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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2364 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2364

  To promote expanded economic opportunities for farmers and ranchers 
 through local and regional markets, expand access to healthy food in 
underserved communities, provide access to locally and regionally grown 
  food for schools, institutions, and consumers, and strengthen rural-
                urban linkages, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2007

  Mr. Blumenauer (for himself, Mrs. Boyda of Kansas, Mr. Kagen, Mrs. 
    Gillibrand, Mr. Rush, Mr. Payne, Ms. Schakowsky, and Mr. Allen) 
 introduced the following bill; which was referred to the Committee on 
 Agriculture, and in addition to the Committee on Education and Labor, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To promote expanded economic opportunities for farmers and ranchers 
 through local and regional markets, expand access to healthy food in 
underserved communities, provide access to locally and regionally grown 
  food for schools, institutions, and consumers, and strengthen rural-
                urban linkages, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Local Food and 
Farm Support Act''
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Grants to support value-added agricultural products.
Sec. 3. Healthy food enterprise development program.
Sec. 4. Direct farmer to consumer marketing assistance program.
Sec. 5. WIC farmer's market nutrition program.
Sec. 6. Senior farmers' market nutrition program.
Sec. 7. Community food project competitive grants.
Sec. 8. Authorization level for farm-to-cafeteria activities.
Sec. 9. Purchases of locally produced foods.
Sec. 10. School preference study.
Sec. 11. Food stamp fruit and vegetable incentive program.
Sec. 12. Independent evaluation of Department of Agriculture commodity 
                            purchase process.
Sec. 13. Urban agriculture production program.

SEC. 2. GRANTS TO SUPPORT VALUE-ADDED AGRICULTURAL PRODUCTS.

    The Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; 
Public Law 106-224) is amended by striking section 231 and inserting 
the following new sections:

