II 

110TH CONGRESS 

1ST SESSION S. 1432 

To amend the Food Stamp Act of 1977 and the Richard B. Russell National 

School Lunch Act to improve access to healthy foods, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2007 

Mr. BROWN (for himself, Mrs. CLINTON, Mr. KERRY, Mr. SANDERS, and Mr. 

REED) introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Food Stamp Act of 1977 and the Richard 

B. Russell National School Lunch Act to improve access 

to healthy foods, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Food Outreach and Opportunity Development for a 

6 Healthy America Act of 2007’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 


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TITLE I—FOOD STAMP PROGRAM 

Sec. 101. Assistance for community food projects. 

Sec. 102. Food Stamp nutrition education. 

TITLE II—NATIONAL SCHOOL LUNCH PROGRAM 

Sec. 201. Fresh fruit and vegetable program. 

Sec. 202. Farm-to-cafeteria program. 

Sec. 203. Purchases of locally produced foods. 

TITLE III—FARMLAND PROTECTION PROGRAM 

Sec. 301. Farmland protection program. 

TITLE IV—MISCELLANEOUS 

Sec. 401. Farmers’ Market Promotion Program Plus. 

Sec. 402. Seniors farmers’ market nutrition program. 

Sec. 403. Healthy food enterprise development program. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) diabetes, heart disease, and other diet-re4 lated diseases can be reduced in part by improved 

5 access to affordable healthy foods, including fresh 

6 fruit and vegetables; 

7 (2) increasing the availability of healthy and 

8 fresh food in schools, hospitals, and underserved 

9 communities is an important aspect of improving 

10 overall health and food security in the United 

11 States; 

12 (3) strengthening local and regional food sys13 tems— 

14 (A) is necessary for the long-term provi15 sion of fresh and healthy food to underserved 

16 communities; and 


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1 (B) helps support family farmers and the 

2 communities of the farmers by providing alter3 native marketing channels for the agricultural 

4 products of the farmers; 

5 (4) local and regional food systems that supply 

6 underserved communities should be provided Federal 

7 financial and technical support, with a focus on— 

8 (A) locally-led food access initiatives; 

9 (B) infrastructure needs, such as food 

10 processing, transportation, and marketing; 

11 (C) direct farmer-to-consumer marketing 

12 activities, such as farmers’ markets; 

13 (D) the protection of productive farmland 

14 in close proximity to urban areas, which is nec15 essary to grow food; and 

16 (E) access to fresh fruit and vegetables for 

17 school children. 

18 TITLE I—FOOD STAMP 

19 PROGRAM 

20 SEC. 101. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

21 Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 

22 2034) is amended— 

23 (1) in subsection (b)(2)(B)— 

24 (A) by striking ‘‘$5,000,000’’ and inserting 

25 ‘‘$30,000,000’’; and 


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1 (B) by striking ‘‘2007’’ and inserting 

2 ‘‘2013’’; and 

3 (2) in subsection (h)(4)— 

4 (A) by striking ‘‘$200,000’’ and inserting 

5 ‘‘$500,000’’; and 

6 (B) by striking ‘‘2007’’ and inserting 

7 ‘‘2013’’. 

8 SEC. 102. FOOD STAMP NUTRITION EDUCATION. 

9 (a) DEFINITION OF FOOD STAMP NUTRITION EDU10 CATION.—Section 3 of the Food Stamp Act of 1977 (7 

11 U.S.C. 2012) is amended by adding at the end the fol12 lowing: 

13 ‘‘(v) FOOD STAMP NUTRITION EDUCATION.—The 

14 term ‘food stamp nutrition education’ means direct edu15 cation, group activities, community health promotion, and 

16 comprehensive public health approaches (including mar17 keting, mass media, public-private partnerships, policy, 

18 systems and environmental changes, and evaluation) 

19 that— 

20 ‘‘(1) promote healthy eating; 

21 ‘‘(2) make healthy food and physical activity 

22 choices more desired, affordable, and accessible; 

23 ‘‘(3) are designed to reach large numbers of 

24 low-income households; and 


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1 ‘‘(4) support behavior change consistent with 

2 the most recent Dietary Guidelines for Americans 

3 published under section 301 of the National Nutri4 tion Monitoring and Related Research Act of 1990 

5 (7 U.S.C. 5341), including promotion of a diet rich 

6 in fruits and vegetables, whole grains, and low-fat 

7 milk products.’’. 

8 (b) ADMINISTRATION.—Section 11(e)(1)(A) of the 

9 Food Stamp Act of 1977 (7 U.S.C. 2020(e)(1)(A)) is 

10 amended by inserting ‘‘, and provide food stamp nutrition 

11 education’’ after ‘‘program’’. 

12 (c) FUNDING.—Section 18(a) of the Food Stamp Act 

13 of 1977 (7 U.S.C. 2027(a)) is amended by adding at the 

14 end the following: 

15 ‘‘(4) NUTRITION EDUCATION.—Of the amounts 

16 made available to carry out this Act under para17 graph (1), the Secretary shall use not less than 

18 $100,000,000 for each of fiscal years 2008 through 

19 2013 to provide food stamp nutrition education in 

20 accordance with section 11(e)(1)(A).’’. 

