Local and Regional Farmer and Market Support Act
This bill provides emergency assistance to certain farmers, ranchers, and farmers' markets affected by COVID-19 (i.e., coronavirus disease 2019), including by directing the Department of Agriculture to prioritize providing assistance to socially disadvantaged farmers and ranchers and minority-owned businesses.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8096 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8096
To direct the Secretary of Agriculture to make payments to direct
marketing farmers affected by COVID-19, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 25, 2020
Ms. Adams introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To direct the Secretary of Agriculture to make payments to direct
marketing farmers affected by COVID-19, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Local and Regional Farmer and Market
Support Act''.
SEC. 2. PAYMENTS FOR DIRECT MARKETING FARMERS AFFECTED BY COVID-19.
(a) Funding for Payments.--
(1) In general.--Subject to paragraph (2), of the funds of
the Commodity Credit Corporation, the Secretary shall use
$1,000,000,000 for fiscal year 2020, to remain available until
expended, to carry out payments under this section.
(2) Reservation for socially disadvantaged farmers or
ranchers.--Of the funds made available under paragraph (1), the
Secretary shall reserve 20 percent for payments to socially
disadvantaged farmers or ranchers under this section for fiscal
year 2020.
(3) Award of payments.--The Secretary shall make all
payments under this section not later than 210 days after the
date of the enactment of this Act.
(b) Eligibility.--
(1) Application.--
(A) In general.--The Secretary shall provide a
payment to a covered producer that submits to the
Secretary an application in accordance with
subparagraph (B) demonstrates, as determined by the
Secretary, that--
(i) the producer is a covered producer; and
(ii) either--
(I) the revenue of the covered
producer was reduced by 5 percent or
greater during the covered period, as
compared to the benchmark revenue of
the covered producer; or
(II) the covered producer has
incurred increased costs in excess of 5
percent due to the COVID-19 emergency
during the covered period.
(B) Timing.--To be eligible to receive a payment
under this section, a covered producer shall submit to
the Secretary an application described in subparagraph
(A), not later than 120 days after the date of the
enactment of this Act.
(2) Benchmark revenue.--
(A) In general.--Subject to subparagraphs (B) and
(C), the benchmark revenue of a covered producer shall
be any 1 calendar year in the 3 calendar years prior to
the first day of the covered period, as determined by
the covered producer.
(B) Very new producers.--In the case of a covered
producer that has been in operation for less than 1
year before the first day of the covered period, the
Secretary shall--
(i) determine the benchmark revenue based
on comparable farm operations in such manner as
the Secretary determines appropriate; and
(ii) prorate payments under this section.
(3) Documentation.--For purposes of demonstrating revenue
and expenses under this section, a covered producer or
applicant, as applicable, shall use at least one of the
following:
(A) Self-certification.
(B) Contracts, receipts, or other agreements that
document direct sales to consumers, food service
providers, schools, institutions, restaurants,
retailers, and intermediary businesses that market
locally or regionally branded products.
(C) Records of crop year revenue from 2017 through
2019.
(D) Tax documents.
(E) Other legitimate documents, as determined by
the Secretary.
(4) Self certification limitation.--
(A) Payment amount.--A covered producer that
demonstrates revenue and expenses using only self-
certification may not receive directly or indirectly a
total amount of payments greater than $6,000 under this
section.
(B) Very new producers.--A covered producer that is
a very new producer (as described in paragraph (2)(B))
may not demonstrate revenue and expenses under
paragraph (3) using self-certification.
(5) Crop insurance.--The Secretary may not condition a
payment under this section on participation in a plan or policy
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or
in the noninsured crop assistance program under section 196 of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333).
(6) Farm number.--A covered producer shall be eligible to
receive payments, regardless of whether such covered producer
has a farm number.