``SEC. 231. GRANTS TO SUPPORT VALUE-ADDED AGRICULTURAL PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) Value-added agricultural product.--
                    ``(A) In general.--The term `value-added 
                agricultural product' means any agricultural commodity 
                or product that--
                            ``(i)(I) has undergone a change in physical 
                        state;
                            ``(II) was produced in a manner that 
                        enhances the value of the agricultural 
                        commodity or product, as demonstrated through a 
                        business plan that shows the enhanced value, as 
                        determined by the Secretary; or
                            ``(III) is physically segregated in a 
                        manner that results in the enhancement of the 
                        value of the agricultural commodity or product; 
                        and
                            ``(ii) As a result of the change in 
                        physical state or the manner in which the 
                        agricultural commodity or product was produced 
                        or segregated--
                                    ``(I) the customer base for the 
                                agricultural commodity or product has 
                                been expanded; and
                                    ``(II) a greater portion of the 
                                revenue derived from the marketing, 
                                processing, or physical segregation of 
                                the agricultural commodity or product 
                                is available to the producer of the 
                                commodity or product.
                    ``(B) Inclusion.--The term includes such farm- or 
                ranch-based renewable energy conservation and 
                generation projects as are ineligible for assistance 
                under section 9006 of the Farm Security and Rural 
                Investment Act of 2002 and are otherwise eligible for 
                this program, as determined by the Secretary.
            ``(2) Mid-tier value chain.--The term `mid-tier value 
        chain' means supply networks that link independent producers 
        with businesses and cooperatives that market value-added 
        agricultural products in a manner that--
                    ``(A) specifically targets and strengthens the 
                profitability and competitiveness of mid-sized family 
                farms, that are not larger than family farms, as 
                defined in regulations pursuant to section 302 of the 
                Consolidated Farm and Rural Development;
                    ``(B) obtains agreement from the eligible 
                agricultural producer group, farmer or rancher 
                cooperative, or majority-controlled producer-based 
                business venture engaged in the value chain in the 
                method for price determination; and
                    ``(C) adheres to clear and transparent social, 
                environmental, economic, and consumer standards and 
                equitable business practices throughout all parts of 
                the supply network.
            ``(3) Socially disadvantaged farmer.--The term `socially 
        disadvantaged farmer' has the meaning given the term in section 
        355(e) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 2003 (e)).
    ``(b) Grant Program.--From amounts made available to carry out this 
section, the Secretary shall award competitive grants--
            ``(1) to an eligible independent producer (as determined by 
        the Secretary) of a value-added agricultural product to assist 
        the producer--
                    ``(A) in developing a business plan for viable 
                marketing opportunities for the value-added 
                agricultural product; or
                    ``(B) in developing strategies that are intended to 
                create marketing opportunities for the producer;
            ``(2) to an eligible agricultural producer group, farmer or 
        rancher cooperative, or majority-controlled producer-based 
        business venture (as determined by the Secretary) to assist the 
        entity--
                    ``(A) in developing a business plan for viable 
                marketing opportunities in emerging markets for a 
                value-added agricultural product; or
                    ``(B) in developing strategies that are intended to 
                create marketing opportunities in emerging markets for 
                the value-added agricultural product; and
            ``(3) to nonprofit organizations, educational institutions, 
        and units of government to assist producers and groups eligible 
        under paragraph (A) or (B) by--
                    ``(A) providing training or technical assistance; 
                or
                    ``(B) conducting outreach on the availability of 
                the program and application requirements.
    ``(c) Grant Amounts and Allocations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        total amount provided under this section to a grant recipient 
        shall not exceed $500,000.
            ``(2) Feasibility study grants.--The total amount provided 
        under this section to a grant recipient for a feasibility study 
        grant shall not exceed $100,000.
            ``(3) Majority-controlled producer-based business 
        ventures.--The amount of grants provided to majority-controlled 
        producer-based business ventures under subsection (b)(2) for a 
        fiscal year may not exceed 10 percent of the amount of funds 
        that are used to make grants for the fiscal year under this 
        section.
            ``(4) Farm and ranch-based renewable energy.--The amount of 
        grants provided for farm and ranch-based renewable energy 
        conservation and generation for a fiscal year may not exceed 15 
        percent of the amount of funds that are used to make grants for 
        the fiscal year under this section.
            ``(5) Mid-tier value chains.--To the maximum extent 
        practicable, the amount of grants provided for mid-tier value 
        chains for a fiscal year shall be not less than 15 percent of 
        the amount of funds that are used to make grants for the fiscal 
        year under this section.
            ``(6) Socially disadvantaged farmers and ranchers.--To the 
        maximum extent practicable, the amount of grants provided for 
        projects which include the significant participation of 
        socially disadvantaged farmers and ranchers for a fiscal year 
        shall be not less than 10 percent of the amount of funds that 
        are used to make grants for the fiscal year under this section.
            ``(7) Training, technical assistance, and outreach.--The 
        amount of grants provided to nonprofit organizations, 
        educational institutions, and units of government under 
        subsection (b)(3) for a fiscal year may not exceed 10 percent 
        of the amount of funds that are used to make grants for the 
        fiscal year under this section.
            ``(8) Small and individual producer grants.--The Secretary 
        may provide for separate funding pools for proposals requesting 
        less than $50,000 grants and for individual producer grants.
    ``(d) Grantee Strategies.--A recipient of a grant under this 
section shall use the grant--
            ``(1) to develop a business plan or perform a feasibility 
        study to establish a viable marketing opportunity for a value-
        added agricultural product; or
            ``(2) to provide capital to establish alliances or business 
        ventures that allow the producer of the value-added 
        agricultural product to better compete in domestic or 
        international markets.
    ``(e) Priority.--
            ``(1) In general.--In awarding grants the Secretary shall 
        give the priority to projects that--
                    ``(A) are 100 percent producer owned;
                    ``(B) contribute to increasing the number and 
                quality of self-employment opportunities in farming and 
                ranching by increasing value-added opportunities for 
                beginning farmers and ranchers, socially disadvantaged 
                farmers and ranchers, and other operations that are not 
                larger than family farms, as defined in regulations 
                pursuant to section 302 of the Consolidated Farm and 
                Rural Development Act;
                    ``(C) help retain and enhance small and medium-
                sized farms and ranches and preserve productive farm 
                and ranch lands;
                    ``(D) conserve and enhance the quality of land, 
                water, and energy resources, wildlife habitat, and 
                other landscape values and amenities in rural areas; 
                and
                    ``(E) support new ventures that do not have well-
                established market or product development staffs and 
                budgets.
            ``(2) Mid-tier value chain grants.--In awarding grants 
        pursuant to subsection (b)(2), the Secretary shall give 
        priority to projects that facilitate partnerships that may 
        involve businesses, cooperatives, non-profit organizations, 
        agencies, and educational institutions.
            ``(3) Regional balance.--In awarding grants the Secretary 
        shall to the maximum extent practicable ensure that all States 
        and regions are able to participate.
    ``(f) Term.--A grant under this section shall have a term that does 
not exceed three years.
    ``(g) Simplified Application.--The Secretary shall offer a 
simplified application form and process for project proposals 
requesting less than $50,000.
    ``(h) Funding.--Not later than 30 days after the date of enactment 
of the Local Food and Farm Support Act, on October 1, 2008, and on each 
October 1 thereafter through October 1, 2012, of the funds of the 
Commodity Credit Corporation, the Secretary shall make available to 
carry out this section $60,000,000. Such amounts shall remain available 
until expended.

``SEC. 232. FAMILY FARMER AND RANCHER VIABILITY AND INNOVATION FUND.

    ``(a) Establishment.--The Secretary shall establish a demonstration 
program to be known as the `Family Farmer and Rancher Viability and 
Innovation Fund' under which the Secretary shall make grants to groups 
of producers who operate not larger than family farms, as defined in 
regulations pursuant to section 302 of the Consolidated Farm and Rural 
Development Act, for innovative strategies, other than marketing value-
added agricultural products, that enhance viability, profitability, and 
competitiveness through joint efforts.
    ``(b) Funding.--Of the amounts made available under section 231(h) 
for each fiscal year, the Secretary shall use to carry out this 
section--
            ``(1) not less than $2 million for fiscal year 2008;
            ``(2) not less than $3 million for fiscal year 2009; and
            ``(3) not less than $10 million for fiscal years 2010 
        through 2012.''.

SEC. 3. HEALTHY FOOD ENTERPRISE DEVELOPMENT PROGRAM.