21 TITLE II—NATIONAL SCHOOL 

22 LUNCH PROGRAM 

23 SEC. 201. FRESH FRUIT AND VEGETABLE PROGRAM. 

24 Section 18(g) of the Richard B. Russell National 

25 School Lunch Act (42 U.S.C. 1769(g)) is amended— 


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1 (1) in paragraph (1)— 

2 (A) in the matter preceding subparagraph 

3 (A), by striking ‘‘July 2004’’ and inserting 

4 ‘‘July 2007’’; and 

5 (B) by striking subparagraphs (A) and (B) 

6 and inserting the following: 

7 ‘‘(A) 100 elementary schools or secondary 

8 schools in each State; 

9 ‘‘(B) additional elementary schools or sec10 ondary schools in each State, in accordance 

11 with the proportion that— 

12 ‘‘(i) the student population of the 

13 State; bears to 

14 ‘‘(ii) the total student population of 

15 all States; and’’; 

16 (2) in paragraph (3)(A), by striking ‘‘paragraph 

17 (1)(B)’’ and inserting ‘‘paragraph (1)’’; 

18 (3) in subparagraphs (A) and (B) of paragraph 

19 (5) by striking ‘‘2008’’ each place it appears and in20 serting ‘‘2011’’; and 

21 (4) in paragraph (6)(B)— 

22 (A) in clause (i)— 

23 (i) by striking ‘‘October 1, 2004’’ and 

24 inserting ‘‘October 1, 2007’’; and 


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1 (ii) by striking ‘‘$9,000,000’’ and in2 serting ‘‘$300,000,000’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(iii) ADMINISTRATIVE EXPENSES.— 

5 For fiscal year 2008 and each fiscal year 

6 thereafter, of amounts made available to 

7 carry out this subsection, the Secretary 

8 may use not more than 1 percent for ad9 ministrative expenses of carrying out this 

10 subsection. 

11 ‘‘(iv) STATE ADMINISTRATIVE

12 COSTS.— 

13 ‘‘(I) IN GENERAL.—Subject to 

14 subclause (II), for fiscal year 2008 

15 and each fiscal year thereafter, of 

16 amounts made available to a State to 

17 carry out this subsection, the State 

18 may use not more than 5 percent for 

19 administrative expenses of carrying 

20 out this subsection. 

21 ‘‘(II) REQUIREMENT.—To be eli22 gible to use funds under subclause (I), 

23 a State shall submit to the Secretary 

24 a plan indicating the manner in which 

25 the State intends to use the funds. 


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1 ‘‘(v) FEDERAL REQUIREMENTS.—Not 

2 later than 1 year after the date of enact3 ment of this clause, and periodically there4 after as the Secretary determines to be ap5 propriate, the Secretary shall establish re6 quirements for States in administering this 

7 subsection.’’. 

8 SEC. 202. FARM-TO-CAFETERIA PROGRAM. 

9 Section 18(i)(2) of the Richard B. Russell National 

10 School Lunch Act (42 U.S.C. 1769(i)(2)) is amended by 

11 striking ‘‘such sums as are necessary’’ and all that follows 

12 through the period at the end and inserting ‘‘to carry out 

13 this subsection $20,000,000 for each of fiscal years 2008 

14 through 2013.’’. 

15 SEC. 203. PURCHASES OF LOCALLY PRODUCED FOODS. 

16 Section 9(j) of the Richard B. Russell National 

17 School Lunch Act (42 U.S.C. 1758(j)) is amended— 

18 (1) in paragraph (1)— 

19 (A) by striking ‘‘IN GENERAL’’ and insert20 ing ‘‘PURCHASES’’; and 

21 (B) by striking subparagraph (A) and in22 serting the following: 

23 ‘‘(A) allow institutions described in para24 graph (3)(A) to use geographical preferences in 

25 bidding and procurement programs to purchase, 


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1 in addition to other food purchases, locally pro2 duced foods for meal programs;’’; 

3 (C) in subparagraph (B), by striking 

4 ‘‘and’’ at the end; 

5 (D) in subparagraph (C), by striking the 

6 period at the end and inserting ‘‘; and’’; and 

7 (E) by inserting after subparagraph (C) 

8 the following: 

9 ‘‘(D) submit to Congress an annual report 

10 on the implementation of this subsection.’’; 

11 (2) by redesignating paragraph (2) as para12 graph (6); and 

13 (3) by inserting after paragraph (1) the fol14 lowing: 

15 ‘‘(2) DEPARTMENT OF DEFENSE.—Notwith16 standing any other provision of law, the Secretary of 

17 Defense may elect to use a geographic preference to 

18 purchase locally produced agricultural products 

19 for— 

20 ‘‘(A) the Defense Supply Center Philadel21 phia; 

22 ‘‘(B) the Department of Defense Farm to 

23 School Program; 

24 ‘‘(C) the Department of Defense Fresh 

25 Fruit and Vegetable Program; 


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1 ‘‘(D) the service academies of the Depart2 ment of Defense; 

3 ‘‘(E) Department of Defense domestic de4 pendent schools; 

5 ‘‘(F) other Department of Defense schools 

6 under chapter 108 of title 10, United States 

7 Code; 

8 ‘‘(G) commissary and exchange stores of 

9 the Department of Defense; and 

10 ‘‘(H) morale, welfare, and recreation facili11 ties operated by the Department of Defense. 

12 ‘‘(3) DEPARTMENT OF AGRICULTURE AND RE13 LATED ENTITIES.— 

14 ‘‘(A) IN GENERAL.—Notwithstanding any 

15 other provision of law, the Secretary or the 

16 head of any school, local educational agency, or 

17 other entity, as applicable, may elect to use a 

18 geographic preference to purchase locally pro19 duced agricultural products for— 

20 ‘‘(i) the school breakfast program es21 tablished by section 4 of the Child Nutri22 tion Act of 1966 (42 U.S.C. 1773); 

23 ‘‘(ii) the school lunch program estab24 lished under this Act; 


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1 ‘‘(iii) the summer food service pro2 gram for children established under section 

3 13; and 

4 ‘‘(iv) the child and adult care food 

5 program established under section 17. 

6 ‘‘(B) REPORT.—The head of any school, 

7 local educational agency, or other entity partici8 pating in a program described in subparagraph 

9 (A) that makes an election under that subpara10 graph shall submit to the Secretary a report de11 scribing any case in which the school, local edu12 cational agency, or other entity pays an amount 

13 in excess of an amount equal to 10 percent 

14 more than the lowest applicable bid to purchase 

15 locally produced agricultural products. 

