H.R. 3286 (112th): Local Farms, Food, and Jobs Act of 2011

112th Congress, 2011–2013. Text as of Nov 01, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 3286

IN THE HOUSE OF REPRESENTATIVES

November 1, 2011

(for herself, Mr. Blumenauer, Mr. Courtney, Mr. DeFazio, Mr. Ellison, Ms. Kaptur, Mr. Kucinich, Ms. Lee of California, Mr. Markey, Mr. McGovern, Mr. Moran, Mr. Nadler, Mr. Olver, Ms. Slaughter, Mr. Welch, Ms. Woolsey, Mr. Holt, Mr. Kind, Mr. Sablan, Ms. Hahn, Mr. Michaud, Mr. Luján, Ms. Richardson, Mr. Higgins, Ms. Moore, Ms. Norton, Ms. Schakowsky, Mr. Grijalva, Mr. Cicilline, and Ms. Fudge) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote local and regional farm and food systems, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Local Farms, Food, and Jobs Act of 2011.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

Title I—Commodity programs and crop insurance

Sec. 1001. Sense of Congress on removing barriers to domestic production of fruit and vegetables.

Sec. 1002. Whole farm adjusted revenue risk management insurance plan.

Sec. 1003. Authority to conduct crop insurance-related research and development in addition to contracting for research and development.

Sec. 1004. Improved availability of crop insurance for producers of organic crops.

Title II—Conservation

Sec. 2001. Definition.

Sec. 2002. Duties of Secretary.

Sec. 2003. Farmland protection program.

Sec. 2004. Purposes.

Sec. 2005. Delivery of technical assistance.

Sec. 2006. Cooperative conservation partnership initiative.

Sec. 2007. Administrative requirements for conservation programs.

Title III—Nutrition

Sec. 3001. Electronic benefit transfers.

Sec. 3002. Appropriation to encourage exportation and domestic consumption of agricultural products.

Sec. 3003. Section 32 funds for purchase of fruits, vegetables, and nuts to support domestic nutrition assistance programs.

Sec. 3004. Direct expenditures for agricultural commodities and other foods.

Sec. 3005. Purchases of locally produced foods.

Sec. 3006. Farmers' market nutrition program.

Sec. 3007. Senior farmers' market nutrition program.

Sec. 3008. Assistance for community food projects.

Sec. 3009. Nutrition education and obesity prevention grant program.

Sec. 3010. Administration.

Title IV—Credit

Sec. 4001. Loans to local and regional food producers.

Sec. 4002. Clarification of the mission of the farm credit system to recognize the economic benefits of supporting young, beginning, and small farmers and ranchers, and contributions of local and regional farm and food systems.

Sec. 4003. Young, beginning, and small farmers and ranchers and locally or regionally produced agricultural products.

Sec. 4004. Government accountability office study examining how well federal agencies are assessing and meeting the capital needs of young, beginning, and small farmers and local and regional farm and food systems.

Title V—Rural Development

Sec. 5001. Support for local and regional farm and food systems.

Sec. 5002. Value-Added Producer grants.

Title VI—Research

Sec. 6001. Agriculture and food research initiative.

Sec. 6002. Local food production and market data initiatives.

Sec. 6003. Under Secretary of Agriculture for Research, Education, and Economics.

Sec. 6004. Local and regional food system enterprise facilitation.

Sec. 6005. National genetics resources program.

Title VII—Horticulture and Organic Agriculture

Sec. 7001. Specialty crop block grants.

Sec. 7002. National organic certification cost-share program.

Sec. 7003. Availability of organic certification cost share assistance and risk management education and community outreach partnership assistance under the Federal Crop Insurance Act.

Sec. 7004. Local Marketing Promotion Program.

Title VIII—Poultry and Livestock

Sec. 8001. Small and very small meat processing plants.

Sec. 8002. Small and very small poultry processing plants.

Sec. 8003. Searchable database of electronically submitted meat and poultry labels.

Sec. 8004. Meat and poultry processing report.

Title IX—Miscellaneous

Sec. 9001. National food safety training, education, extension, outreach, and technical assistance program.

2.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Agriculture.

I

Commodity programs and crop insurance

1001.

Sense of Congress on removing barriers to domestic production of fruit and vegetables

It is the sense of Congress that—

(1)

Federal commodity and crop insurance programs should not create barriers to the domestic production of fruit and vegetables;

(2)

planting flexibility under Federal commodity programs should be maximized with the goals of—

(A)

allowing producer choice regarding the planting of agricultural commodities; and

(B)

increasing the local and regional availability of fresh and minimally processed produce, including to schools and other institutions; and

(3)

crop and revenue insurance products should be made available that are tailored to the needs of diversified farming operations that serve local and regional food markets.

1002.

Whole farm adjusted revenue risk management insurance plan

Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the end the following:

(11)

Whole farm adjusted revenue risk management insurance plan

(A)

In general

The Corporation shall offer a whole farm adjusted revenue risk management insurance plan (in this paragraph referred to as the plan) that allows a producer to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue of the producer.

(B)

Availability

The Corporation shall offer the plan in all States and counties, pending required rating.

(C)

Eligible producers

The Corporation shall permit producers of any type of agricultural commodity to participate in the plan. Eligible producers include contract growers, direct-to-consumer marketers, and producers servicing local and regional and farm identity-preserved markets. Eligible commodities include specialty crops, industrial crops, poultry, livestock, and aquacultural products.

(D)

Diversification

The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the risk management benefits of diversification strategies regarding production of eligible commodities.

(E)

Market readiness

The Corporation shall include coverage for the value of any packing, packaging, or labeling, washing, grain drying, or any other similar on-farm activities the Corporation determines to be the minimum required in order to sell an agricultural commodity.

.

1003.

Authority to conduct crop insurance-related research and development in addition to contracting for research and development

(a)

Conducting research and development

Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended—

(1)

in the subsection heading, by striking Contracting;

(2)

in paragraph (1), in the matter preceding paragraph (A), by striking enter into contracts to carry out research and development to and inserting conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to;

(3)

in paragraph (2)—

(A)

in subparagraph (A), by inserting conduct research and development or after The Corporation may; and

(B)

in subparagraph (B), by inserting conducting research and development or after Before; and

(4)

in paragraph (5), by inserting after expert review in accordance with section 505(e) after approved by the Board.

(b)

Funding

Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended—

(1)

in paragraph (2)—

(A)

in the paragraph heading, by striking Contracting and inserting Research and development and partnerships;

(B)

in subparagraph (A), by inserting conduct research and development and after the Corporation may use to; and

(C)

in subparagraph (B), by inserting conduct research and development and after for the fiscal year to;

(2)

in paragraph (3), in the matter preceding subparagraph (A), by striking to provide either reimbursement payments or contract payments under this section for a fiscal year is not needed for such purposes and inserting for a fiscal year is not needed for the purposes for which the amount was made available; and

(3)

by striking paragraph (4).

1004.

Improved availability of crop insurance for producers of organic crops

(a)

Elimination of organic premium surcharge

Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended by adding at the end the following new paragraph:

(4)

Elimination of organic premium surcharge

Effective beginning with the 2013 reinsurance year, the Corporation may not require any producer to pay a premium surcharge for insuring crops produced in compliance with standards issued by the Department of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

.

(b)

Completion of development of organic price series

Section 508(c)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(6)) is amended by adding at the end the following new subparagraph:

(D)

Organic crops

(i)

In general

As quickly as possible, but in no event later than the 2015 reinsurance year, the Corporation shall offer producers of organic crops price elections for all organic crops produced in compliance with standards issued by the Department of Agriculture under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) that reflect the actual retail or wholesale prices, as appropriate, received by producers for organic crops, as determined by the Secretary using all relevant sources of information.