(c) Amount.--
(1) In general.--Subject to paragraphs (2) and (3), the
amount of a payment to a covered producer under this section
shall be equal to--
(A) in the case of a covered producer with a
benchmark revenue of less than $5,000, 70 percent of
that benchmark revenue, but in no case less than
$1,500;
(B) in the case of a covered producer with a
benchmark revenue of equal to or greater than $5,000
and less than $10,000, 60 percent of that benchmark
revenue, but in no case less than $3,500;
(C) in the case of a covered producer with a
benchmark revenue of equal to or greater than $10,000
and less than $25,000, 55 percent of that benchmark
revenue, but in no case less than $6,000;
(D) in the case of a covered producer with a
benchmark revenue of equal to or greater than $25,000
and less than $100,000, 50 percent of that benchmark
revenue, but in no case less than $13,750;
(E) in the case of a covered producer with a
benchmark revenue of equal to or greater than $100,000
and less than $250,000, 40 percent of that benchmark
revenue, but in no case less than $50,000, and not more
than $150,000; and
(F) in the case of a covered producer with a
benchmark revenue of equal to or greater than $250,000
and less than $900,000, $150,000.
(2) Payment limitation.--The total amount of payments
received under this section by a covered producer, directly or
indirectly, may not exceed $150,000.
(3) Deduction of previous payments.--A payment made to a
covered producer under this section shall be reduced by reduced
by the amount of any payments received by such covered producer
on or before August 28, 2020, under the Coronavirus Food
Assistance Program of the Department of Agriculture, as
specified in part 9 of title 7, Code of Federal Regulations (or
successor regulations).
(d) Adjusted Gross Income Limitation.--A covered producer may not
be eligible to receive a payment under this section if the average
adjusted gross income of the covered producer exceeds $900,000.
(e) Regulations.--The Secretary shall issue a rule to carry out
this section not later than 30 days after the date of the enactment of
this Act.
(f) Temporary Administrative Prohibition on Using Administrative
Offset in Certain Cases.--During the period beginning on the date of
the enactment of this Act and ending on September 30, 2021, the
Secretary of Agriculture may not collect any payment made to a covered
producer under this section in satisfaction of a claim as authorized
under section 3716 of title 31, United States Code.
(g) Definitions.--In this Act:
(1) Benchmark revenue.--The term ``benchmark revenue''
means, with respect to a covered producer, the revenue for the
1-year period selected under section 3(b)(2).
(2) Covered period.--The term ``covered period'' means the
period beginning on January 31, 2020, and ending on that date
on which the declaration referred to in paragraph (4) (and any
renewal thereof) terminates.
(3) Covered producer.--
(A) In general.--The term ``covered producer''
means a farmer, livestock producer, shellfish grower,
or other producer who derives at least 25 percent of
total farm income from any combination of the following
direct marketing arrangement in which the producer
sells to:
(i) The final consumer such as through
farmers' markets, community sponsored
agriculture programs, farm stands, or online
sales.
(ii) Retailers including supermarkets,
supercenters, restaurants, caterers,
independent grocery stores, and food
cooperatives.
(iii) Institutions such as schools,
colleges, universities, hospitals, as well as
intermediary business such as wholesalers
distributors, food hubs.
(B) Exclusions.--The term ``covered producer'' does
not include livestock or poultry integrators,
processors, or other business entities relating to
livestock and poultry production that do not raise
livestock or poultry.
(4) COVID-19 emergency.--The term ``COVID-19 emergency''
means the public health emergency declared by the Secretary of
Health and Human Services under section 319 of the Public
Health Service Act (42 U.S.C. 247d) on January 31, 2020, with
respect to COVID-19.
(5) Revenue.--The term ``revenue'', with respect to a
covered producer, means total farm revenue, including revenue
derived from agritourism activities conducted by a covered
producer.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Socially disadvantaged farmer or rancher.--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)).
(8) Farm number.--The term ``farm number'' has the meaning
given the term in section 718.2 of title 7, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
SEC. 3. EMERGENCY ASSISTANCE FOR FARMERS AND FARMERS' MARKETS.
(a) COVID-19 Emergency Market Response Grants.--Section 210A of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1627c)--
(1) in subsection (d), by adding at the end the following:
``(7) COVID-19 emergency market response grants.--
``(A) In general.--The Secretary shall award to
eligible entities described in paragraphs (5)(B) and
(6)(B) emergency grants to develop new or alternative
marketing projects to respond to the COVID-19 pandemic.
``(B) Requests for proposals.--Not later than 30
days after the date of the enactment of the Local and
Regional Farmer and Market Support Act, the Secretary
shall issue a request for proposals for grants under
subparagraph (A).