16 ‘‘(4) TREATMENT OF CERTAIN BIDS.—On mak17 ing an election under paragraph (2) or (3), the Sec18 retary, the Secretary of Defense, or the head of any 

19 school, local educational agency, or other entity par20 ticipating in a program described in paragraph 

21 (3)(A) may— 

22 ‘‘(A) include in the text of any bid a de23 scription of the election; and 

24 ‘‘(B) select any bid involving a locally pro25 duced agricultural product, regardless of whethVerDate Aug 31 2005 21:13 May 18, 2007 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1432.IS S1432

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1 er the bid is the lowest bid relating to the agri2 cultural product. 

3 ‘‘(5) REVIEW.—The Secretary and the Sec4 retary of Defense shall periodically review each elec5 tion to use a geographic preference under this sub6 section to prevent fraud or abuse.’’. 

7 TITLE III—FARMLAND 

8 PROTECTION PROGRAM 

9 SEC. 301. FARMLAND PROTECTION PROGRAM. 

10 (a) DEFINITIONS.—Section 1238H of the Food Secu11 rity Act of 1985 (16 U.S.C. 3838h) is amended— 

12 (1) by striking paragraph (2) and inserting the 

13 following: 

14 ‘‘(2) ELIGIBLE LAND.— 

15 ‘‘(A) IN GENERAL.—The term ‘eligible 

16 land’ means land on a farm or ranch that is— 

17 ‘‘(i) cropland; 

18 ‘‘(ii) rangeland; 

19 ‘‘(iii) grassland; 

20 ‘‘(iv) pasture land; or 

21 ‘‘(v) forest land that is an incidental 

22 part of an agricultural operation, as deter23 mined by the Secretary.’’; 

24 (2) by redesignating paragraph (4) as para25 graph (5); 


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1 (3) by inserting after paragraph (3) the fol2 lowing: 

3 ‘‘(4) PERMANENT CONSERVATION EASEMENT.— 

4 The term ‘permanent conservation easement’ means 

5 a conservation easement or other interest in eligible 

6 land that— 

7 ‘‘(A) is for the primary purpose of pro8 tecting the agricultural production capacity of 

9 the eligible land; and 

10 ‘‘(B) is permanent or for the maximum du11 ration allowed under State law.’’; and 

12 (4) by adding at the end the following: 

13 ‘‘(6) QUALIFIED STATE OR LOCAL ENTITY.— 

14 The term ‘qualified State or local entity’ means a 

15 public or private entity that— 

16 ‘‘(A) operates a farm and ranch land pro17 tection program that— 

18 ‘‘(i) has for at least 3 calendar or fis19 cal years used or provided public or private 

20 funds to purchase permanent conservation 

21 easements on not less than 10 farms or 

22 ranches; 

23 ‘‘(ii) has the necessary authority 

24 under State law, as well as the technical 

25 and financial capacity— 


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1 ‘‘(I) to monitor and enforce the 

2 terms of the permanent conservation 

3 easements so that the purpose of the 

4 permanent conservation easements is 

5 carried out for the maximum allow6 able duration; or 

7 ‘‘(II) in the case of a govern8 mental entity, to require other public 

9 or private holders of the permanent 

10 conservation easements acquired with 

11 public funding to hold, monitor, and 

12 enforce the permanent conservation 

13 easements for the purpose described 

14 in subclause (I); and 

15 ‘‘(iii) has financial control policies to 

16 ensure that, on average, the purchase price 

17 of the permanent conservation easements 

18 does not exceed the appraised fair market 

19 value of the permanent conservation ease20 ments; and 

21 ‘‘(B) is an eligible entity.’’. 

22 (b) FARMLAND PROTECTION.—Section 1238I of the 

23 Food Security Act of 1985 (16 U.S.C. 3838i) is amend24 ed— 


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1 (1) by redesignating subsections (b) and (c) as 

2 subsections (e) and (f), respectively; 

3 (2) by striking subsection (a) and inserting the 

4 following: 

5 ‘‘(a) PROGRAM.— 

6 ‘‘(1) IN GENERAL.—The Secretary, acting 

7 through the Natural Resources Conservation Service, 

8 shall carry out a farm and ranch land protection 

9 program under which the Secretary shall facilitate 

10 and provide funding for the purchase of conservation 

11 easements or other interests in eligible land for the 

12 purpose of protecting the agricultural production ca13 pacity of the land and related conservation values by 

14 limiting incompatible nonagricultural uses of the 

15 land. 

16 ‘‘(2) PRIORITY.—In carrying out the program, 

17 the Secretary shall give the highest priority to pro18 tecting farm and ranch land with prime, unique, or 

19 other productive soils that are at risk of non20 agricultural development. 

21 ‘‘(b) GRANTS.— 

22 ‘‘(1) IN GENERAL.—The Secretary, acting 

23 through the Natural Resources Conservation Service, 

24 shall use funds made available to carry out this sub25 chapter to award grants to qualified State or local 


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1 entities for the purchase of conservation easements 

2 and other interests in land. 

3 ‘‘(2) DISTRIBUTION.—The Secretary shall dis4 tribute grants described in paragraph (1) among 

5 States based on— 

6 ‘‘(A) the demonstrated need for farm and 

7 ranch land protection; and 

8 ‘‘(B) the relative contribution of funds pro9 vided by State or local entities for the protec10 tion of farm and ranch land. 

11 ‘‘(3) USE OF GRANTS.—A qualified State or 

12 local entity that receives a grant under this sub13 section— 

14 ‘‘(A) may use the grant funds to purchase 

15 1 or more conservation easements, regardless of 

16 whether the qualified State or local entity has 

17 a pending purchase offer for any of the con18 versation easements at the time of receiving the 

19 grant; 

20 ‘‘(B) shall use the grant funds only for the 

21 purchase of conservation easements and other 

22 interests in land; and 

23 ‘‘(C) may use an amount equal to not more 

24 than 10 percent of the amount of the grant for 

25 reasonable costs of purchasing and enforcing 


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1 conservation easements and other interests in 

2 land. 

