7 U.S.C. § 1627b — National Sheep Industry Improvement

Page 906 TITLE 7—AGRICULTURE § 1627a technically qualified person, firm, or organiza- tion by contract or otherwise on a temporary basis and for a term not to exceed six months in any fiscal year to perform research, inspection, classification, technical, or other special serv- ices, without regard to the civil-service laws. (Aug. 14, 1946, ch. 966, title II, § 208, 60 Stat. 1091.) Editorial Notes CODIFICATION Provisions that authorized the Secretary of Agri- culture to ‘‘fix the compensation’’ of any technically qualified person, firm, or organization by contract or otherwise on a temporary basis and for a term not to exceed six months in any fiscal year to perform re- search, inspection, classification, technical or other special services, without regard to the ‘‘Classification Act of 1923, as amended’’ were omitted as obsolete. Sec- tions 1202 and 1204 of the Classification Act of 1949, 63 Stat. 972, 973 repealed the 1923 Act and all laws or parts of laws inconsistent with the 1949 Act. While section 1106(a) of the 1949 Act provided that references in other laws to the 1923 Act should be held and considered to mean the 1949 Act, it did not have the effect of con- tinuing the exceptions contained in this subsection be- cause of section 1106(b) which provided that the appli- cation of the 1949 Act to any position, officer, or em- ployee shall not be affected by section 1106(a). The Classification Act of 1949 was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 632 (of which section 1 revised and enacted Title 5, U.S.C., into law). Section 5102 of Title 5, now contains the applicability provi- sions of the 1949 Act, and section 5103 of Title 5 author- izes the Office of Personnel Management to determine the applicability to specific positions and employees. § 1627a. Sheep production and marketing grant program (a) Establishment The Secretary of Agriculture, acting through the Administrator of the Agricultural Mar- keting Service, shall establish a competitive grant program for the purposes of strengthening and enhancing the production and marketing of sheep and sheep products in the United States, including through— (1) the improvement of— (A) infrastructure; (B) business; and (C) resource development; and (2) the development of innovative ap- proaches to solve long-term needs. (b) Eligibility The Secretary shall make grants under this section to at least one national entity, the mis- sion of which is consistent with the purpose of the grant program. (c) Funding Of the funds of the Commodity Credit Corpora- tion, the Secretary shall use to carry out this section $2,000,000 for fiscal year 2019, and $400,000 for fiscal year 2024, to remain available until ex- pended. (Aug. 14, 1946, ch. 966, title II, § 209, as added Pub. L. 113–79, title XII, § 12102(a), Feb. 7, 2014, 128 Stat. 978; amended Pub. L. 115–334, title XII, § 12102, Dec. 20, 2018, 132 Stat. 4942; Pub. L. 118–22, div. B, title I, § 102(d)(8)(E), Nov. 17, 2023, 137 Stat. 118.) Editorial Notes AMENDMENTS 2023—Subsec. (c). Pub. L. 118–22 inserted ‘‘and $400,000 for fiscal year 2024,’’ after ‘‘2019,’’. 2018—Subsec. (c). Pub. L. 115–334 substituted ‘‘$2,000,000 for fiscal year 2019’’ for ‘‘$1,500,000 for fiscal year 2014’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2023 AMENDMENT Amendment by Pub. L. 118–22 to be applied and ad- ministered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agri- cultural Programs note under section 9001 of this title. § 1627b. National Sheep Industry Improvement Center (a) Definitions In this section: (1) Board The term ‘‘Board’’ means the Board of Direc- tors established under subsection (f). (2) Center The term ‘‘Center’’ means the National Sheep Industry Improvement Center estab- lished under subsection (b). (3) Eligible entity The term ‘‘eligible entity’’ means an entity that promotes the betterment of the United States sheep or goat industries and that is— (A) a public, private, or cooperative orga- nization; (B) an association, including a corporation not operated for profit; (C) a federally recognized Indian Tribe; or (D) a public or quasi-public agency. (4) Fund The term ‘‘Fund’’ means the National Sheep Industry Improvement Center Revolving Fund established under subsection (e). (5) Intermediary The term ‘‘intermediary’’ means a financial institution receiving Center funds for estab- lishing a revolving fund and relending to an el- igible entity. (b) Establishment of Center The Secretary shall establish a National Sheep Industry Improvement Center. (c) Purposes The purposes of the Center shall be to— (1) promote strategic development activities and collaborative efforts by private and State entities to maximize the impact of Federal as- sistance to strengthen and enhance production and marketing of sheep or goat products in the United States; (2) optimize the use of available human cap- ital