7 U.S.C. § 1627c — Local agriculture market program

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 L. 110–234 was repealed by section 4(a) of Pub.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 Page 912 TITLE 7—AGRICULTURE § 1627c physical segregation of the agricultural commodity or product is available to the producer of the commodity or product. (13) Veteran farmer or rancher The term ‘‘veteran farmer or rancher’’ has the meaning given the term in section 2279(a) of this title. (b) Establishment and purpose The Secretary shall establish a program, to be known as the ‘‘Local Agriculture Market Pro- gram’’, that— (1) supports the development, coordination, and expansion of— (A) direct producer-to-consumer mar- keting; (B) local and regional food markets and enterprises; and (C) value-added agricultural products; (2) connects and cultivates regional food economies through public-private partner- ships; (3) supports the development of business plans, feasibility studies, and strategies for value-added agricultural production and local and regional food system infrastructure; (4) strengthens capacity and regional food system development through community col- laboration and expansion of mid-tier value chains; (5) improves income and economic opportu- nities for producers and food businesses through job creation; and (6) simplifies the application processes and the reporting processes for the Program. (c) Administration In administering the Program, the Secretary shall— (1) streamline the Program to better support the activities carried out by the recipient of a grant under the Program; (2) connect producers with local food mar- kets and value-added agricultural product op- portunities; (3) partner with cooperative extension serv- ices, as appropriate, to provide Program tech- nical assistance and outreach to Program stakeholders; and (4) ensure that the Rural Business-Coopera- tive Service and Agricultural Marketing Serv- ice provide Program technical assistance and outreach to Program stakeholders. (d) Grants (1) In general Under the Program, the Secretary may, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023, in accordance with the purposes of the Program described in subsection (b), for the conduct of activities described in para- graph (2). (2) Eligible activities The recipient of a grant may use a grant provided under paragraph (1)— (A) to support and promote— (i) domestic direct producer-to-consumer marketing; (ii) farmers’ markets; (iii) roadside stands; (iv) agritourism activities, (v) community-supported agriculture programs; or (vi) online sales; (B) to support local and regional food busi- ness enterprises that engage as inter- mediaries in indirect producer-to-consumer marketing; (C) to support the processing, aggregation, distribution, and storage of— (i) local and regional food products that are marketed locally or regionally; and (ii) value-added agricultural products; (D) to encourage the development of value- added agricultural products; (E) to assist with business development plans and feasibility studies; (F) to develop marketing strategies for producers of local food products and value- added agricultural products in new and ex- isting markets; (G) to facilitate regional food chain coordi- nation and mid-tier value chain develop- ment; (H) to promote new business opportunities and marketing strategies to reduce on-farm food waste; (I) to respond to changing technology needs in direct producer-to-consumer mar- keting; or (J) to cover expenses relating to costs in- curred in— (i) obtaining food safety certification; and (ii) making changes and upgrades to practices and equipment to improve food safety. (3) Criteria and guidelines (A) In general The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under para- graph (1) as the Secretary determines are ap- propriate. (B) Producer or food business benefits (i) In general Except as provided in clause (ii), an ap- plication submitted for a grant under paragraph (1) shall include a description of the direct or indirect producer or food business benefits intended by the applicant to result from the proposed project within a reasonable period of time after the re- ceipt of the grant. (ii) Exception Clause (i) shall not apply to a planning or feasibility project. (4) Amount Unless otherwise determined by the Sec- retary, the amount of a grant under this sub- section shall be not more than $500,000. (5) Value-added producer grants In the case of a grant provided under para- graph (1) to an eligible entity described in sub- paragraph (B), the following shall apply: Page 913 TITLE 7—AGRICULTURE § 1627c (A) Administration The Secretary shall carry out this sub- section through the Administrator of the Rural Business-Cooperative Service, in co- ordination with the Administrator of the Agricultural Marketing Service. (B) Eligible entities An entity shall be eligible for a grant under this paragraph if the entity is— (i) an independent producer (as deter- mined by the Secretary) of a value-added agricultural product; or (ii) an agricultural producer group, farm- er or rancher cooperative, or majority-con- trolled producer-based business venture (as determined by the Secretary). (C) Priorities The Secretary shall give priority to appli- cations— (i) in the case of an application sub- mitted by a producer, that are submitted by, or serve— (I) beginning farmers or ranchers; (II) socially disadvantaged farmers or ranchers; (III) operators of small or medium sized farms or ranches that are struc- tured as family farms; or (IV) veteran farmers or ranchers; and (ii) in the case of an application sub- mitted by an eligible entity described in subparagraph (B)(ii), that provide the greatest contribution to creating or in- creasing