3 ‘‘(4) REMAINING FUNDS.—Any funds remaining 

4 after grants are distributed to qualified State or 

5 local entities shall be available to other eligible enti6 ties as matching funds for individual purchases of 

7 conservation easements and other interests in land. 

8 ‘‘(c) GRANT AGREEMENTS.— 

9 ‘‘(1) IN GENERAL.—The Secretary, acting 

10 through the Natural Resources Conservation Service, 

11 may enter into agreements with qualified State or 

12 local entities, under which a State or local entity 

13 may purchase conservation easements using a com14 bination of the funds of the entity and grant funds 

15 made available by the Secretary under subsection 

16 (b). 

17 ‘‘(2) TERMS AND CONDITIONS.— 

18 ‘‘(A) IN GENERAL.—Subject to subpara19 graph (B), an agreement described in para20 graph (1) shall stipulate the terms and condi21 tions under which qualified State or local enti22 ties shall use grant funds distributed by the 

23 Secretary under subsection (b). 

24 ‘‘(B) REQUIREMENTS.—Each agreement 

25 shall— 


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1 ‘‘(i) authorize the State or local entity 

2 to determine the criteria and priorities of 

3 the entity for purchasing conservation 

4 easements and other interests in land; 

5 ‘‘(ii) authorize the State or local enti6 ty to establish terms and conditions for 

7 conservation easements and other interests 

8 in land, if— 

9 ‘‘(I) the terms and conditions are 

10 adequate under State law to achieve 

11 and permit effective enforcement of 

12 the conservation purposes of the con13 servation easements or other interests; 

14 and 

15 ‘‘(II) the State or local entity in16 cludes in the terms and conditions a 

17 requirement consistent with the pur18 poses of the program regarding the 

19 impervious surfaces to be permitted 

20 for any conservation easement or 

21 other interest in land purchased using 

22 a grant provided under this section; 

23 ‘‘(iii) not require a Federal contingent 

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1 est in the conservation easement or other 

2 interest in land; and 

3 ‘‘(iv) permit qualified entities to use 

4 an amount equal to not more than 10 per5 cent of the amount of the grant for reason6 able costs of purchasing and enforcing con7 servation easements and other interests in 

8 land.. 

9 ‘‘(d) INDIVIDUAL PURCHASES.— 

10 ‘‘(1) IN GENERAL.—The Secretary may enter 

11 into agreements with eligible entities under which 

12 the Secretary shall provide matching funds to the el13 igible entities for the purpose of purchasing con14 servation easements or other interests in land on in15 dividual farm and ranch properties. 

16 ‘‘(2) REQUIREMENTS.—An agreement described 

17 in paragraph (1) shall— 

18 ‘‘(A) include such terms and conditions as 

19 the Secretary considers appropriate to ensure 

20 that the purposes of the farmland protection 

21 program are carried out; 

22 ‘‘(B) not require a Federal continent right 

23 of enforcement or reversionary interest in the 

24 conservation easement or other interest in land, 

25 if— 


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1 ‘‘(i) the conservation easement or 

2 other interest in land is held by a State or 

3 local agency; or 

4 ‘‘(ii) a qualified State or local entity 

5 will hold a contingent right of enforcement 

6 in the conservation easement or other in7 terest.’’. 

8 (3) in subsection (e) (as redesignated by para9 graph (1))— 

10 (A) by striking ‘‘Any highly’’ and inserting 

11 the following: 

12 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

13 (c)(2)(B)(ii), subject to paragraph (2), any highly’’; 

14 and 

15 (B) by adding at the end the following: 

16 ‘‘(2) PERMANENT CONSERVATION EASE17 MENTS.—In the case of a permanent conservation 

18 easement, the Secretary may not require the conver19 sion of cropland to less intensive uses if, under the 

20 conservation plan, soil erosion can be reduced to ‘T’ 

21 or below.’’; and 

22 (4) in paragraph (1)(A) of subsection (f) (as re23 designated by paragraph (1))— 

24 (A) by striking ‘‘section 1241(d)’’ and in25 serting ‘‘1241(a)(4)’’; 


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1 (B) by striking ‘‘shall not exceed 50 per2 cent’’ and inserting the following: ‘‘shall not ex3 ceed— 

4 ‘‘(i) 50 percent’’; 

5 (C) by striking the period at the end and 

6 inserting ‘‘; or’’; and 

7 (D) by adding at the end the following: 

8 ‘‘(ii) if a qualified conservation con9 tribution, as defined by section 170(h) of 

10 the Internal Revenue Code of 1986, of at 

11 least 25 percent of the market value is 

12 made by the landowner in connection with 

13 the purchase of a conservation easement or 

other interest in land, 2 14 ⁄3 of the actual cost 

15 of purchasing the conservation easement or 

16 other interest in land.’’. 

17 TITLE IV—MISCELLANEOUS 

18 SEC. 401. FARMERS’ MARKET PROMOTION PROGRAM PLUS. 

19 (a) FINDINGS.—Congress finds that— 

20 (1) agricultural direct farmer-to-consumer mar21 keting activities, including farmers’ markets, road22 side stands, on-farm markets, community-supported 

23 agriculture, Internet, mail order, and other similar 

24 direct order marketing activities, significantly en25 hance the ability of agricultural producers to retain 


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1 a greater share of the retail value of the products of 

2 the producers; 

3 (2) direct farmer-to-consumer marketing activi4 ties are a crucial component of the current and fu5 ture viability of small- and mid-sized family farms 

6 and ranches, including those owned by beginning 

7 and socially disadvantaged farmers and ranchers; 

8 and 

9 (3) agricultural direct marketing activities con10 tribute to the health and well-being of consumers in 

11 rural, urban, and Indian tribal communities by pro12 viding access to healthy, fresh, and affordable food. 