``(C) Application.--Eligible entities seeking a
grant under this paragraph shall submit to the
Secretary an application at such time and in such
manner as the Secretary shall require. Such application
shall contain--
``(i) in the case of an eligible entity
described in paragraph (5)(B)--
``(I) a description of how the
enterprises of such eligible entity has
been impacted by COVID-19; and
``(II) a narrative explaining how
the eligible entity proposes to use
grant funding to respond to the impacts
of COVID-19 and to create or increase
marketing opportunities for value-added
agricultural products;
``(ii) in the case of eligible entities
described in paragraph (6)(B)--
``(I) a description of how local
and regional food markets and
enterprises served by such eligible
entities have been impacted by COVID-
19; and
``(II) a narrative explaining how
the applicant proposes to use grant
funding to respond to the impacts of
COVID-19 on local and regional food
markets or enterprises and to
facilitate marketing and sales of
agricultural products to consumers; and
``(iii) such other information as the
Secretary may require.
``(D) Priority.--
``(i) Value-added producer program
priority.--
``(I) In general.--In making grants
under this paragraph to eligible
entities described in paragraph (5)(B),
the Secretary shall give priority to
applications submitted by an eligible
entity that is--
``(aa) a socially
disadvantaged farmer or rancher
(as defined in section 2501(a)
of the Food, Agriculture,
Conservation, and Trade Act of
1990 (7 U.S.C. 2279(a))); or
``(bb) a minority business
enterprise.
``(II) Highest priority.--In giving
priority under clause (i), the
Secretary shall give highest priority
to eligible entities that provide the
greatest contribution to preserving,
creating, or increasing opportunities
for socially disadvantaged farmers or
ranchers.
``(ii) Farmers' markets and local food
promotion program priority.--
``(I) In general.--In making grants
under this paragraph to eligible
entities described in paragraph (6)(B),
the Secretary shall give priority to
applications submitted by an eligible
entity that is a minority business
enterprise.
``(II) Highest priority.--In giving
priority under clause (ii), the
Secretary shall give highest priority
to eligible entities that--
``(aa) primarily serve a
community of color or a low-
income community; and
``(bb) provide the greatest
contribution to preserving,
creating, or increasing market
opportunities for socially
disadvantaged farmers or
ranchers.
``(E) Matching requirement inapplicability.--The
Secretary may not require an eligible entity receiving
a grant under this paragraph to provide matching funds
(in any form) with respect to the Federal portion of
the grant.
``(F) Definitions.--In this paragraph:
``(i) Community of color.--The term
`community of color' means a geographically
distinct area in which the population of any of
the following categories of individuals is
higher than the average populations of that
category for the State in which the community
is located:
``(I) Black.
``(II) African American.
``(III) Alaska Native.
``(IV) Asian.
``(V) Hispanic.
``(VI) Latino.
``(VII) Native Hawaiian.
``(VIII) Pacific Islander.
``(IX) Other non-White race.
``(ii) Low-income community.--The term
`low-income community' means any census block
group in which 30 percent or more of the
population are individuals with an annual
household income equal to, or less than, the
greater of--
``(I) an amount equal to 80 percent
of the median income of the area in
which the household is located, as
reported by the Department of Housing
and Urban Development; and
``(II) 200 percent of the poverty
line (as defined in section 673(2) of
the Community Services Block Grant Act
(42 U.S.C. 9902(2)), including any
revision required by such section).
``(iii) Minority.--The term `minority'
means any individual who is a citizen of the
United States and who is a member of a group
specified in any of subclauses (I) through (IX)
of clause (i).
``(iv) Minority business enterprise.--The
term `minority business enterprise' means an
eligible entity specified in paragraph (6)(B)
or (5)(B)(ii) which is at least 51-percent
owned or controlled by a minority or group of
minorities.''; and
(2) in subsection (i), by adding at the end the following:
``(4) COVID-19 emergency market response grants.--
``(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to make
grants under subsection (d)(7)--
``(i) $25,000,000, for grants to eligible
entities described in paragraph (5)(B), to
remain available until expended; and
``(ii) $25,000,000, for grants to eligible
entities described in paragraph (6)(B), to
remain available until expended.