marketing opportunities for pro- ducers described in subclauses (I) through (IV) of clause (i). (D) Limitation on use of funds (i) In general Except as provided in clause (ii), an eli- gible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure. (ii) Exception An eligible entity described in subpara- graph (B) may use not more than $6,500 of the amount of a grant for an eligible activ- ity described in paragraph (2)(J) to pur- chase or upgrade equipment to improve food safety. (E) Matching funds An eligible entity described in subpara- graph (B) receiving a grant shall contribute an amount of non-Federal funds that is at least equal to the amount of Federal funds received. (6) Farmers’ markets and local food promotion program In the case of a grant provided under para- graph (1) to an eligible entity described in sub- paragraph (B), the following shall apply: (A) Administration The Secretary shall carry out this sub- section through the Administrator of the Agricultural Marketing Service, in coordina- tion with the Administrator of the Rural Business-Cooperative Service. (B) Eligible entities An entity shall be eligible to receive a grant under this paragraph if the entity is— (i) an agricultural cooperative or other agricultural business entity or a producer network or association, including a com- munity-supported agriculture network or association; (ii) a local or Tribal government; (iii) a nonprofit corporation; (iv) a public benefit corporation; (v) an economic development corpora- tion; (vi) a regional farmers’ market author- ity; (vii) a food council; or (viii) such other entity as the Secretary may designate. (C) Priorities The Secretary shall give priority to appli- cations that— (i) benefit underserved communities, in- cluding communities that are located in areas of concentrated poverty with limited access to fresh locally or regionally grown food; or (ii) are used to carry out eligible activi- ties under a partnership agreement under subsection (e) and have not received bene- fits from the Program in the recent past. (D) Limitation on use of funds (i) In general Except as provided in clause (ii), an eli- gible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure. (ii) Exception An eligible entity described in subpara- graph (B) may use not more than $6,500 of the amount of a grant for an eligible activ- ity described in paragraph (2)(J) to pur- chase or upgrade equipment to improve food safety. (E) Matching funds An eligible entity described in subpara- graph (B) receiving a grant shall provide matching funds in the form of cash or an in- kind contribution in an amount that is equal to 25 percent of the total amount of the Fed- eral portion of the grant. (e) Partnerships (1) Definitions In this subsection: (A) Eligible entity The term ‘‘eligible entity’’ means— (i) a producer; (ii) a producer network or association; (iii) a farmer or rancher cooperative; (iv) a majority-controlled producer-based business venture; (v) a food council; (vi) a local or Tribal government; (vii) a nonprofit corporation; Page 914 TITLE 7—AGRICULTURE § 1627c (viii) an economic development corpora- tion; (ix) a public benefit corporation; (x) a community-supported agriculture network or association; and (xi) a regional farmers’ market author- ity. (B) Eligible partner The term ‘‘eligible partner’’ means— (i) a State agency or regional authority; (ii) a philanthropic organization; (iii) a private corporation; (iv) an institution of higher education; (v) a commercial, Federal, or Farm Cred- it System lending institution; and (vi) another entity, as determined by the Secretary. (2) Grants to support partnerships (A) In general The Secretary, acting through the Admin- istrator of the Agricultural Marketing Serv- ice, in accordance with the purposes of the Program described in subsection (b), shall, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023 to support partnerships to plan and develop a local or regional food sys- tem. (B) Geographical diversity To the maximum extent practicable, the Secretary shall ensure geographical diver- sity in selecting partnerships to receive grants under subparagraph (A). (3) Authorities of partnerships A partnership receiving a grant under para- graph (2) may— (A) determine the scope of the regional food system to be developed, including goals, outreach objectives, and eligible activities to be carried out; (B) determine the local, regional, State, multi-State, or other geographic area cov- ered; (C) create and conduct a feasibility study, implementation plan, and assessment of eli- gible activities under the partnership agree- ment; (D) conduct outreach and education to other eligible entities and eligible partners for potential participation in the partner- ship agreement and eligible activities; (E) describe measures to be taken through the partnership agreement to obtain funding for the eligible activities to be carried out under the partnership agreement; (F) at the request of a producer or eligible entity desiring to participate in eligible ac- tivities under the partnership agreement, act on behalf of the producer or eligible enti- ty in applying for a grant under subsection (d); (G) monitor, evaluate, and periodically re- port to the Secretary on progress made to- ward achieving the objectives of eligible ac- tivities under the partnership agreement; or (H) at the conclusion of the partnership agreement, submit to the Secretary a report describing— (i) the results and effects of the partner- ship agreement; and (ii) funds provided under paragraph (4). (4) Contribution A partnership receiving a grant under para- graph (2) shall provide funding in an amount equal to not less than 25 percent of the total amount of the Federal portion of the grant. (5) Applications (A) In general To be eligible to receive a grant under paragraph (2), a partnership shall submit to the Secretary an application at such time, in such manner, and containing such infor- mation as the Secretary considers necessary to evaluate and select applications. (B) Competitive process The Secretary— (i) shall conduct a competitive process to select applications submitted under sub- paragraph (A); (ii) may assess and rank applications with similar purposes as a group; and (iii) shall make public the criteria to be used in evaluating applications prior to ac- cepting applications. (C) Priority to certain applications The Secretary may give priority to appli- cations submitted under subparagraph (A) that— (i)(I) leverage significant non-Federal fi- nancial and technical resources; and (II) coordinate with other local, State, Tribal, or national efforts; (ii) cover an area that includes dis- tressed low-income rural or urban commu- nities, including areas with persistent pov- erty; or (iii) have multiple entities and partners in a partnership. (D) Producer or food business benefits (i) In general Except as provided in clause (ii), an ap- plication submitted under subparagraph (A) shall include a description of the direct or indirect producer or food business bene- fits intended by the eligible entity to re- sult from the proposed project within a reasonable period of time after the receipt of a grant. (ii) Exception Clause (i) shall not apply to a planning or feasibility project. (6) Technical assistance On request of an eligible entity, an eligible partner, or a partnership, the Secretary may provide technical assistance in carrying out a partnership agreement. (f) Simplification of application and reporting processes (1) Applications The Secretary shall establish a simplified application form for eligible entities that— (A) request less than $50,000 under sub- section (d); or Page 915 TITLE 7—AGRICULTURE § 1627c (B) apply for grants under subsection (d) under a single application through partner- ship agreements under subsection (e). (2) Reporting The Secretary shall— (A) streamline and simplify the reporting process for eligible entities; and (B) obtain from eligible entities and main- tain such information as the Secretary de- termines is necessary to administer and evaluate the Program. (g) Interdepartmental coordination In carrying out the Program, to the maximum extent practicable, the Secretary shall ensure coordination among Federal agencies. (h) Evaluation (1) In general Using amounts made available under sub- section (i)(3)(E), the Secretary shall conduct an evaluation of the Program that— (A) measures the economic impact of the Program on new and existing market out- comes; (B) measures the effectiveness of the Pro- gram in improving and expanding— (i) the regional food economy through public and private partnerships; (ii) the production of value-added agri- cultural products; (iii) producer-to-consumer marketing, including direct producer-to-consumer marketing; (iv) local and regional food systems, in- cluding regional food chain coordination and business development; (v) new business opportunities and mar- keting strategies to reduce on-farm food waste; (vi) the use of new technologies in pro- ducer-to-consumer marketing, including direct producer-to-consumer marketing; and (vii) the workforce and capacity of re- gional food systems; and (C) provides a description of— (i) each partnership agreement; and (ii) each grant provided under subsection (d). (2) Report Not later than 4 years after December 20, 2018, the Secretary shall submit to the Com- mittee on Agriculture of the House of Rep- resentatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate a report describing the evaluation conducted under paragraph (1), including a thorough analysis of the outcomes of the evaluation. (i) Funding (1) Mandatory funding Of the funds of the Commodity Credit Cor- poration, the Secretary shall use to carry out this section $50,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain avail- able until expended. (2) Authorization of appropriations There is authorized to be appropriated to carry out this section $20,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended. (3) Allocation of funds (A) Value-added producer grants (i) In general Subject to clause (ii), of the funds made available to carry out this section for a fiscal year, 35 percent shall be used for grants under subsection (d)(5). (ii) Reservation of funds (I) Majority-controlled producer-based business ventures The total amount of grants under sub- section (d)(5) provided to majority-con- trolled producer-based business ventures for a fiscal year shall not exceed 10 per- cent of the amount allocated under clause (i). (II) Beginning, veteran, and socially dis- advantaged farmers and ranchers Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants provided to begin- ning, veteran, and socially disadvan- taged farmers or ranchers. (III) Mid-tier value chains Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants to develop mid- tier value chains. (IV) Food safety assistance Of the funds made available for grants under subsection (d)(5), not more than 25 percent shall be reserved for grants for eligible activities described in sub- section (d)(2)(J). (B) Farmers’ market and local food pro- motion grants Of the funds made available to carry out this section for a fiscal year, 47 percent shall be used for grants under subsection (d)(6). (C) Regional partnerships Of the funds made available to carry out this section for a fiscal year, 10 percent shall be used to provide grants to support partner- ships under subsection (e). (D) Unobligated funds Any funds under subparagraph (A), (B), or (C) that are not obligated for the uses