13 (b) PROGRAM.—The Farmer-to-Consumer Direct 

14 Marketing Act of 1976 (7 U.S.C. 3001 et seq.) is amended 

15 by inserting after section 6 the following: 

16 ‘‘SEC. 6A. FARMERS’ MARKET PROMOTION PROGRAM PLUS. 

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall carry 

18 out a program, to be known as the ‘Farmers’ Market Pro19 motion Program Plus’ (referred to in this section as the 

20 ‘Program’), to make grants to eligible entities for projects 

21 to establish, expand, and promote the full spectrum of di22 rect farmer-to-consumer marketing opportunities. 

23 ‘‘(b) PROGRAM PURPOSES.— 

24 ‘‘(1) IN GENERAL.—The purposes of the Pro25 gram are— 


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1 ‘‘(A) to increase domestic consumption of 

2 agricultural commodities by improving and ex3 panding, or assisting in the improvement and 

4 expansion of, direct farmer-to-consumer mar5 keting opportunities; 

6 ‘‘(B) to develop, or aid in the development 

7 of, new direct farmer-to-consumer marketing 

8 opportunities; and 

9 ‘‘(C) to increase direct farmer-to-consumer 

10 direct marketing opportunities in underserved 

11 areas by providing, to the maximum extent 

12 practicable, not less than 25 percent of grants 

13 to projects in underserved areas, as determined 

14 by the Secretary. 

15 ‘‘(2) LIMITATIONS.—An eligible entity shall not 

16 use a grant or other assistance provided under the 

17 Program for the purchase, construction, or rehabili18 tation of a building or structure. 

19 ‘‘(c) ELIGIBLE ENTITIES.—An entity shall be eligible 

20 to receive a grant under the Program if the entity is— 

21 ‘‘(1) composed of 2 or more agricultural pro22 ducers that produce and sell products through a 

23 common distribution channel; 

24 ‘‘(2) an agricultural cooperative or producer as25 sociation or network; 


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1 ‘‘(3) a local government; 

2 ‘‘(4) a nonprofit corporation; 

3 ‘‘(5) a public benefit corporation; 

4 ‘‘(6) an economic development corporation; 

5 ‘‘(7) a regional farmers’ market authority; or 

6 ‘‘(8) such other entity as the Secretary may 

7 designate. 

8 ‘‘(d) ELIGIBLE ACTIVITIES.—An eligible entity may 

9 use a grant provided under this section to carry out activi10 ties relating to— 

11 ‘‘(1) farmers’ markets; 

12 ‘‘(2) roadside stands; 

13 ‘‘(3) community-supported agriculture; 

14 ‘‘(4) supporting the use of electronic benefits 

15 transfer systems at farmers’ markets and, where 

16 feasible, other direct market enterprises; 

17 ‘‘(5) pick-your-own operations; 

18 ‘‘(6) direct Internet and mail order sales; 

19 ‘‘(7) producer-owned agritourism activities fa20 cilitating the direct sale of agricultural products; and 

21 ‘‘(8) other similar ventures, as determined by 

22 the Secretary. 

23 ‘‘(e) CRITERIA AND GUIDELINES.—The Secretary 

24 shall establish criteria and guidelines for the submission, 


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1 evaluation, and funding of proposed projects under the 

2 Program. 

3 ‘‘(f) FUNDING.—Of the funds of the Commodity 

4 Credit Corporation, the Secretary shall use to carry out 

5 this section $25,000,000 for each of fiscal years 2008 

6 through 2013.’’. 

7 SEC. 402. SENIORS FARMERS’ MARKET NUTRITION PRO8 GRAM. 

9 Section 4402 of the Farm Security and Rural Invest10 ment Act of 2002 (7 U.S.C. 3007) is amended— 

11 (1) by striking subsection (a) and inserting the 

12 following: 

13 ‘‘(a) ESTABLISHMENT.—Of funds available to the 

14 Commodity Credit Corporation, the Secretary of Agri15 culture (referred to in this section as the ‘Secretary’) shall 

16 use to carry out and expand a seniors farmers’ market 

17 nutrition program— 

18 ‘‘(1) $20,000,000 for fiscal year 2008; 

19 ‘‘(2) $30,000,000 for fiscal year 2009; 

20 ‘‘(3) $45,000,000 for fiscal year 2010; 

21 ‘‘(4) $60,000,000 for fiscal year 2011; and 

22 ‘‘(5) not less than $75,000,000 for fiscal year 

23 2012 and each fiscal year thereafter.’’; 

24 (2) by redesignating subsection (c) as sub25 section (d); and 


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1 (3) by inserting after subsection (b) the fol2 lowing: 

3 ‘‘(c) ELIGIBLE PARTICIPANTS; BENEFITS LEVELS.— 

4 Regulations issued pursuant to subsection (d)— 

5 ‘‘(1) shall allow for participation by participants 

6 in farmers’ markets, roadside stands, and commu7 nity supported agriculture programs; and 

8 ‘‘(2) shall not limit the ability of any State or 

9 regional program to set benefit levels for individual 

10 seniors.’’. 

11 SEC. 403. HEALTHY FOOD ENTERPRISE DEVELOPMENT 

12 PROGRAM. 

13 Title II of the Specialty Crops Competitiveness Act 

14 of 2004 (Public Law 108–465) is amended by adding at 

15 the end the following: 

16 ‘‘SEC. 204. HEALTHY FOOD ENTERPRISE DEVELOPMENT 

17 PROGRAM. 

18 ‘‘(a) PURPOSE.—The purpose of this section is to 

19 promote the health and well-being of all people in the 

20 United States, particularly school-aged children, low-in21 come populations, and individuals residing in underserved 

22 communities, by increasing the availability and afford23 ability of healthy foods, such as fresh fruit and vegetables, 

24 which, when produced, processed, and packaged locally or 

25 regionally, can significantly enhance the income of agriculVerDate Aug 31 2005 21:13 May 18, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1432.IS S1432

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1 tural producers by increasing the share of the producers 

2 of the final retail price of the foods. 