and resources within the sheep or goat in- dustries; (3) provide assistance to meet the needs of the sheep or goat industry for infrastructure development, business development, produc- tion, resource development, and market and environmental research; (4) advance activities that empower and build the capacity of the United States sheep Page 907 TITLE 7—AGRICULTURE § 1627b or goat industry to design unique responses to the special needs of the sheep or goat indus- tries on both a regional and national basis; and (5) adopt flexible and innovative approaches to solving the long-term needs of the United States sheep or goat industry. (d) Strategic plan (1) In general The Center shall submit to the Secretary an annual strategic plan for the delivery of finan- cial assistance provided by the Center. (2) Requirements A strategic plan shall identify— (A) goals, methods, and a benchmark for measuring the success of carrying out the plan and how the plan relates to the na- tional and regional goals of the Center; (B) the amount and sources of Federal and non-Federal funds that are available for car- rying out the plan; (C) funding priorities; (D) selection criteria for funding; and (E) a method of distributing funding. (e) Revolving Fund (1) Establishment There is established in the Treasury the Na- tional Sheep Industry Improvement Center Revolving Fund. The Fund shall be available to the Center, without fiscal year limitation, to carry out the authorized programs and ac- tivities of the Center under this section. (2) Contents of Fund There shall be deposited in the Fund— (A) such amounts as may be appropriated, transferred, or otherwise made available to support programs and activities of the Cen- ter; (B) payments received from any source for products, services, or property furnished in connection with the activities of the Center; (C) fees and royalties collected by the Cen- ter from licensing or other arrangements re- lating to commercialization of products de- veloped through projects funded, in whole or part, by grants, contracts, or cooperative agreements executed by the Center; (D) proceeds from the sale of assets, loans, and equity interests made in furtherance of the purposes of the Center; (E) donations or contributions accepted by the Center to support authorized programs and activities; and (F) any other funds acquired by the Cen- ter. (3) Use of Fund (A) In general The Center may use amounts in the Fund to make direct loans, loan guarantees, coop- erative agreements, equity interests, invest- ments, repayable grants, and grants to eligi- ble entities, either directly or through an intermediary, in accordance with a strategic plan submitted under subsection (d). (B) Continued existence The Center shall manage the Fund in a manner that ensures that sufficient amounts are available in the Fund to carry out sub- section (c). The Fund is intended to furnish the initial capital for a revolving fund that will eventually be privatized for the pur- poses of assisting the United States sheep and goat industries. (C) Diverse area The Center shall, to the maximum extent practicable, use the Fund to serve broad geo- graphic areas and regions of diverse produc- tion. (D) Administration The Center may not use more than 10 per- cent of the amounts in the portfolio of the Center for each fiscal year for the adminis- tration of the Center. The portfolio shall be calculated at the beginning of each fiscal year and shall include a total of— (i) all outstanding loan balances; (ii) the Fund balance; (iii) the outstanding balance to inter- mediaries; and (iv) the amount the Center paid for all equity interests. (E) Influencing legislation None of the amounts in the Fund may be used to influence legislation. (F) Accounting To be eligible to receive amounts from the Fund, an entity must agree to account for the amounts using generally accepted ac- counting principles. (G) Uses of Fund The Center may use amounts in the Fund to— (i) participate with Federal and State agencies in financing activities that are in accordance with a strategic plan sub- mitted under subsection (d), including par- ticipation with several States in a regional effort; (ii) participate with other public and pri- vate funding sources in financing activi- ties that are in accordance with the stra- tegic plan, including participation in a re- gional effort; (iii) provide security for, or make prin- cipal or interest payments on, revenue or general obligation bonds issued by a State, if the proceeds from the sale of the bonds are deposited in the Fund; (iv) accrue interest; (v) guarantee or purchase insurance for local obligations to improve credit market access or reduce interest rates for a project that is in accordance with the stra- tegic plan; (vi) sell assets, loans, and equity inter- ests acquired in connection with the fi- nancing of projects funded by the Center; or (vii) purchase equity