AB 284

This bill establishes a program for reimbursing certain individuals who operate

small farms for their higher education debt. Under the bill, an individual is eligible

for reimbursement if he or she 1) graduated from an accredited public or nonprofit

institution that awards associate or baccalaureate degrees; 2) completed a farm and

industry short course offered by the University of Wisconsin System; or 3) obtained

a technical college diploma or certificate in agriculture or a field related to

agriculture. However, no more than 30 percent of the amount appropriated for the

program in a fiscal year may be used to reimburse individuals who completed a farm

and industry short course or obtained the technical college diploma or certificate

described above. 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 secretary of agriculture, trade and consumer protection or his or her designee

and the chancellor of the UW-Extension or his or her designee. The 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.

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

he or she satisfies the above educational requirements and that he or she is a state

resident whose primary occupation is to operate a small farm. Also, to be eligible,

the individual must begin to operate a small farm no later than five years after

obtaining an associate or baccalaureate degree, completing a farm and industry

short course, or obtaining the technical college diploma or certificate. 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. HEAB

must find that the repayment period of each student that is reimbursed under the