Beginning farmer and rancher individual development accounts pilot program

In this section: The term “demonstration program” means a demonstration program carried out by a qualified entity under the pilot program established in subsection (b)(1). The term “eligible participant” means a qualified beginning farmer or rancher that— has an income that is less than— The term “individual development account” means a savings account described in subsection (b)(4)(A). The term “qualified entity” means— 1 or more organizations— An organization described in subparagraph (A)(i) may collaborate with a financial institution or for-profit community development corporation to carry out the purposes of this section. The Secretary shall establish a pilot program to be known as the “New Farmer Individual Development Accounts Pilot Program” under which the Secretary shall work through qualified entities to establish demonstration programs— The Secretary shall operate the pilot program through, and in coordination with the farm loan programs of, the Farm Service Agency. A qualified entity carrying out a demonstration program under this section shall establish a reserve fund consisting of a non-Federal match of 50 percent of the total amount of the grant awarded to the demonstration program under this section. After the qualified entity has deposited the non-Federal matching funds described in subparagraph (A) in the reserve fund, the Secretary shall provide the total amount of the grant awarded under this section to the demonstration program for deposit in the reserve fund. Of the funds deposited under subparagraph (B) in the reserve fund established for a demonstration program, the qualified entity carrying out the demonstration program— Any interest earned on amounts in a reserve fund established under subparagraph (A) may be used by the qualified entity as additional matching funds for, or to administer, the demonstration program. The Secretary shall issue guidance regarding the investment requirements of reserve funds established under this paragraph. On the date on which all funds remaining in any individual development account established by a qualified entity have reverted under paragraph (5)(B)(ii) to the reserve fund established by the qualified entity, there shall revert to the Treasury of the United States a percentage of the amount (if any) in the reserve fund equal to— A qualified entity receiving a grant under this section shall establish and administer individual development accounts for eligible participants. To be eligible to receive funds under this section from a qualified entity, an eligible participant shall enter into a contract with only 1 qualified entity under which— the eligible participant agrees— the qualified entity agrees— A qualified entity administering a demonstration program under this section may provide not more than $6,000 for each fiscal year in matching funds to the individual development account established by the qualified entity for an eligible participant. An amount provided under clause (i) shall not be considered to be a gift or loan for mortgage purposes. An eligible expenditure described in this subparagraph is an expenditure— An eligible participant may make an eligible expenditure at any time during the 2-year period beginning on the date on which the last matching funds are provided under paragraph (4)(B)(ii)(I) to the individual development account established for the eligible participant. At the end of the period described in clause (i), any funds remaining in an individual development account established for an eligible participant shall revert to the reserve fund of the demonstration program under which the account was established. A qualified entity that seeks to carry out a demonstration program under this section may submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may prescribe. In considering whether to approve an application to carry out a demonstration program under this section, the Secretary shall assess— In considering an application to conduct a demonstration program under this section, the Secretary shall give preference to an application from a qualified entity that demonstrates— Not later than 1 year after the date of enactment of this section, in accordance with this section, the Secretary shall, on a competitive basis, approve such applications to conduct demonstration programs as the Secretary considers appropriate. If the Secretary approves an application to carry out a demonstration program, the Secretary shall authorize the applicant to carry out the project for a period of 5 years, plus an additional 2 years to make eligible expenditures in accordance with subsection (b)(5)(B). The Secretary shall make a grant to a qualified entity authorized to carry out a demonstration program under this section. The aggregate amount of grant funds provided to a demonstration program carried out under this section shall not exceed $250,000. The Secretary shall pay the amounts awarded under a grant made under this section— Not later than 60 days after the end of the calendar year in which the Secretary authorizes a qualified entity to carry out a demonstration program under this section, and annually thereafter until the conclusion of the demonstration program, the qualified entity shall prepare an annual report that includes, for the period covered by the report— A qualified entity shall submit each report required under subparagraph (A) to the Secretary. Not later than 1 year after the date on which all demonstration programs under this section are concluded, the Secretary shall submit to Congress a final report that describes the results and findings of all reports and evaluations carried out under this section. The Secretary may conduct an annual review of the financial records of a qualified entity— In carrying out this section, the Secretary may promulgate regulations to ensure that the program includes provisions for— There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2023.