    Title II of the Specialty Crops Competitiveness Act of 2004 (Public 
Law 108-465) is amended by adding at the end the following:

``SEC. 204. HEALTHY FOOD ENTERPRISE DEVELOPMENT PROGRAM.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The average distance fresh foods, especially fresh 
        fruits and vegetables, travel from point of production to point 
        of retail sale has increased over the past three decades to at 
        least 1,500 miles as referenced in a 2003 report from Iowa 
        State University.
            ``(2) It is in the public interest that agricultural 
        producers, including small and mid-sized family farms and 
        ranches, socially disadvantaged farmers and ranchers, and 
        beginning farmers and ranchers, have access to a local and 
        regional processors and distributors to foster competitive 
        markets and improve farm and ranch profitability.
            ``(3) Improving producer access to processing, 
        distribution, and other marketing services can significantly 
        enhance consumer access to affordable locally and regionally-
        produced foods.
            ``(4) Increasing the availability of locally and 
        regionally-produced food is especially in important for 
        improving food access in underserved communities.
            ``(5) Renewal of local and regional food systems will 
        encourage the preservation of farm and ranch lands and spur 
        natural resource and environmental improvements.
    ``(b) Purpose.--The purpose of this section is to support farm and 
ranch income by significantly enhancing a producer's share of the final 
retail product price through improved access to competitive processing 
and distribution systems which deliver affordable, locally and 
regionally produced foods to consumers, improve food access in 
underserved communities, and help save farm and ranch land and protect 
natural resources.
    ``(c) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term `qualified 
        beginning farmer or rancher' in section 343(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).
            ``(2) Eligible entity.--The term `eligible entity' 
        includes--
                    ``(A) a small or midsized processor, distributor, 
                wholesaler, or retail food outlet;
                    ``(B) a group of producers operating as a legally 
                recognized marketing alliance;
                    ``(C) a producer-owned cooperative;
                    ``(D) a nonprofit organization;
                    ``(E) an economic development or community 
                development corporation;
                    ``(F) a unit of State or local government; and
                    ``(G) an academic institution.
            ``(3) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(4) Locally or regionally produced food.--The term 
        `locally or regionally produced food' means any agricultural 
        product distributed within the locality or region in which the 
        agricultural product is produced in a manner that ensures 
        that--
                    ``(A) typically convey information regarding the 
                product origin, production practices, or other similar 
                information which is a source of value to the end-use 
                consumer;
                    ``(B) the income of the producer is increased 
                through maximization of the share of the retail food 
                price retained by the producer;
                    ``(C) consumers are provided with affordable 
                agricultural products produced, processed, and 
                distributed in the locality or region of the consumers; 
                and
                    ``(D) have traveled at least less than half of the 
                current average distance of all food produced and 
                consumed in the United States as determined by the 
                Secretary
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) Socially disadvantaged farmer or rancher.--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)).
            ``(7) Underserved community.--The term `underserved 
        community' includes any community that may have, as determined 
        by the Secretary--
                    ``(A) limited access to affordable, healthy foods, 
                including fresh fruits and vegetables, in grocery 
                retail stores or farmer-to-consumer direct markets;
                    ``(B) high incidences of diet-related diseases, 
                including obesity;
                    ``(C) high rates of hunger or food insecurity; or
                    ``(D) severe or persistent poverty in urban or 
                rural communities, including Indian tribal communities.
    ``(d) Grant Program.--
            ``(1) Establishment.--The Secretary, acting through the 
        head of the market services branch of the Agricultural 
        Marketing Service, shall establish a program under which the 
        Secretary shall provide grants, on a competitive basis, to 
        eligible entities to conduct enterprise feasibility studies 
        (including studies of consumer preference), in accordance with 
        the purpose of this section.
            ``(2) Application.--To be eligible to receive a grant under 
        this subsection, an eligible entity shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(3) Coordination with other agencies.--In carrying out 
        the program under this subsection, the Secretary shall 
        coordinate, with respect to the development of the program and 
        reviews of grant applications, with--
                    ``(A) the Cooperative State Research, Education, 
                and Extension Service; and
                    ``(B) the Rural Business Cooperative Service.
            ``(4) Priority.--In providing grants under this subsection, 
        the Secretary shall give priority to applications with proposed 
        projects that--
                    ``(A) convey food products produced, processed, 
                distributed near to point of final retail purchase, 
                with the total distance a food product travels to the 
                point of retail purchase as a measure of product 
                freshness and compliance with the purpose in subsection 
                (b);
                    ``(B) are from partnerships of 2 or more eligible 
                entities;
                    ``(C) include features effectively targeting 
                participation by socially disadvantaged farmers or 
                ranchers or beginning farmers or ranchers;
                    ``(D) increase employment opportunities in 
                underserved communities;
                    ``(E) support small and mid-sized farm viability 
                and increase farming opportunities; or
                    ``(F) establish and maintain satisfactory 
                environmental and labor standards, including worker 
                protection.
            ``(5) Maximum amount.--The amount of a grant provided under 
        this subsection shall not exceed $250,000.
