H.R. 1414: Local Farms, Food, and Jobs Act of 2013

113th Congress, 2013–2015. Text as of Apr 09, 2013 (Introduced).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

I

113th CONGRESS

1st Session

H. R. 1414

IN THE HOUSE OF REPRESENTATIVES

April 9, 2013

(for herself, Mr. Blumenauer, Mr. Cicilline, Mr. Courtney, Ms. Matsui, Mr. McGovern, Mr. Moran, Mr. Holt, Ms. Schakowsky, Mr. Thompson of California, Mr. Walz, Mr. Welch, Ms. Kaptur, Mr. Lewis, Ms. Speier, Ms. Moore, Ms. Fudge, Mr. McIntyre, Mrs. Negrete McLeod, Mr. DeFazio, Mr. Langevin, Ms. Kuster, Mr. Michaud, Ms. Lee of California, Mr. Huffman, Mr. Enyart, and Ms. Tsongas) 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 2013 .

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—Nutrition

Sec. 101. Retailers.

Sec. 102. Demonstration projects on acceptance of benefits of mobile transactions.

Sec. 103. Use of benefits for purchase of community-supported agriculture share.

Sec. 104. Additional authority for purchase of fresh fruits, vegetables, and other specialty food crops.

Sec. 105. Encouraging locally and regionally grown and raised food.

Sec. 106. Assistance for community food projects.

Sec. 107. Senior farmers' market nutrition program.

Sec. 108. Hunger-free communities.

Sec. 109. Food and Nutrition Agriculture Service Learning Program.

Title II—Credit

Sec. 201. Loans to local and regional food producers.

Sec. 202. 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. 203. Young, beginning, and small farmers and ranchers and locally or regionally produced agricultural products.

Title III—Rural Development

Sec. 301. Availability of rural business opportunity grants for local and regional food systems.

Sec. 302. Clarification on allowed partnerships for certain community facilities grants and loans.

Sec. 303. Availability of rural business enterprise grants for value-added processing, aggregation, distribution, storage, and marketing in connection with production agriculture.

Sec. 304. Making improvements to business and industry direct and guaranteed loans to benefit producers of local or regionally produced agricultural food products.

Sec. 305. Value-added agricultural product market development grants.

Title IV—Research, Education, and Related Matters

Sec. 401. Agriculture and food research initiative.

Sec. 402. Local and regional food system enterprise facilitation.

Sec. 403. Conventional breeding initiative.

Sec. 404. National genetics resources program.

Title V—Horticulture

Sec. 501. Farmers market and local food promotion program.

Sec. 502. Specialty crop block grants.

Sec. 503. Study on local food production and program evaluation.

Title VI—Crop Insurance

Sec. 601. Research and development authority.

Sec. 602. Whole farm risk management insurance.

Sec. 603. Approval of costs for research and development.

Sec. 604. Crop insurance for organic crops.

Sec. 605. Nationwide expansion of agricultural management assistance program and inclusion of organic certification cost share assistance.

Title VII—Miscellaneous

Sec. 701. Technical assistance.

Sec. 702. Guidance.

Sec. 703. Labels and public information on label content.

Sec. 704. Meat and poultry processing report.

I

Nutrition

101.

Retailers

(a)

Definition of retail food store

Section 3(p) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)) is amended—

(1)

in paragraph (1)(A) by striking at least 2 and inserting at least 3; and

(2)

in paragraph (4) by inserting or agricultural producers who market agricultural products directly to consumers after venture.

(b)

Alternative benefit delivery

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

(1)

by striking paragraph (2) and inserting the following:

(2)

Imposition of costs

(A)

In general

Except as provided in subparagraph (B), the Secretary shall require participating retailers (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies.

(B)

Exemptions

The Secretary may exempt from subparagraph (A)

(i)

farmers’ markets and other direct farmer-to-consumer marketing outlets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and

(ii)

establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.

; and

(2)

by adding at the end the following:

(4)

Termination of manual vouchers

(A)

In general

Effective beginning on the effective date of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retailers to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.

(B)

Exemptions

The Secretary may exempt categories of retailers or individual retailers from subparagraph (A) based on criteria established by the Secretary.

(5)

Unique identification number required

In an effort to enhance the antifraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain a unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system. In developing the regulations implementing this paragraph, the Secretary shall consider existing commercial practices for other point-of-sale debit transactions. The Secretary shall issue proposed regulations implementing this paragraph not earlier than 2 years after the date of enactment of this paragraph.

.

(c)

Electronic benefit transfers

Section 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended by striking is operational— and all that follows through (ii) in the case of other participating stores, and inserting is operational.

(d)

Approval of retail food stores and wholesale food concerns

Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C. 2018) is amended—

(1)

in the second sentence of subsection (a)(1) by striking ; and (C) and inserting ; (C) whether the applicant is located in an area with significantly limited access to food; and (D);

(2)

in subsection (b) by adding at the end the following:

(3)

Retail food stores with significant sales of excluded items

(A)

In general

No retail food store for which at least 45 percent of the total sales of the retail food store is from the sale of excluded items described in section 3(k)(1) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of the retail food store is required for the effective and efficient operation of the supplemental nutrition assistance program.

(B)

Application

Subparagraph (A) shall be effective—

(i)

in the case of retail food stores applying to be authorized for the first time, beginning on the date that is 1 year after the effective date of this paragraph; and

(ii)

in the case of retail food stores participating in the program on the effective date of this paragraph, during periodic reauthorization in accordance with subsection (a)(2)(A).

; and

(3)

by adding at the end the following:

(g)

EBT service requirement

An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).

.

102.

Demonstration projects on acceptance of benefits of mobile transactions

Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by adding at the end the following:

(14)

Demonstration projects on acceptance of benefits of mobile transactions

(A)

In general

The Secretary shall pilot the use of mobile technologies determined by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores, farmers markets, and other direct producer-to-consumer marketing outlets to accept benefits from recipients of supplemental nutrition assistance through mobile transactions.

(B)

Demonstration projects

To be eligible to participate in a demonstration project under subsection (a), a retail food store, farmers market, or other direct producer-to-consumer marketing outlet shall submit to the Secretary for approval a plan that includes—

(i)

a description of the technology;

(ii)

the manner by which the retail food store, farmers market or other direct producer-to-consumer marketing outlet will provide proof of the transaction to households;

(iii)

the provision of data to the Secretary, consistent with requirements established by the Secretary, in a manner that allows the Secretary to evaluate the impact of the demonstration on participant access, ease of use, and program integrity; and

(iv)

such other criteria as the Secretary may require.

(C)

Date of completion

The demonstration projects under this paragraph shall be completed and final reports submitted to the Secretary by not later than July 1, 2016.

(D)

Report to Congress

The Secretary shall submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes a finding, based on the data provided under subparagraph (C) whether or not implementation in all States is in the best interest of the supplemental nutrition assistance program.

