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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1773 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1773

  To promote local and regional farm and food systems, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            November 1, 2011

Mr. Brown of Ohio (for himself, Mr. Casey, Mrs. Gillibrand, Mr. Leahy, 
  Ms. Mikulski, Mr. Tester, and Mr. Harkin) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
  To promote local and regional farm and food systems, 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 Farms, Food, 
and Jobs Act of 2011''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
             TITLE I--COMMODITY PROGRAMS AND CROP INSURANCE

Sec. 1001. Sense of Congress on removing barriers to domestic 
                            production of fruit and vegetables.
Sec. 1002. Whole farm adjusted revenue risk management insurance plan.
Sec. 1003. Authority to conduct crop insurance-related research and 
                            development in addition to contracting for 
                            research and development.
Sec. 1004. Improved availability of crop insurance for producers of 
                            organic crops.
                         TITLE II--CONSERVATION

Sec. 2001. Definition.
Sec. 2002. Duties of Secretary.
Sec. 2003. Farmland protection program.
Sec. 2004. Purposes.
Sec. 2005. Delivery of technical assistance.
Sec. 2006. Cooperative conservation partnership initiative.
Sec. 2007. Administrative requirements for conservation programs.
                          TITLE III--NUTRITION

Sec. 3001. Electronic benefit transfers.
Sec. 3002. Appropriation to encourage exportation and domestic 
                            consumption of agricultural products.
Sec. 3003. Section 32 funds for purchase of fruits, vegetables, and 
                            nuts to support domestic nutrition 
                            assistance programs.
Sec. 3004. Direct expenditures for agricultural commodities and other 
                            foods.
Sec. 3005. Purchases of locally produced foods.
Sec. 3006. Farmers' market nutrition program.
Sec. 3007. Senior farmers' market nutrition program.
Sec. 3008. Assistance for community food projects.
Sec. 3009. Nutrition education and obesity prevention grant program.
Sec. 3010. Administration.
                            TITLE IV--CREDIT

Sec. 4001. Loans to local and regional food producers.
Sec. 4002. Clarification of the mission of the farm credit system to 
                            recognize the economic benefits of 
                            supporting young, beginning, and small 
                            farmers and ranchers, and contributions of 
                            local and regional farm and food systems.
Sec. 4003. Young, beginning, and small farmers and ranchers and locally 
                            or regionally produced agricultural 
                            products.
Sec. 4004. Government accountability office study examining how well 
                            federal agencies are assessing and meeting 
                            the capital needs of young, beginning, and 
                            small farmers and local and regional farm 
                            and food systems.
                       TITLE V--RURAL DEVELOPMENT

Sec. 5001. Support for local and regional farm and food systems.
Sec. 5002. Value-Added Producer grants.
                           TITLE VI--RESEARCH

Sec. 6001. Agriculture and food research initiative.
Sec. 6002. Local food production and market data initiatives.
Sec. 6003. Under Secretary of Agriculture for Research, Education, and 
                            Economics.
Sec. 6004. Local and regional food system enterprise facilitation.
Sec. 6005. National genetics resources program.
            TITLE VII--HORTICULTURE AND ORGANIC AGRICULTURE

Sec. 7001. Specialty crop block grants.
Sec. 7002. National organic certification cost-share program.
Sec. 7003. Availability of organic certification cost share assistance 
                            and risk management education and community 
                            outreach partnership assistance under the 
                            Federal Crop Insurance Act.
Sec. 7004. Local Marketing Promotion Program.
                   TITLE VIII--POULTRY AND LIVESTOCK

Sec. 8001. Small and very small meat processing plants.
Sec. 8002. Small and very small poultry processing plants.
Sec. 8003. Searchable database of electronically submitted meat and 
                            poultry labels.
Sec. 8004. Meat and poultry processing report.
                        TITLE IX--MISCELLANEOUS

Sec. 9001. National food safety training, education, extension, 
                            outreach, and technical assistance program.
Sec. 9002. Budgetary effects.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

             TITLE I--COMMODITY PROGRAMS AND CROP INSURANCE

SEC. 1001. SENSE OF CONGRESS ON REMOVING BARRIERS TO DOMESTIC 
              PRODUCTION OF FRUIT AND VEGETABLES.

    It is the sense of Congress that--
            (1) Federal commodity and crop insurance programs should 
        not create barriers to the domestic production of fruit and 
        vegetables;
            (2) planting flexibility under Federal commodity programs 
        should be maximized with the goals of--
                    (A) allowing producer choice regarding the planting 
                of agricultural commodities; and
                    (B) increasing the local and regional availability 
                of fresh and minimally processed produce, including to 
                schools and other institutions; and
            (3) crop and revenue insurance products should be made 
        available that are tailored to the needs of diversified farming 
        operations that serve local and regional food markets.

SEC. 1002. WHOLE FARM ADJUSTED REVENUE RISK MANAGEMENT INSURANCE PLAN.

    Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) 
is amended by adding at the end the following:
            ``(11) Whole farm adjusted revenue risk management 
        insurance plan.--
                    ``(A) In general.--The Corporation shall offer a 
                whole farm adjusted revenue risk management insurance 
                plan (in this paragraph referred to as the `plan') that 
                allows a producer to qualify for an indemnity if actual 
                gross farm revenue is below 85 percent of the average 
                gross farm revenue of the producer.
                    ``(B) Availability.--The Corporation shall offer 
                the plan in all States and counties, pending required 
                rating.
                    ``(C) Eligible producers.--The Corporation shall 
                permit producers of any type of agricultural commodity 
                to participate in the plan. Eligible producers include 
                contract growers, direct-to-consumer marketers, and 
                producers servicing local and regional and farm 
                identity-preserved markets. Eligible commodities 
                include specialty crops, industrial crops, poultry, 
                livestock, and aquacultural products.
                    ``(D) Diversification.--The Corporation may provide 
                diversification-based additional coverage payment 
                rates, premium discounts, or other enhanced benefits in 
                recognition of the risk management benefits of 
                diversification strategies regarding production of 
                eligible commodities.
                    ``(E) Market readiness.--The Corporation shall 
                include coverage for the value of any packing, 
                packaging, or labeling, washing, grain drying, or any 
                other similar on-farm activities the Corporation 
                determines to be the minimum required in order to sell 
                an agricultural commodity.''.

SEC. 1003. AUTHORITY TO CONDUCT CROP INSURANCE-RELATED RESEARCH AND 
              DEVELOPMENT IN ADDITION TO CONTRACTING FOR RESEARCH AND 
              DEVELOPMENT.

    (a) Conducting Research and Development.--Section 522(c) of the 
Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended--
            (1) in the subsection heading, by striking ``Contracting'';
            (2) in paragraph (1), in the matter preceding paragraph 
        (A), by striking ``enter into contracts to carry out research 
        and development to'' and inserting ``conduct activities or 
        enter into contracts to carry out research and development to 
        maintain or improve existing policies or develop new policies 
        to'';
            (3) in paragraph (2)--
                    (A) in subparagraph (A), by inserting ``conduct 
                research and development or'' after ``The Corporation 
                may''; and
                    (B) in subparagraph (B), by inserting ``conducting 
                research and development or'' after ``Before''; and
            (4) in paragraph (5), by inserting ``after expert review in 
        accordance with section 505(e)'' after ``approved by the 
        Board''.
    (b) Funding.--Section 522(e) of the Federal Crop Insurance Act (7 
U.S.C. 1522(e)) is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading, by striking 
                ``Contracting'' and inserting ``Research and 
                development and partnerships'';
                    (B) in subparagraph (A), by inserting ``conduct 
                research and development and'' after ``the Corporation 
                may use to''; and
                    (C) in subparagraph (B), by inserting ``conduct 
                research and development and'' after ``for the fiscal 
                year to'';
            (2) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``to provide either reimbursement payments or 
        contract payments under this section for a fiscal year is not 
        needed for such purposes'' and inserting ``for a fiscal year is 
        not needed for the purposes for which the amount was made 
        available''; and
            (3) by striking paragraph (4).

SEC. 1004. IMPROVED AVAILABILITY OF CROP INSURANCE FOR PRODUCERS OF 
              ORGANIC CROPS.

    (a) Elimination of Organic Premium Surcharge.--Section 508(d) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended by adding 
at the end the following new paragraph:
            ``(4) Elimination of organic premium surcharge.--Effective 
        beginning with the 2013 reinsurance year, the Corporation may 
        not require any producer to pay a premium surcharge for 
        insuring crops produced in compliance with standards issued by 
        the Department of Agriculture under the national organic 
        program established under the Organic Foods Production Act of 
        1990 (7 U.S.C. 6501 et seq.).''.
    (b) Completion of Development of Organic Price Series.--Section 
508(c)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(6)) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Organic crops.--
                            ``(i) In general.--As quickly as possible, 
                        but in no event later than the 2015 reinsurance 
                        year, the Corporation shall offer producers of 
                        organic crops price elections for all organic 
                        crops produced in compliance with standards 
                        issued by the Department of Agriculture under 
                        the national organic program established under 
                        the Organic Foods Production Act of 1990 (7 
                        U.S.C. 6501 et seq.) that reflect the actual 
                        retail or wholesale prices, as appropriate, 
                        received by producers for organic crops, as 
                        determined by the Secretary using all relevant 
                        sources of information.
                            ``(ii) Annual report.--The Corporation 
                        shall submit to the Committee on Agriculture of 
                        the House of Representatives and the Committee 
                        on Agriculture, Nutrition, and Forestry of the 
                        Senate an annual report on progress made in 
                        developing and improving Federal crop insurance 
                        for organic crops, including--
                                    ``(I) the numbers and varieties of 
                                organic crops insured;
                                    ``(II) the progress of implementing 
                                the price elections required under this 
                                subparagraph, including the rate at 
                                which additional price elections are 
                                adopted for organic crops;
                                    ``(III) the development of new 
                                insurance approaches relevant to 
                                organic producers; and
                                    ``(IV) any recommendations the 
                                Corporation considers appropriate to 
                                improve Federal crop insurance coverage 
                                for organic crops.''.
    (c) Repeal of Required Contracts for Organic Production Coverage 
Improvements.--Section 522(b) of the Federal Crop Insurance Act (7 
U.S.C. 1522(b)) is amended by striking paragraph (10).