(ii)

Annual report

The Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report on progress made in developing and improving Federal crop insurance for organic crops, including—

(I)

the numbers and varieties of organic crops insured;

(II)

the progress of implementing the price elections required under this subparagraph, including the rate at which additional price elections are adopted for organic crops;

(III)

the development of new insurance approaches relevant to organic producers; and

(IV)

any recommendations the Corporation considers appropriate to improve Federal crop insurance coverage for organic crops.

.

(c)

Repeal of required contracts for organic production coverage improvements

Section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by striking paragraph (10).

II

Conservation

2001.

Definition

Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by redesignating paragraphs (18) through (27) as paragraphs (19) through (28), respectively, and inserting after paragraph (17) the following new paragraph:

(18)

Local and regional food

The term local and regional food means locally or regionally produced agricultural food product, as that term is defined in section 310B(g)(9) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)).

.

2002.

Duties of Secretary

Section 1238G(c) of the Food Security Act of 1985 (16 U.S.C. 3838g(c)) is amended as follows:

(1)

In the header, by striking Specialty Crop and Organic Producers and inserting Specialty crop, organic, and local and regional food producers.

(2)

By striking specialty crop and organic producers and inserting specialty crop, organic, and local and regional food producers.

2003.

Farmland protection program

Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is amended as follows:

(1)

In subsection (b), by inserting to promote farm viability for future generations and, to the maximum extent practicable, enhance the viability of local and regional food systems before the period.

(2)

In subsection (g), by adding at the end the following new paragraph:

(6)

Funding priority

(A)

In general

An agreement under this subsection shall require an eligible entity to provide a funding priority, to the maximum extent practicable, for—

(i)

eligible land for which there exists a farm or ranch succession plan or similar plan established to create opportunities for beginning farmers and ranchers and encourage farm viability for future generations;

(ii)

conservation easements that include an option to purchase at a price that is equal to the agricultural use value;

(iii)

qualified beginning farmers or ranchers with contracts to purchase the land to be protected;

(iv)

land owned by a nongovernmental organization that will be sold to a qualified beginning farmer or rancher;

(v)

conservation easements the purchasing of which occurs in conjunction with a transfer of eligible land to a qualified beginning farmer or rancher that may not occur without the financial assistance of the program; and

(vi)

other similar mechanisms to maintain the affordability of farm and ranch land for successive generations of farmers and ranchers.

(B)

Definition

For the purposes of this paragraph, the term qualified beginning farmer or rancher has the meaning given that term in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).

.

2004.

Purposes

Section 1240(4) of the Food Security Act of 1985 (16 U.S.C. 3839aa(4)) is amended by inserting or local and regional food after related to organic.

2005.

Delivery of technical assistance

Section 1242(i) of the Food Security Act of 1985 (16 U.S.C. 3842(i)) is amended—

(1)

in the header, by inserting local and regional food, after organic,;

(2)

in paragraph (1)(A), by inserting local and regional food production, after organic crop production,;

(3)

in paragraph (1)(B), by striking organic or specialty crop production and inserting organic, specialty crop, or local and regional production;

(4)

in paragraph (2)(A), by striking or precision agriculture through and inserting precision agriculture, or local and regional food production, through; and

(5)

in paragraph (2)(B)(i), by striking or precision agriculture through and inserting precision agriculture, or local and regional food production, through.

2006.

Cooperative conservation partnership initiative

Section 1243(b)(4) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(4)) is amended by striking specialty crop and organic production and precision agriculture producers and inserting specialty crop, organic, and local and regional food production, and precision agriculture producers.

2007.

Administrative requirements for conservation programs

Section 1244(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3844(a)(2)) is amended—

(1)

by redesignating subparagraph (D) as subparagraph (E); and

(2)

by inserting after subparagraph (C) the following new subparagraph:

(D)

Local and regional food producers.

.

III

Nutrition

3001.

Electronic benefit transfers

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended—

(1)

in paragraph (1)—

(A)

by redesignating subparagraphs (A) through (D) as subparagraphs (B) through (E), respectively;

(B)

by inserting before subparagraph (B) (as so redesignated) the following:

(A)

Definitions

In this subsection:

(i)

Buying club

The term buying club means a group of consumers who join together to purchase in bulk from agricultural producers or food distributors.

(ii)

Community-supported agriculture program

The term community-supported agriculture program or CSA means a farm business or a group of agricultural producers that form a partnership with consumers through which consumers buy a subscription for farm products in advance and the farm business or group of agricultural producers commits to supplying and delivering the products to a common distribution point or directly to the consumers.

(iii)

Community-supported fishery program

The term community-supported fishery program or CSF means fishing business or a group of fishermen that form a partnership with consumers through which consumers buy a subscription for seafood in advance and the fishing business or group of fishermen commits to supplying and delivering the seafood to a common distribution point or directly to the consumers.

(iv)

Farmers' market

The term farmers' market means a regularly scheduled assembly of 2 or more agricultural producers for the direct sale of locally grown fresh fruits and vegetables and other staple foods to consumers.

(v)

Farm stand; roadside stand

(I)

In general

The terms farm stand and roadside stand mean a retail outlet for the direct sale of locally grown fresh fruits and vegetables and other staple foods in rural or urban areas.

(II)

Inclusion

The terms farm stand and roadside stand may include a single stall in a farmers' market.

(vi)

Green cart

The term green cart means a mobile retail food vendor who sells fresh fruits and vegetables on a regular basis from an unmotorized cart.

(vii)

Route vendor

(I)

In general

The term route vendor means a mobile retail food vendor who sells unprepared food from a vehicle directly to consumers along a scheduled route or by arranged delivery.

(II)

Inclusion

The term route vendor includes vendors who provide food services in disaster or other emergency situations.

(viii)

Wireless retailer

The term wireless retailer includes—

(I)

a farmers' market;

(II)

a farm stand;

(III)

a green cart;

(IV)

a route vendor;

(V)

a buying club;

(VI)

an entity operating a community-supported agriculture program;

(VII)

an entity operating a community-supported fishery program; and

(VIII)

an individual farmer affiliated with an entity described in any of subclauses (I) through (VII).

;

(C)

in subparagraph (C) (as so redesignated) by striking subparagraph (A) and inserting subparagraph (B);

(D)

in clause (i) of subparagraph (E) (as so redesignated), by inserting , including wireless technology before the semicolon at the end; and

(E)

by adding at the end the following:

(F)

State flexibility for wireless electronic benefit systems

Subject to paragraph (2), a State agency may—

(i)

procure and implement any wireless electronic benefit transfer (referred to in this subsection as EBT) system that the State agency considers to be appropriate and that meets all industry security standards; and

(ii)

use appropriate wireless technology available to the State agency in implementing the wireless electronic benefit transfer system, including smart phone technology and other technologies, so long as the technologies meet all industry security standards.

;

(2)

in paragraph (2)—

(A)

in subparagraph (G), by striking and at the end;

(B)

in subparagraph (H), by striking the period at the end and inserting a semicolon; and

(C)

by adding at the end the following:

(I)

a requirement that, for purposes of program participation, State agencies and the Food and Nutrition Service treat wireless retailers in the same manner as retail food stores that use wired electronic benefit transfer equipment by providing the retail food stores with wireless electronic benefit transfer equipment that ensures immediate benefit account verification;

(J)

a system for wireless retail food stores to receive funds in an amount not to exceed the cost of a wireless point-of-sale terminal if alternative wireless technology is used; and

(K)

the potential for entering into a contract or memoranda of understanding with a statewide nonprofit organization, such as a statewide farmers' market association, to assist the State agency by providing outreach, training, and administration in wireless electronic benefit transfer equipment deployment at multiple-vendor farmers' markets, particularly in cases in which scrip (such as farmers' market tokens) is used to simplify program participation by agricultural producers and vendors.