            ``(6) Term.--A grant provided under this subsection shall 
        have a term of not more than 3 years.
            ``(7) Reports.--
                    ``(A) In general.--Each eligible entity that 
                receives a grant under this subsection shall submit to 
                the Secretary an annual report describing the results 
                and progress of each feasibility study to ensure 
                sufficient progress is achieved with respect to the 
                goals of the projects carried out by the eligible 
                entity.
                    ``(B) Public availability.--The Secretary shall 
                ensure that any information contained in a report under 
                subparagraph (A) relating to consumer preference or 
                producer availability is made available to the public.
            ``(8) Funding.--On October 1, 2008, and on each October 1 
        thereafter through October 1, 2013, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        subsection $5,000,000, to remain available until expended.
    ``(e) Enterprise Development Loan Program.--
            ``(1) Establishment.--The Secretary, acting through the 
        Agricultural Marketing Service, shall establish a program under 
        which the Secretary shall provide loans and loan guarantees to 
        eligible entities and individual producers for use in 
        accordance with paragraph (6).
            ``(2) Coordination with other agencies.--In carrying out 
        the program under this subsection, the Secretary shall 
        coordinate, with respect to the development of the program, 
        reviews of applications, and implementation with the Rural 
        Business Cooperative Service.
            ``(3) Application.--To be eligible to receive a loan or 
        loan guarantee under this subsection, an eligible entity or 
        individual producer shall submit to the Secretary an 
        application at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(4) Requirements.--
                    ``(A) Priority.--In providing loans and loan 
                guarantees under this subsection, the Secretary shall 
                give priority to applications with proposed projects 
                that--
                            ``(i) convey food products produced, 
                        processed, distributed near to point of final 
                        retail purchase, with the total distance a food 
                        product travels to the point of retail purchase 
                        as a measure of product freshness and 
                        compliance with the purpose in subsection (b);
                            ``(ii) are from partnerships of 2 or more 
                        eligible entities;
                            ``(iii) include features effectively 
                        targeting participation by socially 
                        disadvantaged farmers or ranchers or beginning 
                        farmers or ranchers;
                            ``(iv) increase employment opportunities in 
                        underserved communities;
                            ``(v) establish and maintain clear 
                        environmental and labor standards, including 
                        worker protection; or
                            ``(vi) support small and mid-sized farm 
                        viability and increase farming opportunities.
                    ``(B) Limitation.--The Secretary shall ensure that 
                no recipient of a loan or loan guarantee under this 
                subsection holds, or significantly benefits from, more 
                than 1 loan or guarantee for the term of the loan or 
                guarantee.
            ``(5) Direct loans.--
                    ``(A) In general.--The Secretary shall provide 
                loans under this subsection--
                            ``(i) on an annual and competitive basis;
                            ``(ii) after conducting a review of 
                        applicable applications in accordance with 
                        subsection (c)(3);
                            ``(iii) in a manner that is economically 
                        sound, as determined by the Secretary;
                            ``(iv) that may be subordinated to loans 
                        made by local private lenders; and
                            ``(v) in an amount equal to not more than 
                        $1,500,000, as adjusted to reflect changes for 
                        the 12-month period ending the preceding 
                        November 30 in the Consumer Price Index for All 
                        Urban Consumers published by the Bureau of 
                        Labor Statistics of the Department of Labor.
                    ``(B) Interest rate.--The interest rate of a loan 
                provided under this subsection--
                            ``(i) shall be equivalent to the interest 
                        rate of securities of the United States 
                        Treasury of comparable maturity as of the date 
                        on which the loan is provided;
                            ``(ii) may be offered as a variable rate to 
                        allow lower-interest payments until an eligible 
                        entity is able to pay higher-interest payments, 
                        subject to the condition that the total 
                        interest rate does not exceed the standard 
                        interest rate of the Department of the 
                        Treasury, as in existence on the date on which 
                        the loan is approved; and
                            ``(iii) shall not change, in the aggregate, 
                        during the term of the loan.
                    ``(C) Repayment.--An eligible entity or individual 
                producer shall repay the Secretary an amount equal to 
                the amount of the loan received by the eligible entity 
                or individual producer (including interest) by not 
                later than 15 years after the date on which the loan is 
                provided.
                    ``(D) Underserved communities.--The Secretary shall 
                defer repayment of a loan (including interest) provided 
                to an eligible entity located in an underserved 
                community for the 3-year period beginning on the date 
                on which the loan is provided.
            ``(6) Loan guarantees.--
                    ``(A) Rates.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), the rate of a loan 
                        guarantee provided under this subsection shall 
                        be not less than 80 percent and not more than 
                        90 percent.
                            ``(ii) Certain recipients.--The rate of a 
                        loan guarantee provided under this subsection 
                        to an eligible entity that serves primarily a 
                        majority of socially disadvantaged farmers or 