                         TITLE II--CONSERVATION

SEC. 2001. DEFINITION.

    Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
3801(a)) is amended by redesignating paragraphs (18) through (27) as 
paragraphs (19) through (28), respectively, and inserting after 
paragraph (17) the following new paragraph:
            ``(18) Local and regional food.--The term `local and 
        regional food' means `locally or regionally produced 
        agricultural food product', as that term is defined in section 
        310B(g)(9) of the Consolidated Farm and Rural Development Act 
        (7 U.S.C. 1932(g)(9)).''.

SEC. 2002. DUTIES OF SECRETARY.

    Section 1238G(c) of the Food Security Act of 1985 (16 U.S.C. 
3838g(c)) is amended as follows:
            (1) In the header, by striking ``Specialty Crop and Organic 
        Producers'' and inserting ``Specialty Crop, Organic, and Local 
        and Regional Food Producers''.
            (2) By striking ``specialty crop and organic producers'' 
        and inserting ``specialty crop, organic, and local and regional 
        food producers''.

SEC. 2003. FARMLAND PROTECTION PROGRAM.

    Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is 
amended as follows:
            (1) In subsection (b), by inserting ``to promote farm 
        viability for future generations and, to the maximum extent 
        practicable, enhance the viability of local and regional food 
        systems'' before the period.
            (2) In subsection (g), by adding at the end the following 
        new paragraph:
            ``(6) Funding priority.--
                    ``(A) In general.--An agreement under this 
                subsection shall require an eligible entity to provide 
                a funding priority, to the maximum extent practicable, 
                for--
                            ``(i) eligible land for which there exists 
                        a farm or ranch succession plan or similar plan 
                        established to create opportunities for 
                        beginning farmers and ranchers and encourage 
                        farm viability for future generations;
                            ``(ii) conservation easements that include 
                        an option to purchase at a price that is equal 
                        to the agricultural use value;
                            ``(iii) qualified beginning farmers or 
                        ranchers with contracts to purchase the land to 
                        be protected;
                            ``(iv) land owned by a nongovernmental 
                        organization that will be sold to a qualified 
                        beginning farmer or rancher;
                            ``(v) conservation easements the purchasing 
                        of which occurs in conjunction with a transfer 
                        of eligible land to a qualified beginning 
                        farmer or rancher that may not occur without 
                        the financial assistance of the program; and
                            ``(vi) other similar mechanisms to maintain 
                        the affordability of farm and ranch land for 
                        successive generations of farmers and ranchers.
                    ``(B) Definition.--For the purposes of this 
                paragraph, the term `qualified beginning farmer or 
                rancher' has the meaning given that term in section 
                343(a) of the Consolidated Farm and Rural Development 
                Act (7 U.S.C. 1991(a)).''.

SEC. 2004. PURPOSES.

    Section 1240(4) of the Food Security Act of 1985 (16 U.S.C. 
3839aa(4)) is amended by inserting ``or local and regional food'' after 
``related to organic''.

SEC. 2005. DELIVERY OF TECHNICAL ASSISTANCE.

    Section 1242(i) of the Food Security Act of 1985 (16 U.S.C. 
3842(i)) is amended--
            (1) in the header, by inserting ``Local and Regional 
        Food,'' after ``Organic,'';
            (2) in paragraph (1)(A), by inserting ``local and regional 
        food production,'' after ``organic crop production,'';
            (3) in paragraph (1)(B), by striking ``organic or specialty 
        crop production'' and inserting ``organic, specialty crop, or 
        local and regional production'';
            (4) in paragraph (2)(A), by striking ``or precision 
        agriculture through'' and inserting ``precision agriculture, or 
        local and regional food production, through''; and
            (5) in paragraph (2)(B)(i), by striking ``or precision 
        agriculture through'' and inserting ``precision agriculture, or 
        local and regional food production, through''.

SEC. 2006. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    Section 1243(b)(4) of the Food Security Act of 1985 (16 U.S.C. 
3843(b)(4)) is amended by striking ``specialty crop and organic 
production and precision agriculture producers'' and inserting 
``specialty crop, organic, and local and regional food production, and 
precision agriculture producers''.

SEC. 2007. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    Section 1244(a)(2) of the Food Security Act of 1985 (16 U.S.C. 
3844(a)(2)) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Local and regional food producers.''.

                          TITLE III--NUTRITION

SEC. 3001. ELECTRONIC BENEFIT TRANSFERS.

    Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (A) through (D) 
                as subparagraphs (B) through (E), respectively;
                    (B) by inserting before subparagraph (B) (as so 
                redesignated) the following:
                    ``(A) Definitions.--In this subsection:
                            ``(i) Buying club.--The term `buying club' 
                        means a group of consumers who join together to 
                        purchase in bulk from agricultural producers or 
                        food distributors.
                            ``(ii) Community-supported agriculture 
                        program.--The term `community-supported 
                        agriculture program' or `CSA' means a farm 
                        business or a group of agricultural producers 
                        that form a partnership with consumers through 
                        which consumers buy a subscription for farm 
                        products in advance and the farm business or 
                        group of agricultural producers commits to 
                        supplying and delivering the products to a 
                        common distribution point or directly to the 
                        consumers.
                            ``(iii) Community-supported fishery 
                        program.--The term `community-supported fishery 
                        program' or `CSF' means fishing business or a 
                        group of fishermen that form a partnership with 
                        consumers through which consumers buy a 
                        subscription for seafood in advance and the 
                        fishing business or group of fishermen commits 
                        to supplying and delivering the seafood to a 
                        common distribution point or directly to the 
                        consumers.
                            ``(iv) Farmers' market.--The term `farmers' 
                        market' means a regularly scheduled assembly of 
                        2 or more agricultural producers for the direct 
                        sale of locally grown fresh fruits and 
                        vegetables and other staple foods to consumers.
                            ``(v) Farm stand; roadside stand.--
                                    ``(I) In general.--The terms `farm 
                                stand' and `roadside stand' mean a 
                                retail outlet for the direct sale of 
                                locally grown fresh fruits and 
                                vegetables and other staple foods in 
                                rural or urban areas.
                                    ``(II) Inclusion.--The terms `farm 
                                stand' and `roadside stand' may include 
                                a single stall in a farmers' market.
                            ``(vi) Green cart.--The term `green cart' 
                        means a mobile retail food vendor who sells 
                        fresh fruits and vegetables on a regular basis 
                        from an unmotorized cart.
                            ``(vii) Route vendor.--
                                    ``(I) In general.--The term `route 
                                vendor' means a mobile retail food 
                                vendor who sells unprepared food from a 
                                vehicle directly to consumers along a 
                                scheduled route or by arranged 
                                delivery.
                                    ``(II) Inclusion.--The term `route 
                                vendor' includes vendors who provide 
                                food services in disaster or other 
                                emergency situations.
                            ``(viii) Wireless retailer.--The term 
                        `wireless retailer' includes--
                                    ``(I) a farmers' market;
                                    ``(II) a farm stand;
                                    ``(III) a green cart;
                                    ``(IV) a route vendor;
                                    ``(V) a buying club;
                                    ``(VI) an entity operating a 
                                community-supported agriculture 
                                program;
                                    ``(VII) an entity operating a 
                                community-supported fishery program; 
                                and
                                    ``(VIII) an individual farmer 
                                affiliated with an entity described in 
                                any of subclauses (I) through (VII).'';
                    (C) in subparagraph (C) (as so redesignated) by 
                striking ``subparagraph (A)'' and inserting 
                ``subparagraph (B)'';
                    (D) in clause (i) of subparagraph (E) (as so 
                redesignated), by inserting ``, including wireless 
                technology'' before the semicolon at the end; and
                    (E) by adding at the end the following:
                    ``(F) State flexibility for wireless electronic 
                benefit systems.--Subject to paragraph (2), a State 
                agency may--
                            ``(i) procure and implement any wireless 
                        electronic benefit transfer (referred to in 
                        this subsection as `EBT') system that the State 
                        agency considers to be appropriate and that 
                        meets all industry security standards; and
                            ``(ii) use appropriate wireless technology 
                        available to the State agency in implementing 
                        the wireless electronic benefit transfer 
                        system, including smart phone technology and 
                        other technologies, so long as the technologies 
                        meet all industry security standards.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (G), by striking ``and'' at the 
                end;
                    (B) in subparagraph (H), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(I) a requirement that, for purposes of program 
                participation, State agencies and the Food and 
                Nutrition Service treat wireless retailers in the same 
                manner as retail food stores that use wired electronic 
                benefit transfer equipment by providing the retail food 
                stores with wireless electronic benefit transfer 
                equipment that ensures immediate benefit account 
                verification;
                    ``(J) a system for wireless retail food stores to 
                receive funds in an amount not to exceed the cost of a 
                wireless point-of-sale terminal if alternative wireless 
                technology is used; and
                    ``(K) the potential for entering into a contract or 
                memoranda of understanding with a statewide nonprofit 
                organization, such as a statewide farmers' market 
                association, to assist the State agency by providing 
                outreach, training, and administration in wireless 
                electronic benefit transfer equipment deployment at 
                multiple-vendor farmers' markets, particularly in cases 
                in which scrip (such as farmers' market tokens) is used 
                to simplify program participation by agricultural 
                producers and vendors.'';
            (3) in paragraph (3)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) in the case of wireless retailers, 
                        the wireless retailer makes wireless electronic 
                        benefit and wireless EBT connection services 
                        available to all customers.'';
            (4) in paragraph (5), by inserting before the period at the 
        end ``, including wireless electronic benefit systems that 
        enable all wireless retailers to provide for improved access to 
        nutritious foods in areas lacking such access, and in disaster-
        recovery situations'';
            (5) by redesignating the second paragraph (12) (relating to 
        interchange fees) as paragraph (13); and
            (6) by adding at the end the following:
            ``(14) Non-ebt transactions.--Wireless EBT equipment 
        provided to an authorized retailer may be used for non-EBT 
        transactions (such as credit and debit card transactions) only 
        if the retailer bears all costs associated with those non-EBT 
        transactions.
            ``(15) Wireless retailer ebt pilot program for smartphone 
        technology.--
                    ``(A) Establishment.--The Secretary shall establish 
                a wireless retailer EBT pilot program that shall 
                operate in a minimum of 2 States for a minimum of 2 
                years in each State--
                            ``(i) to explore EBT smartphone technology; 
                        and
                            ``(ii) to test the use of EBT technology in 
                        accepting benefits for multiple nutrition 
                        assistance programs.
                    ``(B) Purposes.--The purposes of the EBT pilot 
                program are--
                            ``(i) to evaluate the opportunities and 
                        challenges faced by wireless retailers in using 
                        smartphone technology to process EBT 
                        transactions; and
                            ``(ii) to develop technology, software, and 
                        machinery that allows wireless retailers to 
                        redeem EBT benefits for multiple nutrition 
                        assistance programs including--
                                    ``(I) the supplemental nutrition 
                                assistance program established under 
                                the Food and Nutrition Act of 2008 (7 
                                U.S.C. 2011 et seq.);
                                    ``(II) the farmers' market 
                                nutrition program established under 
                                section 17(m) of the Child Nutrition 
                                Act of 1966 (42 U.S.C. 1786(m));
                                    ``(III) the seniors farmers' market 
                                nutrition program established under 
                                section 4402 of the Farm Security and 
                                Rural Investment Act of 2002 (7 U.S.C. 
                                3007);
                                    ``(IV) the special supplemental 
                                nutrition program for women, infants, 
                                and children established by section 17 
                                of the Child Nutrition Act of 1966 (42 
                                U.S.C. 1786); and
                                    ``(V) other Federal nutrition 
                                assistance programs for low-income 
                                individuals that adopt an electronic 
                                benefit transfer system.
                    ``(C) Limitation on administrative expenses.--For 
                each fiscal year, not more than 10 percent of the 
                amounts made available to carry out this paragraph may 
                be used for administrative expenses.
                    ``(D) Funding.--On October 1, 2012, of the funds of 
                the Commodity Credit Corporation, the Secretary shall 
                make available to carry out this paragraph $2,000,000, 
                to remain available until expended.''.