;

(3)

in paragraph (3)(B)—

(A)

in clause (i), by striking and at the end;

(B)

in clause (ii), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(iii)

in the case of wireless retailers, the wireless retailer makes wireless electronic benefit and wireless EBT connection services available to all customers.

;

(4)

in paragraph (5), by inserting before the period at the end , including wireless electronic benefit systems that enable all wireless retailers to provide for improved access to nutritious foods in areas lacking such access, and in disaster-recovery situations;

(5)

by redesignating the second paragraph (12) (relating to interchange fees) as paragraph (13); and

(6)

by adding at the end the following:

(14)

Non-ebt transactions

Wireless EBT equipment provided to an authorized retailer may be used for non-EBT transactions (such as credit and debit card transactions) only if the retailer bears all costs associated with those non-EBT transactions.

(15)

Wireless retailer EBT pilot program for smartphone technology

(A)

Establishment

The Secretary shall establish a wireless retailer EBT pilot program that shall operate in a minimum of 2 States for a minimum of 2 years in each State—

(i)

to explore EBT smartphone technology; and

(ii)

to test the use of EBT technology in accepting benefits for multiple nutrition assistance programs.

(B)

Purposes

The purposes of the EBT pilot program are—

(i)

to evaluate the opportunities and challenges faced by wireless retailers in using smartphone technology to process EBT transactions; and

(ii)

to develop technology, software, and machinery that allows wireless retailers to redeem EBT benefits for multiple nutrition assistance programs including—

(I)

the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);

(II)

the farmers’ market nutrition program established under section 17(m) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m));

(III)

the seniors farmers’ market nutrition program established under section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007);

(IV)

the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786); and

(V)

other Federal nutrition assistance programs for low-income individuals that adopt an electronic benefit transfer system.

(C)

Limitation on administrative expenses

For each fiscal year, not more than 10 percent of the amounts made available to carry out this paragraph may be used for administrative expenses.

(D)

Funding

On October 1, 2012, of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this paragraph $2,000,000, to remain available until expended.

.

3002.

Appropriation to encourage exportation and domestic consumption of agricultural products

Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) is amended in the second sentence—

(1)

in paragraph (2), by striking ; and at the end;

(2)

in paragraph (3), by striking the period at the end and inserting ; and; and

(3)

by inserting after paragraph (3) the following: (4) support development of local and regional agricultural markets in the United States by encouraging domestic consumption of locally and regionally grown and raised commodities or products in the manner described in paragraph (2)..

3003.

Section 32 funds for purchase of fruits, vegetables, and nuts to support domestic nutrition assistance programs

(a)

Purchase of locally and regionally produced foods

Section 4404 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 612c–5) is amended—

(1)

by redesignating subsection (c) as subsection (d); and

(2)

by inserting after subsection (b) the following:

(c)

Purchase of locally and regionally produced foods

In carrying out this section, the Secretary shall—

(1)

encourage the purchase of unprocessed or minimally processed locally and regionally grown fruits, vegetables, and nuts; and

(2)

allow the use of geographical preference for the procurement of unprocessed or minimally processed locally and regionally grown fruits, vegetables, and nuts.

.

(b)

Purchase of fresh fruits and vegetables for distribution to schools and service institutions

Section 10603(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4(b)) is amended—

(1)

by striking The Secretary and inserting (1) In general.—The Secretary;

(2)

in paragraph (1) (as so designated), by striking 2008 through 2012 and inserting 2013 through 2017; and

(3)

by adding at the end the following:

(2)

Department of Defense program option

A school or service institution described in paragraph (1) may carry out this section by—

(A)

electing to participate in the Department of Defense fresh fruit and vegetable distribution program;

(B)

under such terms and conditions as the Secretary shall establish, purchasing locally and regionally grown fruits and vegetables with amounts that would have been used by the school or service institution to participate in the Department of Defense fresh fruit and vegetable distribution program; or

(C)

carrying out a combination of the activities described in subparagraphs (A) and (B).

.

3004.

Direct expenditures for agricultural commodities and other foods

Section 6 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755) is amended by adding at the end the following:

(f)

Local food credit program

(1)

Definitions

In this subsection:

(A)

Local food credit

The term local food credit means cash, letters of credit, or another form of assistance, as determined by the Secretary.

(B)

Participating school authority

The term participating school authority means a school food authority that—

(i)

participates in the school lunch program under this Act; and

(ii)

elects to participate in the local food credit program under this subsection.

(C)

Participating State agency

The term participating State agency means a State agency that—

(i)

participates in the school lunch program under this Act; and

(ii)

elects to participate in the local food credit program under this subsection.

(2)

Establishment

Beginning for the 2013–2014 school year and for each subsequent school year, the Secretary shall provide a grant to each participating State agency to provide each participating school food authority under the jurisdiction of that State agency with local food credits in an amount equal to not more than 15 percent of the total value of the commodity assistance or cash payments the State authority is eligible to receive under subsection (c)(2) for that school year in lieu of the commodity assistance or cash payments.

(3)

Requirements

As a condition of receiving a grant under this subsection, each participating school food authority shall—

(A)

use local food credits received under this subsection to purchase unprocessed or minimally processed locally grown and locally raised foods to be served under the school lunch program in schools under the jurisdiction of the authority;

(B)

keep records of any purchases made with the assistance; and

(C)

provide the records to the Secretary in such manner and such form as the Secretary determines to be necessary.

(4)

Prepurchasing

A participating school food authority may use a local food credit received under this subsection in a school year to purchase local foods to serve under the school lunch program during the following school year.

(5)

Minimum commodity purchases

The amount of a grant made under this subsection for a school year shall count toward the minimum commodity assistance requirements of subsection (c)(2) for that school year.

.

3005.

Purchases of locally produced foods

Section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) is amended—

(1)

in paragraph (1), by inserting and minimally processed before agricultural products;

(2)

in paragraph (2), by striking and after the semicolon;

(3)

in paragraph (3)—

(A)

by inserting and the Agricultural Marketing Service before , to use a;

(B)

by inserting and minimally processed before agricultural products; and

(C)

by striking the period at the end and inserting ; and; and

(4)

by adding at the end the following:

(4)

promulgate regulations to clarify that, when using a geographical preference for the procurement of unprocessed and minimally processed agricultural products under paragraph (3), the Secretary and the institutions described in that paragraph may, notwithstanding any other provision of law, select agricultural products solely from among those agricultural products that qualify for the geographical preference.

.

3006.

Farmers' market nutrition program

Section 17(m) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)) is amended—

(1)

in paragraph (1), by inserting and through community-supported agriculture programs after roadside stands;

(2)

in paragraph (5)—

(A)

in subparagraph (D)(ii), by inserting , roadside stands, and community-supported agriculture programs after farmers' markets; and

(B)

in subparagraph (F)(ii), by inserting , roadside stands, and community-supported agriculture programs after farmers' markets each place it appears;

(3)

in paragraph (6)(C)(ii)(II), by inserting , roadside stands, and community-supported agriculture programs after farmers' markets; and

(4)

in paragraph (9)(A), by striking 2015 and inserting 2017.

3007.

Senior farmers' market nutrition program

Section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007) is amended—

(1)

in subsection (a)—

(A)

by striking $20,600,000 and inserting $25,000,000;

(B)

by striking 2008 and inserting 2013; and

(C)

by striking 2012 and inserting 2017; and

(2)

in subsection (b)(1), by inserting maple syrup, after honey,.

3008.

Assistance for community food projects

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended—

(1)

in subsection (b)(2)(B)—

(A)

by striking $5,000,000 and inserting $10,000,000; and

(B)

by striking 2008 and inserting 2013; and

(2)

in subsection (f)(2), by striking 3 and inserting 5.

3009.

