An Act establishing a promotional program for certain specialty agricultural products and supplementing Titles 4 and 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that agriculture has traditionally been one of New Jersey's important economic sectors, and while the economic viability of farming has been undermined over the past several decades by rapid land development in the State, there are many special and unique agricultural products in New Jersey that set its agricultural sector apart from agriculture in other states; that developing and promoting these specialty products will bolster not only agriculture but the entire New Jersey economy; and that the State must approach agriculture as a significant part of the State's economy, affording it the same assistance as other businesses by providing technical help, encouraging the cultivation of specialty crops and applications of animal husbandry that meet market needs in this area and have the potential to extend the growing season, and by providing the necessary financing for developing alternative crops, markets, and production technologies.

The Legislature therefore determines that it is prudent and proper to establish within New Jersey a program to facilitate the diversification of agriculture in the State by encouraging the production and marketing of specialty agricultural products to restaurants, local food markets, supermarkets, farmers markets, ethnic markets, and natural or organic food stores, through the use of techniques to maximize production, income, and product diversification to meet the needs of restaurants, markets, and other retail food operations.

2. As used in this act:

"Advisory board" means the Specialty Agricultural Development Advisory Board established pursuant to subsection b. of section 3 of this act.

"Authority" means the New Jersey Economic Development Authority created pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).

"Department" means the Department of Agriculture.

"Division" means the Division of Business Assistance, Marketing, and International Trade within the New Jersey Economic Development Authority, created pursuant to section 6 of P.L.2008, c.27 (C.34:1B-215).

"Institution of higher education" means an accredited university, college, or community college.

"Program" means the Specialty Agriculture Development Program created pursuant to subsection a. of section 3 of this act.

"Specialty agricultural product" means, but is not limited to, foods such as salad greens mixes, micro greens, heirloom fruits and vegetables, herbs, exotic mushrooms, berries, cream, butter, artisanal cheeses, and specialized poultry and game, which may include, but need not be limited to, produce and animal products produced in accordance with organic methods. "Specialty agricultural product" shall also include any product so designated by the Specialty Agricultural Development Advisory Board, created pursuant to subsection b. of section 3 of this act.

3. a. There is created, within the Department of Agriculture, the Specialty Agriculture Development Program to facilitate the diversification of agriculture in the State by encouraging the production and marketing of specialty agricultural products to restaurants, local food markets, supermarkets, farmers markets, ethnic markets, and natural or organic food stores, through the use of techniques to maximize production, income, and product diversification to meet the needs of restaurants, markets, and other retail food operations.

b. There is created a Specialty Agricultural Development Advisory Board to oversee operation of the program. The advisory board shall be composed of nine members. Seven members shall be public members, appointed by the Governor. One of the public members shall be a member of the faculty of the George H. Cook Campus of Rutgers, the State University; one member shall represent the New Jersey Farm Bureau; one member shall be affiliated with the commercial lending division of a State or federally chartered bank; one member shall represent the New Jersey Restaurant Association; one member shall represent the New Jersey Food Council; and two members shall be actively engaged in farming, one of whom shall be engaged in the production of specialty agricultural products. The Secretary of Agriculture and the Director of the Division of Business Assistance, Marketing, and International Trade within the New Jersey Economic Development Authority, or their designees, shall serve ex officio. The Secretary of Agriculture shall be the chair of the advisory board.

c. The advisory board shall recommend to the Department of Agriculture a candidate for the position of director of the program. The candidate shall have experience in agriculture or marketing in the food industry. The Department of Agriculture shall provide such staff assistance as may be necessary for implementation of this act, in addition to any other staff appointed by the director of the program.

d. The advisory board shall monitor the operation of the program and make such recommendations to the director of the program, the Director of the Division of Business Assistance, Marketing, and International Trade, the Secretary of Agriculture, or the Director of the New Jersey Economic Development Authority, or as may be necessary for implementation of this act.

e. The purpose of the program is to assist farmers presently engaged in agricultural production and to support start up enterprises in devoting all or a portion of their operations to specialty agriculture in order to:

(1) utilize season extension techniques to maximize their productive capacity and income; and