.

103.

Use of benefits for purchase of community-supported agriculture share

Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 2019) is amended in the first sentence by inserting agricultural producers who market agricultural products directly to consumers shall be authorized to redeem benefits for the initial cost of the purchase of a community-supported agriculture share for an appropriate time in advance of food delivery as determined by the Secretary, after food so purchased,.

104.

Additional authority for purchase of fresh fruits, vegetables, and other specialty food crops

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

(1)

in subsection (b), by striking 2012 and inserting 2018;

(2)

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

(3)

by inserting after subsection (b) the following new subsections:

(c)

Local preference in memorandum of agreement

To the maximum extent practicable, a memorandum of agreement between the Secretary of Agriculture and the Secretary of Defense related to the purchase of fresh fruits and vegetables under this section shall require that fruits and vegetables purchased under the agreement be locally grown (as determined by the Secretary).

(d)

Pilot grant program for purchase of fresh fruits and vegetables

(1)

In general

Using amounts made available to carry out subsection (b), the Secretary of Agriculture shall conduct a pilot program under which the Secretary will give not more than five participating States the option of receiving a grant in an amount equal to the value of the commodities that the participating State would otherwise receive under this section for each of fiscal years 2014 through 2018.

(2)

Use of grant funds

A participating State receiving a grant under this subsection may use the grant funds solely to purchase fresh fruits and vegetables for distribution to schools and service institutions in the State that participate in the food service programs under the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1751 et seq. ) and the Child Nutrition Act of 1966 ( 42 U.S.C. 1771 et seq. ). To the maximum extent practicable, the fruits and vegetables shall be locally grown, as determined by the State.

(3)

Selection of participating States

The Secretary shall select participating States from applications submitted by the States.

(4)

Reporting requirements

(A)

School and service institution requirement

Schools and service institutions in a participating State shall keep records of purchases of fresh fruits and vegetables made using the grant funds and report such records to the State.

(B)

State requirement

Each participating State shall submit to the Secretary a report on the success of the pilot program in the State, including information on—

(i)

the amount and value of each type of fresh fruit and vegetable purchased by the State; and

(ii)

the benefit provided by such purchases in conducting the school food service in the State, including meeting school meal requirements.

.

105.

Encouraging locally and regionally grown and raised food

(a)

Commodity Purchase Streamlining

The Secretary of Agriculture (in this section referred to as the Secretary) may permit each school food authority with a low annual commodity entitlement value, as determined by the Secretary, to elect to substitute locally and regionally grown and raised food for the authority’s allotment, in whole or in part, of commodity assistance under section 6(b) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1755(b) ) for the school lunch program under such Act, if—

(1)

the election is requested by the school food authority;

(2)

the Secretary determines that the election will reduce State and Federal administrative costs, such as costs related to transportation, technology, and overhead; and

(3)

the election will provide the school food authority with greater flexibility to purchase locally and regionally grown and raised foods.

(b)

Farm-to-School demonstration projects

(1)

In general

The Secretary of Agriculture may establish and carry out farm-to-school demonstration programs under which school food authorities, agricultural producers producing for local and regional markets, and other farm to school stakeholders will collaborate with the Agriculture Marketing Service to source food for the school lunch program under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) from local farmers and ranchers in lieu of the commodity assistance provided under section 6(b) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1755(b) ) to such school food authorities for the school lunch program.

(2)

Requirements

(A)

In general

A demonstration program carried out under this subsection shall—

(i)

facilitate and increase the purchase of unprocessed and minimally processed locally and regionally grown and raised agricultural products to be served under the school lunch program;

(ii)

test methods to improve procurement, transportation, and meal preparation processes;

(iii)

assess whether administrative costs can be saved through increased school authority flexibility to source locally and regionally produced foods; and

(iv)

undertake rigorous evaluation and share information about results, including cost savings, with the Department of Agriculture, other school food authorities, agricultural producers producing for the local and regional market, and the general public.

(B)

Plans

The Secretary shall require demonstration program participants to provide to the Secretary detailed plans with respect to how the participants will meet the requirements of this subsection.

(3)

Length

The Secretary shall conduct each demonstration program under this subsection for not less than 3 school years and not more than 5 years, except in the case of a demonstration program that requires additional time to meet the requirements under paragraph (2)(A), as determined by the Secretary.

(4)

Coordination

The Secretary shall coordinate among relevant agencies of the Department of Agriculture and non-governmental organizations with appropriate expertise to facilitate the provision of training and technical assistance necessary to the successful implementation of demonstration programs under this subsection.

(5)

Number

The Secretary shall carry out at least 10 demonstration programs under this subsection.

(6)

Diversity and balance

In carrying out demonstration programs under this subsection, the Secretary shall, to the maximum extent practicable, ensure—

(A)

geographical diversity;

(B)

that at least half of the demonstration programs are completed in collaboration with school food authorities with small annual commodity entitlements, as determined by the Secretary;

(C)

that at least half of the demonstration programs are completed in rural or tribal communities; and

(D)

equitable treatment of school food authorities with a high percentage of students eligible for free or reduced price lunches under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

(7)

Data analysis

With respect to each demonstration program carried out under this subsection, the Secretary shall ensure that participants of the demonstration program collect data on how the program met the requirements of paragraph (2)(A) in a manner that will enable the aggregation and analysis of such data.

(8)

Report to Congress

Not later than January 1, 2018, the Secretary shall provide to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, and a report on the demonstration programs carried out under this subsection, including—

(A)

an analysis of the data collected under paragraph (7);

(B)

a summary of the efforts of the Department of Agriculture to increase the availability and use of locally and regionally grown foods by school food authorities through the commodity assistance provided to such authorities under section under section 6(b) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1755(b) ); and

(C)

a determination of whether a demonstration program carried out under this section or any aspect of such a program should become an option for school food authorities based on outcomes, such as children’s nutritional health status, economic benefits to participating agricultural producers and the local economy, school meal participation rates, and an all-inclusive comparison of administrative cost of the commodity assistance described in subparagraph (B) and such demonstration program.

106.

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 2014; and

(2)

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

107.

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 2014; and

(C)

by striking 2012 and inserting 2018; and

(2)

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

108.

Hunger-free communities

Section 4405 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517) is amended—

(1)

in subsection (a)

(A)

by striking paragraph (1) and inserting the following:

(1)

Eligible entity

(A)

Collaborative grants

In subsection (b), the term eligible entity means a public food program service provider or nonprofit organization, including an emergency feeding organization, that has collaborated or will collaborate with 1 or more local partner organizations to achieve at least 1 hunger-free communities goal.

(B)

Incentive grants

In subsection (c), the term eligible entity means a nonprofit organization (including an emergency feeding organization), an agricultural cooperative, producer network or association, community health organization, public benefit corporation, economic development corporation, farmers’ market, community-supported agriculture program, buying club, supplemental nutrition assistance program retail food store, a State, local, or tribal agency, and any other entity the Secretary designates.

