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house Bill H.R. 3714

Does the Small Business Administration Need to Update its Size Standards for Small Farms?

Argument in favor

The Small Business Administration’s current threshold for a small agricultural business is arbitrary and 16 years old. It needs an update that opens the door for more small farms to compete for federal contracts.

operaman's Opinion
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04/19/2016
First of all, there are not many small farms. New mechanized machinery have aided the small farmer with employee costs, but comes at a high cost. Local banks have all but disappeared leaving SBA. The government could help by reducing regulations
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Mart's Opinion
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04/20/2016
Random size is ambiguous, and why should any size farm get government aid? Stop picking winners and losers.
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GrumpyMSgt's Opinion
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04/20/2016
Yes, give the little guy a break for a change!
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Argument opposed

Current law states that small agricultural businesses earn $750,000 or less in revenue per year, which is an acceptable standard and doesn’t lead to small farms that exceed that standard being wrongly excluded.

Al's Opinion
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04/19/2016
I would feel different if I thought the clowns in our legislature would actually do something for "small farmers". This looks like another gimmick to include even bigger corporate farms for more taxpayer welfare. No confidence here!
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Alis's Opinion
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04/24/2016
It is completely insane to attempt to turn small farming into a Koch-like enterprise. Of course, most of our elected ones are fond of foisting insanity on unsuspecting citizens. Stop it now! Think for once before you do any more damage to the US economy in the interest of getting more $$$ in your reelection coffers!
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pgshpak's Opinion
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04/20/2016
A business that makes over $750,000 a year is not a small business. I'm not worried about their ability to compete when they're already succeeding.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Small Business and Entrepreneurship
  • The house Passed April 19th, 2016
    Passed by Voice Vote
      house Committees
      Committee on Small Business
    IntroducedOctober 8th, 2015

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What is House Bill H.R. 3714?

This bill would allow the Small Business Administration (SBA) to establish size standards for small agricultural businesses by using the same SBA standards applied to regular small businesses. That would enable farms and their affiliates that have annual revenue exceeding $750,000 to be considered small businesses if they meet other criteria like net income or number of employees.

Within 18 months of this legislation’s enactment the SBA would be required to establish its size standards, which would then be subject to rolling review procedures.

Under current law, the SBA considers all agricultural producers with less than $750,000 per year in revenue to be “small” — which has ramifications when those businesses compete for federal contracts that may give an advantage to small businesses. Prior to 2000, when the $750,000 standard was set, small farms were defined as those with less than $500,000 in annual revenue.

Impact

Small agricultural businesses; and the Small Business Administration.

Cost of House Bill H.R. 3714

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. Mike Bost (R-IL) introduced this bill to level the playing field for small agricultural businesses that compete for federal contracts:

“The statutory size standard for agriculture producers doesn’t make sense and may reduce opportunities for small business farms and ranches to bid for federal contracts. My bipartisan legislation applies the same common sense methods to agriculture producers that are used to determine who qualifies as a small business in other industries.”

This legislation has the bipartisan support of 10 House cosponsors, including eight Republicans and two Democrats.



Media:

Summary by Eric Revell
(Photo Credit: Flickr user USDAgov)

AKA

Small Agriculture Producer Size Standards Improvements Act of 2015

Official Title

To amend the Small Business Act to allow the Small Business Administration to establish size standards for small agricultural enterprises using the same process for establishing size standards for small business concerns, and for other purposes.

    First of all, there are not many small farms. New mechanized machinery have aided the small farmer with employee costs, but comes at a high cost. Local banks have all but disappeared leaving SBA. The government could help by reducing regulations
    Like (5)
    Follow
    Share
    I would feel different if I thought the clowns in our legislature would actually do something for "small farmers". This looks like another gimmick to include even bigger corporate farms for more taxpayer welfare. No confidence here!
    Like (6)
    Follow
    Share
    It is completely insane to attempt to turn small farming into a Koch-like enterprise. Of course, most of our elected ones are fond of foisting insanity on unsuspecting citizens. Stop it now! Think for once before you do any more damage to the US economy in the interest of getting more $$$ in your reelection coffers!
    Like (3)
    Follow
    Share
    Random size is ambiguous, and why should any size farm get government aid? Stop picking winners and losers.
    Like (2)
    Follow
    Share
    A business that makes over $750,000 a year is not a small business. I'm not worried about their ability to compete when they're already succeeding.
    Like (2)
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    If you're making $750,000 a year, u don't "need" corporate welfare. That is quite a good living but $15 an hour is too much? Hypocrits
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    While I don't have a problem establishing new standards, I do have a problem giving the authority to set those standards to the agency. They need to be established and included in the Bill. Congress needs to take responsibility for the laws they enact. They have given too much authority to unelected people in every agency because they don't want to make the hard decisions that might piss off a voter.
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    Yes, give the little guy a break for a change!
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    Yes they need to revise the bill that pushed small farmers out of farming. Yes, most farms now days are larger farms because when your neighbor farmer goes out of business because he can't compete with the government you pick up his land and grow. The times of a farm being a few acres and ma and pa walking around in overalls are over. Believe it or not a family of 4 can run a farm of several thousand acres now due to modern advancements. No matter the industry, a man with a pen shouldn't dictate what the man with dirt on his hands does.
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    How about getting rid of the small business administration entirely? It doesn't in actuality help America's small businesses in any way. It only comes up with definitions and regulations for small businesses specifically.
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    Farmers are doing just fine believe me. Just my opinion
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    .
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    Logical.
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    Net income and number of employees should be considered. Agricultural companies hiring more people have could have far greater expenses affecting net income, but we should be rewarding companies for hiring, so more flexibility in this matter is a good thing.
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    No need
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    Yes, it should be reduced
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    Why not, they bend all the rules for big businesses.
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    No comment.
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    Seems appropriate as long as there are safeguards against abuse.
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    The standards are just fine. We don't need any more government interference.
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