Sec. 10102. Local Agriculture Market Program

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The purpose of this section is to combine the purposes and coordinate the functions, as in effect on the day before the date of enactment of this Act, of— 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 ); and the value-added agricultural product market development grants under section 231(b) of the Agricultural Risk Protection Act of 2000 ( 7 U.S.C. 1632a(b) ). Subtitle A of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1621 et seq.) is amended by adding at the end the following:

In this section: The term beginning farmer or rancher has the meaning given the term in section 343(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a) ). The term direct producer-to-consumer marketing has the meaning given the term direct marketing from farmers to consumers in section 3 of the Farmer-to-Consumer Direct Marketing Act of 1976 ( 7 U.S.C. 3002 ). The term eligible activity means an activity described in subsection (d)(2) that is carried out using a grant provided under subsection (d)(1).

The term eligible entity means— a producer; a producer network or association; a farmer or rancher cooperative; an agricultural business entity or majority-controlled producer-based business venture; a food council; a local or Tribal government; a nonprofit corporation; an economic development corporation; a public benefit corporation; a community supported agriculture network or association; and a regional farmers' market authority. The term eligible partner means— a State agency or regional authority; a philanthropic organization; a private corporation; an institution of higher education; a commercial, Federal, or Farm Credit System lending institution; and another entity, as determined by the Secretary.

The term family farm has the meaning given the term in section 231(a) of the Agricultural Risk Protection Act of 2000 ( 7 U.S.C. 1632a(a) ). The term food council means a food policy council or food and farm system network, as determined by the Secretary, that— represents— multiple organizations involved in the production, processing, and consumption of food; and local, Tribal, and State governments; and 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.

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— 1 or more producers; or 1 or more entities, 100 percent of the ownership and control of which is held by 1 or more producers. For purposes of subparagraph (A), the term entity means— a partnership; a limited liability corporation; a limited liability partnership; and a corporation. 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— targets and strengthens the profitability and competitiveness of small and medium-sized farms and ranches that are structured as a family farm; and 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.

The term partnership means a partnership entered into under an agreement between— 1 or more eligible partners; and 1 or more eligible entities. The term Program means the Local Agriculture Market Program established under subsection (b). The term regional food chain coordination means coordination and collaboration along the supply chain to increase connections between producers and markets. The term Secretary means the Secretary of Agriculture. The term socially disadvantaged farmer or rancher has the meaning given the term in section 355(e) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 2003(e) ).

The term value-added agricultural product means any agricultural commodity or product that— has undergone a change in physical state; 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; is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product; is a source of farm- or ranch-based renewable energy, including E–85 fuel; or is aggregated and marketed as a locally produced agricultural food product; and as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated— the customer base for the agricultural commodity or product is expanded; and 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.

The term veteran farmer or rancher has the meaning given the term in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 2279(a) ). The Secretary shall establish a program, to be known as the Local Agriculture Market Program , that— supports the development, coordination, and expansion of— direct producer-to-consumer marketing; local and regional food markets and enterprises; and value-added agricultural products; connects and cultivates regional food economies through public-private partnerships; supports the development of business plans, feasibility studies, and strategies for local and regional marketing opportunities; strengthens capacity and regional food system development through community collaboration and expansion of mid-tier value chains; improves income and economic opportunities for producers and food businesses through job creation and improved regional food system infrastructure; and simplifies the application processes and the reporting processes for the Program.

The Secretary, acting through the Administrator of the Agricultural Marketing Service, in accordance with the purposes of the Program described in subsection (b), shall provide grants to support partnerships to plan and develop a local or regional food system. To the maximum extent practicable, the Secretary shall ensure geographical diversity in selecting partnerships to receive grants under subparagraph (A). A partnership receiving a grant under paragraph

(1)may— determine the scope of the regional food system to be developed, including goals, outreach objectives, and eligible activities to be carried out; determine the local, regional, State, multi-State, or other geographic area covered; create and conduct a feasibility study, implementation plan, and assessment of eligible activities under the partnership agreement; conduct outreach and education to other eligible entities and eligible partners for potential participation in the partnership agreement and eligible activities; describe measures to be taken through the partnership agreement to obtain funding for the eligible activities to be carried out under the partnership agreement; 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); monitor, evaluate, and periodically report to the Secretary on progress made toward achieving the objectives of eligible activities under the partnership agreement; or at the conclusion of the partnership agreement, submit to the Secretary a report describing— the results and effects of the partnership agreement; and funds provided under paragraph (3). A partnership receiving a grant under paragraph

