To provide for grants to assist municipalities to facilitate the ability of local farmers to grow food crops and certain livestock to be sold locally, grants to enable local nongovernmental farming associations to support the formation of community-supported agricultural projects, and grants to provide start-up funds to farmers who must diversify their operations in order to participate in the projects, and for other purposes.

SECTION 1. GRANTS TO ASSIST MUNICIPALITIES TO HELP LOCAL FARMERS TO 
              GROW FOOD CROPS OR RAISE CERTAIN LIVESTOCK TO BE SOLD 
              LOCALLY.

    (a) In General.--The Secretary of Agriculture, through the 
respective State Department of Agriculture, may make a grant in 
accordance with this section to a municipality to enable the 
municipality to facilitate the ability of local farmers to grow food 
crops or raise livestock to be sold to the local community.
    (b) Maximum Amount of Grant.--The amount of a grant under this 
section shall not exceed $100,000.
    (c) Use of Grants.--
            (1) In general.--A municipality to which a grant is made 
        under this section shall use the grant, subject to paragraph 
        (2), to establish a community-supported agriculture project, 
        by--
                    (A) leasing municipal land to a participating 
                farmer;
                    (B) providing a loan guarantee for a loan made for 
                the purchase or lease of equipment or facilities to be 
                used by a participating farmer;
                    (C) establishing a kitchen certified by relevant 
                health authorities for use by farmers or 
                nongovernmental farming associations operating, as 
                determined by the municipality, locally or regionally; 
                or
                    (D) establishing a plant for the processing of food 
                crops or livestock, which is certified by relevant 
                health authorities for use by farmers or 
                nongovernmental farming associations operating, as 
                determined by the municipality, locally or regionally.
            (2) Requirements relating to minimum output, local sale, 
        and under-served communities.--
                    (A) In general.--A lease entered into or a loan 
                guarantee provided pursuant to this section shall 
                provide that the municipality may terminate the lease 
                or rescind the loan guarantee, as the case may be, if, 
                during any year for which the lease or loan guarantee 
                is in effect--
                            (i) the total value of the food crops or 
                        livestock produced from the land involved is 
                        less than--
                                    (I) $2,500, in the case of the 
                                first year of operation;
                                    (II) $3,500, in the case of the 
                                second year of operation; or
                                    (III) $5,000, in the case of any 
                                subsequent year of operation;
                            (ii) at least 30 percent of the sales of 
                        the food crops or livestock are not made in an 
                        under-served community within 50 miles of the 
                        community-supported agricultural project; or
                            (iii) at least 70 percent of the sales of 
                        the food crops or livestock are not made 
                        locally or regionally.
                    (B) Local or regional sale.--An agricultural 
                product shall be considered to be made available for 
                sale locally or regionally for purposes of this section 
                if the product is distributed within the locality or 
                region where produced, in a manner which--
                            (i) ensures that information regarding the 
                        product origin, production practices, or other 
                        similar information which is a source of value 
                        to the end-use consumer is typically conveyed;
                            (ii) facilitates the likelihood that the 
                        income of the community-supported agriculture 
                        operation is increased through maximization of 
                        the share of the retail food price retained by 
                        the producer;
                            (iii) ensures that consumers are provided 
                        with a product produced, processed, and 
                        distributed in the locality or region where the 
                        end-use consumers acquire the product; and
                            (iv) ensures that the product has traveled 
                        less than 200 miles.
            (3) Requirements relating to termination of lease or 
        rescinding of loan guarantee.--If the municipality determines 
        that a lease entered into or a loan guarantee provided pursuant 
        to this section will be terminated pursuant to paragraph (2), 
        the municipality--
                    (A) shall announce the impending termination and 
                seek to transition the operation for which the lease 
                was entered into or loan guarantee was provided as a 
                going concern to a new operator under the terms and 
                conditions of this Act; and
                    (B) may convert the operation to another use if, 
                during the 6-month period beginning with the 
                announcement, the municipality does not receive an 
                application for the lease or loan guarantee from such a 
                new operator who is eligible for the lease or loan 
                guarantee under such terms and conditions.
            (4) Public bidding required.--
                    (A) In general.--The municipality shall solicit 
                bids from the general public for the leases and loan 
                guarantees to be provided by the municipality pursuant 
                to this section, and shall submit the bids to the State 
                Department of Agriculture for review and award of 
                funding in accordance with the schedule of priorities 
                set forth in subparagraph (B).
                    (B) Priority for certain participating farmers.--
                The municipality shall conduct the bidding in a manner 
                that results in, and the Secretary of Agriculture, 
                through the respective State Department of Agriculture, 
                shall award grants and loan guarantees to 
                municipalities that have demonstrated that they have 
                conducted bidding in a manner that results in 
                applications by participating farmers who are socially 
                disadvantaged farmers (as defined in section 355(e) of 
                the Consolidated Farm and Rural Development Act) or 
                beginning farmers or ranchers (as defined in section 
                7405(a) of the Farm Security and Rural Investment Act 
                of 2002) being considered first in the order of 
                priority to receive funding.
    (d) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary not more than $40,000,000 for each of fiscal years 2009 
through 2014.

SEC. 2. GRANTS TO ENABLE LOCAL NONGOVERNMENTAL FARMING ASSOCIATIONS 
              SUPPORT THE FORMATION OF COMMUNITY-SUPPORTED AGRICULTURAL 
              PROJECTS.