                        ranchers or beginning farmers or ranchers, as 
                        determined by the Secretary, shall be not less 
                        than 95 percent.
                            ``(iii) Certain projects.--The rate of a 
                        loan guarantee provided under this subsection 
                        for a project that, as determined by the 
                        Secretary, will result in increased employment 
                        in a low-income community, an economic 
                        empowerment zone, or such other similar area as 
                        the Secretary may designate, shall be not less 
                        than 95 percent.
                    ``(B) Eligible lenders.--For purposes of loan 
                guarantees under this paragraph, eligible lender 
                institutions include--
                            ``(i) community development financial 
                        institutions;
                            ``(ii) community development banks;
                            ``(iii) credit unions;
                            ``(iv) banks owned by Indian tribes; and
                            ``(v) such other institutions as the 
                        Secretary may designate to ensure equitable 
                        access to loan guarantees--
                                    ``(I) in each State; and
                                    ``(II) to Indian tribal 
                                organizations.
                    ``(C) Maximum amount.--The amount of a loan 
                guarnateed under this subsection shall not exceed 
                $1,500,000, as adjusted to reflect changes for the 12-
                month period ending the preceding November 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.
            ``(7) Use of funds.--An eligible entity or individual 
        producer shall use funds provided pursuant to a loan or loan 
        guarantee under this subsection to develop processing, 
        distribution, and information infrastructure for locally or 
        regionally produced food, in accordance with the purpose of 
        this section, including through--
                    ``(A) construction of new infrastructure;
                    ``(B) rehabilitation of existing infrastructure;
                    ``(C) activities to support the development of 
                marketing networks and alliances;
                    ``(D) development of information infrastructure, 
                including websites;
                    ``(E) purchases of equipment for processing, 
                distribution, transportation, storage, and other 
                related purposes; and
                    ``(F) other activities, as the Secretary determines 
                to be appropriate.
            ``(8) Funding.--On October 1, 2008, and on each October 1 
        thereafter through October 1, 2013, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        subsection $35,000,000, to remain available until expended, of 
        which--
                    ``(A) not less than $15,000,000 shall be used for 
                each fiscal year to provide loans under paragraph (4); 
                and
                    ``(B) not less than $10,000,000 shall be used for 
                each fiscal year to provide loan guarantees under 
                paragraph (5).
    ``(f) Grant and Loan Program Requirements.--
            ``(1) Technical assistance and outreach.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) provide to the public information 
                        relating to the grant and loan programs under 
                        this section; and
                            ``(ii) provide technical assistance to--
                                    ``(I) socially disadvantaged 
                                farmers or ranchers;
                                    ``(II) Indian tribal organizations;
                                    ``(III) low-income populations; and
                                    ``(IV) other underserved 
                                communities and producers.
                    ``(B) Service providers.--In carrying out 
                subparagraph (A), the Secretary may enter into 
                contracts, on a competitive basis, with entities that, 
                as determined by the Secretary--
                            ``(i) demonstrate experience in serving 
                        socially disadvantaged farmers or ranchers and 
                        other underserved communities and producers;
                            ``(ii) include, in the governance structure 
                        of the entity, 2 or more members representing 
                        the targeted communities served by the entity; 
                        and
                            ``(iii) will share information developed or 
                        used by the entity with--
                                    ``(I) researchers;
                                    ``(II) practitioners; and
                                    ``(III) other interested parties.
                    ``(C) Funding.--On October 1, 2008, and on each 
                October 1 thereafter through October 1, 2013, out of 
                any funds in the Treasury not otherwise appropriated, 
                the Secretary of the Treasury shall transfer to the 
                Secretary to carry out this paragraph not less than 
                $200,000 and not more than an amount equal to 5 percent 
                of the funds required to carry out this program, to 
                remain available until expended.
            ``(2) Limitations.--For purposes of the programs under this 
        section, the Secretary--
                    ``(A) shall not give preference to any entity based 
                on an agricultural commodity produced or supported by 
                the entity; and
                    ``(B) shall encourage, to the maximum extent 
                practicable, projects that use infrastructure 
                efficiently for more than 1 agricultural product.
            ``(3) Report.--Not less frequently than once each year, the 
        Secretary shall submit to Congress a report that describes the 
        programs (including the level of participation in each program) 
        under this section, including information relating to--
                    ``(A) projects carried out under this section;
                    ``(B) characteristics of the agricultural producers 
                and communities served by the projects;
                    ``(C) the benefits of the projects;
                    ``(D) data necessary to comply with--
                            ``(i) section 2501A of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990 (7 U.S.C. 2279-1); or
                            ``(ii) section 8(b)(5)(B) of the Soil 
                        Conservation and Domestic Allotment Act (16 
                        U.S.C. 590h(b)(5)); and
                    ``(E) outreach and technical assistance activities 
                carried out by the Secretary under paragraph (1).''.