de- scribed in that subparagraph, as applicable, by September 30 of the fiscal year for which the funds were made available— (i) shall be available to the agency car- rying out the Program with the unobli- gated funds to carry out any function of the Program, as determined by the Sec- retary; and (ii) may carry over to the next fiscal year. (E) Administrative expenses Not greater than 8 percent of amounts made available to provide grants under sub- sections (d) and (e) for a fiscal year may be used for administrative expenses. Page 916 TITLE 7—AGRICULTURE § 1628 (Aug. 14, 1946, ch. 966, title II, § 210A, as added Pub. L. 115–334, title X, § 10102(b), Dec. 20, 2018, 132 Stat. 4888.) Editorial Notes CODIFICATION The authorities provided by each provision of, and each amendment made by, Pub. L. 115–334, as in effect on Sept. 30, 2023, to continue, and authorities to be car- ried out, until the later of Sept. 30, 2024, or the date specified in the provision of, or amendment made by, Pub. L. 115–334, see section 102(a) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title. Statutory Notes and Related Subsidiaries LOCAL AGRICULTURE MARKET PROGRAM Pub. L. 115–334, title X, § 10102(a), Dec. 20, 2018, 132 Stat. 4888, provided that: ‘‘(a) PURPOSE.—The purpose of this section [enacting this section, amending sections 1632a, 1632b, 2204h, 2207b, and 3003 of this title, and repealing sections 3005 and 3006 of this title] is to combine the purposes and co- ordinate the functions, as in effect on the day before the date of enactment of this Act [Dec. 20, 2018], of— ‘‘(1) the Farmers’ Market and Local Food Pro- motion Program established under section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005); and ‘‘(2) the value-added agricultural product market development grants under section 231(b) of the Agri- cultural Risk Protection Act of 2000 (7 U.S.C. 1632a(b)).’’ § 1628. Repealed. Pub. L. 93–86, § 2, Aug. 10, 1973, 87 Stat. 246 Section, acts Aug. 14, 1946, ch. 966, title III, § 301, 60 Stat. 1091; Dec. 29, 1967, Pub. L. 90–233, 81 Stat. 752, pro- vided for establishment and staffing of a national advi- sory committee to aid in implementing the research and service work authorized under the act of Aug. 14, 1946, and set forth functions of such committee. § 1629. Establishment of committees to assist in research and service programs In the furtherance of the research and service work authorized by this Act, the Secretary of Agriculture may, in addition to the national ad- visory committee, establish appropriate com- mittees, including representatives of producers, industry, government and science, to assist in effectuating specific research and service pro- grams. (Aug. 14, 1946, ch. 966, title III, § 302, 60 Stat. 1091.) Editorial Notes REFERENCES IN TEXT This Act, referred to in text, is act Aug. 14, 1946, ch. 966, 60 Stat. 1082, which enacted this chapter and sec- tions 427h, 427j, and 3105 of this title and amended sec- tion 3104 of this title. For complete classification of this Act to the Code, see Tables. The national advisory committee, referred to in text, was established by section 1628 of this title, which was subsequently repealed by Pub. L. 93–86, § 2, Aug. 10, 1973, 87 Stat. 246. CODIFICATION Section was not enacted as part of the Agricultural Marketing Act of 1946 which comprises this chapter. § 1630. Omitted Editorial Notes CODIFICATION Section, act June 4, 1956, ch. 355, title V, § 508, 70 Stat. 241, which provided for availability of appropriations for committee expenses in effectuating research and service work, was from the Department of Agriculture and Farm Credit Administration Appropriation Act, 1957, and was not repeated in subsequent appropriation acts. Similar provisions were contained in the fol- lowing prior appropriation acts: May 23, 1955, ch. 43, title V, § 509, 69 Stat. 64. June 29, 1954, ch. 409, title V, § 509, 68 Stat. 319. § 1631. Protection for purchasers of farm prod- ucts (a) Congressional findings Congress finds that— (1) certain State laws permit a secured lend- er to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lend- er’s security interest in the products, lacks any practical method for discovering the ex- istence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender; (2) these laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender; (3) the exposure of purchasers of farm prod- ucts to double payment inhibits free competi- tion in the market for farm products; and (4) this exposure constitutes a burden on and an obstruction to interstate commerce in farm products. (b) Declaration of purpose The purpose of this section is to remove such burden on and obstruction to interstate com- merce in farm products. (c) Definitions For the purposes of this section— (1) The term ‘‘buyer in the ordinary course of business’’ means a person who, in the ordi- nary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products. (2) The term ‘‘central filing system’’ means a system for filing effective financing state- ments or notice of such financing statements on a statewide basis and which has been cer- tified by the Secretary of the United States Department of Agriculture; the Secretary shall certify such system if the system com- plies with the requirements of this section; specifically under such system— (A) effective financing statements or no- tice of such financing statements are filed with the office of the Secretary of State of a State; (B) the Secretary of State records the date and hour of the filing of such statements; (C) the Secretary of State compiles all such statements into a master list— (i) organized according to farm products; (ii) arranged within each such product— (I) in alphabetical order according to the last name of the individual debtors,