; and

(B)

by adding at the end the following:

(4)

Supplemental nutrition assistance program

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

(5)

Underserved community

The term underserved community has the meaning given the term in section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034).

;

(2)

in subsection (b)(1)(A), by striking not more than 50 percent of any funds made available under subsection (e) and inserting funds made available under subsection (d)(1); and

(3)

by striking subsections (c), (d), and (e) and inserting the following:

(c)

Hunger-Free communities incentive grants

(1)

Authorization

(A)

In general

In each of the years specified in subsection (d), the Secretary shall make grants to eligible entities in accordance with paragraph (2).

(B)

Federal share

The Federal share of the cost of carrying out an activity under this subsection shall not exceed 50 percent of the total cost of the activity.

(C)

Non-Federal share

(i)

In general

The non-Federal share of the cost of an activity under this subsection may be provided—

(I)

in cash or in-kind contributions as determined by the Secretary, including facilities, equipment, or services; and

(II)

by a State or local government or a private source.

(ii)

Limitation

In the case of a for-profit entity, the non-Federal share described in clause (i) shall not include services of an employee, including salaries paid or expenses covered by the employer.

(2)

Criteria

(A)

In general

For purposes of this subsection, an eligible entity is a governmental agency or nonprofit organization that—

(i)

meets the application criteria set forth by the Secretary; and

(ii)

proposes a project that, at a minimum—

(I)

has the support of the State agency;

(II)

would increase the purchase of fruits and vegetables by low-income consumers participating in the supplemental nutrition assistance program by providing incentives at the point of purchase;

(III)

agrees to participate in the evaluation described in paragraph (4);

(IV)

ensures that the same terms and conditions apply to purchases made by individuals with benefits issued under this Act and incentives provided for in this subsection as apply to purchases made by individuals who are not members of households receiving benefits, such as provided for in section 278.2(b) of title 7, Code of Federal Regulations (or a successor regulation); and

(V)

includes effective and efficient technologies for benefit redemption systems that may be replicated in other for States and communities.

(B)

Priority

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

(i)

maximize the share of funds used for direct incentives to participants;

(ii)

use direct-to-consumer sales marketing;

(iii)

demonstrate a track record of designing and implementing successful nutrition incentive programs that connect low-income consumers and agricultural producers;

(iv)

provide locally or regionally produced fruits and vegetables;

(v)

are located in underserved communities; or

(vi)

address other criteria as established by the Secretary.

(3)

Applicability

(A)

In general

The value of any benefit provided to a participant in any activity funded under this subsection shall not be considered income or resources for any purpose under any Federal, State, or local law.

(B)

Prohibition on collection of sales taxes

Each State shall ensure that no State or local tax is collected on a purchase of food under this subsection.

(C)

No limitation on benefits

A grant made available under this subsection shall not be used to carry out any project that limits the use of benefits under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ) or any other Federal nutrition law.

(D)

Household allotment

Assistance provided under this subsection to households receiving benefits under the supplemental nutrition assistance program shall not—

(i)

be considered part of the supplemental nutrition assistance program benefits of the household; or

(ii)

be used in the collection or disposition of claims under section 13 of the Food and Nutrition Act of 2008 (7 U.S.C. 2022).

(4)

Evaluation

(A)

Independent evaluation

The Secretary shall provide for an independent evaluation of projects selected under this subsection that measures the impact of each project on—

(i)

improving the nutrition and health status of participating households receiving incentives under this subsection; and

(ii)

increasing fruit and vegetable purchases in participating households.

(B)

Requirement

The independent evaluation under subparagraph (A) shall use rigorous methodologies capable of producing scientifically valid information regarding the effectiveness of a project.

(C)

Costs

The Secretary may use funds not to exceed 10 percent of the funding provided to carry out this section to pay costs associated with administering, monitoring, and evaluating each project.

(d)

Funding

(1)

Authorization of appropriations

There is authorized to be appropriated to carry out subsection (b) $5,000,000 for each of fiscal years 2014 through 2018.

(2)

Mandatory Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out subsection (c)

(A)

$15,000,000 for fiscal year 2014;

(B)

$20,000,000 for each of fiscal years 2015 through 2017; and

(C)

$25,000,000 for fiscal year 2018.

.

109.

Food and Nutrition Agriculture Service Learning Program

(a)

In general

Subtitle D of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951) is amended by adding at the end the following:

242.

Food and Agriculture Service Learning Program

(a)

Establishment

The Secretary shall establish a Food and Agriculture Service Learning Program (in this section referred to as the Program) to increase knowledge of agriculture and improve the nutritional health of children.

(b)

Purposes

The purposes of the Program are—

(1)

to increase capacity for food, garden, and nutrition education within host organizations or entities, school cafeterias, and in the classroom;

(2)

to complement and build upon the efforts of the farm to school programs implemented under section 18(g) of the Richard B. Russell National School Lunch Act ( 42 U.S.C. 1769(g) );

(3)

to support the implementation of the regulations to update meal patterns and nutrition standards promulgated under section 4(b)(3) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753(b)(3));

(4)

to carry out activities that advance the nutritional health of children and nutrition education in elementary schools and secondary schools;

(5)

to build on activities carried out by the Food and Nutrition Service and the Corporation for National and Community Service by providing funds to establish new approved national service positions for a national service program; and

(6)

to further expand the impact of the efforts described in paragraphs (1) through (5) through coordination with the National Institute of Food and Agriculture.

(c)

Eligibility

To carry out the Program, the Secretary may make awards to an organization or other entity that, as determined by the Secretary

(1)

has a proven track record in carrying out the activities described in subsection (b);

(2)

is carrying out or otherwise supporting a national service program that receives assistance from the Corporation for National and Community Service under subtitle C of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12571 et seq. );

(3)

works in underserved rural and urban communities;

(4)

teaches and engages children in experiential learning about agriculture, gardening, nutrition, cooking, and where food comes from; and

(5)

facilitates a connection between elementary schools and secondary schools and agricultural producers in the local and regional area.

(d)

Accountability

(1)

In general

The Secretary may require an organization or other entity receiving an award under subsection (c), or another qualified entity, to collect and report any data on the activities carried out by the Program as the Secretary determines necessary.

(2)

Evaluation

The Secretary shall—

(A)

conduct regular evaluation of the activities carried out by the Program; and

(B)

submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that includes a description of the results of an evaluation conducted under subparagraph (A).

(e)

Funding

(1)

In general

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $25,000,000, to remain available until expended.

(2)

Use of certain funds

Of the funds made available to carry out this section for a fiscal year, 20 percent shall be made available to the National Institute of Food and Agriculture to offset costs associated with hosting, training, and overseeing individuals in approved national service positions for the Program.