3 ‘‘(b) DEFINITIONS.—In this section: 

4 ‘‘(1) BEGINNING FARMER OR RANCHER.—The 

5 term ‘beginning farmer or rancher’ has the meaning 

6 given the term ‘qualified beginning farmer or ranch7 er’ in section 343(a) of the Consolidated Farm and 

8 Rural Development Act (7 U.S.C. 1991(a)). 

9 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en10 tity’ includes— 

11 ‘‘(A) a small or midsized processor, dis12 tributor, wholesaler, or retail food outlet; 

13 ‘‘(B) a group of producers operating as a 

14 legally recognized marketing alliance; 

15 ‘‘(C) a producer-owned cooperative; 

16 ‘‘(D) a nonprofit organization; 

17 ‘‘(E) an economic development or commu18 nity development corporation; 

19 ‘‘(F) a unit of State or local government; 

20 and 

21 ‘‘(G) an academic institution. 

22 ‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’ 

23 has the meaning given the term in section 4 of the 

24 Indian Self-Determination and Education Assistance 

25 Act (25 U.S.C. 450b). 


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1 ‘‘(4) LOCALLY OR REGIONALLY PRODUCED

2 FOOD.—The term ‘locally or regionally produced 

3 food’ means any agricultural product distributed 

4 within the locality or region in which the agricultural 

5 product is produced in a manner that ensures that— 

6 ‘‘(A) information is typically conveyed to 

7 the end-use consumer regarding the product or8 igin, production practices, or other valuable in9 formation; 

10 ‘‘(B) the income of the producer is in11 creased through maximization of the share of 

12 the retail food price retained by the producer; 

13 ‘‘(C) consumers are provided with afford14 able agricultural products produced, processed, 

15 and distributed in the locality or region of the 

16 consumers; 

17 ‘‘(D) the produce has been shipped not 

greater than 1 18 ⁄2 of the current average distance 

19 of all food produced and consumed in the 

20 United States, as determined by the Secretary; 

21 and 

22 ‘‘(E) environmental integrity and social 

23 welfare are maintained and enhanced, respec24 tively, throughout the supply chain with respect 

25 to the product. 


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1 ‘‘(5) SECRETARY.—The term ‘Secretary’ means 

2 the Secretary of Agriculture. 

3 ‘‘(6) SOCIALLY DISADVANTAGED FARMER OR

4 RANCHER.—The term ‘socially disadvantaged farmer 

5 or rancher’ has the meaning given the term in sec6 tion 355(e) of the Consolidated Farm and Rural De7 velopment Act (7 U.S.C. 2003(e)). 

8 ‘‘(7) UNDERSERVED COMMUNITY.—The term 

9 ‘underserved community’ includes any community 

10 that may have, as determined by the Secretary— 

11 ‘‘(A) limited access to affordable, healthy 

12 foods, including fresh fruits and vegetables, in 

13 grocery retail stores or farmer-to-consumer di14 rect markets; 

15 ‘‘(B) high incidences of diet-related dis16 eases, including obesity; 

17 ‘‘(C) high rates of hunger or food insecu18 rity; or 

19 ‘‘(D) severe or persistent poverty in urban 

20 or rural communities, including Indian tribal 

21 communities. 

22 ‘‘(c) GRANT PROGRAM.— 

23 ‘‘(1) ESTABLISHMENT.—The Secretary, acting 

24 through the head of the market services branch of 

25 the Agricultural Marketing Service, shall establish a 


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1 program under which the Secretary shall provide 

2 grants, on a competitive basis, to eligible entities to 

3 conduct enterprise feasibility studies (including stud4 ies of consumer preference), in accordance with the 

5 purpose of this section. 

6 ‘‘(2) APPLICATION.—To be eligible to receive a 

7 grant under this subsection, an eligible entity shall 

8 submit to the Secretary an application at such time, 

9 in such manner, and containing such information as 

10 the Secretary may require. 

11 ‘‘(3) COORDINATION WITH OTHER AGENCIES.— 

12 In carrying out the program under this subsection, 

13 the Secretary shall coordinate, with respect to the 

14 development of the program and reviews of grant 

15 applications, with— 

16 ‘‘(A) the Cooperative State Research, Edu17 cation, and Extension Service; and 

18 ‘‘(B) the Rural Business Cooperative Serv19 ice. 

20 ‘‘(4) PRIORITY.—In providing grants under this 

21 subsection, the Secretary shall give priority to appli22 cations with proposed projects that— 

23 ‘‘(A) convey locally or regionally produced 

24 food products that are processed and distrib25 uted near the point of final retail purchase; 


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1 ‘‘(B) are from partnerships of 2 or more 

2 eligible entities; 

3 ‘‘(C) include features effectively targeting 

4 participation by socially disadvantaged farmers 

5 or ranchers or beginning farmers or ranchers; 

6 ‘‘(D) increase employment opportunities in 

7 underserved communities; or 

8 ‘‘(E) establish and maintain satisfactory 

9 environmental and labor standards, including 

10 worker protection. 

11 ‘‘(5) MAXIMUM AMOUNT.—The amount of a 

12 grant provided under this subsection shall not exceed 

13 $250,000. 

14 ‘‘(6) TERM.—A grant provided under this sub15 section shall have a term of not more than 3 years. 