Nutrition education and obesity prevention grant program

Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a) is amended—

(1)

in subsection (b)—

(A)

by striking Consistent with and inserting the following:

(1)

In general

Consistent with

; and

(B)

by adding at the end the following:

(2)

Contents

In carrying out a nutrition education and obesity prevention program under this section, State agencies are encouraged to use as venues direct marketing outlets, including farmers' markets, community-supported agriculture programs, community-supported fishery programs, and farm and roadside stands.

; and

(2)

in subsection (c)(3)(A)—

(A)

in clause (ii), by striking and after the semicolon;

(B)

in clause (iii), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(iv)

financial incentives to low-income groups to encourage consumption of healthy foods.

.

3010.

Administration

Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)(1)) is amended by inserting , which the State agency may carry out through contracts with farmers' markets and farmers' market organizations at 100 percent Federal cost, subject to the condition that the contracted farmers' markets and farmers' market organizations comply with the State plan under this subsection before the semicolon at the end.

IV

Credit

4001.

Loans to local and regional food producers

Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008u) is amended by inserting after section 333C the following:

333D.

Loans to local and regional food producers

(a)

In general

The Secretary shall make and guarantee loans under this title to eligible producers for the production of locally or regionally produced agricultural food products (as defined in section 310B(g)(10) of this Act), including qualified producers engaged in direct-to-consumer marketing, direct-to-institution marketing, or direct-to-store marketing, businesses or activities that produce a value-added agricultural product (as defined in section 231(a)(5) of the Agricultural Risk Protection Act of 2000), mid-tier value chains (as defined in section 231(a)(3) of such Act of 2000), and other local and regional market outlets.

(b)

Training

The Secretary shall ensure that loan officers receive appropriate training to serve borrowers and potential borrowers engaged in local and regional food production.

(c)

Valuation

The Secretary shall develop ways to determine unit prices (or other appropriate forms of valuation) for crops whose end use is intended to be in locally or regionally produced agricultural food products (as so defined) to facilitate lending to local and regional food producers. In addition, the Secretary shall implement a mechanism for the producers to establish their price history for the crops.

(d)

Outreach

The Secretary shall develop and implement an outreach strategy to engage and provide loan services to local and regional food producers.

.

4002.

Clarification of the mission of the farm credit system to recognize the economic benefits of supporting young, beginning, and small farmers and ranchers, and contributions of local and regional farm and food systems

Section 1.1 of the Farm Credit Act of 1971 (12 U.S.C. 2001) is amended by adding at the end the following:

(d)

Recognizing that the vitality of United States agriculture and rural communities depends on the continued entry of young, beginning, and small farmers and ranchers into agriculture, many of whom will operate farms with local and regional food product distribution, it is declared to be the policy of the Congress and an objective of this Act that the Farm Credit System should endeavor to serve the credit and related needs of these individuals and the businesses on which they rely and that are necessary to the growth and vitality of local and regional farm and food systems.

.

4003.

Young, beginning, and small farmers and ranchers and locally or regionally produced agricultural products

(a)

Credit for young, beginning, and small farmers

Section 4.19(a) of the Farm Credit Act of 1971 (12 U.S.C. 2207(a)) is amended—

(1)

in the 1st sentence by inserting and for the production of locally or regionally produced agricultural food products (as defined in section 310B(g)(10)(A) of the Consolidated Farm and Rural Development Act) before the period; and

(2)

by inserting after the 2nd sentence the following: Each such program shall include initiatives and may include grants to support current and future borrowers by helping to organize, build, expand, or improve infrastructure and markets for locally or regionally produced agricultural food products (as so defined)..

(b)

Section 4.19 of such Act (12 U.S.C. 2207(b)) is amended by adding at the end the following:

(c)

The Farm Credit Administration shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report that contains a summary and analysis of the operations and achievements of the Farm Credit System as a whole in meeting the objectives of this section. The Farm Credit Administration shall notify the Congress whenever a program is out of compliance with this section, and indicate in the notice the steps the Farm Credit Administration is taking in response.

.

4004.

Government accountability office study examining how well federal agencies are assessing and meeting the capital needs of young, beginning, and small farmers and local and regional farm and food systems

(a)

Study

The Comptroller General of the United States shall conduct a study evaluating how the needs of young, beginning, and small farmers and local and regional farm and food systems, and how their credit needs are being assessed and met by the Farm Credit System, the Department of Agriculture, the Department of the Treasury, and any other Federal agencies.

(b)

Report to the Congress

Within 1 year after the date of the enactment of this section, the Comptroller General shall prepare and submit to the Congress a report containing the findings and conclusions made in the study required by subsection (a). The report shall address—

(1)

the cost and availability of credit and other assistance (including technical assistance) provided through programs of the Farm Credit System, the Department of Agriculture, and other Federal Government financial resources; and

(2)

programs, including those that serve historically underserved populations including beginning and young farmers, small and medium-sized farms and ranches, minorities and the socially disadvantaged, producers or harvesters of aquatic products, businesses, and other entities, that are necessary to the growth and vitality of local and regional farm and food systems, including aggregation, processing, storage, distribution, and marketing.

V

Rural Development

5001.

Support for local and regional farm and food systems

(a)

Rural business opportunity grants

Section 306(a)(11) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(11)) is amended—

(1)

in subparagraph (A)—

(A)

in clause (iv), by striking and at the end;

(B)

in clause (v), by striking the period and inserting ; and; and

(C)

by adding at the end the following:

(vi)

to redevelop a local or regional farm or food system, including a poultry or livestock processing facility.

;

(2)

in subparagraph (C), by striking Cooperative State Research, Education, and Extension Service and inserting National Institute of Food and Agriculture; and

(3)

in subparagraph (D), by striking 2008 through 2012 and inserting 2013 through 2017.

(b)

Community facilities grants

Section 306(a)(19) of such Act (7 U.S.C. 1926(a)(19)) is amended by adding at the end the following:

(D)

Eligibility for local and regional food system facilities

The Secretary may make a grant under this paragraph or paragraph (20) or (21) for a community or nonprofit local and regional food system facility, including a community kitchen, incubator, farm store, farmers’ market store, distribution center or service, and a related facility.

.

(c)

Loan guarantees for water, wastewater, and essential community facilities loans

Section 306(a)(24) of such Act (7 U.S.C. 1926(a)(24)) is amended by adding at the end the following:

(C)

Eligibility for local and regional food system facilities

The Secretary may guarantee a loan under this paragraph for a community or nonprofit local and regional food system facility, including community a kitchens, incubator, farm store, farmers’ market store, distribution center or service, and a related facility.

.

(d)

Business and industry local food system set-Aside

(1)

Rural business enterprise grants

Section 310B(c)(1)(B)(ii) of such Act (7 U.S.C. 1932(c)(1)(B)(ii)) is amended to read as follows:

(ii)

Use of grant

An eligible nonprofit entity, or other tax exempt organization, described in clause (i) may use assistance provided under this paragraph to create, expand, or operate—

(I)

value-added processing in an area described in clause (i) in connection with production agriculture; or

(II)

a local or regional farm or food-based enterprise, including a meat or poultry processing facility.

.

(2)

Business and industry direct and guaranteed loans

Section 310B(g) of such Act (7 U.S.C. 1932(g)) is amended—

(A)

by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and inserting after paragraph (4) the following:

(5)

Timing of guaranteed loans

The Secretary shall approve a loan guarantee under this subsection before or at the same time as the loan being guaranteed is made.

;

(B)

in paragraph (10)(B) (as so redesignated)—

(i)

by redesignating clauses (iv) and (v) as clauses (vii) and (viii), respectively, and inserting after clause (iii) the following:

(iv)

Guarantee percentage; authority to waive guarantee fee

The Secretary may provide a 90 percent guarantee, and may waive or reduce any guarantee loan fee that would otherwise be imposed, under this subparagraph for a small-scale project and for a project located in a community with low or declining population, low income levels, or low food access, as determined by the Secretary.

