AB 495

This bill requires the Department of Agriculture, Trade and Consumer

Protection to create a Small Farm Diversity grant program, under which DATCP

may award grants of up to $50,000 to 1) a new agricultural producer to fund start-up

costs for a new agricultural operation that will be conducted on 50 acres or less of

land; 2) an existing agricultural producer to fund costs for adding a new agricultural

product or increasing production of an agricultural product as part of an agricultural

operation that is conducted on 50 acres or less of land; or 3) an existing agricultural

producer, for the purpose of reducing existing equipment debt, if the producer has

added a new agricultural product or increased production of an agricultural product

as part of an agricultural operation that is conducted on 50 acres or less of land. The

bill appropriates $500,000 in general purpose revenue biennially for this purpose.

The bill also requires a grant recipient to provide equal matching funds for its

operations and outlines certain reporting requirements the recipient must follow

during the three years after receiving a grant. Under the bill, if a grant recipient does

not use the grant funds for the purpose for which the grant is made, fails to submit

required information, or falsifies information submitted, the recipient must repay

the grant funds to the extent directed by DATCP.