interests. (4) Loans (A) Rate A loan from the Fund may be made at an interest rate that is below the market rate or may be interest free. Page 908 TITLE 7—AGRICULTURE § 1627b (B) Term The term of a loan may not exceed the shorter of— (i) the useful life of the activity fi- nanced; or (ii) 40 years. (C) Source of repayment The Center may not make a loan from the Fund unless the recipient establishes an as- sured source of repayment. (D) Proceeds All payments of principal and interest on a loan made from the Fund shall be deposited into the Fund. (5) Maintenance of effort The Center shall use the Fund only to sup- plement and not to supplant Federal, State, and private funds expended for rural develop- ment. (f) Board of Directors (1) In general The management of the Center shall be vest- ed in a Board of Directors. (2) Powers The Board shall— (A) be responsible for the general super- vision of the Center; (B) review any contract, direct loan, loan guarantee, cooperative agreement, equity interest, investment, repayable grant, and grant to be made or entered into by the Cen- ter and any financial assistance provided to the Center; (C) make the final decision, by majority vote, on whether and how to provide assist- ance to an applicant; and (D) develop and establish a budget plan and a long-term operating plan to carry out the goals of the Center. (3) Composition The Board shall be composed of— (A) 7 voting members, of whom— (i) 4 members shall be active producers of sheep or goats in the United States; (ii) 2 members shall have expertise in fi- nance and management; and (iii) 1 member shall have expertise in lamb, wool, goat, or goat product mar- keting; and (B) 2 nonvoting members, of whom— (i) 1 member shall be the Under Sec- retary of Agriculture for Rural Develop- ment; and (ii) 1 member shall be the Under Sec- retary of Agriculture for Research, Edu- cation, and Economics. (4) Nomination (A) Nominating body The Secretary shall appoint the voting members of the Board from nominations submitted by organizations described in sub- paragraph (B). (B) National organizations A national organization is described in this subparagraph if the organization— (i) consists primarily of active sheep or goat producers in the United States; and (ii) has as the primary interest of the or- ganization the production of sheep or goats in the United States. (5) Term of office (A) In general Subject to subparagraph (B), the term of office of a voting member of the Board shall be 3 years. (B) Staggered initial terms The initial voting members of the Board (other than the chairperson of the initially established Board) shall serve for staggered terms of 1, 2, and 3 years, as determined by the Secretary. (C) Reappointment A voting member may be reappointed for not more than one additional term. (6) Vacancy (A) In general A vacancy on the Board shall be filled in the same manner as the original Board. (B) Reappointment A voting member appointed to fill a va- cancy for an unexpired term may be re- appointed for one full term. (7) Chairperson (A) In general The Board shall select a chairperson from among the voting members of the Board. (B) Term The term of office of the chairperson shall be 2 years. (8) Annual meeting (A) In general The Board shall meet not less than once each fiscal year at the call of the chair- person or at the request of the executive di- rector appointed under subsection (g)(1). (B) Location The location of a meeting of the Board shall be established by the Board. (9) Voting (A) Quorum A quorum of the Board shall consist of a majority of the voting members. (B) Majority vote A decision of the Board shall be made by a majority of the voting members of the Board. (10) Conflicts of interest (A) In general Except as provided in subparagraph (D), a member of the Board shall not vote on any matter respecting any application, contract, claim, or other particular matter pending before the Board in which, to the knowledge of the member, an interest is held by— (i) the member; (ii) any spouse of the member; Page 909 TITLE 7—AGRICULTURE § 1627b (iii) any child of the member; (iv) any partner of the member; (v) any organization in which the mem- ber is serving as an officer, director, trust- ee, partner, or employee; or (vi) any person with whom the member is negotiating or has any arrangement concerning prospective employment or with whom the member has a financial in- terest. (B) Removal Any action by a member of the Board that violates subparagraph (A) shall be cause for removal from the Board. (C) Validity of action An action by a member of the Board that violates subparagraph (A) shall not impair or otherwise affect the validity of any other- wise lawful action by the Board. (D) Disclosure (i) In general If a member of the Board makes a full disclosure of an interest and, prior to any participation by the member, the Board determines, by majority vote, that the