Sec. 2. Procurement of meat and poultry
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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 digital livestock exchange platform has the meaning given the term in section 210C(a). The term eligible processor means a livestock or poultry processor that— is engaged in the slaughter of livestock or poultry; employs fewer than 150 full-time employees; or processes less than 1,000,000 total pounds of meat food product and poultry product per month; is not owned or in partnership with any entity that— employs 150 or more full-time employees; or processes 1,000,000 total pounds or more of meat food product and poultry product per month; and is not owned or in partnership with any foreign entity.
The term livestock means cattle, sheep, swine, and goats, whether alive or dead. The term meat food products has the meaning given the term in section 2(a) of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 182 ). The term poultry has the meaning given the term in section 4 of the Poultry Products Inspection Act ( 21 U.S.C. 453 ). The term poultry product has the meaning given the term in section 4 of the Poultry Products Inspection Act ( 21 U.S.C. 453 ). The term Secretary means the Secretary of Agriculture.
In procuring meat food products and poultry products for the Department of Agriculture, the Secretary— shall increase procurement of meat food products and poultry products from eligible processors— in the first fiscal year that begins on or after the date that is 1 year after the date of enactment of this section, by an amount that is the greater of— $50,000,000; and 50 percent of the amount spent in the previous fiscal year for that procurement; and in the first fiscal year following the fiscal year described in subparagraph (A), by an amount that is the greater of— $100,000,000; and 75 percent of the amount spent in the previous fiscal year for that procurement; shall, in each fiscal year following the fiscal year described in paragraph (1)(B), procure not less than 20 percent of meat food products and poultry products from eligible processors; shall establish procurement contracts for the procurement increases under paragraphs
(1)and
(2)through a digital livestock exchange platform; notwithstanding any other provision of law, shall not accept the lowest possible bid on a meat food products or poultry products procurement contract if that acceptance would result in prices that would not be commercially viable for eligible processors, as determined by the Secretary in consultation with the advisory board established under section 210C(g) and using the data described in section 210C(d)(4); shall post competitive or sole source contracts exclusively to eligible processors through a digital livestock exchange platform; shall determine fair market price for meat food products and poultry products processed by eligible processors (taking into account product attributes such as organic, regenerative, and high-welfare) through the price reporting expertise of the Secretary; and shall prioritize procurement from— enterprises owned by beginning farmers or ranchers, socially disadvantaged farmers or ranchers, or veteran farmers or ranchers (as those terms are defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 2279(a) )); enterprises that— source at least 51 percent of their livestock, poultry, meat food products, or poultry products from producers or processors within a 250-mile radius; exclusively sell meat food products or poultry products with a label of the Department of Agriculture designating the product as a product of the United States, if such label exists; or purchase at least 51 percent of their livestock, poultry, meat food products, or poultry products to fulfill Federal procurement contracts through a digital livestock exchange platform; and enterprises with labor agreements. The Secretary shall assist other Federal agencies seeking to procure meat food products and poultry products by— sharing information about the 1 or more digital livestock exchange platforms; offering technical assistance on how to utilize a digital livestock exchange platform; and facilitating through a digital livestock exchange platform procurement contract opportunities with eligible processors. Of amounts available to the Secretary for procurement in a fiscal year, the Secretary shall use not less than $35,000,000 to carry out procurement in accordance with this section. The Secretary shall conduct outreach, and provide technical assistance, to eligible processors and producers of meat food products and poultry products seeking procurement contracts with the Federal Government. Not later than 1 year after the date of enactment of this section, the Secretary shall submit to Congress a report that— describes all procurement of meat food products and poultry products by the Department of Agriculture during the preceding 5 years, including— the companies that those products were sourced from; and by disaggregating information by categories of slaughter volume and processed volume; and analyzes barriers to eligible processors engaging in procurement contracts with the Department of Agriculture; and makes recommendations on how to remove those barriers. .
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