SEC. 3002. APPROPRIATION TO ENCOURAGE EXPORTATION AND DOMESTIC 
              CONSUMPTION OF AGRICULTURAL PRODUCTS.

    Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) is amended 
in the second sentence--
            (1) in paragraph (2), by striking ``; and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following: ``(4) 
        support development of local and regional agricultural markets 
        in the United States by encouraging domestic consumption of 
        locally and regionally grown and raised commodities or products 
        in the manner described in paragraph (2).''

SEC. 3003. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND 
              NUTS TO SUPPORT DOMESTIC NUTRITION ASSISTANCE PROGRAMS.

    (a) Purchase of Locally and Regionally Produced Foods.--Section 
4404 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 612c-
5) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) Purchase of Locally and Regionally Produced Foods.--In 
carrying out this section, the Secretary shall--
            ``(1) encourage the purchase of unprocessed or minimally 
        processed locally and regionally grown fruits, vegetables, and 
        nuts; and
            ``(2) allow the use of geographical preference for the 
        procurement of unprocessed or minimally processed locally and 
        regionally grown fruits, vegetables, and nuts.''.
    (b) Purchase of Fresh Fruits and Vegetables for Distribution to 
Schools and Service Institutions.--Section 10603(b) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 612c-4(b)) is 
amended--
            (1) by striking ``The Secretary'' and inserting ``(1) In 
        general.--The Secretary'';
            (2) in paragraph (1) (as so designated), by striking ``2008 
        through 2012'' and inserting ``2013 through 2017''; and
            (3) by adding at the end the following:
            ``(2) Department of defense program option.--A school or 
        service institution described in paragraph (1) may carry out 
        this section by--
                    ``(A) electing to participate in the Department of 
                Defense fresh fruit and vegetable distribution program;
                    ``(B) under such terms and conditions as the 
                Secretary shall establish, purchasing locally and 
                regionally grown fruits and vegetables with amounts 
                that would have been used by the school or service 
                institution to participate in the Department of Defense 
                fresh fruit and vegetable distribution program; or
                    ``(C) carrying out a combination of the activities 
                described in subparagraphs (A) and (B).''.

SEC. 3004. DIRECT EXPENDITURES FOR AGRICULTURAL COMMODITIES AND OTHER 
              FOODS.

    Section 6 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1755) is amended by adding at the end the following:
    ``(f) Local Food Credit Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Local food credit.--The term `local food 
                credit' means cash, letters of credit, or another form 
                of assistance, as determined by the Secretary.
                    ``(B) Participating school authority.--The term 
                `participating school authority' means a school food 
                authority that--
                            ``(i) participates in the school lunch 
                        program under this Act; and
                            ``(ii) elects to participate in the local 
                        food credit program under this subsection.
                    ``(C) Participating state agency.--The term 
                `participating State agency' means a State agency 
                that--
                            ``(i) participates in the school lunch 
                        program under this Act; and
                            ``(ii) elects to participate in the local 
                        food credit program under this subsection.
            ``(2) Establishment.--Beginning for the 2013-2014 school 
        year and for each subsequent school year, the Secretary shall 
        provide a grant to each participating State agency to provide 
        each participating school food authority under the jurisdiction 
        of that State agency with local food credits in an amount equal 
        to not more than 15 percent of the total value of the commodity 
        assistance or cash payments the State authority is eligible to 
        receive under subsection (c)(2) for that school year in lieu of 
        the commodity assistance or cash payments.
            ``(3) Requirements.--As a condition of receiving a grant 
        under this subsection, each participating school food authority 
        shall--
                    ``(A) use local food credits received under this 
                subsection to purchase unprocessed or minimally 
                processed locally grown and locally raised foods to be 
                served under the school lunch program in schools under 
                the jurisdiction of the authority;
                    ``(B) keep records of any purchases made with the 
                assistance; and
                    ``(C) provide the records to the Secretary in such 
                manner and such form as the Secretary determines to be 
                necessary.
            ``(4) Prepurchasing.--A participating school food authority 
        may use a local food credit received under this subsection in a 
        school year to purchase local foods to serve under the school 
        lunch program during the following school year.
            ``(5) Minimum commodity purchases.--The amount of a grant 
        made under this subsection for a school year shall count toward 
        the minimum commodity assistance requirements of subsection 
        (c)(2) for that school year.''.

SEC. 3005. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9(j) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(j)) is amended--
            (1) in paragraph (1), by inserting ``and minimally 
        processed'' before ``agricultural products'';
            (2) in paragraph (2), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (3)--
                    (A) by inserting ``and the Agricultural Marketing 
                Service'' before ``, to use a'';
                    (B) by inserting ``and minimally processed'' before 
                ``agricultural products''; and
                    (C) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following:
            ``(4) promulgate regulations to clarify that, when using a 
        geographical preference for the procurement of unprocessed and 
        minimally processed agricultural products under paragraph (3), 
        the Secretary and the institutions described in that paragraph 
        may, notwithstanding any other provision of law, select 
        agricultural products solely from among those agricultural 
        products that qualify for the geographical preference.''.

SEC. 3006. FARMERS' MARKET NUTRITION PROGRAM.

    Section 17(m) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)) is amended--
            (1) in paragraph (1), by inserting ``and through community-
        supported agriculture programs'' after ``roadside stands'';
            (2) in paragraph (5)--
                    (A) in subparagraph (D)(ii), by inserting ``, 
                roadside stands, and community-supported agriculture 
                programs'' after ``farmers' markets''; and
                    (B) in subparagraph (F)(ii), by inserting ``, 
                roadside stands, and community-supported agriculture 
                programs'' after ``farmers' markets'' each place it 
                appears;
            (3) in paragraph (6)(C)(ii)(II), by inserting ``, roadside 
        stands, and community-supported agriculture programs'' after 
        ``farmers' markets''; and
            (4) in paragraph (9)(A), by striking ``2015'' and inserting 
        ``2017''.

SEC. 3007. 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)--
                    (A) by striking ``$20,600,000'' and inserting 
                ``$25,000,000'';
                    (B) by striking ``2008'' and inserting ``2013''; 
                and
                    (C) by striking ``2012'' and inserting ``2017''; 
                and
            (2) in subsection (b)(1), by inserting ``maple syrup,'' 
        after ``honey,''.

SEC. 3008. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is 
amended--
            (1) in subsection (b)(2)(B)--
                    (A) by striking ``$5,000,000'' and inserting 
                ``$10,000,000''; and
                    (B) by striking ``2008'' and inserting ``2013''; 
                and
            (2) in subsection (f)(2), by striking ``3'' and inserting 
        ``5''.

SEC. 3009. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT PROGRAM.

    Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a) 
is amended--
            (1) in subsection (b)--
                    (A) by striking ``Consistent with'' and inserting 
                the following:
            ``(1) In general.--Consistent with''; and
                    (B) by adding at the end the following:
            ``(2) Contents.--In carrying out a nutrition education and 
        obesity prevention program under this section, State agencies 
        are encouraged to use as venues direct marketing outlets, 
        including farmers' markets, community-supported agriculture 
        programs, community-supported fishery programs, and farm and 
        roadside stands.''; and
            (2) in subsection (c)(3)(A)--
                    (A) in clause (ii), by striking ``and'' after the 
                semicolon;
                    (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iv) financial incentives to low-income 
                        groups to encourage consumption of healthy 
                        foods.''.

SEC. 3010. ADMINISTRATION.

    Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(1)) is amended by inserting ``, which the State agency may 
carry out through contracts with farmers' markets and farmers' market 
organizations at 100 percent Federal cost, subject to the condition 
that the contracted farmers' markets and farmers' market organizations 
comply with the State plan under this subsection'' before the semicolon 
at the end.

                            TITLE IV--CREDIT

SEC. 4001. LOANS TO LOCAL AND REGIONAL FOOD PRODUCERS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008u) is amended by inserting after section 333C the 
following:

``SEC. 333D. LOANS TO LOCAL AND REGIONAL FOOD PRODUCERS.

    ``(a) In General.--The Secretary shall make and guarantee loans 
under this title to eligible producers for the production of locally or 
regionally produced agricultural food products (as defined in section 
310B(g)(10) of this Act), including qualified producers engaged in 
direct-to-consumer marketing, direct-to-institution marketing, or 
direct-to-store marketing, businesses or activities that produce a 
value-added agricultural product (as defined in section 231(a)(5) of 
the Agricultural Risk Protection Act of 2000), mid-tier value chains 
(as defined in section 231(a)(3) of such Act of 2000), and other local 
and regional market outlets.
    ``(b) Training.--The Secretary shall ensure that loan officers 
receive appropriate training to serve borrowers and potential borrowers 
engaged in local and regional food production.
    ``(c) Valuation.--The Secretary shall develop ways to determine 
unit prices (or other appropriate forms of valuation) for crops whose 
end use is intended to be in locally or regionally produced 
agricultural food products (as so defined) to facilitate lending to 
local and regional food producers. In addition, the Secretary shall 
implement a mechanism for the producers to establish their price 
history for the crops.
    ``(d) Outreach.--The Secretary shall develop and implement an 
outreach strategy to engage and provide loan services to local and 
regional food producers.''.

SEC. 4002. CLARIFICATION OF THE MISSION OF THE FARM CREDIT SYSTEM TO 
              RECOGNIZE THE ECONOMIC BENEFITS OF SUPPORTING YOUNG, 
              BEGINNING, AND SMALL FARMERS AND RANCHERS, AND 
              CONTRIBUTIONS OF LOCAL AND REGIONAL FARM AND FOOD 
              SYSTEMS.

    Section 1.1 of the Farm Credit Act of 1971 (12 U.S.C. 2001) is 
amended by adding at the end the following:
    ``(d) Recognizing that the vitality of United States agriculture 
and rural communities depends on the continued entry of young, 
beginning, and small farmers and ranchers into agriculture, many of 
whom will operate farms with local and regional food product 
distribution, it is declared to be the policy of the Congress and an 
objective of this Act that the Farm Credit System should endeavor to 
serve the credit and related needs of these individuals and the 
businesses on which they rely and that are necessary to the growth and 
vitality of local and regional farm and food systems.''.

SEC. 4003. YOUNG, BEGINNING, AND SMALL FARMERS AND RANCHERS AND LOCALLY 
              OR REGIONALLY PRODUCED AGRICULTURAL PRODUCTS.

    (a) Credit for Young, Beginning, and Small Farmers.--Section 
4.19(a) of the Farm Credit Act of 1971 (12 U.S.C. 2207(a)) is amended--
            (1) in the 1st sentence by inserting ``and for the 
        production of locally or regionally produced agricultural food 
        products (as defined in section 310B(g)(10)(A) of the 
        Consolidated Farm and Rural Development Act)'' before the 
        period; and
            (2) by inserting after the 2nd sentence the following: 
        ``Each such program shall include initiatives and may include 
        grants to support current and future borrowers by helping to 
        organize, build, expand, or improve infrastructure and markets 
        for locally or regionally produced agricultural food products 
        (as so defined).''.
    (b) Section 4.19 of such Act (12 U.S.C. 2207(b)) is amended by 
adding at the end the following:
    ``(c) The Farm Credit Administration shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate an annual report 
that contains a summary and analysis of the operations and achievements 
of the Farm Credit System as a whole in meeting the objectives of this 
section. The Farm Credit Administration shall notify the Congress 
whenever a program is out of compliance with this section, and indicate 
in the notice the steps the Farm Credit Administration is taking in 
response.''.

SEC. 4004. GOVERNMENT ACCOUNTABILITY OFFICE STUDY EXAMINING HOW WELL 
              FEDERAL AGENCIES ARE ASSESSING AND MEETING THE CAPITAL 
              NEEDS OF YOUNG, BEGINNING, AND SMALL FARMERS AND LOCAL 
              AND REGIONAL FARM AND FOOD SYSTEMS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study evaluating how the needs of young, beginning, and small 
farmers and local and regional farm and food systems, and how their 
credit needs are being assessed and met by the Farm Credit System, the 
Department of Agriculture, the Department of the Treasury, and any 
other Federal agencies.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this section, the Comptroller General shall prepare and 
submit to the Congress a report containing the findings and conclusions 
made in the study required by subsection (a). The report shall 
address--
            (1) the cost and availability of credit and other 
        assistance (including technical assistance) provided through 
        programs of the Farm Credit System, the Department of 
        Agriculture, and other Federal Government financial resources; 
        and
            (2) programs, including those that serve historically 
        underserved populations including beginning and young farmers, 
        small and medium-sized farms and ranches, minorities and the 
        socially disadvantaged, producers or harvesters of aquatic 
        products, businesses, and other entities, that are necessary to 
        the growth and vitality of local and regional farm and food 
        systems, including aggregation, processing, storage, 
        distribution, and marketing.

                       TITLE V--RURAL DEVELOPMENT

SEC. 5001. SUPPORT FOR LOCAL AND REGIONAL FARM AND FOOD SYSTEMS.

    (a) Rural Business Opportunity Grants.--Section 306(a)(11) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(11)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (iv), by striking ``and'' at the end;
                    (B) in clause (v), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(vi) to redevelop a local or regional 
                        farm or food system, including a poultry or 
                        livestock processing facility.'';
            (2) in subparagraph (C), by striking ``Cooperative State 
        Research, Education, and Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''; and
            (3) in subparagraph (D), by striking ``2008 through 2012'' 
        and inserting ``2013 through 2017''.
    (b) Community Facilities Grants.--Section 306(a)(19) of such Act (7 
U.S.C. 1926(a)(19)) is amended by adding at the end the following:
                    ``(D) Eligibility for local and regional food 
                system facilities.--The Secretary may make a grant 
                under this paragraph or paragraph (20) or (21) for a 
                community or nonprofit local and regional food system 
                facility, including a community kitchen, incubator, 
                farm store, farmers' market store, distribution center 
                or service, and a related facility.''.
    (c) Loan Guarantees for Water, Wastewater, and Essential Community 
Facilities Loans.--Section 306(a)(24) of such Act (7 U.S.C. 
1926(a)(24)) is amended by adding at the end the following:
                    ``(C) Eligibility for local and regional food 
                system facilities.--The Secretary may guarantee a loan 
                under this paragraph for a community or nonprofit local 
                and regional food system facility, including community 
                a kitchens, incubator, farm store, farmers' market 
                store, distribution center or service, and a related 
                facility.''.
    (d) Business and Industry Local Food System Set-Aside.--
            (1) Rural business enterprise grants.--Section 
        310B(c)(1)(B)(ii) of such Act (7 U.S.C. 1932(c)(1)(B)(ii)) is 
        amended to read as follows:
                            ``(ii) Use of grant.--An eligible nonprofit 
                        entity, or other tax exempt organization, 
                        described in clause (i) may use assistance 
                        provided under this paragraph to create, 
                        expand, or operate--
                                    ``(I) value-added processing in an 
                                area described in clause (i) in 
                                connection with production agriculture; 
                                or
                                    ``(II) a local or regional farm or 
                                food-based enterprise, including a meat 
                                or poultry processing facility.''.
            (2) Business and industry direct and guaranteed loans.--
        Section 310B(g) of such Act (7 U.S.C. 1932(g)) is amended--
                    (A) by redesignating paragraphs (5) through (9) as 
                paragraphs (6) through (10), respectively; and 
                inserting after paragraph (4) the following:
            ``(5) Timing of guaranteed loans.--The Secretary shall 
        approve a loan guarantee under this subsection before or at the 
        same time as the loan being guaranteed is made.'';
                    (B) in paragraph (10)(B) (as so redesignated)--
                            (i) by redesignating clauses (iv) and (v) 
                        as clauses (vii) and (viii), respectively, and 
                        inserting after clause (iii) the following:
                            ``(iv) Guarantee percentage; authority to 
                        waive guarantee fee.--The Secretary may provide 
                        a 90 percent guarantee, and may waive or reduce 
                        any guarantee loan fee that would otherwise be 
                        imposed, under this subparagraph for a small-
                        scale project and for a project located in a 
                        community with low or declining population, low 
                        income levels, or low food access, as 
                        determined by the Secretary.
                            ``(v) Loan and loan guarantees in nonrural 
                        areas.--
                                    ``(I) In general.--The Secretary 
                                may make or guarantee a business and 
                                industry loan for a facility that is 
                                not located in a rural area if the 
                                primary purpose of the loan or loan 
                                guarantee is for a facility to process, 
                                distribute, aggregate, store, or market 
                                locally or regionally produced 
                                agricultural food products in a manner 
                                that benefits agricultural producers 
                                and provides employment for residents 
                                of a rural area.
                                    ``(II) Retail.--The Secretary may 
                                make or guarantee a business and 
                                industry loan for a rural or nonrural 
                                retail facility that provides access to 
                                locally or regionally produced 
                                agricultural products if the facility--
                                            ``(aa) operates under a 
                                        written policy that provides a 
                                        clear preference for the 
                                        products and demonstrates that 
                                        a substantial portion of its 
                                        business is or will be 
                                        marketing the products; and
                                            ``(bb) demonstrates that 
                                        the facility has written 
                                        agreements or will obtain 
                                        written agreements with 
                                        agricultural producers, 
                                        agricultural producer groups, 
                                        farmer or rancher cooperatives, 
                                        or majority-controlled 
                                        producer-based business 
                                        ventures on marketing 
                                        strategies that will increase 
                                        the profitability and 
                                        competitiveness of farmers and 
                                        ranchers growing for the local 
                                        or regional market.
                            ``(vi) Outreach.--The Secretary shall 
                        develop and implement an outreach plan to 
                        publicize the availability of loans and loan 
                        guarantees under this paragraph, working 
                        closely with rural cooperative development 
                        centers, credit unions, community development 
                        financial institutions, regional economic 
                        development authorities, and other financial 
                        and economic development entities.'';
                    (C) in clause (vii) (as so redesignated)--
                            (i) by inserting ``, and publish on the 
                        internet,'' after ``Senate''; and
                            (ii) by redesignating subclauses (I) and 
                        (II) as subclauses (II) and (III), 
                        respectively, and inserting before subclause 
                        (II) (as so redesignated), the following:
                                    ``(I) summary information about all 
                                projects;''; and
                    (D) in clause (viii) (as so redesignated)--
                            (i) by striking subclause (I) and inserting 
                        the following:
                                    ``(I) In general.--For each of 
                                fiscal years 2013 through 2017, the 
                                Secretary shall reserve not less than 
                                10 percent of the loan and loan 
                                guarantee funds made available to carry 
                                out this subsection, to carry out this 
                                subparagraph.''; and
                            (ii) by adding at the end the following:
                                    ``(III) Use of reserved funds.--The 
                                Secretary may use a portion of the 
                                funds reserved under subclause (I) for 
                                technical assistance, which may include 
                                market research and feasibility 
                                studies.''.