``(B) Reservation of funds.--Of the funds made
available under subparagraph (A)--
``(i) in the case of funds made available
to make grants to eligible entities described
in paragraph (5)(B), 20 percent shall be
reserved for grants awarded to eligible
entities described in subsection (d)(7)(D)(i);
and
``(ii) in the case of funds made available
to make grants to eligible entities described
in paragraph (6)(B), 20 percent shall be
reserved for grants to entities specified in
subsection (d)(7)(D)(ii).
``(C) Award of all grants.--The Secretary shall
award all available funds for grants under subsection
(d)(7) not later than 180 days after the date of the
enactment of the Local and Regional Farmer and Market
Support Act.''.
(b) Matching Funds Waiver.--Section 210A(d) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1627c(d)), as amended by subsection
(a), is further amended--
(1) in paragraph (5), by amending subparagraph (E) to read
as follows:
``(E) Matching funds.--
``(i) In general.--Subject to clause (ii),
an eligible entity described in subparagraph
(B) 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.
``(ii) COVID-19 emergency flexibilities.--
The matching funds requirements under clause
(i) shall not apply with respect to grants
awarded during fiscal year 2020 through
2022.''; and
(2) in paragraph (6), by amending subparagraph (E) to read
as follows:
``(E) Matching funds.--
``(i) In general.--Subject to clause (ii),
an eligible entity described in subparagraph
(B) 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.
``(ii) COVID-19 emergency flexibilities.--
The matching funds requirements under clause
(i) shall not apply with respect to grants
awarded during fiscal year 2020 through
2022.''.
(c) COVID-19 Emergency Exception.--Section 210A(d) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1627c(d)) is amended--
(1) in paragraph (5)(D)--
(A) in clause (i), by striking ``clause (ii)'' and
inserting ``clauses (ii) and (iii)''; and
(B) by adding at the end the following:
``(iii) COVID-19 emergency exception.--An
eligible entity described in subparagraph (B)
may use a grant received during any of fiscal
years 2020 through 2022 for market rebuilding
expenses incurred as a result of the COVID-19
pandemic, including the purchase or
construction of a building, general purpose
equipment, or structure.''; and
(2) in paragraph (6)(D)--
(A) in clause (i), by striking ``clause (ii)'' and
inserting ``clauses (ii) and (iii)''; and
(B) by adding at the end the following:
``(iii) COVID-19 emergency exception.--An
eligible entity described in subparagraph (B)
may use a grant received during any of fiscal
years 2020 through 2022 for market rebuilding
expenses incurred as a result of the COVID-19
pandemic, including the purchase or
construction of a building, general purpose
equipment, or structure.''.
SEC. 4. EQUITY IN EMERGENCY TRAINING AND OUTREACH.
(a) In General.--Section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended by
adding at the end the following:
``(m) Additional Funding.--
``(1) In general.--The Secretary shall make grants to, or
enter into cooperative agreements or contracts with, eligible
entities specified in subsections (c)(1) and (d)(3) to provide
training, outreach, and technical assistance on operations,
financing, and marketing to beginning farmers and ranchers,
socially disadvantaged farmers and ranchers, and veteran
farmers and ranchers, including to aid producers in, and
securing documentation for, applying for assistance under
section 2 of the Local and Regional Farmer and Market Support
Act.
``(2) Deadlines.--
``(A) Request for proposals.--Not later than 30
days after the date of the enactment of the Local and
Regional Farmer and Market Support Act, the Secretary
shall issue a request for proposals for the grants
described in paragraph (1).
``(B) Selection.--Not later than 90 days after the
date of the enactment of the Local and Regional Farmer
and Market Support Act, the Secretary shall, pursuant
to the request for proposals under subparagraph (A),
select eligible entities to receive grants under
paragraph (1).
``(C) Award of all grants.--The Secretary shall
award all grants under this subsection not later than
135 days after the date of the enactment of the Local
and Regional Farmer and Market Support Act.