16 ‘‘(7) REPORTS.— 

17 ‘‘(A) IN GENERAL.—Each eligible entity 

18 that receives a grant under this subsection shall 

19 submit to the Secretary an annual report de20 scribing the results and progress of each feasi21 bility study to ensure sufficient progress is 

22 achieved with respect to the goals of the 

23 projects carried out by the eligible entity. 

24 ‘‘(B) PUBLIC AVAILABILITY.—The Sec25 retary shall ensure that any information conVerDate Aug 31 2005 21:13 May 18, 2007 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1432.IS S1432

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1 tained in a report under subparagraph (A) re2 lating to consumer preference or producer avail3 ability is made available to the public. 

4 ‘‘(8) FUNDING.—On October 1, 2008, and on 

5 each October 1 thereafter through October 1, 2013, 

6 out of any funds in the Treasury not otherwise ap7 propriated, the Secretary of the Treasury shall 

8 transfer to the Secretary to carry out this subsection 

9 $5,000,000, to remain available until expended. 

10 ‘‘(d) ENTERPRISE DEVELOPMENT LOAN PRO11 GRAM.— 

12 ‘‘(1) ESTABLISHMENT.—The Secretary, acting 

13 through the Agricultural Marketing Service, shall es14 tablish a program under which the Secretary shall 

15 provide loans and loan guarantees to eligible entities 

16 and individual producers for use in accordance with 

17 paragraph (6). 

18 ‘‘(2) COORDINATION WITH OTHER AGENCIES.— 

19 In carrying out the program under this subsection, 

20 the Secretary shall coordinate, with respect to the 

21 development of the program, reviews of applications, 

22 and implementation, with the Rural Business Coop23 erative Service. 

24 ‘‘(3) APPLICATION.—To be eligible to receive a 

25 loan or loan guarantee under this subsection, an eliVerDate Aug 31 2005 21:13 May 18, 2007 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1432.IS S1432

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1 gible entity or individual producer shall submit to 

2 the Secretary an application at such time, in such 

3 manner, and containing such information as the Sec4 retary may require. 

5 ‘‘(4) REQUIREMENTS.— 

6 ‘‘(A) PRIORITY.—In providing loans and 

7 loan guarantees under this subsection, the Sec8 retary shall give priority to applications that 

9 represent— 

10 ‘‘(i) projects that convey locally or re11 gionally produced food products that are 

12 processed and distributed near the point of 

13 final retail purchase; 

14 ‘‘(ii) partnerships of 2 or more eligible 

15 entities; 

16 ‘‘(iii) socially disadvantaged farmers 

17 or ranchers or beginning farmers or ranch18 ers; 

19 ‘‘(iv) projects that increase employ20 ment opportunities in underserved commu21 nities; or 

22 ‘‘(v) projects that establish and main23 tain clear environmental and labor stand24 ards, including worker protection. 


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1 ‘‘(B) LIMITATION.—The Secretary shall 

2 ensure that no recipient of a loan or loan guar3 antee under this subsection holds, or signifi4 cantly benefits from, more than 1 loan or guar5 antee for the term of the loan or guarantee. 

6 ‘‘(5) DIRECT LOANS.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 provide loans under this subsection— 

9 ‘‘(i) on an annual and competitive 

10 basis; 

11 ‘‘(ii) after conducting a review of ap12 plicable applications in accordance with 

13 subsection (c)(3); 

14 ‘‘(iii) in a manner that is economically 

15 sound, as determined by the Secretary; 

16 ‘‘(iv) that may be subordinated to 

17 loans made by local private lenders; and 

18 ‘‘(v) in an amount equal to not more 

19 than $1,500,000, as adjusted to reflect 

20 changes for the 12-month period ending 

21 the preceding November 30 in the Con22 sumer Price Index for All Urban Con23 sumers published by the Bureau of Labor 

24 Statistics of the Department of Labor. 


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1 ‘‘(B) INTEREST RATE.—The interest rate 

2 of a loan provided under this subsection— 

3 ‘‘(i) shall be equivalent to the interest 

4 rate of securities of the United States 

5 Treasury of comparable maturity as of the 

6 date on which the loan is provided; 

7 ‘‘(ii) may be offered as a variable rate 

8 to allow lower-interest payments until an 

9 eligible entity is able to pay higher-interest 

10 payments, subject to the condition that the 

11 total interest rate does not exceed the 

12 standard interest rate of the Department 

13 of the Treasury, as in existence on the 

14 date on which the loan is approved; and 

15 ‘‘(iii) shall not change, in the aggre16 gate, during the term of the loan. 

17 ‘‘(C) REPAYMENT.—An eligible entity or 

18 individual producer shall repay the Secretary an 

19 amount equal to the amount of the loan re20 ceived by the eligible entity or individual pro21 ducer (including interest) by not later than 15 

22 years after the date on which the loan is pro23 vided. 

24 ‘‘(D) UNDERSERVED COMMUNITIES.—The 

25 Secretary shall defer repayment of a loan (inVerDate Aug 31 2005 21:13 May 18, 2007 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1432.IS S1432

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1 cluding interest) provided to an eligible entity 

2 located in an underserved community for the 3- 

3 year period beginning on the date on which the 

4 loan is provided. 

5 ‘‘(6) LOAN GUARANTEES.— 

6 ‘‘(A) RATES.— 

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clauses (ii) and (iii), the rate of a 

9 loan guarantee provided under this sub10 section shall be not less than 80 percent 

11 and not more than 90 percent. 

12 ‘‘(ii) CERTAIN RECIPIENTS.—The rate 

13 of a loan guarantee provided under this 

14 subsection to an eligible entity that serves 

15 primarily a majority of socially disadvan16 taged farmers or ranchers or beginning 

17 farmers or ranchers, as determined by the 

18 Secretary, shall be not less than 95 per19 cent. 

20 ‘‘(iii) CERTAIN PROJECTS.—The rate 

21 of a loan guarantee provided under this 

22 subsection for a project that, as deter23 mined by the Secretary, will result in in24 creased employment in a low-income com25 munity, an economic empowerment zone, 


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1 or such other similar area as the Secretary 

2 may designate, shall be not less than 95 

3 percent. 

