7 USC 1627c - Local agriculture market program

U.S Code last checked for updates: Nov 22, 2024

§ 1627c.

Local agriculture market program

(a)

Definitions

In this section:

(1)

Beginning farmer or rancher

(2)

Direct producer-to-consumer marketing

(3)

Family farm

(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 system network.

(5)

Majority-controlled producer-based business 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 cooperatives that market value-added agricultural products in a manner that—

(A)

targets and strengthens the profitability and competitiveness of small and medium-sized farms and ranches that are structured as a family farm; and

(B)

obtains agreement from an eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-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

(9)

Regional food chain coordination

(10)

Secretary

(11)

Socially disadvantaged farmer or rancher

(12)

Value-added agricultural product

The term “value-added agricultural product” means any agricultural commodity or product that—

(A)

(i)

has undergone a change in physical state;

(ii)

was produced in a manner that enhances the value of the agricultural commodity 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 renewable 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 agricultural 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 derived from the marketing, processing, or physical segregation of the agricultural commodity or product is available to the producer of the commodity or product.

(13)

Veteran farmer or rancher

(b)

Establishment and purpose

The Secretary shall establish a program, to be known as the “Local Agriculture Market Program”, that—

(1)

supports the development, coordination, and expansion of—

(A)

direct producer-to-consumer marketing;

(B)

local and regional food markets and enterprises; and

(C)

value-added agricultural products;

(2)

connects and cultivates regional food economies through public-private partnerships;

(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 collaboration and expansion of mid-tier value chains;

(5)

improves income and economic opportunities 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 markets and value-added agricultural product opportunities;

(3)

partner with cooperative extension services, as appropriate, to provide Program technical assistance and outreach to Program stakeholders; and

(4)

ensure that the Rural Business-Cooperative Service and Agricultural Marketing Service provide Program technical assistance and outreach to Program stakeholders.

(d)

Grants

(1)

In general

(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 business enterprises that engage as intermediaries 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 existing markets;

(G)

to facilitate regional food chain coordination and mid-tier value chain development;

(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 marketing; or

(J)

to cover expenses relating to costs incurred 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

(B)

Producer or food business benefits

(i)

In general

(ii)

Exception

(4)

Amount

(5)

Value-added producer grants

(A)

Administration

(B)

Eligible entities

An entity shall be eligible for a grant under this paragraph if the entity is—

(i)

an independent producer (as determined by the Secretary) of a value-added agricultural product; or

(ii)

an agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture (as determined by the Secretary).

(C)

Priorities

The Secretary shall give priority to applications—

(i)

in the case of an application submitted 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 structured as family farms; or

(IV)

veteran farmers or ranchers; and

(ii)

in the case of an application submitted by an eligible entity described in subparagraph (B)(ii), that provide the greatest contribution to creating or increasing marketing opportunities for producers described in subclauses (I) through (IV) of clause (i).

(D)

Limitation on use of funds

(i)

In general

(ii)

Exception

(E)

Matching funds

(6)

Farmers’ markets and local food promotion program

In the case of a grant provided under paragraph (1) to an eligible entity described in subparagraph (B), the following shall apply:

(A)

Administration

(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 community-supported agriculture network or association;

(ii)

a local or Tribal government;

(iii)

a nonprofit corporation;

(iv)

a public benefit corporation;

(v)

an economic development corporation;

(vi)

a regional farmers’ market authority;

(vii)

a food council; or

(viii)

such other entity as the Secretary may designate.

(C)

Priorities

The Secretary shall give priority to applications that—

(i)

benefit underserved communities, including 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 activities under a partnership agreement under subsection (e) and have not received benefits from the Program in the recent past.

(D)

Limitation on use of funds

(i)

In general

(ii)

Exception

(E)

Matching funds

(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;

(viii)

an economic development corporation;

(ix)

a public benefit corporation;

(x)

a community-supported agriculture network or association; and

(xi)

a regional farmers’ market authority.

(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 Credit System lending institution; and

(vi)

another entity, as determined by the Secretary.

(2)

Grants to support partnerships

(A)

In general

(B)

Geographical diversity

(3)

Authorities of partnerships

A partnership receiving a grant under paragraph (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 covered;

(C)

create and conduct a feasibility study, implementation plan, and assessment of eligible activities under the partnership agreement;

(D)

conduct outreach and education to other eligible entities and eligible partners for potential participation in the partnership 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 activities under the partnership agreement, act on behalf of the producer or eligible entity in applying for a grant under subsection (d);

(G)

monitor, evaluate, and periodically report to the Secretary on progress made toward achieving the objectives of eligible activities 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 partnership agreement; and

(ii)

funds provided under paragraph (4).

(4)

Contribution

(5)

Applications

(A)

In general

(B)

Competitive process

The Secretary—

(i)

shall conduct a competitive process to select applications submitted under subparagraph (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 accepting applications.

(C)

Priority to certain applications

The Secretary may give priority to applications submitted under subparagraph (A) that—

(i)

(I)

leverage significant non-Federal financial and technical resources; and

(II)

coordinate with other local, State, Tribal, or national efforts;

(ii)

cover an area that includes distressed low-income rural or urban communities, including areas with persistent poverty; or

(iii)

have multiple entities and partners in a partnership.

(D)

Producer or food business benefits

(i)

In general

(ii)

Exception

(6)

Technical assistance

(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 subsection (d); or

(B)

apply for grants under subsection (d) under a single application through partnership 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 maintain such information as the Secretary determines is necessary to administer and evaluate the Program.

(g)

Interdepartmental coordination

(h)

Evaluation

(1)

In general

Using amounts made available under subsection (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 outcomes;

(B)

measures the effectiveness of the Program in improving and expanding—

(i)

the regional food economy through public and private partnerships;

(ii)

the production of value-added agricultural products;

(iii)

producer-to-consumer marketing, including direct producer-to-consumer marketing;

(iv)

local and regional food systems, including regional food chain coordination and business development;

(v)

new business opportunities and marketing strategies to reduce on-farm food waste;

(vi)

the use of new technologies in producer-to-consumer marketing, including direct producer-to-consumer marketing; and

(vii)

the workforce and capacity of regional food systems; and

(C)

provides a description of—

(i)

each partnership agreement; and

(ii)

each grant provided under subsection (d).

(2)

Report

(i)

Funding

(1)

Mandatory funding

(2)

Authorization of appropriations

(3)

Allocation of funds

(A)

Value-added producer grants

(i)

In general

(ii)

Reservation of funds

(I)

Majority-controlled producer-based business ventures

(II)

Beginning, veteran, and socially disadvantaged farmers and ranchers

(III)

Mid-tier value chains

(IV)

Food safety assistance

(B)

Farmers’ market and local food promotion grants

(C)

Regional partnerships

(D)

Unobligated funds

Any funds under subparagraph (A), (B), or (C) that are not obligated for the uses described 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 carrying out the Program with the unobligated funds to carry out any function of the Program, as determined by the Secretary; and

(ii)

may carry over to the next fiscal year.

(E)

Administrative expenses

(Aug. 14, 1946, ch. 966, title II, § 210A, as added Pub. L. 115–334, title X, § 10102(b), Dec. 20, 2018, 132 Stat. 4888.)

cite as: 7 USC 1627c