SEC. 5002. VALUE-ADDED PRODUCER GRANTS.

    Section 231 of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1632a) is amended--
            (1) in subsection (a)(3), by inserting ``, including those 
        that operate through centralized food distribution systems that 
        coordinate agricultural production and the aggregation, 
        storage, processing, distribution, and marketing of locally or 
        regionally produced agricultural products,'' after 
        ``networks''; and
            (2) in subsection (b)--
                    (A) by striking paragraph (6) and inserting the 
                following:
            ``(6) Priority.--
                    ``(A) In general.--In awarding grants under this 
                subsection, the Secretary shall give priority to 
                projects that--
                            ``(i) contribute to increasing 
                        opportunities for operators of small- and 
                        medium-sized farms and ranches that are 
                        structured as a family farm; and
                            ``(ii) have applicants at least \1/4\ of 
                        whom are beginning farmers and ranchers or 
                        socially disadvantaged farmers and ranchers.
                    ``(B) Ranking.--In evaluating and ranking proposals 
                under this subsection, the Secretary shall give very 
                substantial weight to the priorities described in 
                subparagraph (A).'';
                    (B) by redesignating paragraph (7) as paragraph (8) 
                and inserting after paragraph (6) the following:
            ``(7) Outreach and technical assistance.--The Secretary 
        shall develop and implement an outreach and technical 
        assistance strategy to help the program established by this 
        section reach and serve underserved States and communities.''; 
        and
                    (C) in paragraph (8) (as so redesignated)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Mandatory funding.--On October 1, 2002, and 
                each October 1 thereafter through October 1, 2016, of 
                the funds of the Commodity Credit Corporation, the 
                Secretary shall make available to carry out this 
                subsection $30,000,000, to remain available until 
                expended.'';
                            (ii) in subparagraph (B), by striking 
                        ``2008 through 2012'' and inserting ``2013 
                        through 2017''; and
                            (iii) in subparagraph (C)--
                                    (I) in clause (i), by striking 
                                ``benefit'' and inserting ``have 
                                applicants \1/4\ of whom are''; and
                                    (II) in clause (iii), by striking 
                                ``June 30 of the fiscal year'' and 
                                inserting ``the close of the annual 
                                proposal review process''.

                           TITLE VI--RESEARCH

SEC. 6001. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

    Section 2(b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)) is amended--
            (1) in paragraph (2)(F)--
                    (A) in clause (v), by striking ``and'';
                    (B) in clause (vi), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(vii) new approaches to advance systems 
                        that enhance markets and policy for locally or 
                        regionally produced agricultural food products, 
                        as defined in section 310B(g)(9)(A) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1932(g)(9)(A)).'';
            (2) in paragraph (5)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``teams; 
                        and'' inserting ``teams to any eligible entity 
                        listed under paragraph (7)''; and
                            (ii) by adding at the end the following:
                            ``(iii) not less than 5 percent is made 
                        available to make grants for research on 
                        conventional plant and animal breeding as 
                        described in paragraph (2); and''; and
                    (B) in subparagraph (B), by inserting ``to any 
                eligible entity listed under paragraph (7)'' before the 
                period at the end; and
            (3) in paragraph (11)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``2008 through 2012'' and inserting ``2013 through 
                2017''; and
                    (B) in clause (i), by striking ``pursuant to'' and 
                inserting ``as described in''.

SEC. 6002. LOCAL FOOD PRODUCTION AND MARKET DATA INITIATIVES.

    (a) In General.--Section 251 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6971) is amended by adding at the 
end the following:
    ``(h) Local Food Production and Market Data Initiatives.--
            ``(1) Definition of locally or regionally produced 
        agricultural food product.--In this subsection, the term 
        `locally or regionally produced agricultural food product' has 
        the meaning given the term in section 310B(g)(9) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1932(g)(9)).
            ``(2) Initiatives.--The Secretary shall--
                    ``(A) collect data on the production and marketing 
                of locally or regionally produced agricultural food 
                products; and
                    ``(B) facilitate interagency collaboration and data 
                sharing on research on local and regional food systems.
            ``(3) Requirements.--In carrying out this subsection, the 
        Secretary shall, at a minimum--
                    ``(A) collect and distribute comprehensive 
                reporting of prices of locally or regionally produced 
                agricultural food products;
                    ``(B) conduct surveys and analysis and publish 
                reports relating to the production, handling, 
                distribution, retail sales, and trend studies 
                (including consumer purchasing patterns) of or on 
                locally or regionally produced agricultural food 
                products;
                    ``(C) form an interagency work group that includes 
                representatives from--
                            ``(i) the Agricultural Marketing Service;
                            ``(ii) the Agricultural Research Service;
                            ``(iii) the Economic Research Service;
                            ``(iv) the Food and Nutrition Service;
                            ``(v) the Food Safety and Inspection 
                        Service;
                            ``(vi) the National Agricultural Statistics 
                        Service;
                            ``(vii) the National Institute of Food and 
                        Agriculture; and
                            ``(viii) other agencies that are involved 
                        in data collection and research on locally or 
                        regionally produced agricultural food products;
                    ``(D) expand the Agricultural Resource Management 
                Surveys--
                            ``(i) to include questions on locally or 
                        regionally produced agricultural food products; 
                        and
                            ``(ii) sample a greater sector of 
                        agricultural producers, including agricultural 
                        producers engaged in the production of locally 
                        or regionally produced agricultural food 
                        products;
                    ``(E) authorize the National Agricultural 
                Statistics Service to create and administer--
                            ``(i) a followup survey to the Census of 
                        Agriculture, in order to collect more detailed 
                        data on producers who indicated on the Census 
                        of Agriculture that the producers sell to 
                        markets for locally or regionally produced 
                        agricultural food products; and
                            ``(ii) a survey for the purpose of 
                        collecting market data, including sales by 
                        product type and supply chain or sourcing data, 
                        from all vendors, including retail and 
                        wholesale vendors, of locally and regionally 
                        produced agricultural food products; and
                    ``(F) seek to establish or expand private-public 
                partnerships to facilitate, to the maximum extent 
                practicable, the collection of data on locally or 
                regionally produced agricultural food products.
            ``(4) Funding.--
                    ``(A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall use to carry 
                out this section $5,000,000, to remain available until 
                expended.
                    ``(B) Additional funding.--In addition to funds 
                made available under paragraph (1), there are 
                authorized to be appropriated to carry out this section 
                $5,000,000 for each of fiscal years 2012 through 2017, 
                to remain available until expended.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to carry out local 
        food production and market data initiatives described in 
        section 251(h).''.

SEC. 6003. UNDER SECRETARY OF AGRICULTURE FOR RESEARCH, EDUCATION, AND 
              ECONOMICS.