(v)

Loan and loan guarantees in nonrural areas

(I)

In general

The Secretary may make or guarantee a business and industry loan for a facility that is not located in a rural area if the primary purpose of the loan or loan guarantee is for a facility to process, distribute, aggregate, store, or market locally or regionally produced agricultural food products in a manner that benefits agricultural producers and provides employment for residents of a rural area.

(II)

Retail

The Secretary may make or guarantee a business and industry loan for a rural or nonrural retail facility that provides access to locally or regionally produced agricultural products if the facility—

(aa)

operates under a written policy that provides a clear preference for the products and demonstrates that a substantial portion of its business is or will be marketing the products; and

(bb)

demonstrates that the facility has written agreements or will obtain written agreements with agricultural producers, agricultural producer groups, farmer or rancher cooperatives, or majority-controlled producer-based business ventures on marketing strategies that will increase the profitability and competitiveness of farmers and ranchers growing for the local or regional market.

(vi)

Outreach

The Secretary shall develop and implement an outreach plan to publicize the availability of loans and loan guarantees under this paragraph, working closely with rural cooperative development centers, credit unions, community development financial institutions, regional economic development authorities, and other financial and economic development entities.

;

(C)

in clause (vii) (as so redesignated)—

(i)

by inserting , and publish on the internet, after Senate; and

(ii)

by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively, and inserting before subclause (II) (as so redesignated), the following:

(I)

summary information about all projects;

; and

(D)

in clause (viii) (as so redesignated)—

(i)

by striking subclause (I) and inserting the following:

(I)

In general

For each of fiscal years 2013 through 2017, the Secretary shall reserve not less than 10 percent of the loan and loan guarantee funds made available to carry out this subsection, to carry out this subparagraph.

; and

(ii)

by adding at the end the following:

(III)

Use of reserved funds

The Secretary may use a portion of the funds reserved under subclause (I) for technical assistance, which may include market research and feasibility studies.

.

5002.

Value-Added Producer grants

Section 231 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a) is amended—

(1)

in subsection (a)(3), by inserting , including those that operate through centralized food distribution systems that coordinate agricultural production and the aggregation, storage, processing, distribution, and marketing of locally or regionally produced agricultural products, after networks; and

(2)

in subsection (b)—

(A)

by striking paragraph (6) and inserting the following:

(6)

Priority

(A)

In general

In awarding grants under this subsection, the Secretary shall give priority to projects that—

(i)

contribute to increasing opportunities for operators of small- and medium-sized farms and ranches that are structured as a family farm; and

(ii)

have applicants at least ¼ of whom are beginning farmers and ranchers or socially disadvantaged farmers and ranchers.

(B)

Ranking

In evaluating and ranking proposals under this subsection, the Secretary shall give very substantial weight to the priorities described in subparagraph (A).

;

(B)

by redesignating paragraph (7) as paragraph (8) and inserting after paragraph (6) the following:

(7)

Outreach and technical assistance

The Secretary shall develop and implement an outreach and technical assistance strategy to help the program established by this section reach and serve underserved States and communities.

; and

(C)

in paragraph (8) (as so redesignated)—

(i)

by striking subparagraph (A) and inserting the following:

(A)

Mandatory funding

On October 1, 2002, and each October 1 thereafter through October 1, 2016, of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection $30,000,000, to remain available until expended.

;

(ii)

in subparagraph (B), by striking 2008 through 2012 and inserting 2013 through 2017; and

(iii)

in subparagraph (C)—

(I)

in clause (i), by striking benefit and inserting have applicants ¼ of whom are; and

(II)

in clause (iii), by striking June 30 of the fiscal year and inserting the close of the annual proposal review process.

VI

Research

6001.

Agriculture and food research initiative

Section 2(b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended—

(1)

in paragraph (2)(F)—

(A)

in clause (v), by striking and;

(B)

in clause (vi), by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(vii)

new approaches to advance systems that enhance markets and policy for locally or regionally produced agricultural food products, as defined in section 310B(g)(9)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)(A)).

;

(2)

in paragraph (5)—

(A)

in subparagraph (A)—

(i)

in clause (i), by striking teams; and inserting teams to any eligible entity listed under paragraph (7); and

(ii)

by adding at the end the following:

(iii)

not less than 5 percent is made available to make grants for research on conventional plant and animal breeding as described in paragraph (2); and

; and

(B)

in subparagraph (B), by inserting to any eligible entity listed under paragraph (7) before the period at the end; and

(3)

in paragraph (11)(A)—

(A)

in the matter preceding clause (i), by striking 2008 through 2012 and inserting 2013 through 2017; and

(B)

in clause (i), by striking pursuant to and inserting as described in.

6002.

Local food production and market data initiatives

(a)

In general

Section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) is amended by adding at the end the following:

(h)

Local food production and market data initiatives

(1)

Definition of locally or regionally produced agricultural food product

In this subsection, the term locally or regionally produced agricultural food product has the meaning given the term in section 310B(g)(9) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)).

(2)

Initiatives

The Secretary shall—

(A)

collect data on the production and marketing of locally or regionally produced agricultural food products; and

(B)

facilitate interagency collaboration and data sharing on research on local and regional food systems.

(3)

Requirements

In carrying out this subsection, the Secretary shall, at a minimum—

(A)

collect and distribute comprehensive reporting of prices of locally or regionally produced agricultural food products;

(B)

conduct surveys and analysis and publish reports relating to the production, handling, distribution, retail sales, and trend studies (including consumer purchasing patterns) of or on locally or regionally produced agricultural food products;

(C)

form an interagency work group that includes representatives from—

(i)

the Agricultural Marketing Service;

(ii)

the Agricultural Research Service;

(iii)

the Economic Research Service;

(iv)

the Food and Nutrition Service;

(v)

the Food Safety and Inspection Service;

(vi)

the National Agricultural Statistics Service;

(vii)

the National Institute of Food and Agriculture; and

(viii)

other agencies that are involved in data collection and research on locally or regionally produced agricultural food products;

(D)

expand the Agricultural Resource Management Surveys—

(i)

to include questions on locally or regionally produced agricultural food products; and

(ii)

sample a greater sector of agricultural producers, including agricultural producers engaged in the production of locally or regionally produced agricultural food products;

(E)

authorize the National Agricultural Statistics Service to create and administer—

(i)

a followup survey to the Census of Agriculture, in order to collect more detailed data on producers who indicated on the Census of Agriculture that the producers sell to markets for locally or regionally produced agricultural food products; and

(ii)

a survey for the purpose of collecting market data, including sales by product type and supply chain or sourcing data, from all vendors, including retail and wholesale vendors, of locally and regionally produced agricultural food products; and

(F)

seek to establish or expand private-public partnerships to facilitate, to the maximum extent practicable, the collection of data on locally or regionally produced agricultural food products.

(4)

Funding

(A)

In general

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $5,000,000, to remain available until expended.

(B)

Additional funding

In addition to funds made available under paragraph (1), there are authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2012 through 2017, to remain available until expended.

.

(b)

Conforming amendment

Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended—

(1)

in paragraph (6), by striking or after the semicolon at the end;

(2)

in paragraph (7), by striking the period at the end and inserting ; or; and

(3)

by adding at the end the following:

(8)

the authority of the Secretary to carry out local food production and market data initiatives described in section 251(h).

.

6003.

Under Secretary of Agriculture for Research, Education, and Economics

(a)

In general

Section 251(e) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971(e)) is amended by adding at the end the following:

(6)

Special coordination responsibilities

(A)

In general

The Under Secretary shall establish a special initiative within the Research, Education, and Extension Office to coordinate research activities at the Department relating to classical plant and animal breeding.

(B)

Working group

In carrying out the special initiative, the Under Secretary shall establish a working group that reports to the Under Secretary, to be comprised of individuals who are responsible for the management or administration of public breeding programs in the Department from—

(i)

the National Institute of Food and Agriculture;

(ii)

the Agricultural Research Service;

(iii)

the Economic Research Service; and

(iv)

the National Agricultural Statistics Service.