SEC. 4. DIRECT FARMER TO CONSUMER MARKETING ASSISTANCE PROGRAM.

    Section 6 of the Farmers-to-Consumers Direct Marketing Act of 1976 
(7 U.S.C. 3005) is amended to read as follows:

``SEC. 6. DIRECT FARMER TO CONSUMER MARKETING ASSISTANCE PROGRAM.

    ``(a) Findings.--The Congress finds that--
            ``(1) agricultural direct farmer to consumer marketing 
        activities, including farmers markets, roadside stands, 
        community supported agriculture, internet, mail-order, and 
        other similar direct order marketing activities significantly 
        enhance the ability of agricultural producers to retain a 
        greater share of their products' retail value;
            ``(2) direct farmer-to-consumer marketing activities are a 
        crucial component of the current and future viability of small 
        and mid-sized farms and ranches, and beginning and socially 
        disadvantaged farmers and ranchers; and
            ``(3) agricultural direct marketing activities contribute 
        to the health and well-being of consumers in rural, urban, and 
        tribal communities by providing access to healthy, fresh, and 
        affordable food.
    ``(b) Establishment.--The Secretary shall carry out a program, to 
be known as the `Direct to Consumer Marketing Assistance Program' 
(referred to in this section as the `Program'), to make grants to 
eligible entities for projects to establish, expand, and promote 
farmers' markets, and other farmer to consumer direct marketing 
opportunities.
    ``(c) Program Purposes.--The purposes of the Program are--
            ``(1) to increase domestic consumption of agricultural 
        commodities by improving and expanding, or assisting in the 
        improvement and expansion of direct producer to consumer 
        marketing opportunities;
            ``(2) to develop, or aid in the development of, new direct 
        producer to consumer marketing opportunities;
            ``(3) to increase direct producer to consumer direct 
        marketing opportunities in underserved areas by providing, to 
        the maximum extent possible, not less than twenty-five percent 
        of program grants to projects in areas determined underserved 
        by the Secretary.
    ``(d) Eligible Entities.--An entity shall be eligible to receive a 
grant under the Program if the entity is--
            ``(1) two or more farmers and or farm vendors who sell 
        their own products through a common channel of distribution;
            ``(2) producer networks and associations;
            ``(3) a local government;
            ``(4) a nonprofit corporation;
            ``(5) a public benefit corporation;
            ``(6) an economic development corporation;
            ``(7) a regional farmers' market authority; or
            ``(8) such other entity as the Secretary may designate.
    ``(e) Eligible Activities.--Eligible direct farmer-to-consumer 
activities include--
            ``(1) farmers markets;
            ``(2) roadside stands;
            ``(3) community supported agriculture;
            ``(4) activities to support the use of EBT at farmers 
        markets and, where feasible, other direct market enterprises;
            ``(5) pick your own operations;
            ``(6) internet and mail-order sales with eligible entities 
        qualifying as producer networks and associations under this 
        section limited to those engaged in emerging markets;
            ``(7) producer-run agritourism activities facilitating the 
        direct sale of agricultural products; and
            ``(8) other similar ventures as determined by the 
        Secretary.
    ``(f) Limitations.--An eligible entity may not use a grant or other 
assistance provided under this Program for the purchase, construction, 
or rehabilitation of a building or structure.
    ``(g) Criteria and Guidelines.--The Secretary shall establish 
criteria and guidelines for the submission, evaluation, and funding of 
proposed projects under the Program.
    ``(h) Funding.--Not later than 30 days after the date of enactment 
of the Local Food and Farm Support Act, on October 1, 2008, and on each 
October 1 thereafter through October 1, 2012, of the funds of the 
Commodity Credit Corporation, the Secretary shall make available to 
carry out this subsection $25,000,000. Such funds shall remain 
available until expended.''.

SEC. 5. WIC FARMER'S MARKET NUTRITION PROGRAM.

    Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)(A)) is amended--
            (1) in clause (i), by striking ``2009'' and inserting 
        ``2013''; and
            (2) by striking clause (ii) and inserting the following:
    ``(ii) Mandatory Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out this 
subsection $20,000,000 for fiscal year 2008, $30,000,000 for fiscal 
year 2009, $45,000,000 for fiscal year 2010, $60,000,000 for fiscal 
year 2011, and not less than $75,000,000 for fiscal year 2012 and each 
fiscal year thereafter. Such funds shall remain available until 
expended.''.

SEC. 6. SENIOR FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) in subsection (a) by striking ``$5,000,000'' and all 
        that follows through ``2007'', and inserting ``$20,000,000 for 
        fiscal year 2008, $30,000,000 for fiscal year 2009, $45,000,000 
        for fiscal year 2010, $60,000,000 for fiscal year 2011, and not 
        less than $75,000,000 for fiscal year 2012 and each fiscal year 
        thereafter'', and
            (2) in subsection (b)--
                    (A) in paragraph (2) by striking ``and'' at the 
                end,
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``; and'', and
                    (C) by adding at the end the following:
            ``(4) to promote the transition to organic and other 
        environmentally beneficial food production systems.''; and
            (3) by adding at the end the following new subsection:
    ``(d) Eligible Participants; Benefits Levels.--The regulations 
required by subsection (c)
            ``(1) shall allow for participation by farmers markets, and 
        roadside stands, community supported agriculture programs; and
            ``(2) shall not limit the ability of State or regional 
        programs to set benefit levels per individual senior.''.

SEC. 7. COMMUNITY FOOD PROJECT COMPETITIVE GRANTS.

    (a) Authority to Provide Assistance.--Section 25(b) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(b)) is amended--
            (1) in paragraph (1) by striking ``From amounts made 
        available to carry out this Act, the Secretary may'' and 
        inserting ``The Secretary shall''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Funding amounts.--From amounts made available to 
        carry out this Act, the Secretary shall use $60,500,000 for 
        each of fiscal years 2008 through 2013 to make grants under 
        this section.''.
    (b) Preference for Certain Projects.--Section 25(d) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(d)) is amended--
            (1) in paragraph (3) by striking ``or'' at the end;
            (2) in paragraph (4) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) serve special project needs in areas of--
                    ``(A) transportation and processing for expanding 
                institutional and emergency food service demand for 
                local food;
                    ``(B) retail access to healthy foods in underserved 
                markets;
                    ``(C) integration of urban and metro-area food 
                production in food projects; and
                    ``(D) technical assistance for youth, socially 
                disadvantaged individuals, and limited resource 
                groups.''.
    (c) Matching Funds Requirements.--Section 25(e)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(e)(1)) is amended by striking ``50'' 
and inserting ``75''.
    (d) Term of Grant.--Section 25(f)(2) of the Food Stamp Act of 1977 
(7 U.S.C. 2034(f)(2)) is amended by striking ``3'' and inserting ``5''.
    (e) Funding.--Section 25(h)(4) of the Food Stamp Act of 1977 (7 
U.S.C. 2034(h)(4)) is amended--
            (1) by striking ``fiscal years 2003 through 2007'' and 
        inserting ``fiscal years 2008 through 2013''; and
            (2) by striking ``$200,000'' and inserting ``$500,000''.