(2) encourage diversification and production of a variety of products to meet the needs of restaurants, markets, and other retail food operations in the region.

f. The program, with the assistance of the Department of Agriculture and the authority through the division, shall:

(1) assist in the preparation of a business plan;

(2) assist producers in adapting agriculture management techniques to specialty agriculture;

(3) in cooperation with the New Jersey Restaurant Association, establish a methodology for identifying farm products that are in demand and encourage partnerships and relationships between chefs and restaurant managers, and specialty farming operations and artisanal producers;

(4) assist in identifying other buyers of specialty and artisanal products, including local markets, food brokers, and distribution facilities in order to establish direct-to-retail marketing channels for producers;

(5) assist in providing access to appropriate packaging facilities, if needed;

(6) assist in facilitating marketing through Internet technology;

(7) if organic products are to be produced, assist in obtaining certification under the State or national organic certification program;

(8) assist in identifying major producers of specialty agricultural products, whether or not located in the State, to facilitate, if appropriate, the implementation of a subcontracting arrangement between smaller New Jersey producers and major producers; and

(9) assist producers in utilizing season extension techniques through the construction or use of greenhouses, cold frames, or other structures.

4. a. The Specialty Agriculture Development Program shall identify consultants or private consulting organizations, state or national farmers' associations, and institutions of higher education, including colleges of agriculture in the State or elsewhere, with expertise identifying specialty agricultural products that are in demand, and shall either contract with these parties to assist in developing appropriate production and management techniques, marketing methods, and other operational issues, or provide a list of those parties to farmers so that the farmers may contract directly with those parties for assistance. The program may contract with private consulting organizations to secure discounted fees or otherwise favorable arrangements for the program's clients.

b. The Department of Agriculture shall fund any operating expenses it may incur from the implementation of the program from appropriations made available to the department by the Legislature from time to time or through the annual budget process.

5. The Division of Business Assistance, Marketing, and International Trade within the New Jersey Economic Development Authority shall provide assistance to the Specialty Agriculture Development Program, established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), by providing direct assistance to farmers in the program. The division shall assist farmers engaged in the production of specialty agricultural products in obtaining financing for necessary infrastructure and other purposes, including, but not limited to, the construction or conversion of greenhouses and other structures necessary to develop or expand the production of specialty agricultural products. The division shall utilize the resources of the authority, commercial lenders, and federal programs providing financial assistance to farming operations.

6. The operations of the division shall be funded by moneys generated from:

a. fees charged to the users of the services provided by the division, as recommended by the advisory board, which fees shall reasonably reflect the value of the services provided; and

b. the lending operations of the authority, which shall be structured to provide a margin of operating income sufficient to pay any expenses of the division in excess of the income from fees charged pursuant to subsection a. of this section.

7. a. The Department of Agriculture, in cooperation with the Specialty Agriculture Development Program established pursuant to section 3 of this act, shall encourage farmers engaged in specialty agriculture to form cooperative groups organized to facilitate the raising, marketing, and delivery of their produce.

b. The department shall, through its "Jersey Fresh" program or otherwise, publicize in the State and elsewhere the availability of specialty agricultural products, as defined in section 2 of this act, to target audiences, including restaurants, markets, and other retail food operations.

8. This act shall take effect immediately.

STATEMENT

In order to take advantage of New Jersey's geographical location between the major markets of New York and Philadelphia and, at the same time, support the significant economic contribution of the State's agricultural sector, this bill creates within the Department of Agriculture, the Specialty Agriculture Development Program.

This program is designed to encourage the production and marketing of specialty agricultural products to restaurants, local food markets, supermarkets, farmers markets, ethnic markets, and natural or organic food stores, through the use of techniques to maximize production, income, and product diversification to meet the needs of restaurants and retail food operations. The purpose of the program is to assist farmers presently engaged in agricultural production or start-up enterprises to use season-extension techniques to maximize their production capacity and income, and to encourage diversification to meet the needs of restaurants and retail food operations in the metropolitan areas. The program would be developed in conjunction with the New Jersey Economic Development Authority and would be overseen by an advisory board that would provide technical assistance, marketing advice, and assistance in applying for financing, as enumerated in the bill.