Sec. 2. Food hub grants to increase market access for socially disadvantaged farmers and ranchers
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In this section: The term agricultural food product means a raw, cooked, or a processed edible substance, beverage, or ingredient produced and otherwise prepared for sale in the United States (including any insular area (as defined in section 1404 of the National Agricultural, Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 ))), derived from one or more agricultural commodities of United States origin, and used or intended for use or for sale in whole or in part for human consumption.
The term donated food has the meaning given the term in section 250.2 of title 7 of the Code of Federal Regulations (or any successor regulation). The term eligible entity means— an entity formed by two or more agricultural producers, not less than half of whom are members of a socially disadvantaged group; or a non-profit organization or Tribal organization with demonstrated experience working with socially disadvantaged farmers or ranchers. The term eligible partner means a non-profit organization, a State cooperative extension service or a college or university (as such terms are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 )), Tribal organization, or other State or local government entities with demonstrated experience in providing assistance such as grants management, technical assistance, and business plan development, to agricultural producers.
The term food hub means a business or organization that actively manages the aggregation, distribution, and marketing of source-identified agricultural food products from producers for wholesale, retail, or institutional markets. The term Secretary means the Secretary of Agriculture. The term socially disadvantaged 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 term socially disadvantaged group 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 term Tribal organization has the meaning given the term in section 3 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012 ). The Secretary shall establish a program to make grants on a competitive basis to eligible entities to support new or expanding food hubs designed to increase market access for socially disadvantaged farmers and ranchers, but may also increase market access for other farmers and ranchers. An eligible entity selected to receive a grants under this subsection may use grants funds— to purchase and develop land, buildings, and associated infrastructure for commercial or industrial properties, including expansion or modernization, for use in processing, distributing, aggregating, storing, transporting, or marketing agricultural food products; to construct or equip facilities for use in processing, distributing, aggregating, storing, transporting, or marketing agricultural food products; to purchase machinery and equipment for use in processing, distributing, aggregating, storing, transporting, or marketing agricultural food products; for general operating expenses directly related to a food hub, including planning and development related to the establishment or expansion of any food hub; to provide marketing services for agricultural food products, including providing platforms (such as electronic or web-based platforms) for sales, inventory, and aggregation; and to conduct other activities supporting the development or expansion of a food hub, as determined by the Secretary.
An eligible entity seeking a grant under this subsection shall submit to the Secretary an application that contains— a description of the activities the eligible entity will carry out to support one or more new or existing food hubs, including a plan for each such food hub to process, distribute, store, or market agricultural food products for wholesale, retail, or institutional markets; a description of the ways in which each such food hub that the eligible entity is proposing to establish or expand is designed to increase market access for socially disadvantaged farmers or ranchers; except as provided in subparagraph (B), a description of the eligible entity’s demonstrated competency to develop and manage each such food hub, provide fiscal accountability, collect data, and prepare reports and other necessary documentation; and any other information, as determined by the Secretary.
An eligible entity that does not have one or more of the demonstrated competencies described in clause
(iii)of subparagraph
(A)shall submit to the Secretary in its application— a list of one or more eligible partners such eligible entity is partnering with; the responsibilities of each eligible partner in supporting such eligible entity; and a description of the demonstrated competencies of the eligible partner or partners in performing such responsibilities. An eligible entity specified in subparagraph
(B)of subsection (a)(3) seeking a grant under this section may serve as an eligible partner for other eligible entities in one or more grant applications under this subsection. In making grants under this subsection, the Secretary may give priority to grant applications for food hubs that— benefit underserved communities, as defined in section 310B(g)(9)(A)(ii) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1932(g)(9)(A)(ii) ); aggregate, distribute, and market agricultural food products that meet the standards for donated foods, as determined by the Secretary; or have not been awarded a Department of Agriculture grant, including a grant under section 210A of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1627c ), in the preceding or current fiscal year. The term of a grant under this subsection may not exceed 5 years. An eligible entity receiving a grant under this section shall not be required to provide non-Federal matching funds with respect to such grant. The Secretary shall establish a process— to prioritize the purchase of agricultural food products from socially disadvantaged farmers and ranchers, including from food hubs developed or expanded under this section, for use in Department of Agriculture programs that distribute agricultural food products within the United States (including any insular area (as defined in section 1404 of the National Agricultural, Research, Extension, and Teaching Policy Act of 1977 ( 7 U.S.C. 3103 ))); and that is designed to account for barriers to market entry faced by socially disadvantaged farmers and ranchers while maintaining the integrity of the purchasing process established under this subsection, including ensuring that any entity that is suspended or debarred from participation in any Federal program is not eligible to participate in the purchasing process established under this subsection. In establishing the process described in paragraph (1), the Secretary may provide for the waiver of the full and open competition procedures for the award of Federal contracts, section 3324 of title 31, United States Code, and section 725 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 ( 7 U.S.C. 2209f ), if the Secretary identifies requirements under such sections and procedures as presenting barriers to market entry for socially disadvantaged farmers and ranchers. Not later than 10 days after providing for any waiver under subparagraph (A), the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of such waivers and provide a description of how such waivers would address barriers to market entry for socially disadvantaged farmers and ranchers for a particular agricultural food product. Not later than December 31, 2026, and each December thereafter until the completion of the grants awarded under subsection (b), the Secretary shall make publicly available on the Department of Agriculture’s website and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that includes— a description of the status of each grant awarded under subsection (b); the number of socially disadvantaged farmers and ranchers participating in the food hub supported by such grant in the previous fiscal year; to the maximum extent practicable, the amount of agricultural food products produced by socially disadvantaged farmers and ranchers processed, distributed, aggregated, stored, or marketed by the food hub supported by such grant in the previous fiscal year; and the total amount of donated food purchased by the Secretary from food hubs supported with grants awarded under this section in the previous fiscal year. There are authorized to be appropriated to carry out subsection
(b)$100,000,000 for fiscal year 2026, to remain available until expended.
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Sec. 2
Food hub grants to increase market access for socially disadvantaged farmers and ranchers
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