SB 673
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled
Senate Bill 673 (Senator Gallion, et al.)
Education, Health, and Environmental Affairs Environment and Transportation
Department of Agriculture - Urban Agriculture Grant Program
This bill establishes an Urban Agriculture Grant Program within the Maryland Department
of Agriculture (MDA) and an Urban Agriculture Grant Fund to support the program. The
bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund expenditures increase by at least $100,000 annually beginning
in FY 2022 to capitalize the fund. Special fund revenues to and expenditures from the
Urban Agriculture Grant Fund increase correspondingly, as discussed below.
Local Effect: The bill does not directly affect local government finances. The involvement
of Baltimore City agency staff in the review board (discussed below) can be handled with
existing resources.
Small Business Effect: Meaningful.
Analysis
Bill Summary: The stated purpose of the Urban Agriculture Grant Program is to increase
the viability of urban farming and improve access to urban-grown foods. The stated
purpose of the Urban Agriculture Grant Fund, which is administered by the Secretary of
Agriculture, is to provide grants to nonprofit organizations in Baltimore City to implement
the program. The bill authorizes the Governor to include an appropriation to the fund in
the annual budget bill.
The fund must be used to provide grants to qualified nonprofit organizations that distribute
the grant money to urban agricultural producers. A nonprofit organization is qualified to
receive a grant if MDA determines that the nonprofit organization (1) is incorporated or
maintains its principal place of business in Baltimore City and (2) works to increase the
viability of urban farming and improve access to urban-grown foods.
MDA must adopt regulations, subject to the availability of money in the fund, to provide
grants under the fund. The regulations must:
establish a review board to implement (1) a competitive grant application process
that prioritizes applications that will accomplish the goals of the Urban Agriculture
section of the 2019 Baltimore Sustainability Plan and historically disadvantaged
urban farmers; (2) a system to fairly evaluate each grant application and award
grants from money available in the fund; and (3) a grant agreement to be used by
the review board and grant recipients;
require the review board to include members representing (1) the Baltimore Office
of Sustainability; (2) the Baltimore Development Corporation; and (3) the
Department of Planning;
require that (1) more than 75% of the review board be composed of staff
representing an agency of Baltimore City and (2) the remainder be appointed by
MDA, based on the member’s ability to help achieve the purpose of the program;
require grant recipients to distribute at least 70% of the amount of the grant to urban
agricultural producers to (1) secure real property; (2) maintain safe, environmentally
sustainable, and socially responsible practices; and (3) support viable urban
agriculture enterprises;
require that grant applications demonstrate a measurable impact on improving local
food access or other community benefits;
require at least 70% of the amount of each grant to be distributed to minority-owned
or operated urban agricultural producers; and
prohibit grant recipients from using more than 30% of the amount of the grant for
operating expenses.
In adopting the regulations, MDA must seek and prioritize input from urban agriculture
farms and farmer advocates.
“Urban agricultural producer” is defined as any person that annually sells, or normally
would have sold, $1,000 or more of farm products in Baltimore City. “Farm product” is
defined as:
any agricultural, horticultural, vegetable, or fruit product of the soil, whether raw,
canned, frozen, dried, pickled, or otherwise processed;
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livestock, meats, marine food products, poultry, eggs, or dairy products;
wool, hides, feathers, nuts, or honey; and
every product of farm, forest, orchard, garden, or water.
Within 90 days after the end of a grant cycle, a qualified nonprofit organization that
received a grant must submit a report to MDA that includes (1) the names and locations of
urban agricultural producers that received funds under the program; (2) the dollar amount
of funds awarded to each urban agricultural producer; and (3) the impact of the program
on increasing the viability of urban farming and improving access to urban-grown foods.
By October 15 each year, beginning in 2023, MDA must submit a report to the Governor,
the Senate Budget and Taxation Committee, and the House Appropriations Committee on
the effectiveness of the funding under the program.
The bill authorizes MDA to adopt any additional implementing regulations.