4 ‘‘(B) ELIGIBLE LENDERS.—For purposes 

5 of loan guarantees under this paragraph, eligi6 ble lender institutions include— 

7 ‘‘(i) community development financial 

8 institutions; 

9 ‘‘(ii) community development banks; 

10 ‘‘(iii) credit unions; 

11 ‘‘(iv) banks owned by Indian tribes; 

12 and 

13 ‘‘(v) such other institutions as the 

14 Secretary may designate to ensure equi15 table access to loan guarantees— 

16 ‘‘(I) in each State; and 

17 ‘‘(II) to Indian tribal organiza18 tions. 

19 ‘‘(C) MAXIMUM AMOUNT.—The amount of 

20 a loan guaranteed under this subsection shall 

21 not exceed $1,500,000, as adjusted to reflect 

22 changes for the 12-month period ending the 

23 preceding November 30 in the Consumer Price 

24 Index for All Urban Consumers published by 


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1 the Bureau of Labor Statistics of the Depart2 ment of Labor. 

3 ‘‘(7) USE OF FUNDS.—An eligible entity or in4 dividual producer shall use funds provided pursuant 

5 to a loan or loan guarantee under this subsection to 

6 develop processing, distribution, and information in7 frastructure for locally or regionally produced food, 

8 in accordance with the purpose of this section, in9 cluding through— 

10 ‘‘(A) construction of new infrastructure; 

11 ‘‘(B) rehabilitation of existing infrastruc12 ture; 

13 ‘‘(C) activities to support the development 

14 of marketing networks and alliances; 

15 ‘‘(D) development of information infra16 structure, including websites; 

17 ‘‘(E) purchases of equipment for proc18 essing, distribution, transportation, storage, 

19 and other related purposes; and 

20 ‘‘(F) other activities, as the Secretary de21 termines to be appropriate. 

22 ‘‘(8) FUNDING.—On October 1, 2008, and on 

23 each October 1 thereafter through October 1, 2013, 

24 out of any funds in the Treasury not otherwise ap25 propriated, the Secretary of the Treasury shall 


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1 transfer to the Secretary to carry out this subsection 

2 $35,000,000, to remain available until expended, of 

3 which— 

4 ‘‘(A) not less than $15,000,000 shall be 

5 used for each fiscal year to provide loans under 

6 paragraph (4); and 

7 ‘‘(B) not less than $10,000,000 shall be 

8 used for each fiscal year to provide loan guar9 antees under paragraph (5). 

10 ‘‘(e) GRANT AND LOAN PROGRAM REQUIREMENTS.— 

11 ‘‘(1) TECHNICAL ASSISTANCE AND OUT12 REACH.— 

13 ‘‘(A) IN GENERAL.—The Secretary shall— 

14 ‘‘(i) provide to the public information 

15 relating to the grant and loan programs 

16 under this section; and 

17 ‘‘(ii) provide technical assistance to— 

18 ‘‘(I) socially disadvantaged farm19 ers or ranchers; 

20 ‘‘(II) Indian tribal organizations; 

21 ‘‘(III) low-income populations; 

22 and 

23 ‘‘(IV) other underserved commu24 nities and producers. 


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1 ‘‘(B) SERVICE PROVIDERS.—In carrying 

2 out subparagraph (A), the Secretary may enter 

3 into contracts, on a competitive basis, with enti4 ties that, as determined by the Secretary— 

5 ‘‘(i) demonstrate experience in serving 

6 socially disadvantaged farmers or ranchers 

7 and other underserved communities and 

8 producers; 

9 ‘‘(ii) include, in the governance struc10 ture of the entity, 2 or more members rep11 resenting the targeted communities served 

12 by the entity; and 

13 ‘‘(iii) will share information developed 

14 or used by the entity with— 

15 ‘‘(I) researchers; 

16 ‘‘(II) practitioners; and 

17 ‘‘(III) other interested parties. 

18 ‘‘(C) FUNDING.—On October 1, 2008, and 

19 on each October 1 thereafter through October 

20 1, 2013, out of any funds in the Treasury not 

21 otherwise appropriated, the Secretary of the 

22 Treasury shall transfer to the Secretary to 

23 carry out this paragraph not less than 

24 $200,000 and not more than an amount equal 

25 to 5 percent of the funds required to carry out 


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1 this program, to remain available until ex2 pended. 

3 ‘‘(2) LIMITATIONS.—For purposes of the pro4 grams under this section, the Secretary— 

5 ‘‘(A) shall not give preference to any entity 

6 based on an agricultural commodity produced 

7 or supported by the entity; and 

8 ‘‘(B) shall encourage, to the maximum ex9 tent practicable, projects that use infrastructure 

10 efficiently for more than 1 agricultural product. 

11 ‘‘(3) REPORT.—Not less frequently than once 

12 each year, the Secretary shall submit to Congress a 

13 report that describes the programs (including the 

14 level of participation in each program) under this 

15 section, including information relating to— 

16 ‘‘(A) projects carried out under this sec17 tion; 

18 ‘‘(B) characteristics of the agricultural 

19 producers and communities served by the 

20 projects; 

21 ‘‘(C) the benefits of the projects; 

22 ‘‘(D) data necessary to comply with— 

23 ‘‘(i) section 2501A of the Food, Agri24 culture, Conservation, and Trade Act of 

25 1990 (7 U.S.C. 2279–1); or 


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1 ‘‘(ii) section 8(b)(5)(B) of the Soil 

2 Conservation and Domestic Allotment Act 

3 (16 U.S.C. 590h(b)(5)); and 

4 ‘‘(E) outreach and technical assistance ac5 tivities carried out by the Secretary under para6 graph (1).’’. 

Æ 


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