SEC. 8. AUTHORIZATION LEVEL FOR FARM-TO-CAFETERIA ACTIVITIES.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended in subsection (i)(2) by striking ``such sums as 
are necessary'' and all that follows through the period at the end and 
inserting ``to carry out this subsection $20,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 9. PURCHASES OF LOCALLY PRODUCED FOODS.

    (a) In General.--The Secretary shall--
            (1) allow institutions participating in the school lunch 
        program under this Act, the Department of Defense Farm to 
        School Program and the programs established by the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773) to use geographic 
        preferences in their bidding and procurement programs to 
        purchase, in addition to other food purchases, locally produced 
        foods for meal programs;
            (2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in that 
        subparagraph and post information concerning the policy on the 
        website maintained by the Secretary;
            (3) in accordance with requirements established by the 
        Secretary, provide startup grants to not more than 200 
        institutions to defray the initial costs of equipment, 
        materials, and storage facilities, and similar costs, incurred 
        in carrying out the policy described in paragraph (1);
            (4) report to Congress annually concerning implementation 
        of this section.
    (b) Clarification Regarding Geographic Preferences.--Nothing in 
this Act or any other provision of law shall be construed to preempt, 
prohibit, or otherwise limit the authority of institutions 
participating in the programs described in subsection (a)(1) of this 
section   from using geographic preferences in their bidding and 
procurement programs to purchase, in addition to other food purchases, 
locally produced foods for meal programs.
    (c) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $400,000 for each of fiscal years 2007 
        through 2012 to remain available until expended.
            (2) Limitation.--No amounts may be made available to carry 
        out this section unless specifically provided by an 
        appropriation Act.

SEC. 10. SCHOOL PREFERENCE STUDY.

    The Secretary of Agriculture shall carry out a study on the 
preferences of elementary and secondary schools for commodity 
distribution, including the extent to which such schools prefer 
commodity distribution to include fresh fruits and vegetables, and 
submit to Congress a report on the results of the study. The report 
shall include an analysis of the logistical issues that would impede 
efforts to increase the extent to which commodity distribution to 
schools includes fresh fruits and vegetables, and shall include 
recommendations for improving the availability of fresh fruits and 
vegetables to schools.

SEC. 11. FOOD STAMP FRUIT AND VEGETABLE INCENTIVE PROGRAM.

    (a) Establishment.--There is hereby established a demonstration 
project within the Food Stamp Program to provide incentives for program 
participants to purchase more fruits and vegetables. This demonstration 
project shall be available to all States that submit to the Secretary a 
plan that meets the requirements of this section. Approved projects 
that meet plan requirements may operate within a State for a period of 
up to five years but not beyond September 30, 2012.
    (b) State Plan Requirements.--State proposals to operate a fruit 
and vegetable incentive demonstration project shall provide a 
description of the following:
            (1) the incentive mechanism that will be implemented and 
        how it will be implemented;
            (2) the categories of fruit and vegetable purchases to 
        which the incentive will apply;
            (3) the plan to inform food stamp consumers of the 
        incentive and of the categories of fruits and vegetables to 
        which the incentive applies;
            (4) the nutrition education activities that will be 
        conducted to support the incentive;
            (5) the methodology to be used to evaluate the impact of 
        the incentive on the food purchases of food stamp households 
        when utilizing Food Stamp Program benefits;
            (6) the plan to meet the following assurances:
                    (A) that if project incentives apply to fresh 
                fruits and/or fresh vegetables, the incentive will be 
                operative in established farmers' markets for food 
                stamp consumers who purchase fruits or vegetables in 
                those venues;
                    (B) that operation of the demonstration project at 
                the point of sale will not cause food stamp consumers 
                to be delayed or to be identified to the general public 
                as Food Stamp Program participants;
                    (C) that food retailers and farmers' market vendors 
                approved to accept food stamp purchases have 
                participated in the planning of the operation of the 
                incentive mechanism at point of purchase;
                    (D) that no more than 25 percent of the federal 
                funds expended by or pursuant to the State agency plan 
                will be utilized for administrative, educational and or 
                evaluative purposes; and
                    (E) that the State agency will provide quarterly 
                reports on the administrative costs of the project and 
                annual reports on the impact of the project on food 
                stamp purchases of fruits and vegetables;
    (c) Plan Approval.--The Secretary shall approve State fruit and 
vegetable incentive demonstration project proposals that adequately 
address the required elements.
    (d) Incentive Mechanism.--A State submitting a proposed plan for 
the fruit and vegetable demonstration project shall select one of the 
following incentive mechanisms for implementation--
            (1) bonus payments, not to exceed 10 percent of purchases 
        of qualifying fruits and vegetables, which will be credited to 
        the electronic benefit account of the food stamp consumer and 
        may be used to make additional purchases; or
            (2) bonus vouchers, not to exceed the value of 10 percent 
        of purchases of qualifying fruits and vegetables, which may be 
        used to purchase additional fruits or vegetables.
    (e) Categories of Fruits and Vegetables.--A State submitting a 
proposed plan for the fruit and vegetable demonstration project shall 
apply the incentive mechanism to one or more of the following food 
categories:
            (1) fresh fruits;
            (2) fresh vegetables;
            (3) canned fruits;
            (4) canned vegetables;
            (5) frozen fruits;
            (6) frozen vegetables;
            (7) dried fruits;
            (8) dried vegetables.
A food product that consists of one or more reconstituted or 
reprocessed fruits or vegetables, or which consists of less than 100 
percent fruit juice, may not be included in a State's plan of food 
products to which the incentive applies.
    (f) Administrative Costs.--The Secretary shall reimburse all State 
administrative costs related to the operation and evaluation of a 
demonstration project. No State administrative cost share may be 
required.
    (g) Evaluation.--On or before January 1, 2012, the Secretary shall 
report to Congress on the impact of the incentives implemented by the 
States on total food purchases by food stamp consumers.