(1)shall provide funding in an amount equal to not less than 25 percent of the total amount of the Federal portion of the grant. To be eligible to receive a grant under paragraph (1), a partnership shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary considers necessary to evaluate and select applications. The Secretary— shall conduct a competitive process to select applications submitted under subparagraph (A); may assess and rank applications with similar purposes as a group; and shall make public the criteria to be used in evaluating applications prior to accepting applications. The Secretary may give priority to applications submitted under subparagraph

(A)that— leverage significant non-Federal financial and technical resources; and coordinate with other local, State, Tribal, or national efforts; and cover an area that includes distressed low-income rural or urban communities, including areas with persistent poverty. Except as provided in clause (ii), an application submitted under subparagraph

(A)shall include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of a grant. Clause

(i)shall not apply to a planning or feasibility project. On request of an eligible entity, an eligible partner, or a partnership, the Secretary may provide technical assistance in carrying out a partnership agreement. Under the Program, the Secretary may provide grants to eligible entities to carry out, in accordance with purposes of the Program described in subsection (b), activities described in paragraph (2). An eligible entity may use a grant provided under paragraph (1)— to support and promote— domestic direct producer-to-consumer marketing; farmers’ markets; roadside stands; agritourism activities, community-supported agriculture programs; or online sales; to support local and regional food business enterprises that engage as intermediaries in indirect producer-to-consumer marketing; to support the processing, aggregation, distribution, and storage of local and regional food products that are marketed locally or regionally; to encourage the development of new food products and value-added agricultural products; to assist with business development and feasibility studies; to develop marketing strategies for producers of local food products and value-added agricultural products in new and existing markets; to facilitate regional food chain coordination and mid-tier value chain development; to promote new business opportunities and marketing strategies to reduce on-farm food waste; to respond to changing technology needs in direct producer-to-consumer marketing; or to cover expenses relating to costs incurred in— obtaining food safety certification; and making changes and upgrades to practices and equipment to improve food safety. The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under paragraph

(1)as the Secretary determines are appropriate. Except as provided in clause (ii), an application submitted for a grant under paragraph

(1)shall include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of the grant. Clause

(i)shall not apply to a planning or feasibility project. Unless otherwise determined by the Secretary, the amount of a grant under this subsection shall be not more than $500,000. In the case of a grant provided under paragraph

(1)to an eligible entity described in any of subparagraphs

(A)through

(D)of subsection (a)(4), the following shall apply: The Secretary shall carry out this subsection through the Administrator of the Rural Business-Cooperative Service, in coordination with the Administrator of the Agricultural Marketing Service. The Secretary shall give priority to applications— in the case of an application submitted by a producer, that are submitted by, or serve— beginning farmers or ranchers; socially disadvantaged farmers or ranchers; operators of small or medium sized farms or ranches that are structured as family farms; or veteran farmers or ranchers; and in the case of an application submitted by an eligible entity described in any of subparagraphs

(B)through

(D)of subsection (a)(4), that provide the greatest contribution to creating or increasing marketing opportunities for producers described in subclauses

(I)through

(IV)of clause (i). Except as provided in clause (ii), an eligible entity may not use a grant for the purchase or construction of a building, general purpose equipment, or structure. An eligible entity may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety. An eligible entity receiving a grant shall provide matching funds in the form of cash or an in-kind contribution in an amount that is equal to 50 percent of the total amount of the grant. In the case of a grant provided under paragraph

(1)to an eligible entity described in any of subparagraphs

(E)through

(K)of subsection (a)(4), the following shall apply: The Secretary shall carry out this subsection through the Administrator of the Agricultural Marketing Service, in coordination with the Administrator of the Rural Business-Cooperative Service. The Secretary shall give priority to applications that— benefit underserved communities, including communities that are located in areas of concentrated poverty with limited access to fresh locally or regionally grown food; or are used to carry out eligible activities under a partnership agreement under subsection (c). Except as provided in clause (ii), an eligible entity may not use a grant for the purchase or construction of a building, general purpose equipment, or structure. An eligible entity may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety. An eligible entity 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 Federal portion of the grant. The Secretary shall establish a simplified application form for eligible entities that— request less than $50,000 under subsection (d); or apply for grants under subsection