Current Law: Entities or programs in State law that provide grants, loans, or other forms
of financial assistance that support agricultural interests in the State include (1) the
Maryland Agricultural and Resource-Based Industry Development Corporation
(MARBIDCO), which provides financial assistance to agricultural and resource-based
businesses through numerous programs; (2) the Certified Local Farm Enterprise Food
Aggregation Grant Fund (enacted under Chapters 2 and 32 of 2021 and administered by
MARBIDCO), supporting the creation of food aggregation, storage, processing, and
distribution sites across the State; and (3) the Maryland Farms and Families Program within
MDA, that has the purpose of doubling the purchasing power of food-insecure Maryland
residents with limited access to fresh fruits and vegetables (by providing matching dollars
for federal nutrition benefits at farmers markets) and to increase revenue for farmers
through redemption of federal nutrition benefits at Maryland farmers markets.
State Fiscal Effect: General fund expenditures increase by at least $100,000 annually
beginning in fiscal 2022 to capitalize the new special fund. This estimate reflects an annual
general fund appropriation that is assumed, for the purposes of this fiscal and policy note, to
be an approximate minimum amount needed for a viable program. General fund expenditures
increase by a greater amount to the extent the program is funded at a higher level, increasing
its effectiveness.
Special fund revenues to the Urban Agriculture Grant Fund increase correspondingly,
reflecting receipt of the general fund appropriations to the fund. Special fund expenditures
also increase by an equivalent amount overall, reflecting spending from the Urban
Agriculture Grant Fund; however, spending from the fund may not necessarily occur
entirely in the same fiscal year that the funding is received.
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MDA expects to manage the program and fund with existing staff.
Small Business Effect: Grants provided under the program are expected to have a meaningful
impact on small business urban farmers, consistent with the purpose of the program of
increasing the viability of urban farming and improving access to urban-grown foods.
A 2019 University of Maryland Extension needs assessment of urban farmers in Maryland
(published in the Journal of the National Association of County Agricultural Agents,
Volume 12, Issue 1 (June 2019)) described characteristics of urban farmers in the State and
the barriers they face. As described in the study’s abstract:
Twenty-nine urban farmers completed a survey, which represents a large
proportion of the urban farming population in this region. The majority of
urban farmer respondents grew vegetables, fruits, and cut flowers in
land-based production systems using raised-beds, in-ground growing, and
high tunnels. Urban farmers prioritized balancing numerous goals, including
producing food for themselves and their communities, creating jobs, and
providing income for themselves. Financially, urban farmers were similar to
the general farming population, with about half of respondents farming
part-time and selling less than $10,000 of farm products.
When the urban farmers were asked which of specified choices they saw as the biggest
barrier to their goals for their farm, the most selected choices were (1) access to credit and
financing; (2) available land or buildings to rent or purchase; (3) labor; and (4) marketing
assistance.
Additional Information
Prior Introductions: HB 1534 of 2020 passed the House with amendments and was
referred to the Senate Education, Health, and Environmental Affairs Committee, but no
further action was taken.
Designated Cross File: HB 269 (Delegate Wells) - Environment and Transportation.
Information Source(s): Baltimore City; Maryland Department of Agriculture;
Department of Budget and Management; Maryland Department of Planning; Department
of Legislative Services
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Fiscal Note History: First Reader - February 19, 2021
rh/lgc Third Reader - March 18, 2021
Revised - Amendment(s) - March 18, 2021
Enrolled - April 14, 2021
Analysis by: Scott D. Kennedy Direct Inquiries to:
(410) 946-5510
(301) 970-5510
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Statutes affected: Text - First - Department of Agriculture - Urban Agriculture Grant Program: 2-2001 Commercial Law, 2-2002 Commercial Law, 2-2003 Commercial Law, 2-2004 Commercial Law, 2-2005 Commercial Law, 17-317 Commercial Law, 11-916 Commercial Law
Text - Third - Department of Agriculture - Urban Agriculture Grant Program: 2-2001 Agriculture, 2-2002 Agriculture, 2-2003 Agriculture, 2-2004 Agriculture, 2-2005 Agriculture, 17-317 Commercial Law, 11-916 Commercial Law
Text - Enrolled - Department of Agriculture - Urban Agriculture Grant Program: 2-2001 Agriculture, 2-2002 Agriculture, 2-2003 Agriculture, 2-2004 Agriculture, 2-2005 Agriculture, 17-317 Commercial Law, 11-916 Commercial Law