    (a) In General.--Section 251(e) of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6971(e)) is amended by adding at 
the end the following:
            ``(6) Special coordination responsibilities.--
                    ``(A) In general.--The Under Secretary shall 
                establish a special initiative within the Research, 
                Education, and Extension Office to coordinate research 
                activities at the Department relating to classical 
                plant and animal breeding.
                    ``(B) Working group.--In carrying out the special 
                initiative, the Under Secretary shall establish a 
                working group that reports to the Under Secretary, to 
                be comprised of individuals who are responsible for the 
                management or administration of public breeding 
                programs in the Department from--
                            ``(i) the National Institute of Food and 
                        Agriculture;
                            ``(ii) the Agricultural Research Service;
                            ``(iii) the Economic Research Service; and
                            ``(iv) the National Agricultural Statistics 
                        Service.
                    ``(C) Duties of working group.--The working group 
                shall--
                            ``(i) coordinate classical plant and animal 
                        breeding research being conducted at or funded 
                        by the agencies described in subparagraph 
                        (B)(i);
                            ``(ii) carry out ongoing analysis and 
                        tracking activities for public grants to ensure 
                        that a diverse range of crop and animal 
                        breeding needs are being met in a timely and 
                        transparent manner;
                            ``(iii) coordinate and collaborate with the 
                        National Genetics Resource Advisory Council;
                            ``(iv) to maximize delivery of public 
                        cultivars and breeds, ensure efficient 
                        coordination of the activities the working 
                        group and those of--
                                    ``(I) the Agricultural Research 
                                Service;
                                    ``(II) National Institute of Food 
                                and Agriculture;
                                    ``(III) the National Genetic 
                                Resources Advisory Council;
                                    ``(IV) genetic resource 
                                conservation centers;
                                    ``(V) land grant universities;
                                    ``(VI) nongovernmental 
                                organizations with interests or 
                                expertise in classical breeding; and
                                    ``(VII) public and private 
                                classical plant and animal breeders; 
                                and
                            ``(v) evaluate classical public plant and 
                        animal breeding activities and outcomes to make 
                        recommendations to the Under Secretary on the 
                        adequacy of human and financial resources 
                        needed to ensure that the next generation of 
                        public breeders and agricultural breeders are 
                        prepared to meet the challenges of the future.
                    ``(D) Advisory board.--The Under Secretary shall 
                establish an advisory board whose primary duty will be 
                to make recommendations to the working group on matters 
                related to the duties specified in subparagraph (C). 
                The advisory board shall be comprised of individuals 
                with expertise in classical plant and animal breeding 
                including representatives from--
                            ``(i) the Agricultural Research Service;
                            ``(ii) the National Institute of Food and 
                        Agriculture;
                            ``(iii) the Extension Service;
                            ``(iv) private foundations and nonprofit 
                        organizations that have expertise in classical 
                        plant and animal breeding;
                            ``(v) private agricultural research and 
                        technology transfer firms; and
                            ``(vi) the Land Grant University System.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) (as amended 
by section 6002(b)) is amended--
            (1) in paragraph (7), by striking ``or'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(9) the authority of the Secretary to establish a special 
        initiative under section 251(e).''.

SEC. 6004. LOCAL AND REGIONAL FOOD SYSTEM ENTERPRISE FACILITATION.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 2662) in 
amended by adding at the end the following:
    ``(j) Local and Regional Food System Enterprise Facilitation.--
            ``(1) In general.--The Secretary shall establish a local 
        and regional food system enterprise facilitation initiative to 
        increase technical assistance to help build sustainable local 
        and regional food systems.
            ``(2) Requirements.--In carrying out this subsection, the 
        Secretary shall, at a minimum--
                    ``(A) authorize the establishment in the Extension 
                Service of the position of enterprise facilitator 
                (referred to in this subsection as an `enterprise 
                facilitator'); and
                    ``(B) give priority to providing funding for 
                enterprise facilitators that are located in areas 
                that--
                            ``(i) have high participation rates for the 
                        supplemental nutrition assistance program 
                        established under the Food and Nutrition Act of 
                        2008 (7 U.S.C. 2011 et seq.); and
                            ``(ii) are predominantly rural areas.
            ``(3) Grants.--The Secretary may make grants on a 
        competitive basis to nongovernmental organizations and 
        institutions that have appropriate experience working on the 
        rural development initiatives in the targeted areas described 
        in paragraph (2)(B) to provide technical assistance to help 
        build sustainable local and regional food systems if the 
        Secretary determines that the Extension Service in a State or 
        locality is not able to provide the assistance.
            ``(4) Duties.--An enterprise facilitator shall, to the 
        maximum extent practicable--
                    ``(A) identify and organize local food producers 
                and entrepreneurs into entities that are able to 
                deliver local and regional food into local markets, 
                including--
                            ``(i) farmers markets;
                            ``(ii) community kitchens;
                            ``(iii) locally owned processing 
                        facilities;
                            ``(iv) aggregation centers;
                            ``(v) transportation cooperatives; and
                            ``(vi) collaborative production 
                        cooperatives;
                    ``(B) develop partnerships with local and regional 
                organizations and institutions to provide resources for 
                effective partnerships to train entrepreneurs and 
                facilitate new enterprises;
                    ``(C) assist agricultural producers and processors 
                with marketing and distribution of local and regional 
                food products;
                    ``(D) identify and work to remove barriers to the 
                movement of local and regional food products into the 
                marketplace;
                    ``(E) encourage new agricultural producers to 
                produce foods for local and regional markets;
                    ``(F) provide education programs to new 
                agricultural producers that emphasize local and 
                regional foods;
                    ``(G) work with local expanded food and nutrition 
                education programs, schools and other local 
                institutions, and individuals to develop food 
                processing skills;
                    ``(H) provide technical assistance in the 
                preparation of grant and loan applications to promote 
                the purposes of this subsection; and
                    ``(I) work with private sources of funding and 
                other Federal and State agencies to acquire grants and 
                loans to promote the purposes of this subsection.
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection such 
        sums as are necessary.''.

SEC. 6005. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1632(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5841(d)) is amended--
            (1) in paragraph (5), by striking ``and'' after the 
        semicolon at the end;
            (2) by redesignating paragraph (6) as paragraph (7); and
            (3) by inserting after paragraph (5) the following:
            ``(6) establish a national strategic germplasm assessment 
        and use plan to meet food security goals for the future; and''.

            TITLE VII--HORTICULTURE AND ORGANIC AGRICULTURE

SEC. 7001. SPECIALTY CROP BLOCK GRANTS.

    (a) Definitions.--Section 3 of the Specialty Crops Competitiveness 
Act of 2004 (7 U.S.C. 1621 note) is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (2), (3), and (4), respectively; and
            (2) by inserting before paragraph (2), as redesignated by 
        paragraph (1) of this subsection, the following new paragraph:
            ``(1) The term `locally or regionally produced food' has 
        the meaning given the term `locally or regionally produced 
        agricultural food products' in section 310B(g)(9)(A)(i) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1932(g)(9)(A)(i)).''.
    (b) Availability and Purposes of Grants.--Subsection (a) of section 
101 of such Act is amended--
            (1) in the heading, by striking ``Purpose'' and inserting 
        ``Purposes'';
            (2) by striking ``2005 through 2012'' and inserting ``2013 
        through 2017''; and
            (3) by striking ``solely to enhance'' and all that follows 
        and inserting ``to increase the consumption and availability of 
        specialty crops that are locally or regionally produced food 
        and to increase the profitability, ecological sustainability, 
        and competitiveness of specialty crop producers.''.
    (c) Plan Requirements.--Subsection (e) of such section 101 is 
amended--
            (1) by striking ``The State plan shall identify the lead 
        agency'' and inserting ``The State plan shall--
            ``(1) identify the lead agency''; and
            (2) by adding at the end the following new paragraph:
            ``(2) ensure a balanced and equitable distribution of 
        grants across--
                    ``(A) the full array of specialty crop agriculture, 
                including all types of farm enterprises, organic 
                farming systems, beginning and socially disadvantaged 
                farmers and ranchers, and small and mid-scale farms;
                    ``(B) the full array of funding areas, including--
                            ``(i) research and education;
                            ``(ii) nutrition and public health;
                            ``(iii) pest and plant health;
                            ``(iv) conservation and the environment;
                            ``(v) food safety;
                            ``(vi) marketing and promotion; and
                            ``(vii) production; and
                    ``(C) the full range of activities inherent in 
                developing systems for locally or regionally produced 
                foods, including issues related to processing, 
                distributing, aggregating, storing, marketing, and 
                consumption.''.
    (d) Review of Application.--Subsection (f) of such section 101 is 
amended--
            (1) by striking ``purpose'' and inserting ``purposes''; and
            (2) by striking ``subsection (a)'' and inserting 
        ``subsection (a), and would represent a balanced and equitable 
        distribution of grant funds, as specified in subsection (e)''.
    (e) Preference.--Such section 101 is further amended--
            (1) by redesignating subsections (g), (h), (i), and (j) as 
        subsections (i), (j), (k), and (n), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Preference.--In using grant funds provided under this 
section, the State receiving the grant shall give a preference to 
marketing proposals that--
            ``(1) demonstrate ability to have direct positive impact 
        on--
                    ``(A) farm profitability and sustainability;
                    ``(B) improved distribution capacity for locally or 
                regionally produced foods; or
                    ``(C) increased domestic consumption and 
                affordability of edible specialty crops, particularly 
                in low-income communities; and
            ``(2) in which final products are marketed so that the 
        total distance that products are transported for final sale is 
        less than 250 miles from the origin of the products.''.
    (f) Transparency.--Such section 101 is further amended by inserting 
after subsection (g), as added by subsection (e) of this section, the 
following new subsection:
    ``(h) Transparency.--Each State receiving a grant under this 
section shall, in a timely manner, publish on an Internet website 
summary information about all grants received under this section and 
reports on the implementation of projects funded by such grants.''.
    (g) Use of Grant Funds.--Such section 101 is further amended by 
inserting after subsection (k), as redesignated by subsection (e)(1) of 
this section, the following new subsection:
    ``(l) Use of Grant Funds.--The Secretary shall consider expansion 
of the grant program under this section to include traditional foods of 
federally recognized Indian tribes and other minority communities and 
may publish appropriate guidance to States receiving grants under this 
section regarding any such expansion.''.
    (h) Other Use of Funds.--Such section 101 is further amended by 
inserting after subsection (l), as added by subsection (g) of this 
section, the following new subsection:
    ``(m) Other Use of Funds.--
            ``(1) National research and evaluation.--Of the funds made 
        available under subsection (n), the Secretary shall use not 
        less than $5,000,000 for a nationally-coordinated and 
        regionally-balanced research and evaluation effort on the 
        redevelopment of locally or regionally produced food systems 
        conducted through a consortium of land grant universities, in 
        partnership with non-governmental organizations engaged in work 
        on locally or regionally produced food systems.
            ``(2) Locally or regionally produced food system 
        development.--Of the funds made available under subsection (n), 
        the Secretary shall use $30,000,000 during each fiscal year for 
        locally or regionally produced food system specialty crop 
        development, including development or enhancement of State and 
        regional local food marketing programs, local and regional food 
        enterprise development, farmer-to-consumer direct marketing, 
        direct-to-store and direct-to-institution marketing, regional 
        supply chains, regional food hubs, new farmer development, and 
        State food policy councils.''.
    (i) Funding.--Subsection (n) of such section 101, as redesignated 
by subsection (e)(1) of this section, is amended by striking ``shall 
make grants'' and all that follows and inserting ``shall use 
$90,000,000 for each of fiscal years 2013 through 2017 to carry out 
this section.''.
    (j) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 7002. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    (a) Reauthorization.--Section 10606 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 6523) is amended--
            (1) in subsection (a), by striking ``Of the funds'' and all 
        that follows through ``until expended, to'' and inserting ``The 
        Secretary of Agriculture (acting through the Agricultural 
        Marketing Service) shall''; and
            (2) in subsection (b)(2), by striking ``$750'' and 
        inserting ``$1,000''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 7003. AVAILABILITY OF ORGANIC CERTIFICATION COST SHARE ASSISTANCE 
              AND RISK MANAGEMENT EDUCATION AND COMMUNITY OUTREACH 
              PARTNERSHIP ASSISTANCE UNDER THE FEDERAL CROP INSURANCE 
              ACT.