in- terest is too remote or too inconsequential to affect the integrity of any participation by the member, the member may partici- pate in the matter relating to the interest, except as provided in subparagraph (E)(iii). (ii) Vote A member that discloses an interest under clause (i) shall not vote on a deter- mination of whether the member may par- ticipate in the matter relating to the in- terest. (E) Remands (i) In general The Secretary may vacate and remand to the Board for reconsideration any deci- sion made pursuant to subsection (e)(3)(H) if the Secretary determines that there has been a violation of this paragraph or any conflict of interest provision of the bylaws of the Board with respect to the decision. (ii) Reasons In the case of any violation and remand of a funding decision to the Board under clause (i), the Secretary shall inform the Board of the reasons for the remand. (iii) Conflicted members not to vote on re- manded decisions If a decision with respect to a matter is remanded to the Board by reason of a con- flict of interest faced by a Board member, the member may not participate in any subsequent decision with respect to the matter. (11) Compensation (A) In general A member of the Board shall not receive any compensation by reason of service on the Board. (B) Expenses A member of the Board shall be reim- bursed for travel, subsistence, and other nec- essary expenses incurred by the member in the performance of a duty of the member. (12) Bylaws The Board shall adopt, and may from time to time amend, any bylaw that is necessary for the proper management and functioning of the Center. (13) Public hearings Not later than 1 year after April 4, 1996, the Board shall hold public hearings on policy ob- jectives of the program established under this section. (14) Organizational system The Board shall provide a system of organi- zation to fix responsibility and promote effi- ciency in carrying out the functions of the Board. (15) Use of Department of Agriculture The Board may, with the consent of the Sec- retary, utilize the facilities of and the services of employees of the Department of Agri- culture, without cost to the Center. (g) Officers and employees (1) Executive director (A) In general The Board shall appoint an executive di- rector to be the chief executive officer of the Center. (B) Tenure The executive director shall serve at the pleasure of the Board. (C) Compensation Compensation for the executive director shall be established by the Board. (2) Other officers and employees The Board may select and appoint officers, attorneys, employees, and agents who shall be vested with such powers and duties as the Board may determine. (3) Delegation The Board may, by resolution, delegate to the chairperson, the executive director, or any other officer or employee any function, power, or duty of the Board other than voting on a grant, loan, contract, agreement, budget, or annual strategic plan. (h) Consultation To carry out this section, the Board may con- sult with— (1) State departments of agriculture; (2) Federal departments and agencies; (3) nonprofit development corporations; (4) colleges and universities; (5) banking and other credit-related agen- cies; (6) agriculture and agribusiness organiza- tions; and (7) regional planning and development orga- nizations. (i) Oversight (1) In general The Secretary shall review and monitor compliance by the Board and the Center with this section. Page 910 TITLE 7—AGRICULTURE § 1627b (2) Sanctions If, following notice and opportunity for a hearing, the Secretary finds that the Board or the Center is not in compliance with this sec- tion, the Secretary may— (A) cease making deposits to the Fund; (B) suspend the authority of the Center to withdraw funds from the Fund; or (C) impose other appropriate sanctions, in- cluding recoupment of money improperly ex- pended for purposes prohibited or not au- thorized by this Act and disqualification from receipt of financial assistance under this section. (3) Rescission of sanctions The Secretary shall rescind sanctions im- posed under paragraph (2) on a finding by the Secretary that there is no longer any failure by the Board or the Center to comply with this section or that the noncompliance will be promptly corrected. (Aug. 14, 1946, ch. 966, title II, § 210, formerly Pub. L. 87–128, title III, § 375, as added Pub. L. 104–127, title VII, § 759, Apr. 4, 1996, 110 Stat. 1132; amended Pub. L. 106–78, title VIII, § 816, Oct. 22, 1999, 113 Stat. 1182; Pub. L. 106–387, § 1(a) [title VII, § 756], Oct. 28, 2000, 114 Stat. 1549, 1549A–43; Pub. L. 107–76, title VII, § 731, Nov. 28, 2001, 115 Stat. 736; Pub. L. 108–7, div. A, title VII, § 728, Feb. 20, 2003, 117 Stat. 42; Pub. L. 108–199, div. A, title VII, § 726, Jan. 23, 2004, 118 Stat. 35; Pub. L. 108–447, div. A, title VII, § 725, Dec. 8, 2004, 118 Stat. 2842; Pub. L. 110–234, title XI, § 11009(a), (b)(1), May 22, 2008, 122 Stat. 1359; Pub. L. 110–246, § 4(a), title XI, § 11009(a), (b)(1), June 18, 2008, 122 Stat. 1664, 2120, 2121; renumbered act Aug. 14, 1946, § 210, and amended Pub. L. 113–79, title XII, § 12102(b), Feb. 7, 2014, 128 Stat. 979.