(C)

Duties of working group

The working group shall—

(i)

coordinate classical plant and animal breeding research being conducted at or funded by the agencies described in subparagraph (B)(i);

(ii)

carry out ongoing analysis and tracking activities for public grants to ensure that a diverse range of crop and animal breeding needs are being met in a timely and transparent manner;

(iii)

coordinate and collaborate with the National Genetics Resource Advisory Council;

(iv)

to maximize delivery of public cultivars and breeds, ensure efficient coordination of the activities the working group and those of—

(I)

the Agricultural Research Service;

(II)

National Institute of Food and Agriculture;

(III)

the National Genetic Resources Advisory Council;

(IV)

genetic resource conservation centers;

(V)

land grant universities;

(VI)

nongovernmental organizations with interests or expertise in classical breeding; and

(VII)

public and private classical plant and animal breeders; and

(v)

evaluate classical public plant and animal breeding activities and outcomes to make recommendations to the Under Secretary on the adequacy of human and financial resources needed to ensure that the next generation of public breeders and agricultural breeders are prepared to meet the challenges of the future.

(D)

Advisory board

The Under Secretary shall establish an advisory board whose primary duty will be to make recommendations to the working group on matters related to the duties specified in subparagraph (C). The advisory board shall be comprised of individuals with expertise in classical plant and animal breeding including representatives from—

(i)

the Agricultural Research Service;

(ii)

the National Institute of Food and Agriculture;

(iii)

the Extension Service;

(iv)

private foundations and nonprofit organizations that have expertise in classical plant and animal breeding;

(v)

private agricultural research and technology transfer firms; and

(vi)

the Land Grant University System.

.

(b)

Conforming amendment

Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) (as amended by section 6002(b)) is amended—

(1)

in paragraph (7), by striking or at the end;

(2)

in paragraph (8), by striking the period at the end and inserting ; or; and

(3)

by adding at the end the following:

(9)

the authority of the Secretary to establish a special initiative under section 251(e).

.

6004.

Local and regional food system enterprise facilitation

Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) in amended by adding at the end the following:

(j)

Local and regional food system enterprise facilitation

(1)

In general

The Secretary shall establish a local and regional food system enterprise facilitation initiative to increase technical assistance to help build sustainable local and regional food systems.

(2)

Requirements

In carrying out this subsection, the Secretary shall, at a minimum—

(A)

authorize the establishment in the Extension Service of the position of enterprise facilitator (referred to in this subsection as an enterprise facilitator); and

(B)

give priority to providing funding for enterprise facilitators that are located in areas that—

(i)

have high participation rates for the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); and

(ii)

are predominantly rural areas.

(3)

Grants

The Secretary may make grants on a competitive basis to nongovernmental organizations and institutions that have appropriate experience working on the rural development initiatives in the targeted areas described in paragraph (2)(B) to provide technical assistance to help build sustainable local and regional food systems if the Secretary determines that the Extension Service in a State or locality is not able to provide the assistance.

(4)

Duties

An enterprise facilitator shall, to the maximum extent practicable—

(A)

identify and organize local food producers and entrepreneurs into entities that are able to deliver local and regional food into local markets, including—

(i)

farmers markets;

(ii)

community kitchens;

(iii)

locally owned processing facilities;

(iv)

aggregation centers;

(v)

transportation cooperatives; and

(vi)

collaborative production cooperatives;

(B)

develop partnerships with local and regional organizations and institutions to provide resources for effective partnerships to train entrepreneurs and facilitate new enterprises;

(C)

assist agricultural producers and processors with marketing and distribution of local and regional food products;

(D)

identify and work to remove barriers to the movement of local and regional food products into the marketplace;

(E)

encourage new agricultural producers to produce foods for local and regional markets;

(F)

provide education programs to new agricultural producers that emphasize local and regional foods;

(G)

work with local expanded food and nutrition education programs, schools and other local institutions, and individuals to develop food processing skills;

(H)

provide technical assistance in the preparation of grant and loan applications to promote the purposes of this subsection; and

(I)

work with private sources of funding and other Federal and State agencies to acquire grants and loans to promote the purposes of this subsection.

(5)

Authorization of appropriations

There are authorized to be appropriated to carry out this subsection such sums as are necessary.

.

6005.

National genetics resources program

Section 1632(d) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is amended—

(1)

in paragraph (5), by striking and after the semicolon at the end;

(2)

by redesignating paragraph (6) as paragraph (7); and

(3)

by inserting after paragraph (5) the following:

(6)

establish a national strategic germplasm assessment and use plan to meet food security goals for the future; and

.

VII

Horticulture and Organic Agriculture

7001.

Specialty crop block grants

(a)

Definitions

Section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note) is amended—

(1)

by redesignating paragraphs (1), (2), and (3) as paragraphs (2), (3), and (4), respectively; and

(2)

by inserting before paragraph (2), as redesignated by paragraph (1) of this subsection, the following new paragraph:

(1)

The term locally or regionally produced food has the meaning given the term locally or regionally produced agricultural food products in section 310B(g)(9)(A)(i) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)(A)(i)).

.

(b)

Availability and purposes of grants

Subsection (a) of section 101 of such Act is amended—

(1)

in the heading, by striking purpose and inserting purposes;

(2)

by striking 2005 through 2012 and inserting 2013 through 2017; and

(3)

by striking solely to enhance and all that follows and inserting to increase the consumption and availability of specialty crops that are locally or regionally produced food and to increase the profitability, ecological sustainability, and competitiveness of specialty crop producers..

(c)

Plan requirements

Subsection (e) of such section 101 is amended—

(1)

by striking The State plan shall identify the lead agency and inserting

The State plan shall—

(1)

identify the lead agency

; and

(2)

by adding at the end the following new paragraph:

(2)

ensure a balanced and equitable distribution of grants across—

(A)

the full array of specialty crop agriculture, including all types of farm enterprises, organic farming systems, beginning and socially disadvantaged farmers and ranchers, and small and mid-scale farms;

(B)

the full array of funding areas, including—

(i)

research and education;

(ii)

nutrition and public health;

(iii)

pest and plant health;

(iv)

conservation and the environment;

(v)

food safety;

(vi)

marketing and promotion; and

(vii)

production; and

(C)

the full range of activities inherent in developing systems for locally or regionally produced foods, including issues related to processing, distributing, aggregating, storing, marketing, and consumption.

.

(d)

Review of application

Subsection (f) of such section 101 is amended—

(1)

by striking purpose and inserting purposes; and

(2)

by striking subsection (a) and inserting subsection (a), and would represent a balanced and equitable distribution of grant funds, as specified in subsection (e).

(e)

Preference

Such section 101 is further amended—

(1)

by redesignating subsections (g), (h), (i), and (j) as subsections (i), (j), (k), and (n), respectively; and

(2)

by inserting after subsection (f) the following new subsection:

(g)

Preference

In using grant funds provided under this section, the State receiving the grant shall give a preference to marketing proposals that—

(1)

demonstrate ability to have direct positive impact on—

(A)

farm profitability and sustainability;

(B)

improved distribution capacity for locally or regionally produced foods; or

(C)

increased domestic consumption and affordability of edible specialty crops, particularly in low-income communities; and

(2)

in which final products are marketed so that the total distance that products are transported for final sale is less than 250 miles from the origin of the products.

.

(f)

Transparency

Such section 101 is further amended by inserting after subsection (g), as added by subsection (e) of this section, the following new subsection:

(h)

Transparency

Each State receiving a grant under this section shall, in a timely manner, publish on an Internet website summary information about all grants received under this section and reports on the implementation of projects funded by such grants.

.