(3)

Maintenance of effort

Funds made available under paragraph (1) shall be used only to supplement, not to supplant, the amount of Federal funding otherwise expended for nutrition, research, and extension programs of the Department.

(f)

Definitions

For purposes of this section:

(1)

Approved national service position

The term approved national service position has the meaning given the term in section 101 of the National and Community Service Act of 1990 (42 U.S.C. 12511)).

(2)

ESEA terms

The terms elementary school and secondary school have the meanings given the terms in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

.

(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)(C), by striking or 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 activities described in section 242.

.

II

Credit

201.

Loans to local and regional food producers

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

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)(9)), 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) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(a)), mid-tier value chains (as defined in such section 231(a)), and other local and regional market outlets.

(b)

Training

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

(c)

Valuation

(1)

In general

The Secretary shall develop ways to determine unit prices (or other appropriate forms of valuation) for crops and other agricultural products, the end use of which is intended to be in locally or regionally produced agricultural food products, to facilitate lending to local and regional food producers.

(2)

Price history

The Secretary shall implement a mechanism for local and regional food producers to establish price history for the crops and other agricultural products produced by such producers.

(d)

Outreach

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

.

202.

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.

.

203.

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 first 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 second 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.

.

III

Rural Development

301.

Availability of rural business opportunity grants for local and regional food systems

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 (i), by inserting domestic and before export;

(B)

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

(C)

in clause (v)

(i)

by inserting domestic and before international; and

(ii)

by striking the period and inserting ; and; and

(D)

by adding at the end the following:

(vi)

to develop enterprises and business ventures that build sustainable local and regional food systems, including through processing, aggregation, distribution, storage, or marketing businesses in connection with production agriculture.

; and

(2)

in subparagraph (D), by striking 2008 through 2012 and inserting 2014 through 2018.

302.

Clarification on allowed partnerships for certain community facilities grants and loans

(a)

Community facilities grant program

Section 306(a)(19) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a)(19) ) is amended by adding at the end the following new subparagraph:

(D)

Partnerships allowed

An association, unit of general local government, nonprofit corporation, or Indian tribe that receives a grant under this paragraph may partner with philanthropic or for-profit entities in developing specific essential community facilities in rural areas.

.

(b)

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

Section 306(a)(24) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a)(24) ) is amended by adding at the end the following new subparagraph:

(C)

Partnerships allowed

The recipient of a loan guarantee under this paragraph may partner with philanthropic or for-profit entities in servicing, or providing additional credit with respect to, a loan described in subparagraph (A).

.

303.

Availability of rural business enterprise grants for value-added processing, aggregation, distribution, storage, and marketing in connection with production agriculture

Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended—

(1)

in subsection (a)(2)

(A)

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

(B)

in subparagraph (D), by striking the period and inserting ; and; and

(C)

by adding at the end the following:

(E)

value-added processing, aggregation, distribution, storage, or marketing in connection with production agriculture.

; and

(2)

in subsection (c)(1)(B)(ii), by inserting , aggregation, distribution, storage, or marketing after processing.

304.

Making improvements to business and industry direct and guaranteed loans to benefit producers of local or regionally produced agricultural food products

Section 310B(g) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1932(g) ) is amended—

(1)

in paragraph (6)(A)

(A)

in clause (i), by striking value-added processing and all that follows through the semicolon and inserting value-added processing, distribution, aggregation, storage, or marketing of agricultural food products that create new opportunities for agricultural producers;; and

(B)

in clause (iii), by striking subsection (a)(2)(A) and inserting this subsection; and

(2)

in paragraph (9)(B)

(A)

in clause (i), by inserting in rural or non-rural areas after entities;

(B)

by striking clauses (ii) and (iii) and inserting the following new clauses:

(ii)

Priority

In making or guaranteeing a loan under clause (i), the Secretary shall give priority to projects that will—

(I)

result in increased access to locally or regionally grown food in underserved communities;

(II)

create new market opportunities for local or regional agricultural producers; or

(III)

support strategic economic and community development regional economic development plans on a multijurisdictional basis.

(iii)

Guarantee fee

In guaranteeing a loan under clause (i), the Secretary may waive, reduce, or incorporate into the amount of the guarantee made under such clause, the fee that would otherwise be imposed under paragraph (5) with respect to such guarantee.

;

(C)

by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively;

(D)

by inserting after clause (iii) the following new clause:

(iv)

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.

;

(E)

in clause (v) (as redesignated by subparagraph (C))—

(i)

in the matter preceding subclause (I), by inserting , and publish on the internet, after Senate;

(ii)

by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively;

(iii)

by inserting before subclause (II), the following new subclause:

(I)

summary information on each such project;

; and

(iv)

in subclause (II) (as redesignated by clause (ii)), by inserting and agricultural producers after communities; and

(F)

in clause (vi)(I) (as so redesignated), by striking 2012 and inserting 2018.

305.

Value-added agricultural product market development grants

(a)

Definitions

Section 231(a) of the Agricultural Risk Protection Act of 2000 ( 7 U.S.C. 1632a(a)(3) ) is amended—

(1)

in paragraph (3)

(A)

in the matter preceding subparagraph (A), by inserting (including networks that operate through food distribution centers that coordinate agricultural production and the aggregation, storage, processing, distribution, and marketing of locally or regionally produced agricultural products) after products; and

(B)

in subparagraph (A), by striking a family farm and inserting family farms; and

(2)

in paragraph (5)(A)(v), by inserting or as part of a mid-tier value chain before the semicolon.

(b)

Grant program

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

(1)

in paragraph (1)

(A)

in the matter preceding subparagraph (A)

(i)

by striking paragraph (7) and inserting paragraph (8); and

(ii)

by inserting , using a peer review process, before shall; and

(B)

in subparagraph (A)(i), by inserting or conducting a feasibility study after business plan;

(2)

by striking paragraph (6) and inserting the following new paragraph:

(6)

Priority

In awarding grants under this subsection, the Secretary shall—

(A)

in the case of grants awarded under paragraph (1)(A), give priority to—

(i)

operators of small- and medium-sized farms and ranches that are structured as family farms; or

(ii)

beginning farmers and ranchers or socially disadvantaged farmers and ranchers; and

(B)

in the case of grants awarded under paragraph (1)(B), give priority to projects that, as determined through peer review, best contribute to—

(i)

increasing opportunities for operators of small- and medium-sized farms and ranches that are structured as family farms; or

(ii)

creating opportunities for beginning farmers and ranchers or socially disadvantaged farmers and ranchers.

;

(3)

by redesignating paragraph (7) as paragraph (8);

(4)

by inserting after paragraph (6) the following new paragraph:

(7)

Outreach and technical assistance

The Secretary shall develop and implement an outreach and technical assistance strategy to assist recipients of a grant under this subsection reach and serve underserved States and communities (as determined by the Secretary).

