To authorize the Small Business Administration and the Department of Agriculture to assist farmers and ranchers seeking to develop and implement agricultural innovation plans in order to increase their profitability in ways that provide environmental benefits, and for other purposes.

To authorize the Small Business Administration and the Department of Agriculture to assist farmers and ranchers seeking to develop and implement agricultural innovation plans in order to increase their profitability in ways that provide environmental benefits, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Family Farm and Ranch Innovation Act of 2003'.

SEC. 2. FINDINGS; PURPOSE.

(a) FINDINGS- The Congress finds the following:

(1) Farming, ranching, and other businesses related to agriculture form a significant portion of the economy of the United States.

(2) In 2000, 86 percent of the 1,500,000 agricultural workers in the United States were self-employed farmers and ranchers.

(3) From 1910 to 1990, the share of the agricultural economy received by farmers and ranchers dropped from 21 percent to 5 percent, as processing, packaging, and marketing became more profitable than producing raw agricultural commodities.

(4) The trend toward a global processing and distribution system for agricultural products is producing a system in which the majority of food and fiber products are controlled by a few large, vertically integrated firms.

(5) Low market prices for raw agricultural commodities and the rising cost of land are causing many small farms and ranches to fail, which is resulting in the urbanization of valuable farm and ranch lands.

(6) Small farms and ranches need to employ efficient means of production, including methods to minimize the production of pollutants, and engage in practices which add value to the raw commodities they produce in order to improve profitability and remain competitive.

(7) Small farms and ranches need technical and financial assistance to achieve these goals.

(b) PURPOSE- The purpose of this Act is to assist farmers and ranchers in increasing their incomes while reducing pollution, conserving natural resources, and increasing the likelihood that agricultural land will remain available for farming and ranching.

SEC. 3. SMALL BUSINESS LOANS FOR IMPLEMENTATION OF AGRICULTURAL INNOVATION PLANS.

(a) LOAN AUTHORITY- The Administrator of the Small Business Administration may guarantee, under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), loans to any small business concern (as described in section 3(a) of the Small Business Act (15 U.S.C. 632(a))) engaged in farming or ranching, for the purpose of implementing an Agricultural Innovation Plan described in subsection (c).

(b) DEVELOPMENT OF AGRICULTURAL INNOVATION PLAN- On request of a farmer or rancher whose farming or ranching operation has been certified as a small business concern under subsection (d), the Secretary of Agriculture, acting through the Natural Resources Conservation Service, shall work with the farmer or rancher to develop an Agricultural Innovation Plan described in subsection (c).

(c) CONTENTS OF AGRICULTURAL INNOVATION PLAN- An Agricultural Innovation Plan is a plan to--

(1) increase the on-farm or on-ranch income of the farmer or rancher by--

(A) improving farm or ranch management practices;

(B) diversifying crops or livestock;

(C) using direct marketing of agricultural products;

(D) implementing value-added initiatives;

(E) stimulating agri-tourism;

(F) capitalizing on the natural resources of the farm or ranch; or

(G) using any other means that the Secretary of Agriculture determines would improve the efficiency and profitability of the farming or ranching operation; and

(2) protect the environmental quality of the farm or ranch where the farming or ranching operation is located by minimizing the production of pollutants by the farm or ranch and conserving the natural resources of the farm or ranch.

(d) CERTIFICATION AS SMALL BUSINESS CONCERN- On request of any business concern engaged in farming or ranching, the Administrator of the Small Business Administration may issue a certification that the business concern is a small business concern for purposes of subsection (b). Such request shall be submitted to the Administrator in such form and manner as the Administrator may require.