    Subsection (b) of section 524 of the Federal Crop Insurance Act (7 
U.S.C. 1524) is amended to read as follows:
    ``(b) Organic Certification Cost Share Assistance and Risk 
Management Education and Community Outreach Partnership Assistance.--
            ``(1) Provision of assistance.--The Secretary shall provide 
        organic certification cost share assistance and risk management 
        education and community outreach partnership assistance asa 
        provided in paragraph (4).
            ``(2) Use of commodity credit corporation.--The Secretary 
        shall carry out this subsection through the Commodity Credit 
        Corporation.
            ``(3) Funding.--Subject to paragraph (4), the Commodity 
        Credit Corporation shall make available to carry out this 
        subsection not less than $10,000,000 for each fiscal year.
            ``(4) Distribution of funds.--Of the amount made available 
        under paragraph (3) for a fiscal year--
                    ``(A) 70 percent shall be used to provide organic 
                certification cost share assistance pursuant to section 
                10606 of the Farm Security and Rural Investment Act of 
                2002 (7 U.S.C. 1524); and
                    ``(B) 30 percent shall be used to conduct 
                activities to support risk management education and 
                community outreach partnerships pursuant to section 
                522(d).''.

SEC. 7004. LOCAL MARKETING PROMOTION PROGRAM.

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

``SEC. 6. LOCAL MARKETING PROMOTION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a program, to 
be known as the `Local Marketing Promotion Program' (referred to in 
this section as the `Program'), to make grants to eligible entities for 
projects to establish, expand, and promote direct producer-to-consumer 
marketing, including farmers' markets, and other local and regional 
food markets.
    ``(b) Program Purposes.--
            ``(1) In general.--The purposes of the Program are to 
        increase domestic consumption of and access to locally and 
        regionally produced agricultural products by--
                    ``(A) improving and expanding or assisting in the 
                improvement and expansion of--
                            ``(i) domestic farmers' markets, farm and 
                        roadside stands, community-supported 
                        agriculture and community-supported fishery 
                        programs, agritourism activities, green carts, 
                        route vendors, buying clubs, and other direct 
                        producer-to-consumer market opportunities; and
                            ``(ii) local and regional food markets that 
                        are not direct farmer-to-consumer markets, but 
                        that may include the scaling up of such direct 
                        markets, including processing, distributing, 
                        aggregating, storing, and marketing;
                    ``(B) developing or aiding in the development of--
                            ``(i) new farmers' markets, roadside 
                        stands, community-supported agriculture and 
                        community-supported fishery programs, 
                        agritourism activities, and other direct 
                        producer-to-consumer marketing opportunities; 
                        and
                            ``(ii) local and regional food markets that 
                        are not direct farmer-to-consumer markets, but 
                        that may include the scaling up of such direct 
                        markets, including processing, distributing, 
                        aggregating, storing, and marketing.
            ``(2) Limitations.--An eligible entity may not use a grant 
        or other assistance provided under the Program for the 
        purchase, construction, or rehabilitation of a building or 
        structure.
    ``(c) Eligible Entities.--An entity shall be eligible to receive a 
grant under the Program if the entity is--
            ``(1) an agricultural or fishing cooperative or other 
        business entity or a producer or fisher network or association, 
        including community-supported agriculture or fishery networks 
        or associations;
            ``(2) a local government;
            ``(3) a nonprofit corporation;
            ``(4) a public benefit corporation;
            ``(5) an economic development corporation;
            ``(6) a regional farmers' market authority; or
            ``(7) such other entity as the Secretary may designate.
    ``(d) Criteria and Guidelines.--The Secretary shall establish 
criteria and guidelines for the submission, evaluation, and funding of 
proposed projects under the Program.
    ``(e) Priorities.--
            ``(1) Preference for certain communities and operations.--
        In providing grants under the Program, priority shall be given 
        to applications that include projects--
                    ``(A) to benefit underserved communities; and
                    ``(B) to develop market opportunities for small and 
                mid-sized farm and ranch operations.
            ``(2) Preference for producer-only farmers' markets.--In 
        providing grants under the direct marketing portion of the 
        Program, priority shall be given to producer-only farmers' 
        markets.
    ``(f) Funding.--
            ``(1) In general.--The Secretary shall use $30,000,000 of 
        the funds of the Commodity Credit Corporation each fiscal year 
        to carry out the Program.
            ``(2) Use of funds.--
                    ``(A) Distribution between purposes.--Of the funds 
                made available under paragraph (1) for a fiscal year--
                            ``(i) 50 percent shall be used for the 
                        direct marketing portion of the Program in 
                        subparagraphs (A)(i) and (B)(i) of subsection 
                        (b)(1); and
                            ``(ii) 50 percent shall be used for the 
                        local and regional food portion of the Program 
                        in subparagraphs (A)(ii) and (B)(ii) of 
                        subsection (b)(1).
                    ``(B) Direct marketing portion.--For each of the 
                following, not less than 10 percent of the funds 
                reserved for the direct marketing portion of the 
                Program in a fiscal year under paragraph (2)(A)(i) 
                shall be used--
                            ``(i) to support outreach, education, and 
                        operation of the use of electronic benefits 
                        transfers for Federal nutrition programs at 
                        farmers' markets and other direct marketing 
                        outlets including farm and roadside stands, 
                        community-supported agriculture and community-
                        supported fishery programs, green carts, route 
                        vendors and buying clubs; and
                            ``(ii) to provide general technical 
                        assistance and organizational capacity building 
                        grants to strengthen market development 
                        networks and otherwise enhance the outcomes of 
                        the Program.
                    ``(C) Local and regional food portion.--Not less 
                than 10 percent of the funds reserved for the local and 
                regional food portion of the Program in a fiscal year 
                under paragraph (2)(A)(ii) shall be used to provide 
                technical assistance grants to strengthen the ability 
                of small and medium-sized agricultural producers, food 
                wholesalers and retailers, schools, and other 
                individuals, organizations, entities, and institutions 
                for processing, distributing, aggregating, storing, and 
                marketing locally and regionally produced agricultural 
                products. Funds reserved under such paragraph may be 
                used--
                            ``(i) to carry out feasibility studies 
                        related to the local and regional food portion 
                        of the Program; and
                            ``(ii) to assist enterprises that process, 
                        distribute, aggregate, store, and market 
                        locally and regionally produced foods.
            ``(3) Interdepartmental coordination.--In carrying out this 
        subsection, the Secretary shall ensure coordination between the 
        various agencies to the maximum extent practicable.
            ``(4) Limitations.--
                    ``(A) Administrative expenses.--Not more than 10 
                percent of the total amount made available under 
                paragraph (1) for a fiscal year may be used for 
                administrative expenses.
                    ``(B) Project limitations.--Funds described in 
                paragraph (2)(B)(i)--
                            ``(i) may not be used for the ongoing cost 
                        of carrying out any project; and
                            ``(ii) shall only be provided to eligible 
                        entities that demonstrate a plan to continue to 
                        provide EBT card access at 1 or more farmers' 
                        markets or direct marketing outlets following 
                        the receipt of the grant.''.

                   TITLE VIII--POULTRY AND LIVESTOCK

SEC. 8001. SMALL AND VERY SMALL MEAT PROCESSING PLANTS.

    (a) Technical Assistance and Guidance.--The Federal Meat Inspection 
Act (21 U.S.C. 601 et seq.) is amended by adding at the end the 
following new title:

        ``TITLE VI--VERY SMALL AND CERTAIN SMALL ESTABLISHMENTS

``SEC. 601. TECHNICAL ASSISTANCE.