; and

(5)

in paragraph (8) (as redesignated by paragraph (3))—

(A)

by striking subparagraph (A) and inserting the following new subparagraph:

(A)

Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection

(i)

$15,000,000 for the period of fiscal years 2008 through 2013, to remain available until expended; and

(ii)

$20,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.

;

(B)

in subparagraph (B), by striking 2012 and inserting 2018; and

(C)

by striking subparagraph (C) and inserting the following new subparagraph:

(C)

Priority Funding

(i)

In general

The Secretary shall, to the maximum extent practicable, reserve not less than two-thirds of the amounts made available for each fiscal year under this paragraph to fund grants with respect to which priority is given under paragraph (6).

(ii)

Reservation of funds for projects to benefit beginning farmers or ranchers, socially disadvantaged farmers or ranchers, and mid-tier value chains

(I)

In general

The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this paragraph to fund projects that benefit beginning farmers or ranchers or socially disadvantaged farmers or ranchers.

(II)

Mid-tier value chains

The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this paragraph to fund applications of eligible entities described in paragraph (1) that propose to develop mid-tier value chains.

(III)

Unobligated amounts

Any amounts in the reserves for a fiscal year established under subclauses (I) and (II) that are not obligated by the date on which the Secretary completes the review process for applications submitted under this section in the fiscal year shall be available to the Secretary to make grants under this subsection to eligible entities in any State, as determined by the Secretary.

.

IV

Research, Education, and Related Matters

401.

Agriculture and food research initiative

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

(1)

in paragraph (1), by striking food and agricultural sciences and all that follows through the period at the end and inserting the following:

(A)

in the case of a grant made under paragraph (6), to an entity described in subparagraphs (A), (B), (C), or (D) of such paragraph; and

(B)

in the case of any other grant made under this subsection, to any eligible entity described in paragraph (7), including a grant made for—

(i)

fundamental research (as defined in section 251(f)(1) of the Department of Agriculture Reorganization Act of 1994 ( 7 U.S.C. 6971(f)(1) ));

(ii)

applied research (as defined in such section 251(f)(1));

(iii)

integrated research conducted pursuant to section 406 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7626); or

(iv)

integrated research so conducted that is applied or fundamental research.

;

(2)

in paragraph (2)

(A)

in subparagraph (A)(iii), by striking conventional breeding, including cultivar and breed development, and inserting public cultivar development through conventional breeding with no requirement or preference for the use of marker-assisted or genomic selection methods, including;

(B)

in subparagraph (B)(iv), by striking conventional breeding, including breed development, and inserting public breed development through conventional breeding with no requirement or preference for the use of marker-assisted or genomic selection methods, including; and

(C)

in subparagraph (F)

(i)

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

(ii)

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

(iii)

by adding at the end the following new clause:

(vii)

new approaches to advance systems that enhance the markets for, and policy related to, 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)).

;

(3)

in paragraph (4)(A), by inserting , including by conducting each fiscal year at least 1 separate request for applications for grants for research on public cultivar development through conventional breeding as described in paragraph (2) before the semicolon at the end;

(4)

by redesignating paragraph (11) as paragraph (12);

(5)

by inserting after paragraph (10) the following new paragraph:

(11)

Definitions

In this subsection:

(A)

Conventional breeding

The term conventional breeding means the development of new varieties of an organism through controlled mating and selection without the use of transgenic methods.

(B)

Public breed

The term public breed means a breed that is the commercially available uniform end product of a publicly funded breeding program that—

(i)

has been sufficiently tested to demonstrate improved characteristics and stable performance; and

(ii)

remains in the public domain for research purposes.

(C)

Public cultivar

The term public cultivar means a cultivar that is the commercially available uniform end product of a publicly funded breeding program that—

(i)

has been sufficiently tested to demonstrate improved characteristics and stable performance; and

(ii)

remains in the public domain for research purposes.

; and

(6)

in paragraph (12)(A) (as redesignated by paragraph (4)), in the matter preceding clause (i), by striking 2012 and inserting 2018.

402.

Local and regional food system enterprise facilitation

Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) is amended by inserting after subsection (e) the following new subsection:

(f)

Local and regional farm and food system enterprise facilitation

(1)

In general

The Secretary shall establish a local and regional farm and food system enterprise facilitation initiative to increase training and technical assistance for purposes of building sustainable local and regional food systems, the activities of which may include—

(A)

providing practical, reliable, and timely information to entrepreneurs and entrepreneurial development organizations concerning business management, business planning, microenterprise, marketing, and entrepreneurial education and training related to the development of local and regional farm and food system enterprises;

(B)

providing training and technical assistance to newly operational and growing local and regional farm and food system businesses;

(C)

establishing networks of entrepreneurial support through partnerships among entrepreneurs, local business communities, all levels of government, nonprofit organizations, colleges and universities, and other sectors; and

(D)

providing technical assistance for the preparation of grant and loan applications submitted for purposes of carrying out an activity referred to in subparagraphs (A), (B), or (C).

(2)

Enterprise facilitators

(A)

In general

In carrying out the initiative established under paragraph (1), the Secretary shall establish in the National Institute of Food and Agriculture the position of enterprise facilitator (referred to in this subsection as an enterprise facilitator) to perform the duties specified in subparagraph (C).

(B)

Priority

In allocating funds made available to carry out this subsection, the Secretary shall give priority to enterprise facilitators 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 rural areas (as defined in section 343(13) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(13) )).

(C)

Duties

An enterprise facilitator shall, to the maximum extent practicable—

(i)

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

(ii)

develop partnerships with local and regional organizations and institutions to train entrepreneurs and facilitate new enterprises, including partnerships eligible for or that have received a grant under paragraph (3);

(iii)

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

(iv)

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

(v)

work with local expanded food and nutrition education programs, schools and other local institutions, and individuals to assist in the development of food aggregation, processing, distribution, and storage skills in the locality or region involved;

(vi)

provide technical assistance in the preparation of grant and loan applications submitted for purposes of carrying out an activity referred to in paragraph (1); and

(vii)

work with private sources of funding and other Federal and State agencies to acquire funds for such purposes through grants and loans.

(3)

Grants

(A)

Authority

In carrying out the initiative established under paragraph (1), the Secretary shall award grants to eligible entities, on a competitive basis, to provide training or technical assistance for purposes of building sustainable local and regional food systems.

(B)

Eligibility

An eligible entity under this paragraph is a collaborative State, tribal, local, or regionally based network or partnership of public or private entities, including a network or partnership of—

(i)

colleges and universities, including cooperative extension colleges and universities;

(ii)

nonprofit organizations;

(iii)

Federal, State, local, and tribal governmental entities; or

(iv)

any other appropriate entities, as determined by the Secretary.

(C)

Application

An eligible entity seeking a grant under this paragraph shall submit to the Secretary an application in such time and in such manner and containing such information as the Secretary may require, including information on any project the entity intends to carry out using grant funds.

