Sec. 2. Agricultural market development program

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The purpose of this Act is to combine the purposes and coordinate the functions 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 new section:

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— an independent producer; an agricultural producer group, network, or association, including a community supported agriculture network or association; a farmer or rancher cooperative, other agricultural business entity, or majority-controlled producer-based business venture; a food council; a State or local government; a Tribal government or Tribal government agency; a nonprofit corporation; an institution of higher education; a public benefit corporation; an economic development corporation; a regional farmers’ market authority; and another entity, as determined by the Secretary.

The term eligible partner means— a State agency or regional authority; a philanthropic organization; a private corporation; a commercial, Federal, or Farm Credit System lending institution; a community development financial 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 that— represents multiple organizations; 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 independent producer means an agricultural producer who owns and controls the agricultural product produced. The term independent producer includes a legal entity solely owned and controlled by agricultural producers if the entity owns a majority ownership interest in the agricultural operation of the entity and a significant share of the agricultural product produced. 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 independent producers; or an entity or a group of entities described in subparagraph (B), 100 percent of the ownership and control of which is held by 1 or more independent producers.

For purposes of subparagraph (A), the term entity means— a partnership; a limited liability corporation; a limited liability partnership; a corporation; and a cooperative. The term mid-tier value chain 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 partnership agreement means an agreement entered into under subsection (c). The term Program means the Agricultural Market Development Program established under subsection (b).

The term regional food chain coordination means coordination and collaboration along the supply chain, including activities that— identify and organize local food producers and entrepreneurs into entities that are able to deliver local and regional food products into local markets; provide market matchmaker services by identifying and connecting key stakeholders through referral services and other forms of short-term engagement; convene stakeholders and facilitate relationship-building across the food value chain by— engaging key stakeholders; maintaining communication channels; and fostering a trusting environment; work with supply chain members to build capacity through education and training programs for— business development practices; marketing and branding; and other similar activities; identify and work to remove barriers to the movement of local and regional food products into the marketplace; increase awareness about procurement requirements (such as bidding procedures and preferred-vender practices) that may impede the ability of the food chain to access certain marketing channels; provide technical assistance to producers and enterprises in the preparation of grant and loan applications; and coordinate with State and local government agencies to enhance supply chain coordination and build on existing efforts to develop regional food systems.

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 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 veteran farmer or rancher has the meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 2279(e) ).

The Secretary shall establish a program, to be known as the Agricultural Market Development Program , that— streamlines existing programs and operations to more efficiently and effectively support 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, in accordance with the purposes of the Program described in subsection (b), may enter into 1 or more partnership agreements to plan and develop a regional food system by supporting eligible activities. The Secretary shall enter into a partnership agreement with— 1 or more eligible partners; and 1 or more eligible entities. To the maximum extent practicable, the Secretary shall ensure geographic diversity in selecting partnership agreements. Except as provided in subparagraph (B), a partnership agreement shall be for a period not longer than 5 years.

The Secretary may make an extension of a partnership agreement for a period of less than a year, if the Secretary determines that the extension is necessary to properly complete 1 or more eligible activities. Under a partnership agreement, the eligible partner and the eligible entity shall— 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; 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; and 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 by an eligible partner under subparagraph (B).

An eligible partner shall provide funding for a significant portion (as determined by the Secretary) of the total cost of eligible activities under the partnership agreement. One or more eligible partners and 1 or more eligible entities desiring to enter into a partnership agreement may 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.

An application submitted to the Secretary under subparagraph

(A)shall include a description of— the scope of the regional food system to be developed, including goals, outreach objectives, and eligible activities to be carried out; the local, regional, State, multi-State, or other geographic area covered; the projected financials and budget for eligible activities, including estimated funded needed from the Secretary through grants under subsection (d); a list of each eligible partner and each eligible entity collaborating to achieve the objectives of the partnership agreement, including the roles, responsibilities, capabilities, and financial contribution of each eligible partner and each eligible entity; and a plan for each of the following: The feasibility study, implementation plan, and assessment described in paragraph (3)(A)(iii). The outreach and education described in paragraph (3)(A)(iv). The monitoring, evaluating, and reporting described in paragraph (3)(A)(vi). 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, or national efforts; plan to create or retain quality jobs and provide workforce training and development in the regional food system developed under the partnership agreement; adapt to regional community needs and demonstrate the inclusion of cultural differences that support food equity; support community and regional economic development, particularly— in rural areas; or development that strengthens rural and urban connections; leverage partnerships with existing agencies and regional supply chains to better integrate local and regional foods into new and existing markets; demonstrate an ability to build infrastructure and capacity to sustain the long-term viability of eligible activities; use producer controlled businesses and cooperative ownership models; support the establishment of producer controlled businesses and cooperative ownership models that serve groups whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities; cover an area located in distressed low-income rural and urban communities, including areas with persistent poverty; demonstrate consistency with existing regional economic or community development plans for the area to be served by eligible activities; and meet other factors that are important for achieving the purposes of the Program described in subsection (b), as determined by the Secretary. 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; online sales; or domestic direct producer-to-retailer marketing; 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; or to respond to changing technology needs in direct producer-to-consumer marketing. The Secretary shall establish such criteria and guidelines for the submission of applications, evaluation, and funding of proposed projects under the Program as the Secretary determines are appropriate. The Secretary shall give priority to applications submitted under paragraph

(3)that— are applied for 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; benefit underserved communities, including communities that are located in areas of concentrated poverty with limited access to fresh locally or regionally grown food. The Secretary may give priority to applications submitted under paragraph

(3)that— are applied for by an eligible entity participating in a partnership agreement; and intend to carry out eligible activities under the partnership agreement. The term of a grant under this subsection shall be not longer than 3 years, as determined by the Secretary. The amount of a grant under the Program shall be not more than $500,000, as determined by the Secretary. An eligible entity may not use a grant under this subsection for the purchase or construction of a building or structure. The Secretary shall— simplify the application process for a grant under subsection (d); and establish a simplified application form for eligible entities that request less than $50,000 under that subsection. 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, may enter into 1 or more agreements pursuant to sections 1535 and 1536 of title 31, United States Code, with— the head of a field-based agency of the Department of Agriculture, as determined by the Secretary, to carry out such purposes and functions of the Program as the Secretary considers appropriate; or a cooperative extension service to provide technical assistance and outreach under the program to eligible entities and eligible partners. An agreement entered into under paragraph (1)(B) shall not be subject to any indirect costs, unless the agreement expressly provides that it is subject to indirect costs. 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)(4), 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 $80,000,000 for each of fiscal years 2018 through 2022, to remain available until expended. There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2018 through 2022, to remain available until expended. 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)provided to eligible entities described in subparagraphs

(A)through

(C)of subsection (a)(4). The total amount of grants under subsection

(d)provided to majority-controlled producer-based business ventures for a fiscal year shall not exceed 10 percent of the amount reserved under clause (i). Of the funds made available to carry out this section for a fiscal year, 10 percent shall be used to enter into partnership agreements. Any funds reserved under subparagraph

(A)or

(B)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 carry out any function of the Program; and may carry over to the next fiscal year. Not greater than 8 percent of amounts made available to carry out this section for a fiscal year may be used for administrative expenses. .

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