    ``(a) Establishment.--The Secretary shall establish in the Food 
Safety and Inspection Service of the Department of Agriculture a 
technical assistance division to coordinate the initiatives of any 
other appropriate agency of the Department of Agriculture to provide--
            ``(1) outreach, education, and training to very small or 
        certain small establishments (as defined by the Secretary);
            ``(2) grants to appropriate State agencies, educational 
        institutions, non-governmental organizations with appropriate 
        expertise, or networks or partnerships of such agencies, such 
        institutions, and such organizations to provide outreach, 
        technical assistance, education, and training to very small or 
        certain small establishments; and
            ``(3) grants to appropriate State agencies to provide 
        outreach, technical assistance, education, and training to very 
        small or certain small establishments.
    ``(b) Personnel.--The technical assistance division shall be 
comprised of individuals that, as determined by the Secretary--
            ``(1) are of a quantity sufficient to carry out the duties 
        of the technical assistance division; and
            ``(2) possess appropriate qualifications and expertise 
        relating to the duties of the technical assistance division.

``SEC. 602. GUIDANCE.

    ``(a) Purpose.--Not later than 2 years after the date of the 
enactment of this section, the Secretary, acting through the Food 
Safety and Inspection Service, shall issue guidance to allow very small 
or certain small establishments (as defined by the Secretary under 
section 601) to demonstrate compliance with required food safety and 
sanitation standards upon a showing that the process controls for food 
safety and sanitation are being applied.
    ``(b) Content.--The guidance issued under subsection (a) shall 
address process controls, appropriate for the size and scale of a 
facility, for--
            ``(1) slaughter and processing facilities that conduct 
        Federal inspections, State inspections, or custom slaughter or 
        processing at the facility;
            ``(2) leased slaughter and processing facilities;
            ``(3) on-farm slaughter and processing;
            ``(4) mobile slaughter and processing facilities; and
            ``(5) other facilities or circumstances determined by the 
        stakeholders group referred to in subsection (c) to be relevant 
        to very small or certain small establishments.
    ``(c) Stakeholder Group.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of this section, the Secretary shall convene a 
        stakeholders group with expertise on small scale processing 
        facilities, including mobile processing facilities, to prepare 
        proposed guidance on process controls for food safety and 
        sanitation for very small or certain small establishments.
            ``(2) Membership.--The stakeholders group convened under 
        paragraph (1) shall include--
                    ``(A) small scale growers;
                    ``(B) operators of small scale slaughtering and 
                processing facilities; and
                    ``(C) representatives from appropriate Federal and 
                State agencies, educational institutions, non-
                governmental organizations with appropriate expertise, 
                or networks or partnerships of such agencies, such 
                institutions, and such organizations.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $5,000,000 for each of fiscal years 2013 
through 2017 to carry out this title and section 32 of the Poultry 
Products Inspection Act.''.
    (b) Conforming Amendments.--Section 501 of the Federal Meat 
Inspection Act (21 U.S.C. 683) is amended--
            (1) in subsection (b)(3)(B)(ii), by striking ``subsection 
        (j)'' and inserting ``subsection (i)'';
            (2) in subsection (e)(1), by striking ``subsection (j)'' 
        and inserting ``subsection (i)'';
            (3) by striking subsection (f); and
            (4) by redesignating subsections (g) through (j) as 
        subsections (f) through (i), respectively.

SEC. 8002. SMALL AND VERY SMALL POULTRY PROCESSING PLANTS.

    The Poultry Products Inspection Act (21 U.S.C. 451 et seq.) is 
amended by adding at the end the following new section:

``SEC. 32. TECHNICAL ASSISTANCE AND GUIDANCE.

    ``(a) Technical Assistance.--
            ``(1) Establishment.--The Secretary shall establish in the 
        Food Safety and Inspection Service of the Department of 
        Agriculture a technical assistance division to coordinate the 
        initiatives of any other appropriate agency of the Department 
        of Agriculture to provide--
                    ``(A) outreach, education, and training to very 
                small or certain small establishments (as defined by 
                the Secretary);
                    ``(B) grants to appropriate State agencies, 
                educational institutions, non-governmental 
                organizations with appropriate expertise, or networks 
                or partnerships of such agencies, such institutions, 
                and such organizations to provide outreach, technical 
                assistance, education, and training to very small or 
                certain small establishments; and
                    ``(C) grants to appropriate State agencies to 
                provide outreach, technical assistance, education, and 
                training to very small or certain small establishments.
            ``(2) Personnel.--The technical assistance division shall 
        be comprised of individuals that, as determined by the 
        Secretary--
                    ``(A) are of a quantity sufficient to carry out the 
                duties of the technical assistance division; and
                    ``(B) possess appropriate qualifications and 
                expertise relating to the duties of the technical 
                assistance division.
    ``(b) Guidance.--
            ``(1) Purpose.--Not later than 2 years after the date of 
        the enactment of this section, the Secretary, acting through 
        the Food Safety and Inspection Service, shall issue guidance to 
        allow very small or certain small establishments (as defined by 
        the Secretary under subsection (a)) to demonstrate compliance 
        with required food safety and sanitation standards upon a 
        showing that the process controls for food safety and 
        sanitation are being applied.
            ``(2) Content.--The guidance issued under paragraph (1) 
        shall address process controls, appropriate for the size and 
        scale of a facility, for--
                    ``(A) slaughter and processing facilities that 
                conduct Federal inspections, State inspections, or 
                custom slaughter or processing at the facility;
                    ``(B) leased slaughter and processing facilities;
                    ``(C) on-farm slaughter and processing;
                    ``(D) mobile slaughter and processing facilities; 
                and
                    ``(E) other facilities or circumstances determined 
                by the stakeholders group referred to in paragraph (3) 
                to be relevant to very small or certain small 
                establishments.
            ``(3) Stakeholder group.--
                    ``(A) In general.--Not later than 90 days after the 
                date of the enactment of this section, the Secretary 
                shall convene a stakeholders group with expertise on 
                small scale processing facilities, including mobile 
                processing facilities, to prepare proposed guidance on 
                process controls for food safety and sanitation for 
                very small or certain small establishments.
                    ``(B) Membership.--The stakeholders group convened 
                under subparagraph (A) shall include--
                            ``(i) small scale growers;
                            ``(ii) operators of small scale 
                        slaughtering and processing facilities; and
                            ``(iii) representatives from appropriate 
                        Federal and State agencies, educational 
                        institutions, non-governmental organizations 
                        with appropriate expertise, or networks or 
                        partnerships of such agencies, such 
                        institutions, and such organizations.
    ``(c) Authorization of Appropriations.--The authorization of 
appropriations for this section appears in section 602 of the Federal 
Meat Inspection Act.''.

SEC. 8003. SEARCHABLE DATABASE OF ELECTRONICALLY SUBMITTED MEAT AND 
              POULTRY LABELS.

    (a) Electronic Option for Submission.--Not later than 1 year after 
the date of the enactment of this Act, the Secretary of Agriculture 
shall promulgate regulations under section 7 of the Federal Meat 
Inspection Act (21 U.S.C. 607) and section 8 of the Poultry Products 
Inspection Act (21 U.S.C. 457) to establish an electronic option for 
submitting meat and poultry labels for preapproval.
    (b) Searchable Database of Electronically Submitted Labels.--Not 
later than 1 year after the date of the enactment of this Act, the 
Secretary of Agriculture shall establish a publicly accessible 
searchable database of electronically submitted meat and poultry 
labels.

SEC. 8004. MEAT AND POULTRY PROCESSING REPORT.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Agriculture, in consultation 
with the stakeholders group referred to in section 602(c) of the 
Federal Meat Inspection Act (as added by section 8001 of this Act) and 
the stakeholders group referred to in section 32(b)(3) of the Poultry 
Products Inspection Act (as added by section 8002 of this Act), shall 
submit to Congress a report on steps that can be taken to better meet 
the needs of very small and certain small establishments (as defined by 
the Secretary under section 601 of the Federal Meat Inspection Act (as 
added by such section 8001) or section 32(a) of the Poultry Products 
Inspection Act (as added by such section 8002)), including any 
recommended changes to statutory and regulatory provisions of law.
    (b) Contents.--The report required under paragraph (1) shall 
include a proposal to allow participating States to enter into 
memoranda of understanding with non-participating States to allow 
covered products produced in a participating State to be sold in a non-
participating State.
    (c) Definitions.--In this section:
            (1) Covered products.--The term ``covered products'' means 
        a meat or poultry product inspected in accordance with the 
        covered programs.
            (2) Covered programs.--The term ``covered programs'' means 
        the cooperative meat and poultry inspection programs of the 
        Food Safety and Inspection Service of the Department of 
        Agriculture.
            (3) Non-participating state.--The term ``non-participating 
        State'' means a State that does not participate in the covered 
        programs.
            (4) Participating state.--The term ``participating State'' 
        means a State that participates in the covered programs.

                        TITLE IX--MISCELLANEOUS

SEC. 9001. NATIONAL FOOD SAFETY TRAINING, EDUCATION, EXTENSION, 
              OUTREACH, AND TECHNICAL ASSISTANCE PROGRAM.

    Section 405 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7625) is amended by striking subsection 
(j) and inserting the following:
    ``(j) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $15,000,000 for each of fiscal years 2013 through 2017.
            ``(2) Additional funding.--In addition to funds made 
        available under paragraph (1), for the purposes of making 
        grants under this section, there are authorized to be 
        appropriated such sums as are necessary for each of fiscal 
        years 2011 through 2017.''.

SEC. 9002. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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