(d)through partnership agreements under subsection (c). The Secretary shall— streamline and simplify the reporting process for eligible entities; and obtain from eligible entities and maintain such information as the Secretary determines is necessary to administer and evaluate the Program. In carrying out the Program, the Secretary, acting through the Administrator of the Agricultural Marketing Service or the Administrator of the Rural Business Cooperative Service, may coordinate with a cooperative extension service to provide Program technical assistance and outreach to eligible entities and eligible partners. In carrying out the Program, to the maximum extent practicable, the Secretary shall ensure coordination among Federal agencies. Using amounts made available under subsection (i)(3)(E), the Secretary shall conduct an evaluation of the Program that— measures the economic impact of the Program on new and existing market outcomes; measures the effectiveness of the Program in improving and expanding— the regional food economy through public and private partnerships; the production of value-added agricultural products; producer-to-consumer marketing, including direct producer-to-consumer marketing; local and regional food systems, including regional food chain coordination and business development; new business opportunities and marketing strategies to reduce on-farm food waste; the use of new technologies in producer-to-consumer marketing, including direct producer-to-consumer marketing; and the workforce and capacity of regional food systems; and provides a description of— each partnership agreement; and each grant provided under subsection (d). Not later than 3 years after the date of enactment of this section, 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 evaluation conducted under paragraph (1), including a thorough analysis of the outcomes of the evaluation. Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $60,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended. 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. Of the funds made available to carry out this section for a fiscal year, 10 percent shall be used to provide grants to support partnerships under subsection (c). 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). The total amount of grants under subsection (d)(5) provided to majority-controlled producer-based business ventures for a fiscal year shall not exceed 10 percent of the amount allocated under clause (i). Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants provided to beginning, veteran, and socially disadvantaged farmers or ranchers. Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants to develop mid-tier value chains. 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 subsection (d)(2)(J). 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). 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— 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 may carry over to the next fiscal year. Not greater than 8 percent of amounts made available to provide grants under subsections

(c)and (d)(6) for a fiscal year may be used for administrative expenses. . Section 231 of the Agricultural Risk Protection Act of 2000 ( 7 U.S.C. 1632a ) is amended— by striking the section heading and inserting ; Agricultural Marketing Resource Center pilot project . by striking subsections (a), (b), (d), and (e); in subsection (c)— by redesignating paragraphs

(1)and

(2)as subsections

(a)and (b), respectively, and indenting appropriately; and by striking the subsection designation and heading; in subsection

(a)(as so redesignated)— in the matter preceding subparagraph (A), by striking Notwithstanding and all that follows through paragraph

(2)and inserting the following: The Secretary shall not use more than 2.5 percent of the funds made available to carry out the Local Agriculture Market Program established under section 210A of the Agricultural Marketing Act of 1946 to establish a pilot project (to be known as the ; and Agricultural Marketing Resource Center ) at an eligible institution described in subsection

(b)by redesignating subparagraphs

(A)and

(B)as paragraphs

(1)and (2), respectively, and indenting appropriately; and in subsection

(b)(as so redesignated)— by redesignating subparagraphs

(A)through

(C)as paragraphs

(1)through (3), respectively, and indenting appropriately; and in paragraph

(1)(as so redesignated), by striking paragraph (1)(A) and inserting subsection (a)(1) . Section 6402(f) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 1632b(f) ) is amended in the matter preceding paragraph

(1)by striking section 231(d) of the Agricultural Risk Protection Act of 2000 ( and inserting 7 U.S.C. 1621 note; Public Law 106–224 )) section 210A(d)(2) of the Agricultural Marketing Act of 1946 . Section 10016(b)(3)(B) of the Agricultural Act of 2014 ( 7 U.S.C. 2204h(b)(2)(B) ) is amended by striking Farmers’ Market and Local Food Promotion Program established under section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 ( and inserting 7 U.S.C. 3005 ) Local Agriculture Market Program established under section 210A of the Agricultural Marketing Act of 1946 . Section 6209(a) of the Agricultural Act of 2014 ( 7 U.S.C. 2207b(a) ) is amended by striking paragraph

(1)and inserting the following: section 210A of the Agricultural Marketing Act of 1946; . Section 4 of the Farmer-to-Consumer Direct Marketing Act of 1976 ( 7 U.S.C. 3003 ) is amended— by striking The Secretary and inserting the following: The Secretary ; and by adding at the end the following: There are authorized to be appropriated such sums as are necessary to carry out this section. . Sections 6, 7, and 8 of the Farmer-to-Consumer Direct Marketing Act of 1976 ( 7 U.S.C. 3005 , 3006; 90 Stat. 1983) are repealed.

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