(D)

Priority

In awarding grants under this paragraph, the Secretary shall give priority to applications submitted by eligible entities that are led by or include non-profit community-based organizations with expertise in providing training or technical assistance to local and regional food producers.

(E)

Consideration of projects

In awarding grants under this paragraph, the Secretary shall consider, with respect to a project included in an application submitted under subparagraph (C)

(i)

the relevance of the project to the initiative established under paragraph (1);

(ii)

the appropriateness of the design of the project;

(iii)

the likelihood of achieving the objectives of the project;

(iv)

the inclusion of entrepreneurs and community leaders in the project;

(v)

the availability of enterprise facilitators to assist with the project;

(vi)

adequacy of plans for outreach, evaluation, reporting, and communication; and

(vii)

the national or regional applicability of the findings and outcomes of the project.

(F)

Term

The term of a grant provided under this paragraph shall be not more than three years.

.

403.

Conventional breeding initiative

(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 new paragraph:

(6)

Conventional plant and animal breeding special initiative

(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 conventional plant and animal breeding.

(B)

Working group

In carrying out the special initiative established under subparagraph (A), 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 each of the following agencies within the Department:

(i)

The National Institute of Food and Agriculture.

(ii)

The Agricultural Research Service.

(iii)

The Economic Research Service.

(iv)

The National Agricultural Statistics Service.

(C)

Duties of working group

The working group shall—

(i)

coordinate conventional plant and animal breeding research being conducted at or funded by an agency described in subparagraph (B);

(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 established pursuant to section 1632 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5841);

(iv)

maximize the delivery of public cultivars and public breeds and ensure the efficient coordination of the activities of the working group and the activities of each of—

(I)

the Agricultural Research Service;

(II)

the National Institute of Food and Agriculture;

(III)

the National Genetic Resources Advisory Council;

(IV)

genetic resource conservation centers;

(V)

land-grant colleges and universities (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));

(VI)

nongovernmental organizations with interests or expertise in conventional breeding; and

(VII)

public and private conventional plant and animal breeders; and

(v)

evaluate conventional 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 established under subparagraph (B) on matters related to the duties specified in subparagraph (C). The advisory board shall be comprised of individuals with expertise in conventional plant and animal breeding including representatives from each of the following:

(i)

The Agricultural Research Service.

(ii)

The National Institute of Food and Agriculture.

(iii)

Private foundations and nonprofit organizations that have expertise in conventional plant and animal breeding.

(iv)

Private agricultural research and technology transfer firms.

(v)

Land-grant colleges and universities.

(E)

Definitions

The terms conventional breeding, public cultivar, and public breed have the meaning given such terms in paragraph (11) of subsection (b) of the of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)).

.

(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 109(b), is further amended—

(1)

in paragraph (7) (as amended by such section 109(b)), by striking or at the end;

(2)

in paragraph (8), (as amended by such section 109(b)), by striking the period at the end and inserting ; or; and

(3)

by adding at the end the following new paragraph:

(9)

the authority of the Secretary to establish a conventional plant and animal breeding special initiative under section 251(e).

.

404.

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 new paragraph:

(6)

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

.

V

Horticulture

501.

Farmers market and local food promotion program

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

(1)

in the section heading, by adding and local food after market ;

(2)

in subsection (a)

(A)

by inserting and Local Food after Market;

(B)

by striking farmers’ markets and to promote; and

(C)

by inserting and local food capacity development before the period at the end;

(3)

in subsection (b), by striking paragraph (1) and inserting the following:

(1)

In general

The purposes of the Program are to increase domestic consumption of and access to locally and regionally produced agricultural products by developing, improving, expanding, and providing outreach, training, and technical assistance to, or assisting in the development, improvement and expansion of—

(A)

domestic farmers’ markets, roadside stands, community-supported agriculture programs, agritourism activities, and other direct producer-to-consumer market opportunities; and

(B)

local and regional food enterprises that are not direct producer-to-consumer markets but process, distribute, aggregate, store, and market locally or regionally produced food products.

;

(4)

in subsection (c)(1)

(A)

by inserting or other agricultural business entity after cooperative; and

(B)

by inserting , including a community supported agriculture network or association after association;

(5)

by redesignating subsection (e) as subsection (f);

(6)

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

(e)

Priorities

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

(1)

benefit underserved communities;

(2)

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

(3)

include a strategic plan to maximize the use of funds to build capacity for local and regional food systems in a community.

; and

(7)

in subsection (f) (as redesignated by paragraph (5))—

(A)

in paragraph (1)

(i)

in the heading, by striking Fiscal years 2008 through 2012 and inserting Commodity Credit Corporation funding for fiscal years 2008 through 2012 and 2014 through 2018 ;

(ii)

in subparagraph (B), by striking and after the semicolon at the end;

(iii)

in subparagraph (C), by striking the period at the end and inserting ; and; and

(iv)

by adding at the end the following:

(D)

$20,000,000 for each of fiscal years 2014 through 2018.

;

(B)

by striking paragraphs (2) and (4);

(C)

by redesignating paragraph (3) as paragraph (4);

(D)

by inserting after paragraph (1) the following new paragraphs:

(2)

Authorization of appropriations

In addition to funds made available under paragraph (1), there is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2013 through 2018.

(3)

Use of funds

(A)

In general

Of the funds made available to carry out the Program for each fiscal year, to the maximum extent practicable, 50 percent shall be used for the purposes described in subsection (b)(1)(A) and 50 percent shall be used for the purposes described in subsection (b)(1)(B).

(B)

Cost share

To be eligible to receive a grant for a project described in subsection (b)(1)(B), a recipient shall provide a match in the form of cash or in-kind contributions in an amount equal to 25 percent of the total cost of the project.

; and

(E)

by adding at the end the following new paragraphs:

(5)

Administrative expenses

Not more than 10 percent of the total amount made available to carry out this section for a fiscal year may be used for administrative expenses.

(6)

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.

.

502.

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 2018; and

(3)

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

(c)

Preference

Such section 101 is further amended—

(1)

by redesignating subsections (g), (h), (i), and (j) as subsections (i), (j), (k), and (m), 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 proposals that demonstrate ability to have direct positive impact on—

(1)

farm profitability and sustainability;

(2)

improved distribution capacity for locally or regionally produced foods; or

(3)

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

.

(d)

Transparency

Such section 101 is further amended by inserting after subsection (g), as added by subsection (c) 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.

.

(e)

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.

.

503.

Study on local food production and program evaluation

(a)

In general

The Secretary shall—

(1)

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

(2)

facilitate interagency collaboration and data sharing on programs related to local and regional food systems; and

(3)

monitor the effectiveness of programs designed to expand or facilitate local food systems.