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (i)(2)(C), probably means the Consolidated Farm and Rural Development Act, title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 294, which is classified principally to chapter 50 (§ 1921 et seq.) of this title and of which this section was for- merly a part prior to renumbering by Pub. L. 113–79. For classification of this Act to the Code, see Short Title note set out under section 1921 of this title and Tables. CODIFICATION Section was formerly classified to section 2008j of this title. A former subsec. (j)(7) of this section provided for the repeal of this section on the date the Secretary pub- lished notice in the Federal Register that the transi- tion plan to privatize the National Sheep Industry Im- provement Center had been completed. Although such notice was published in the Federal Register on May 23, 2007, at 72 F.R. 28945, repeal of this section did not take effect because of amendment by Pub. L. 110–246, § 11009(b), repealing subsec. (j) of this section, effective May 1, 2007. See 2008 Amendment and Effective Date of 2008 Amendment notes below. Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2014—Subsec. (e)(3)(D). Pub. L. 113–79, § 12102(b)(1)(A), substituted ‘‘10 percent’’ for ‘‘3 percent’’ in introduc- tory provisions. Subsec. (e)(6). Pub. L. 113–79, § 12102(b)(1)(B), struck out par. (6) which related to funding to carry out this section. 2008—Subsec. (e)(6)(B), (C). Pub. L. 110–246, § 11009(a), added subpars. (B) and (C) and struck out former sub- par. (B) which provided for $27,998,000 out of moneys in the Treasury not otherwise appropriated to carry out this section and former subpar. (C) which authorized appropriation of an additional $30,000,000. Subsec. (j). Pub. L. 110–246, § 11009(b)(1), struck out subsec. (j) which related to privatization of the Na- tional Sheep Industry Improvement Center and repeal of this section on the date that the Secretary published notice in the Federal Register that the transition plan for such privatization had been completed. 2004—Subsec. (e)(6)(B). Pub. L. 108–447 substituted ‘‘$27,998,000’’ for ‘‘$26,998,000’’. Pub. L. 108–199 substituted ‘‘$26,998,000’’ for ‘‘$26,499,000’’. 2003—Subsec. (e)(6)(B). Pub. L. 108–7 substituted ‘‘$26,499,000’’ for ‘‘$26,000,000’’. 2001—Subsec. (e)(6)(B). Pub. L. 107–76 substituted ‘‘$26,000,000’’ for ‘‘$25,000,000’’. 2000—Subsec. (e)(6)(B). Pub. L. 106–387 substituted ‘‘$25,000,000’’ for ‘‘$20,000,000’’. 1999—Subsec. (a)(5). Pub. L. 106–78, § 816(a), added par. (5). Subsec. (e)(3)(A). Pub. L. 106–78, § 816(b)(1)(A), added subpar. (A) and struck out heading and text of former subpar. (A). Text read as follows: ‘‘The Center may use amounts in the Fund to make grants and loans to eligi- ble entities in accordance with a strategic plan sub- mitted under subsection (d) of this section.’’ Subsec. (e)(3)(B). Pub. L. 106–78, § 816(b)(1)(B), inserted at end ‘‘The Fund is intended to furnish the initial cap- ital for a revolving fund that will eventually be privatized for the purposes of assisting the United States sheep and goat industries.’’ Subsec. (e)(3)(D). Pub. L. 106–78, § 816(b)(1)(C), (F), re- designated subpar. (E) as (D) and struck out heading and text of former subpar. (D). Text read as follows: ‘‘The Center shall, to the maximum extent practicable, use the Fund to provide a variety of grants and intermediate- and long-term loans.’’ Subsec. (e)(3)(E). Pub. L. 106–78, § 816(b)(1)(F), redesig- nated subpar. (F) as (E). Former subpar. (E) redesig- nated (D). Pub. L. 106–78, § 816(b)(1)(D), added subpar. (E) and struck out heading and text of former subpar. (E). Text read as follows: ‘‘The Center may not use more than 3 percent of the amounts in the Fund for a fiscal year for the administration of the Center.’’ Subsec. (e)(3)(F) to (H). Pub. L. 106–78, § 816(b)(1)(F), redesignated subpars. (G) and (H) as (F) and (G), respec- tively. Former subpar. (F) redesignated (E). Subsec. (e)(3)(H)(vii). Pub. L. 106–78, § 816(b)(1)(E), added cl. (vii). Subsec. (e)(6)(D). Pub. L. 106–78, § 816(b)(2), struck out heading and text of subpar. (D). Text read as follows: ‘‘No additional Federal funds shall be used to carry out this section beginning on the earlier of— ‘‘(i) the date that is 10 years after April 4, 1996; or ‘‘(ii) the day after a total of $50,000,000 has been made available under subparagraphs (B) and (C) to carry out this section.’’ Subsec. (f)(2)(B). Pub. L. 106–78, § 816(c)(1), added sub- par. (B) and struck out former subpar. (B) which read as follows: ‘‘review any grant, loan, contract, or coop- erative agreement to be made or entered into by the Center and any financial assistance provided to the Center;’’. Subsec. (f)(5)(C). Pub. L. 106–78, § 816(c)(2), added sub- par. (C) and struck out heading and text of former sub- par. (C). Text read as follows: ‘‘A voting member may be reelected for not more than 1 additional term.’’ Subsec. (f)(6)(B). Pub. L. 106–78, § 816(c)(3), added sub- par. (B) and struck out heading and text of former sub- par. (B). Text read as follows: ‘‘A member elected to fill a vacancy for an unexpired term may be reelected for 1 full term.’’ Page 911 TITLE 7—AGRICULTURE § 1627c Subsec. (j). Pub. L. 106–78, § 816(d), added subsec. (j). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as other- wise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. Pub. L. 110–234, title XI, § 11009(b)(2), May 22, 2008, 122 Stat. 1359, and Pub. L. 110–246, § 4(a), title XI, § 11009(b)(2), June 18, 2008, 122 Stat. 1664, 2121, provided that: ‘‘The amendment made by paragraph (1) [amend- ing this section] takes effect on May 1, 2007.’’ [Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.] § 1627c. Local agriculture market program (a) Definitions In this section: (1) Beginning farmer or rancher The term ‘‘beginning farmer or rancher’’ has the meaning given the term in section 1991(a) of this title. (2) Direct producer-to-consumer marketing The term ‘‘direct producer-to-consumer mar- keting’’ has the meaning given the term ‘‘di- rect marketing from farmers to consumers’’ in section 3002 of this title. (3) Family farm The term ‘‘family farm’’ has the meaning given the term in section 1632a(a) of this title. (4) Food council The term ‘‘food council’’ means a food policy council or food and farm system network, as determined by the Secretary, that— (A) represents— (i) multiple organizations involved in the production, processing, and consumption of food; and (ii) local, Tribal, or State governments; and (B) addresses food and farm-related issues and needs within city, county, State, Tribal region, multicounty region, or other region designated by the food council or food sys- tem network. (5) Majority-controlled producer-based busi- ness venture (A) In general The term ‘‘majority-controlled producer- based business venture’’ means a venture greater than 50 percent of the ownership and control of which is held by— (i) 1 or more producers; or (ii) 1 or more entities, 100 percent of the ownership and control of which is held by 1 or more producers. (B) Entity described For purposes of subparagraph (A), the term ‘‘entity’’ means— (i) a partnership; (ii) a limited liability corporation; (iii) a limited liability partnership; and (iv) a corporation. (6) Mid-tier value chain The term ‘‘mid-tier value chain’’ means a local or regional supply network that links independent producers with businesses and co- operatives that market value-added agricul- tural products in a manner that— (A) targets and strengthens the profit- ability and competitiveness of small and me- dium-sized farms and ranches that are struc- tured as a family farm; and (B) obtains agreement from an eligible ag- ricultural producer group, farmer or rancher cooperative, or majority-controlled pro- ducer-based business venture that is engaged in the value chain on a marketing strategy. (7) Partnership The term ‘‘partnership’’ means a partnership entered into under an agreement between— (A) 1 or more eligible partners (as defined in subsection (e)(1)); and (B) 1 or more eligible entities (as defined in subsection (e)(1)). (8) Program The term ‘‘Program’’ means the Local Agri- culture Market Program established under subsection (b). (9) Regional food chain coordination The term ‘‘regional food chain coordination’’ means coordination and collaboration along the supply chain to increase connections be- tween producers and markets. (10) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture. (11) Socially disadvantaged farmer or rancher The term ‘‘socially disadvantaged farmer or rancher’’ has the meaning given the term in section 2003(e) of this title. (12) Value-added agricultural product The term ‘‘value-added agricultural prod- uct’’ means any agricultural commodity or product that— (A)(i) has undergone a change in physical state; (ii) was produced in a manner that en- hances the value of the agricultural com- modity or product, as demonstrated through a business plan that shows the enhanced value, as determined by the Secretary; (iii) is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product; (iv) is a source of farm- or ranch-based re- newable energy, including E–85 fuel; or (v) is aggregated and marketed as a locally produced agricultural food product; and (B) as a result of the change in physical state or the manner in which the agricul- tural commodity or product was produced, marketed, or segregated— (i) the customer base for the agricultural commodity or product is expanded; and (ii) a greater portion of the revenue de- rived from the marketing, processing, or