AB 913

This bill provides for establishing a program for reimbursing certain

individuals who operate small farms for their higher education debt. An individual

is eligible for reimbursement if he or she graduated from an accredited public or

nonprofit institution that awards associate's or baccalaureate degrees or if he or she

completed a farm and industry short course offered by the University of Wisconsin

System. However, no more than 25 percent of the amount appropriated for the

program in a fiscal year can be used to reimburse individuals who complete a farm

and industry short course. Debt is not eligible for reimbursement if it is reimbursed,

assumed, or paid for under another program.

The bill defines "small farm" as a farm with annual gross cash farm income that

is not less than $35,000 nor more than $500,000 or 140 percent of the maximum

amount for a small farm under the typology of the economic research service of the

U.S. Department of Agriculture, whichever is greater. Whether a farm qualifies as

a small farm is determined at the time an individual first receives a reimbursement

payment under the program.

The bill creates a five-member council in the Department of Agriculture, Trade

and Consumer Protection, called the Small Farm Higher Education Debt Council,

which must establish the program and has rule-making power. The council consists

of the DATCP secretary or his or her designee and the chancellor of the

UW-Extension or his or her designee. The DATCP secretary appoints the following

other members for three-year terms: 1) an individual who administers or

participates or cooperates in programs of the Farm Service Agency of the U.S.

Department of Agriculture; 2) a representative of agricultural lenders; and 3) a

representative of higher education loan providers or servicers. The bill requires

DATCP to provide administrative support to the council.

To be eligible for reimbursement, the council must find that an individual

satisfies the above educational requirements and that an individual is a state

resident whose primary occupation is to operate a small farm. The bill defines

"operate" as to engage in agricultural activities at a small farm and participate in the

day-to-day operation of the farm. Also, to be eligible, an individual must begin to

operate a small farm no later than five years after obtaining a baccalaureate or

associate's degree or completing a farm and industry short course. In addition, the

individual must intend to operate a small farm for at least five years after applying

to the council for reimbursement. An individual is not eligible for reimbursement if

another individual who also operates the small farm obtains reimbursement under

the program.

The bill requires the Higher Educational Aids Board to enter into agreements

with individuals whom the council finds satisfy the eligibility requirements. In

addition, HEAB must find that the repayment period of each student that is

reimbursed under the program does not exceed ten years, and, for a federal student