(g)

Use of grant funds

Such section 101 is further amended by inserting after subsection (k), as redesignated by subsection (e)(1) of this section, the following new subsection:

(l)

Use of grant funds

The Secretary shall consider expansion of the grant program under this section to include traditional foods of federally recognized Indian tribes and other minority communities and may publish appropriate guidance to States receiving grants under this section regarding any such expansion.

.

(h)

Other use of funds

Such section 101 is further amended by inserting after subsection (l), as added by subsection (g) of this section, the following new subsection:

(m)

Other use of funds

(1)

National research and evaluation

Of the funds made available under subsection (n), the Secretary shall use not less than $5,000,000 for a nationally-coordinated and regionally-balanced research and evaluation effort on the redevelopment of locally or regionally produced food systems conducted through a consortium of land grant universities, in partnership with non-governmental organizations engaged in work on locally or regionally produced food systems.

(2)

Locally or regionally produced food system development

Of the funds made available under subsection (n), the Secretary shall use $30,000,000 during each fiscal year for locally or regionally produced food system specialty crop development, including development or enhancement of State and regional local food marketing programs, local and regional food enterprise development, farmer-to-consumer direct marketing, direct-to-store and direct-to-institution marketing, regional supply chains, regional food hubs, new farmer development, and State food policy councils.

.

(i)

Funding

Subsection (n) of such section 101, as redesignated by subsection (e)(1) of this section, is amended by striking shall make grants and all that follows and inserting shall use $90,000,000 for each of fiscal years 2013 through 2017 to carry out this section..

(j)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

7002.

National organic certification cost-share program

(a)

Reauthorization

Section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523) is amended—

(1)

in subsection (a), by striking Of the funds and all that follows through until expended, to and inserting The Secretary of Agriculture (acting through the Agricultural Marketing Service) shall; and

(2)

in subsection (b)(2), by striking $750 and inserting $1,000.

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2012.

7003.

Availability of organic certification cost share assistance and risk management education and community outreach partnership assistance under the Federal Crop Insurance Act

Subsection (b) of section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) is amended to read as follows:

(b)

Organic certification cost share assistance and risk management education and community outreach partnership assistance

(1)

Provision of assistance

The Secretary shall provide organic certification cost share assistance and risk management education and community outreach partnership assistance asa provided in paragraph (4).

(2)

Use of Commodity Credit Corporation

The Secretary shall carry out this subsection through the Commodity Credit Corporation.

(3)

Funding

Subject to paragraph (4), the Commodity Credit Corporation shall make available to carry out this subsection not less than $10,000,000 for each fiscal year.

(4)

Distribution of funds

Of the amount made available under paragraph (3) for a fiscal year—

(A)

70 percent shall be used to provide organic certification cost share assistance pursuant to section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1524); and

(B)

30 percent shall be used to conduct activities to support risk management education and community outreach partnerships pursuant to section 522(d).

.

7004.

Local Marketing Promotion Program

Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended to read as follows:

6.

Local Marketing Promotion Program

(a)

Establishment

The Secretary shall carry out a program, to be known as the Local Marketing Promotion Program (referred to in this section as the Program), to make grants to eligible entities for projects to establish, expand, and promote direct producer-to-consumer marketing, including farmers’ markets, and other local and regional food markets.

(b)

Program Purposes

(1)

In general

The purposes of the Program are to increase domestic consumption of and access to locally and regionally produced agricultural products by—

(A)

improving and expanding or assisting in the improvement and expansion of—

(i)

domestic farmers’ markets, farm and roadside stands, community-supported agriculture and community-supported fishery programs, agritourism activities, green carts, route vendors, buying clubs, and other direct producer-to-consumer market opportunities; and

(ii)

local and regional food markets that are not direct farmer-to-consumer markets, but that may include the scaling up of such direct markets, including processing, distributing, aggregating, storing, and marketing;

(B)

developing or aiding in the development of—

(i)

new farmers' markets, roadside stands, community-supported agriculture and community-supported fishery programs, agritourism activities, and other direct producer-to-consumer marketing opportunities; and

(ii)

local and regional food markets that are not direct farmer-to-consumer markets, but that may include the scaling up of such direct markets, including processing, distributing, aggregating, storing, and marketing.

(2)

Limitations

An eligible entity may not use a grant or other assistance provided under the Program for the purchase, construction, or rehabilitation of a building or structure.

(c)

Eligible Entities

An entity shall be eligible to receive a grant under the Program if the entity is—

(1)

an agricultural or fishing cooperative or other business entity or a producer or fisher network or association, including community-supported agriculture or fishery networks or associations;

(2)

a local government;

(3)

a nonprofit corporation;

(4)

a public benefit corporation;

(5)

an economic development corporation;

(6)

a regional farmers' market authority; or

(7)

such other entity as the Secretary may designate.

(d)

Criteria and Guidelines

The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under the Program.

(e)

Priorities

(1)

Preference for certain communities and operations

In providing grants under the Program, priority shall be given to applications that include projects—

(A)

to benefit underserved communities; and

(B)

to develop market opportunities for small and mid-sized farm and ranch operations.

(2)

Preference for producer-only farmers’ markets

In providing grants under the direct marketing portion of the Program, priority shall be given to producer-only farmers’ markets.

(f)

Funding

(1)

In general

The Secretary shall use $30,000,000 of the funds of the Commodity Credit Corporation each fiscal year to carry out the Program.

(2)

Use of funds

(A)

Distribution between purposes

Of the funds made available under paragraph (1) for a fiscal year—

(i)

50 percent shall be used for the direct marketing portion of the Program in subparagraphs (A)(i) and (B)(i) of subsection (b)(1); and

(ii)

50 percent shall be used for the local and regional food portion of the Program in subparagraphs (A)(ii) and (B)(ii) of subsection (b)(1).

(B)

Direct marketing portion

For each of the following, not less than 10 percent of the funds reserved for the direct marketing portion of the Program in a fiscal year under paragraph (2)(A)(i) shall be used—

(i)

to support outreach, education, and operation of the use of electronic benefits transfers for Federal nutrition programs at farmers’ markets and other direct marketing outlets including farm and roadside stands, community-supported agriculture and community-supported fishery programs, green carts, route vendors and buying clubs; and

(ii)

to provide general technical assistance and organizational capacity building grants to strengthen market development networks and otherwise enhance the outcomes of the Program.

(C)

Local and regional food portion

Not less than 10 percent of the funds reserved for the local and regional food portion of the Program in a fiscal year under paragraph (2)(A)(ii) shall be used to provide technical assistance grants to strengthen the ability of small and medium-sized agricultural producers, food wholesalers and retailers, schools, and other individuals, organizations, entities, and institutions for processing, distributing, aggregating, storing, and marketing locally and regionally produced agricultural products. Funds reserved under such paragraph may be used—

(i)

to carry out feasibility studies related to the local and regional food portion of the Program; and

(ii)

to assist enterprises that process, distribute, aggregate, store, and market locally and regionally produced foods.

(3)

Interdepartmental coordination

In carrying out this subsection, the Secretary shall ensure coordination between the various agencies to the maximum extent practicable.

(4)

Limitations

(A)

Administrative expenses

Not more than 10 percent of the total amount made available under paragraph (1) for a fiscal year may be used for administrative expenses.

(B)

Project limitations

Funds described in paragraph (2)(B)(i)—

(i)

may not be used for the ongoing cost of carrying out any project; and

(ii)

shall only be provided to eligible entities that demonstrate a plan to continue to provide EBT card access at 1 or more farmers' markets or direct marketing outlets following the receipt of the grant.

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VIII

Poultry and Livestock

8001.

Small and very small meat processing plants

(a)

Technical assistance and guidance

The Federal Meat Inspection Act (21 U.S.C. 601 et seq.) is amended by adding at the end the following new title:

VI

Very small and certain small establishments

601.