    (a) In General.--The Secretary of Agriculture may make a grant to 
enable a local nongovernmental farming association that promotes 
community-based farming, or a qualified farmer, to provide technical, 
advisory, and other assistance to support the formation of a 
municipally-based community-supported agricultural project.
    (b) Maximum Amount of Grant.--The amount of a grant under this 
section shall not exceed $25,000.
    (c) Use of Grants.--The recipient of a grant made under this 
section shall use the grant to--
            (1) provide public information about the assistance 
        available pursuant to this Act;
            (2) provide technical and advisory assistance to 
        participating farmers who enter into a lease or receive a loan 
        guarantee from a municipality pursuant to section 1; or
            (3) conduct training sessions on subjects relevant to 
        starting, operating, maintaining, or marketing crops produced 
        by participating farmers.
    (d) Definition of Qualified Farmer.--In this section, the term 
``qualified farmer'' means a farmer who has established a profit-making 
enterprise such as a farm, a community-supported agriculture operation, 
or a farmers' market, which has been in operation at least 5 years or a 
designated representative of such enterprise.
    (e) Mediation Condition.--As a condition of receiving a grant under 
this section, the grantee shall agree that, if a dispute arises between 
a participating farmer and a municipality from which the farmer has 
entered into a lease pursuant to section 1, concerning ownership rights 
to infrastructure improved with funds provided under this Act, or other 
matters with respect to the funds or activities engaged in pursuant to 
this Act, the parties shall use the services of the Certified State 
Agricultural Mediation Program of the Farm Service Agency of the 
Department of Agriculture.
    (f) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary not more than $10,000,000 for each of fiscal years 2009 
through 2014.

SEC. 3. GRANTS TO PROVIDE START-UP FUNDS TO FARMERS WHO MUST DIVERSIFY 
              THEIR OPERATIONS IN ORDER TO PARTICIPATE IN COMMUNITY-
              SUPPORTED AGRICULTURAL PROJECTS.

    (a) In General.--The Secretary of Agriculture may make a one-time 
grant to provide start-up funding to an agricultural producer who must 
diversify the agricultural operations of the producer in order to 
participate in a community-supported agricultural project.
    (b) Maximum Amount of Grant.--The amount of a grant under this 
section shall not exceed $10,000.
    (c) Use of Grants.--An agricultural producer to whom a grant is 
made under this section shall use the grant to begin or participate in 
a community-supported agricultural project under this Act.
    (d) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary not more than $4,000,000 for each of fiscal years 2009 
through 2014.

SEC. 4. MARKETING ASSISTANCE FOR COMMUNITY-SUPPORTED AGRICULTURE 
              PROJECTS.

    The Secretary of Agriculture shall provide marketing assistance to 
a participating farmer who has received a lease or loan guarantee under 
section 1 that has not been terminated, to assist the farmer in 
marketing to community institutions, including schools, child care 
centers, and senior centers.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Community-supported agricultural project.--The term 
        ``community-supported agricultural project'' means a contract 
        under which a group of consumers, a nonprofit organization, or 
        a public agency which represents consumers is obligated to 
        purchase a specified amount of one or more agricultural 
        products directly from one or more agricultural producers 
        during a specific period.
            (2) Farm vendor.--The term ``farm vendor'' means a farmer, 
        a member of the family of a farmer, or an employee of a farmer, 
        who sells at a farmers' market agricultural products produced 
        only by the farmer.
            (3) Livestock.--The term ``livestock'' means cattle, bison, 
        deer, swine, sheep, goats, and poultry, whether raised directly 
        for human consumption or for the production of milk or eggs for 
        human consumption.
            (4) Marketing alliance.--The term ``marketing alliance'' 
        means a legally recognized entity from which farmers and 
        managers of farmers' markets can obtain technical support on 
        issues relating to farmers' markets.
            (5) Municipality.--The term ``municipality'' includes any 
        city, town, borough, county, parish, district, transportation 
        district, assessment jurisdiction, or other public body, or any 
        other political subdivision within the territorial limits of 
        the United States, created by or pursuant to State law or the 
        law of an Indian tribe or tribal organization, with the 
        authority to impose a tax, charge, or fee.
            (6) Nongovernmental farming association.--The term 
        ``nongovernmental farming association'' means any of the 
        following entities that has legal standing:
                    (A) A group of agricultural producers that operates 
                as a marketing alliance.
                    (B) A cooperative association, each of whose owners 
                and members is an agricultural producer.
                    (C) A group of two or more agricultural producers 
                or farm vendors who sell an agricultural product 
                through a common distribution channel.
                    (D) A nonprofit organization with expertise in 
                farming.
                    (E) A network or association of agricultural 
                producers.
            (7) Participating farmer.--The term ``participating 
        farmer'' means an agricultural producer who has made a binding 
        commitment to participate in a community-supported agricultural 
        project.
            (8) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the United States 
        Virgin Islands, Guam, and American Samoa.
            (9) Under-served community.--The term ``under-served 
        community'' means an urban, rural, or tribal community which 
        has--
                    (A) limited access to affordable, healthy foods, 
                including fresh fruits and vegetables, in retail 
                grocery stores or farmer-to-consumer direct markets;
                    (B) a high incidence of diet-related diseases, 
                including obesity;
                    (C) a high rate of hunger or food insecurity; or
                    (D) severe or persistent poverty.

SEC. 6. REGULATIONS.

    The Secretary of Agriculture shall prescribe such regulations as 
may be necessary to carry out this Act.

Summary: Authorizes the Secretary of Agriculture to make grants to: (1) municipalities to facilitate the ability of local farmers to grow food crops or raise livestock for local community sale. (2) local nongovernmental farming associations that promote community-based farming or to qualified farmers to provide technical, advisory, and other assistance for a municipally-based agricultural project. And (3) provide startup funding to agricultural producers who must diversify in order to participate in a community-supported agricultural project. Directs the Secretary to provide marketing assistance to a participating farmer who has received a lease or loan guarantee that has not been terminated to assist the farmer in marketing to community institutions, including schools, child care centers, and senior centers.