(b)

Requirements

In carrying out this section, the Secretary shall—

(1)

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

(2)

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;

(3)

evaluate the effectiveness of existing programs in growing local and regional food systems, including—

(A)

the impact of local food systems on job creation and economic development;

(B)

the level of participation in the Farmers' Market and Local Food Promotion Program established under section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005), including the percentage of projects funded in comparison to applicants and the types of eligible entities receiving funds;

(C)

the ability for participants to leverage private capital and a synopsis of the places from which non-Federal funds are derived; and

(D)

any additional resources required to aid in the development or expansion of local and regional food systems;

(4)

expand the Agricultural Resource Management Survey to include questions on locally or regionally produced agricultural food products;

(5)

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, including the development of a nationally coordinated and regionally balanced evaluation of the redevelopment of locally or regionally produced food systems;

(6)

form an interagency work group that includes representatives from—

(A)

the Agricultural Marketing Service;

(B)

the Agricultural Research Service;

(C)

the Economic Research Service;

(D)

the Food and Nutrition Service;

(E)

the Food Safety and Inspection Service;

(F)

the National Agricultural Statistics Service;

(G)

the National Institute of Food and Agriculture; and

(H)

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

(7)

authorize the National Agricultural Statistics Service to create and administer—

(A)

a follow up survey to the Census of Agriculture to collect detailed data on producers who indicated that the producers sell to markets for locally or regionally produced agricultural food products; and

(B)

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.

(c)

Report

Not later than one year after the date of enactment of this Act, and annually thereafter until September 30, 2018, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the progress that has been made in implementing this section and identifying any additional needs related to developing local and regional food systems.

(d)

Funding

(1)

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.

(2)

Additional funding

In addition to the funds made available under (1), there are authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.

VI

Crop Insurance

601.

Research and development authority

(a)

In general

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 subparagraph (A), by striking may enter into contracts to carry out research and development to and inserting may 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)

by striking subparagraph (B) and inserting the following new paragraph:

(B)

Consultation

Before conducting research and development or entering into a contract under subparagraph (A), the Corporation shall follow the consultation requirements described in section 508(h)(4)(E).

;

(4)

in paragraph (5), by inserting after expert review in accordance with section 505(e) and procedures of the Board after approved by the Board; and

(5)

in paragraph (6), by striking a pasture, range, and forage program and inserting policies that increase participation by producers of underserved agricultural commodities, including sweet sorghum, sorghum for biomass, specialty crops, sugarcane, and dedicated energy crops.

(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 Conducting and contracting for research and development ;

(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; and

(3)

by striking paragraph (4).

602.

Whole farm risk management insurance

Section 522(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(c) ) is amended by adding at the end the following new paragraph:

(18)

Whole farm diversified risk management insurance plan

(A)

In general

The Corporation shall conduct activities or enter into contracts to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1,500,000, that allows a diversified crop or livestock producer the option to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation.

(B)

Eligible producers

The Corporation shall permit producers (including direct-to-consumer marketers, and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in the plan in lieu of any other plan under this subtitle.

(C)

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 crop and livestock diversification strategies for producers that grow multiple crops or that may have income from the production of livestock that uses a crop grown on the farm.

(D)

Market readiness

The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field.

(E)

Report

Not later than 2 years after the date of enactment of this paragraph, 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 a report that describes the results and feasibility of the research and development conducted under this paragraph, including an analysis of potential adverse market distortions.

.

603.

Approval of costs for research and development

Section 522(b)(2) of the Federal Crop Insurance Act ( 7 U.S.C. 1522(b)(2) ) is amended by striking subparagraph (E) and inserting the following new subparagraph:

(E)

Approval

(i)

In general

The Board may approve up to 50 percent of the projected total research and development costs to be paid in advance to an applicant, in accordance with the procedures developed by the Board for the making of the payments, if, after consideration of the reviewer reports described in subparagraph (D) and such other information as the Board determines appropriate, the Board determines that—

(I)

the concept, in good faith, will likely result in a viable and marketable policy consistent with section 508(h);

(II)

at the sole discretion of the Board, the concept, if developed into a policy and approved by the Board, would provide crop insurance coverage—

(aa)

in a significantly improved form or that addresses a unique need of agricultural producers;

(bb)

to a crop or region not traditionally served by the Federal crop insurance program; or

(cc)

in a form that addresses a recognized flaw or problem in the program;

(III)

the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;

(IV)

the proposed budget and timetable are reasonable, as determined by the Board; and

(V)

the concept proposal meets any other requirements that the Board determines appropriate.

(ii)

Waiver

The Board may waive the 50-percent limitation and, upon request of the submitter after the submitter has begun research and development activities, the Board may approve an additional 25 percent advance payment to the submitter for research and development costs, if, at the sole discretion of the Board, the Board determines that—

(I)

the intended policy or plan of insurance developed by the submitter will provide coverage for a region or crop that is underserved by the Federal crop insurance program, including specialty crops; and

(II)

the submitter is making satisfactory progress towards developing a viable and marketable policy or plan of insurance consistent with section 508(h).

.

604.

Crop insurance for organic crops

(a)

In general

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 soon as possible, but not 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.

.

(b)

Removal from list of research and development activities

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

605.

Nationwide expansion of agricultural management assistance program and inclusion of organic certification cost share assistance

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

(b)

Agricultural management assistance, risk management education, and organic certification cost share assistance

(1)

Authority for provision of assistance

The Secretary shall provide assistance under this section as follows:

(A)

Provision of organic certification cost share assistance pursuant to section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523).

(B)

Activities to support risk management education and community outreach partnerships pursuant to section 522(d), including—

(i)

entering into futures or hedging;

(ii)

entering into agricultural trade options as a hedging transaction to reduce production, price, or revenue risk; or

(iii)

conducting any other activity relating to an activity described in clause (i) or (ii), including farm financial benchmarking, as determined by the Secretary.

(C)

Provision of agricultural management assistance grants to producers in States in which there has been traditionally, and continues to be, a low level of Federal crop insurance participation and availability, and producers underserved by the Federal crop insurance program, as determined by the Secretary, for the purposes of—

(i)

constructing or improving—

(I)

watershed management structures; or

(II)

irrigation structures;

(ii)

planting trees to form windbreaks or to improve water quality; and

(iii)

mitigating financial risk through production or marketing diversification or resource conservation practices, including—

(I)

soil erosion control;

(II)

integrated pest management;

(III)

organic farming; or

(IV)

to develop and implement a plan to create marketing opportunities for the producer, including through value-added processing.

(2)

Payment limitation

The total amount of payments made to a person (as defined in section 1001(5) of the Food Security Act ( 7 U.S.C. 1308(5) )) (as in existence before the amendment made by section 1603(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1730)) under paragraph (1) for any year may not exceed $50,000.

(3)

Funding

(A)

In general

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

(B)

Funding

The Commodity Credit Corporation shall make available to carry out this subsection

(i)

$15,000,000 for fiscal year 2013; and

(ii)

$23,000,000 for each of fiscal years 2014 through 2018.

