (c)�� use the loan for planning
activities or for working capital expenses related to producing and marketing a
value-added agricultural product. "Planning activities" shall include,
but not be limited to: conducting feasibility studies and developing business
plans for processing and marketing the proposed value-added product. "Working
capital expenses" shall include, but not be limited to: processing costs,
marketing and advertising expenses, and some inventory and salary expenses;
���� (d)�� materially and
substantially participate in farming; and
���� (e)�� satisfy any other
criteria established in the rules and regulations adopted pursuant to section 3
of this act.
���� (3)�� The authority shall
review completed applications and approve applications that meet the
requirements of this section and the rules and regulations adopted pursuant to
section 3 of this act.
���� c.���� A� loan to a farmer
under this section shall be made pursuant to a loan agreement with the
authority, shall bear interest at rates and terms deemed appropriate by the
authority, and shall contain other terms and conditions considered appropriate
by the authority that are consistent with the purposes of this act and with the
rules and regulations adopted by the authority pursuant to section 3 of this
act.
���� d.��� The authority may, in
its discretion, require a farmer that receives a loan pursuant to this act to
submit an audited financial statement to the authority in order to ensure the
farmer�s continued viability.
���� e.���� The authority may,
either through the adoption of rules and regulations, or through the terms of
the loan agreement made pursuant to subsection c. of this section, establish
terms governing the incidence of default by a farmer that receives a loan under
the program administered pursuant to this act.
���� f.���� The authority may
participate in, and cooperate with, programs of the Consolidated Farm Service
Agency in the United States Department of Agriculture, Federal Land Bank, or
any other agency or instrumentality of the federal government, or with any
program of any other State agency in the administration of the loan program.
���� 3.��� The New Jersey Economic
Development Authority, in consultation with the Department of Agriculture,
shall adopt, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.),� rules and regulations necessary to effectuate the purposes of this
act.
���� 4.��� This act shall take
effect immediately.
STATEMENT
���� This bill would require the
New Jersey Economic Development Authority (�EDA�), in consultation with the
Department of Agriculture, to develop and administer a value-added agricultural
product loan program, which would be called the �Value-added Agriculture Loan
Program,� to help farmers enter into activities directly related to the processing
or marketing of value-added products. �Each loan would be in an amount between
$5,000 and $10,000.� The goal of the program would be to generate new products,
create and expand marketing opportunities, and increase producer income.
���� Under the bill, a �value-added
product� means a change in the physical state or form of the food or other
agricultural product; the production of food or other agricultural product in a
manner that enhances its value; or the physical segregation of an agricultural
commodity, food, or other agricultural product in a manner that results in the
enhancement of the value of that commodity, food, or agricultural product.
���� To qualify for a loan under
the program, a farmer would need to:
���� 1)��� be a resident of the
State;
���� 2)��� use the loan for a farm
located within the state of New Jersey;
���� 3)��� use the loan for planning
activities or for working capital expenses related to the production and marketing
of a value-added agricultural product, which planning activities may include the
conducting of feasibility studies and the development of business plans, and
which working capital expenses may include processing costs, marketing and
advertising expenses, and some inventory and salary expenses;
���� 4)��� materially and
substantially participate in farming; and
���� 5)��� satisfy any other
criteria established in the EDA�s rules and regulations. �
���� The bill would require an
EDA-approved loan to a farmer to be made pursuant to a loan agreement with the
authority, to bear interest at rates and terms deemed appropriate by the EDA,
and to contain other terms and conditions considered appropriate by the EDA
that are consistent with the purposes of the bill and the EDA�s regulations. �The
EDA may require a farmer who receives a loan under the program to submit an
audited financial statement to the EDA in order to ensure the farmer�s
continued viability, and may, either by regulation or through the terms of the
loan agreement, establish terms governing the incidence of default by a farmer who
receives a loan under the program. �The EDA would have the authority to
participate in programs of the United States Department of Agriculture
Consolidated Farm Service Agency, the Federal Land Bank, or any other federal
or State agency in the administration of this program.
���� The purpose of this bill is to
develop and administer a farmer loan program to facilitate the economic
sustainability of commercial farming.� Direct marketing and value-added
products are two of the best strategies farmers can employ to improve net
profitability. Value-added products can open new markets, enhance the public's
appreciation for the farm, and extend the marketing season.