Technical assistance

(a)

Establishment

The Secretary shall establish in the Food Safety and Inspection Service of the Department of Agriculture a technical assistance division to coordinate the initiatives of any other appropriate agency of the Department of Agriculture to provide—

(1)

outreach, education, and training to very small or certain small establishments (as defined by the Secretary);

(2)

grants to appropriate State agencies, educational institutions, non-governmental organizations with appropriate expertise, or networks or partnerships of such agencies, such institutions, and such organizations to provide outreach, technical assistance, education, and training to very small or certain small establishments; and

(3)

grants to appropriate State agencies to provide outreach, technical assistance, education, and training to very small or certain small establishments.

(b)

Personnel

The technical assistance division shall be comprised of individuals that, as determined by the Secretary—

(1)

are of a quantity sufficient to carry out the duties of the technical assistance division; and

(2)

possess appropriate qualifications and expertise relating to the duties of the technical assistance division.

602.

Guidance

(a)

Purpose

Not later than 2 years after the date of the enactment of this section, the Secretary, acting through the Food Safety and Inspection Service, shall issue guidance to allow very small or certain small establishments (as defined by the Secretary under section 601) to demonstrate compliance with required food safety and sanitation standards upon a showing that the process controls for food safety and sanitation are being applied.

(b)

Content

The guidance issued under subsection (a) shall address process controls, appropriate for the size and scale of a facility, for—

(1)

slaughter and processing facilities that conduct Federal inspections, State inspections, or custom slaughter or processing at the facility;

(2)

leased slaughter and processing facilities;

(3)

on-farm slaughter and processing;

(4)

mobile slaughter and processing facilities; and

(5)

other facilities or circumstances determined by the stakeholders group referred to in subsection (c) to be relevant to very small or certain small establishments.

(c)

Stakeholder Group

(1)

In general

Not later than 90 days after the date of the enactment of this section, the Secretary shall convene a stakeholders group with expertise on small scale processing facilities, including mobile processing facilities, to prepare proposed guidance on process controls for food safety and sanitation for very small or certain small establishments.

(2)

Membership

The stakeholders group convened under paragraph (1) shall include—

(A)

small scale growers;

(B)

operators of small scale slaughtering and processing facilities; and

(C)

representatives from appropriate Federal and State agencies, educational institutions, non-governmental organizations with appropriate expertise, or networks or partnerships of such agencies, such institutions, and such organizations.

(d)

Authorization of appropriations

There is authorized to be appropriated to the Secretary $5,000,000 for each of fiscal years 2013 through 2017 to carry out this title and section 32 of the Poultry Products Inspection Act.

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(b)

Conforming amendments

Section 501 of the Federal Meat Inspection Act (21 U.S.C. 683) is amended—

(1)

in subsection (b)(3)(B)(ii), by striking subsection (j) and inserting subsection (i);

(2)

in subsection (e)(1), by striking subsection (j) and inserting subsection (i);

(3)

by striking subsection (f); and

(4)

by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.

8002.

Small and very small poultry processing plants

The Poultry Products Inspection Act (21 U.S.C. 451 et seq.) is amended by adding at the end the following new section:

32.

Technical assistance and guidance

(a)

Technical assistance

(1)

Establishment

The Secretary shall establish in the Food Safety and Inspection Service of the Department of Agriculture a technical assistance division to coordinate the initiatives of any other appropriate agency of the Department of Agriculture to provide—

(A)

outreach, education, and training to very small or certain small establishments (as defined by the Secretary);

(B)

grants to appropriate State agencies, educational institutions, non-governmental organizations with appropriate expertise, or networks or partnerships of such agencies, such institutions, and such organizations to provide outreach, technical assistance, education, and training to very small or certain small establishments; and

(C)

grants to appropriate State agencies to provide outreach, technical assistance, education, and training to very small or certain small establishments.

(2)

Personnel

The technical assistance division shall be comprised of individuals that, as determined by the Secretary—

(A)

are of a quantity sufficient to carry out the duties of the technical assistance division; and

(B)

possess appropriate qualifications and expertise relating to the duties of the technical assistance division.

(b)

Guidance

(1)

Purpose

Not later than 2 years after the date of the enactment of this section, the Secretary, acting through the Food Safety and Inspection Service, shall issue guidance to allow very small or certain small establishments (as defined by the Secretary under subsection (a)) to demonstrate compliance with required food safety and sanitation standards upon a showing that the process controls for food safety and sanitation are being applied.

(2)

Content

The guidance issued under paragraph (1) shall address process controls, appropriate for the size and scale of a facility, for—

(A)

slaughter and processing facilities that conduct Federal inspections, State inspections, or custom slaughter or processing at the facility;

(B)

leased slaughter and processing facilities;

(C)

on-farm slaughter and processing;

(D)

mobile slaughter and processing facilities; and

(E)

other facilities or circumstances determined by the stakeholders group referred to in paragraph (3) to be relevant to very small or certain small establishments.

(3)

Stakeholder Group

(A)

In general

Not later than 90 days after the date of the enactment of this section, the Secretary shall convene a stakeholders group with expertise on small scale processing facilities, including mobile processing facilities, to prepare proposed guidance on process controls for food safety and sanitation for very small or certain small establishments.

(B)

Membership

The stakeholders group convened under subparagraph (A) shall include—

(i)

small scale growers;

(ii)

operators of small scale slaughtering and processing facilities; and

(iii)

representatives from appropriate Federal and State agencies, educational institutions, non-governmental organizations with appropriate expertise, or networks or partnerships of such agencies, such institutions, and such organizations.

(c)

Authorization of appropriations

The authorization of appropriations for this section appears in section 602 of the Federal Meat Inspection Act.

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8003.

Searchable database of electronically submitted meat and poultry labels

(a)

Electronic option for submission

Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture shall promulgate regulations under section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) and section 8 of the Poultry Products Inspection Act (21 U.S.C. 457) to establish an electronic option for submitting meat and poultry labels for preapproval.

(b)

Searchable database of electronically submitted labels

Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture shall establish a publicly accessible searchable database of electronically submitted meat and poultry labels.

8004.

Meat and poultry processing report

(a)

In general

Not later than 18 months after the date of the enactment of this Act, the Secretary of Agriculture, in consultation with the stakeholders group referred to in section 602(c) of the Federal Meat Inspection Act (as added by section 8001 of this Act) and the stakeholders group referred to in section 32(b)(3) of the Poultry Products Inspection Act (as added by section 8002 of this Act), shall submit to Congress a report on steps that can be taken to better meet the needs of very small and certain small establishments (as defined by the Secretary under section 601 of the Federal Meat Inspection Act (as added by such section 8001) or section 32(a) of the Poultry Products Inspection Act (as added by such section 8002)), including any recommended changes to statutory and regulatory provisions of law.

(b)

Contents

The report required under paragraph (1) shall include a proposal to allow participating States to enter into memoranda of understanding with non-participating States to allow covered products produced in a participating State to be sold in a non-participating State.

(c)

Definitions

In this section:

(1)

Covered products

The term covered products means a meat or poultry product inspected in accordance with the covered programs.

(2)

Covered programs

The term covered programs means the cooperative meat and poultry inspection programs of the Food Safety and Inspection Service of the Department of Agriculture.

(3)

Non-participating State

The term non-participating State means a State that does not participate in the covered programs.

(4)

Participating State

The term participating State means a State that participates in the covered programs.

IX

Miscellaneous

9001.

National food safety training, education, extension, outreach, and technical assistance program

Section 405 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7625) is amended by striking subsection (j) and inserting the following:

(j)

Funding

(1)

In general

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $15,000,000 for each of fiscal years 2013 through 2017.

(2)

Additional funding

In addition to funds made available under paragraph (1), for the purposes of making grants under this section, there are authorized to be appropriated such sums as are necessary for each of fiscal years 2011 through 2017.

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