(C)

Distribution of funds

Of the amount made available to carry out this subsection for a fiscal year, the Commodity Credit Corporation shall use not less than—

(i)

50 percent to carry out paragraph (1)(A);

(ii)

26 percent to carry out paragraph (1)(B); and

(iii)

24 percent to carry out paragraph (1)(C).

.

VII

Miscellaneous

701.

Technical assistance

(a)

Meat products

(1)

In general

Title V of the Federal Meat Inspection Act (21 U.S.C. 683 et seq.) is amended by adding at the end the following new sections:

502.

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, with respect to compliance with this Act—

(1)

outreach, education, and training to very small or certain small establishments; and

(2)

grants to appropriate State agencies, educational institutions, or non-governmental organizations, or networks or partnerships of such agencies, such institutions, or such organizations, 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.

(c)

Certain small establishment defined

In this section, the term certain small establishment means an establishment that meets the requirements for establishments described in section 332.3 of title 9, Code of Federal Regulations (issued pursuant to section 501), as in effect on the date of the enactment of the Local Farms, Food, and Jobs Act of 2013 .

.

(2)

Transfer of division

Not later than 30 days after the date of the enactment of this Act, the Secretary shall transfer the functions, personnel, and assets of the technical division established under section 501(f) of the Federal Meat Inspection Act ( 21 U.S.C. 683 et seq. ) (as in effect on the day before the date of the enactment of this Act) to the technical division required to be established under section 502 of the Federal Meat Inspection Act, as added by paragraph (1).

(3)

Conforming amendments

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

(A)

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

(B)

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

(C)

by striking subsection (f); and

(D)

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

(b)

Poultry products

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

(a)

In general

The technical assistance division of the Food Safety and Inspection Service established under section 502 of the Federal Meat Inspection Act shall coordinate the initiatives of any other appropriate agency of the Department of Agriculture to provide, with respect to compliance with this Act—

(1)

outreach, education, and training to very small or certain small establishments; and

(2)

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

(b)

Certain small establishment defined

In this section, the term certain small establishment means an establishment that meets the requirements for establishments described in section 381.513 of title 9, Code of Federal Regulations (issued pursuant to section 31), as in effect on the date of the enactment of the Local Farms, Food, and Jobs Act of 2013 .

.

702.

Guidance

(a)

Meat products

Title V of the Federal Meat Inspection Act ( 21 U.S.C. 683 et seq. ), as amended by section 701, is further amended by adding at the end the following new section:

503.

Guidance

(a)

Issuance

The Secretary, acting through the Food Safety and Inspection Service, shall issue guidance to very small or certain small establishments (as defined in section 502(c)) on how to comply with the requirements of this Act.

(b)

Contents

The guidance issued under subsection (a) shall be appropriate for—

(1)

slaughter and processing facilities that are subject to Federal or State inspection under this Act, or provide custom slaughter or processing; and

(2)

mobile slaughter and processing facilities.

.

(b)

Poultry products

The Poultry Products Inspection Act ( 21 U.S.C. 451 et seq. ), as amended by section 701, is further amended by adding at the end the following new section:

33.

Guidance

(a)

Issuance

The Secretary, acting through the Food Safety and Inspection Service, shall issue guidance to very small or certain small establishments (as defined in section 32(b)) on how to comply with the requirements of this Act.

(b)

Contents

The guidance issued under subsection (a) shall be appropriate for—

(1)

slaughter and processing facilities that are subject to Federal or State inspection under this Act, or provide custom slaughter or processing;

(2)

on-farm slaughter and processing of poultry that is exempt under section 15(c)(1); and

(3)

mobile slaughter and processing facilities.

.

(c)

Initial guidance

Not later than two years after the date of the enactment of this Act, the Secretary shall issue guidance under section 503(a) of the Federal Meat Inspection Act, as added by subsection (a), and section 33 of the Poultry Products Inspection Act, as added by subsection (b).

703.

Labels and public information on label content

(a)

Meat products

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

26.

Labels and public information on label content

The Secretary shall establish a guidebook and website to provide improved public access to user-friendly information on meat product label content and format and the approval process for meat product labels.

.

(b)

Poultry products

The Poultry Products Inspection Act (21 U.S.C. 451 et seq.), as amended by section 702 of this Act, is further amended by adding at the end the following new section:

34.

Labels and public information on label content

The Secretary shall establish a guidebook and website to provide improved public access to user-friendly information on poultry product label content and format and the approval process for poultry product labels.

.

(c)

Applicability date

Not later than one year after the date of the enactment of this Act, the Secretary shall establish the guidebook and website required under section 26 of the Federal Meat Inspection Act, as added by subsection (a), and section 34 of the Poultry Products Inspection Act, as added by subsection (b).

704.

Meat and poultry processing report

(a)

Report

Not later than two years after the date of the enactment of this Act, the Secretary of Agriculture shall submit to Congress a report on steps that can be taken to assist very small or certain small establishments to ensure that such establishments produce meat and poultry products that meet the requirements under the Federal Meat Inspection Act ( 21 U.S.C. 601 et seq. ) and the Poultry Products Inspection Act ( 21 U.S.C. 451 et seq. ).

(b)

Stakeholder group

(1)

In general

Not later than 120 days after the date of the enactment of this Act, the Secretary shall convene a group of stakeholders to advise the Secretary on—

(A)

proposed guidance on facilities requirements, process controls and pathogen prevention in very small or certain small establishments;

(B)

improving the user-friendliness of information contained in meat and poultry labels; and

(C)

the report required under paragraph (a).

(2)

Membership

The stakeholders group convened under paragraph (1) shall include persons with expertise on problems that very small or certain small establishments that are processing facilities, including mobile processing facilities, may have in meeting the requirements of the Federal Meat Inspection Act and the Poultry Products Inspection Act, including—

(A)

small scale livestock and poultry growers;

(B)

operators of small scale slaughtering and processing facilities;

(C)

representatives of farming organizations whose membership includes small scale livestock and poultry producers;

(D)

representatives of established consumer organizations;

(E)

Federal and industry employees, including a representative of employees of the Food Safety and Inspection Service that are represented by a labor organization (as defined in section 7103(a)(4) of title 5, United States Code) and a representative of employees of the industries regulated by the Food Safety and Inspection Service that are represented by a labor organization (as defined in section 2(5) of the National Labor Relations Act ( 29 U.S.C. 152(5) )); and

(F)

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

(3)

Termination

The Secretary shall terminate the stakeholder group upon completion of the guidance and the report referred to in paragraph (1).

(c)

Certain small establishment defined

In this section, the term certain small establishment means—

(1)

with respect to an establishment that is subject to the requirements of the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), a certain small establishment as defined in section 502(c) of such Act; or

(2)

with respect to an establishment that is subject to the requirements of the Poultry Products Inspection Act (21 U.S.C. 451 et seq.), a certain small establishment as defined in section 32(b) of such Act.