``(3) Priority.--In making grants and entering into
contracts and other agreements under paragraph (1), the
Secretary shall give priority--
``(A) in the case of eligible entities specified in
subsection (c)(1), to nongovernmental and community-
based organizations--
``(i) with an expertise in working with
socially disadvantaged farmers and ranchers;
and
``(ii) that are at least 51-percent owned
or controlled by a minority (as defined in
section 210A(d)(7) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1627c(d)(7)))
or a group of minorities; and
``(B) in the case of eligible entities specified in
subsection (d)(3), to partnerships and collaborations
that are led by or include nongovernmental, community-
based organizations and school-based educational
organizations--
``(i) with expertise in new agricultural
producer training and outreach; and
``(ii) that are at least 51-percent owned
or controlled by a minority or a group of
minorities.
``(4) Funding.--
``(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry
out this subsection, $50,000,000, to remain available
until expended.
``(B) Matching funds applicability.--The Secretary
may not require a recipient of a grant under this
subsection to provide any non-Federal matching
funds.''.
(b) Terms of Grants and Cooperative Agreements to Socially
Disadvantaged and Veteran Farmers and Ranchers.--Section 2501(c)(4)(E)
of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(c)(4)(E)) is amended to read as follows:
``(E) Maximum term and amount of grant, contract,
or agreement.--
``(i) In general.--A grant, contract, or
agreement entered into under subparagraph (A)
shall--
``(I) be for a term of not longer
than 3 years; and
``(II) provide not more than
$250,000 for each year.
``(ii) Extension.--The Secretary may extend
the term of any grant, contract, or agreement
entered into under subparagraph (A) by not more
than one year if the entity receiving such
grant or entering into such cooperative
agreement is unable to complete a project or
activity supported using grant funds over the
original term of the grant.''.
(c) Terms of Grants and Cooperative Agreements to Beginning Farmers
and Ranchers.--Section 2501(d)(4) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(d)(4)) is amended to
read as follows:
``(4) Terms of grants and cooperative agreements.--
``(A) In general.--A grant or cooperative agreement
under this subsection shall--
``(i) be for a term of not longer than 3
years; and
``(ii) provide not more than $250,000 for
each year.
``(B) Extension.--The Secretary may extend the term
of any grant or cooperative agreement by not more than
one year if the entity receiving such grant or entering
into such cooperative agreement is unable to complete a
project or activity supported using grant funds over
the original term of the grant.''.
(d) Matching Funds Inapplicability.--Section 2501(d)(5) of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(d)(5)) is amended to read as follows:
``(5) Matching funds inapplicability.--With respect to
grants awarded under this subsection for each of fiscal years
2020, 2021, and 2022, the Secretary may not require an eligible
entity receiving a grant under this paragraph to provide
matching funds (in any form) with respect to the Federal
portion of the grant.''.
SEC. 5. CORONAVIRUS FOOD ASSISTANCE PROGRAM PAYMENT REPORTS.
Beginning not later than 60 days after the date of the enactment of
this Act, the Secretary of Agriculture shall include in the weekly
payment reports issued by the Secretary with respect to the Coronavirus
Food Assistance Program, the following farm and demographic information
with respect to payments made under such program and under section 2 of
this Act:
(1) The number of unique applications received and the
number of such applications approved, disaggregated by State.
(2) The number of entities applying for and receiving
payments under section 2 that reported their sales through the
direct marketing arrangements described in subsection (d)(3)(A)
of such section, for whom such payments equal--
(A) 25 percent or greater but less than 50 percent
of total annual farm income;
(B) 50 percent or greater but less than 75 percent
of total annual farm income; and
(C) greater than 75 percent of total annual farm
income.
(3) Scale of operation (both total acres and gross sales).
(4) Whether the entity receiving the payment--
(A) is a beginning farmer or rancher (as defined in
section 2501(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(a)));
(B) is a socially disadvantaged farmer or rancher
(as defined in such section 2501(a)); or
(C) has been certified as a certified organic farm
or each certified organic handling operation pursuant
to the Organic Foods Production Act of 1990 (7 U.S.C.
6501 et seq.).
SEC. 6. REGULATIONS.
Not later than 30 days after the date of the enactment of this Act,
the Secretary of Agriculture shall make interim final rules to carry
out this Act (and the amendments made by this Act).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
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