SEC. 12. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE COMMODITY 
              PURCHASE PROCESS.

    (a) Evaluation Required.--The Secretary of Agriculture shall 
arrange to have performed an independent evaluation of the commodity 
purchasing processes (and the statutory and regulatory authority 
underlying such processes) used by the Department of Agriculture to 
remove surplus commodities from the market and support commodity prices 
and producer incomes, especially with regard to activities under 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) and the 
importance of increasing purchases of perishable specialty crops.
    (b) Submission of Results.--Not later than one year after the date 
of the enactment of this Act, the Secretary of Agriculture shall submit 
to Congress a report on the results of the evaluation.

SEC. 13. URBAN AGRICULTURE PRODUCTION PROGRAM.

    (a) Findings.--
            (1) Urban agriculture production serves health, food 
        security, economic and community development goals.
            (2) Urban communities at risk for obesity, Type II diabetes 
        and other chronic diet related diseases benefit from the access 
        to fresh agricultural products and gardens where good 
        nutritional behavior and healthy food choices are modeled.
            (3) Community and school gardens and other urban 
        agriculture enterprises are entry points for new food system 
        workers and farmers who value healthy food choices.
    (b) Purpose.--To improve food security, address obesity, increase 
access to healthy food and nutrition education in low income areas, 
grow the number of urban agricultural enterprises, community and school 
gardens, and the services provided to them.
    (c) Establishment.--The Secretary, acting through the Natural 
Resources Conservation Service (NRCS) and in cooperation with 
Cooperative State Research, Education and Extension Service (CSREES) 
and other agencies as appropriate, establish an Urban Agriculture 
Production Program which will promote agricultural production capacity 
in metropolitan counties.
    (d) Assistance.--In carrying out this program, the Secretary 
shall--
            (1) provide urban agriculture production grants, provide 
        technical assistance and carry out information and education 
        programs to foster food production in towns and cities; and
            (2) provide a priority for projects seeking to direct fresh 
        produce to food insecure communities and neighborhoods 
        surrounding production sites.
    (e) Funding Amounts.--From amounts made available to carry out this 
section the Secretary shall use $5,000,000 for each of fiscal years 
2008 through 2012 to make grants under this section.
    (f) Eligible Entities.--To be eligible for a grant under subsection 
(b), a private nonprofit entity, must--
            (1) have experience in areas of--
                    (A) planning, constructing and maintaining public 
                community or school gardens; and
                    (B) nonprofit entrepreneurial youth or job skills 
                training in low-income communities;
            (2) demonstrate competency to implement a project, provide 
        fiscal accountability, collect data, and prepare reports and 
        other necessary documentation; and
            (3) demonstrate a willingness to share information with 
        researchers, practitioners, and other interested parties.
    (g) Preference for Certain Projects.--In selecting urban 
agriculture production projects to receive assistance under subsection 
(b), the Secretary shall give a preference to projects designed to--
            (1) develop and strengthen linkages between urban 
        producers, community-based organizations, private businesses, 
        schools and other public institutions and agencies;
            (2) operate in underserved markets and low income 
        neighborhoods; and
            (3) engage with youth, the elderly, and immigrant 
        communities.
    (h) Matching Funds Requirements.--
            (1) Requirements.--The Federal share of the cost of 
        establishing or carrying out a community food project that 
        receives assistance under subsection (b) may not exceed 75 
        percent of the cost of the project during the term of the 
        grant.
            (2) Calculation.--In providing for the non-Federal share of 
        the cost of carrying out a community food project, the entity 
        receiving the grant shall provide for the share through a 
        payment in cash or in kind, fairly evaluated, including 
        facilities, equipment, or services.
            (3) Sources.--An entity may provide for the non-Federal 
        share through State government, local government, or private 
        sources.
    (i) Term of Grant.--
            (1) Single grant.--An urban food project may be supported 
        by only a single grant under subsection (b).
            (2) Term.--The term of a grant under subsection (b) may not 
        exceed 3 years.
    (j) Technical Assistance and Related Information.--In carrying out 
this section, the Secretary may provide technical assistance regarding 
urban food projects, processes, and development to any entity seeking 
the assistance.
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