‘‘(iv) support community and regional 
economic development, particularly— 
‘‘(I) in rural areas; or 
‘‘(II) development that strength-
ens rural and urban connections; 
‘‘(v) leverage partnerships with exist-
ing agencies and regional supply chains to 
better integrate local and regional foods 
into new and existing markets; 
‘‘(vi) demonstrate an ability to build 
infrastructure and capacity to sustain the 
long-term viability of eligible activities; 
‘‘(vii) use producer controlled busi-
nesses and cooperative ownership models; 
‘‘(viii) support the establishment of 
producer controlled businesses and cooper-
ative ownership models that serve groups 
whose members have been subjected to ra-
cial, ethnic, or gender prejudice because of 
their identity as members of a group with-
out regard to their individual qualities; 
‘‘(ix) cover an area located in dis-
tressed low-income rural and urban com-
munities, including areas with persistent 
poverty; 
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‘‘(x) demonstrate consistency with ex-
isting regional economic or community de-
velopment plans for the area to be served 
by eligible activities; and 
‘‘(xi) meet other factors that are im-
portant for achieving the purposes of the 
Program described in subsection (b), as de-
termined by the Secretary. 
‘‘(d) DEVELOPMENT GRANTS.— 
‘‘(1) IN GENERAL.—Under the Program, the 
Secretary may provide grants to eligible entities to 
carry out, in accordance with purposes of the Pro-
gram described in subsection (b), activities described 
in paragraph (2). 
‘‘(2) ELIGIBLE ACTIVITIES.—An eligible entity 
may use a grant provided under paragraph (1)— 
‘‘(A) to support and promote— 
‘‘(i) domestic direct producer-to-con-
sumer marketing; 
‘‘(ii) farmers’ markets; 
‘‘(iii) roadside stands; 
‘‘(iv) agritourism activities; 
‘‘(v) community-supported agriculture 
programs; 
‘‘(vi) online sales; or 
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‘‘(vii) domestic direct producer-to-re-
tailer marketing; 
‘‘(B) to support local and regional food 
business enterprises that engage as inter-
mediaries 
in 
indirect 
producer-to-consumer 
marketing; 
‘‘(C) to support the processing, aggrega-
tion, distribution, and storage of local and re-
gional food products that are marketed locally 
or regionally; 
‘‘(D) to encourage the development of new 
food products and value-added agricultural 
products; 
‘‘(E) to assist with business development 
and feasibility studies; 
‘‘(F) to develop marketing strategies for 
producers of local food products and value- 
added agricultural products in new and existing 
markets; 
‘‘(G) to facilitate regional food chain co-
ordination and mid-tier value chain develop-
ment; 
‘‘(H) to promote new business opportuni-
ties and marketing strategies to reduce on-farm 
food waste; or 
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‘‘(I) to respond to changing technology 
needs in direct producer-to-consumer mar-
keting. 
‘‘(3) CRITERIA AND GUIDELINES FOR APPLICA-
TIONS.—The Secretary shall establish such criteria 
and guidelines for the submission of applications, 
evaluation, and funding of proposed projects under 
the Program as the Secretary determines are appro-
priate. 
‘‘(4) PRIORITIES.— 
‘‘(A) REQUIRED PRIORITY.—The Secretary 
shall give priority to applications submitted 
under paragraph (3) that— 
‘‘(i) are applied for by or serve— 
‘‘(I) beginning farmers or ranch-
ers; 
‘‘(II) 
socially 
disadvantaged 
farmers or ranchers; 
‘‘(III) operators of small or me-
dium sized farms or ranches that are 
structured as family farms; or 
‘‘(IV) veteran farmers or ranch-
ers; 
‘‘(ii) benefit underserved communities, 
including communities that are located in 
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areas of concentrated poverty with limited 
access to fresh locally or regionally grown 
food. 
‘‘(B) 
DISCRETIONARY
PRIORITY.—The 
Secretary may give priority to applications sub-
mitted under paragraph (3) that— 
‘‘(i) are applied for by an eligible enti-
ty participating in a partnership agree-
ment; and 
‘‘(ii) intend to carry out eligible activi-
ties under the partnership agreement. 
‘‘(5) TERM.—The term of a grant under this 
subsection shall be not longer than 3 years, as deter-
mined by the Secretary. 
‘‘(6) AMOUNT.—The amount of a grant under 
the Program shall be not more than $500,000, as 
determined by the Secretary. 
‘‘(7) LIMITATION ON USE OF FUNDS.—An eligi-
ble entity may not use a grant under this subsection 
for the purchase or construction of a building or 
structure. 
‘‘(e) SIMPLIFICATION OF APPLICATION AND REPORT-
ING PROCESSES.— 
‘‘(1) APPLICATIONS.—The Secretary shall— 
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‘‘(A) simplify the application process for a 
grant under subsection (d); and 
‘‘(B) establish a simplified application 
form for eligible entities that request less than 
$50,000 under that subsection. 
‘‘(2) REPORTING.—The Secretary shall— 
‘‘(A) streamline and simplify the reporting 
process for eligible entities; and 
‘‘(B) obtain from eligible entities and 
maintain such information as the Secretary de-
termines is necessary to administer and evalu-
ate the Program. 
‘‘(f) ECONOMY ACT AGREEMENTS.— 
‘‘(1) IN GENERAL.—In carrying out the Pro-
gram, the Secretary, acting through the Adminis-
trator of the Agricultural Marketing Service, may 
enter into 1 or more agreements pursuant to sec-
tions 1535 and 1536 of title 31, United States Code, 
with— 
‘‘(A) the head of a field-based agency of 
the Department of Agriculture, as determined 
by the Secretary, to carry out such purposes 
and functions of the Program as the Secretary 
considers appropriate; or 
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‘‘(B) a cooperative extension service to pro-
vide technical assistance and outreach under 
the program to eligible entities and eligible 
partners. 
‘‘(2) INDIRECT COSTS.—An agreement entered 
into under paragraph (1)(B) shall not be subject to 
any indirect costs, unless the agreement expressly 
provides that it is subject to indirect costs. 
‘‘(g) INTERDEPARTMENTAL COORDINATION.—In car-
rying out the Program, to the maximum extent prac-
ticable, the Secretary shall ensure coordination among 
Federal agencies. 
‘‘(h) EVALUATION.— 
‘‘(1) IN GENERAL.—Using amounts made avail-
able under subsection (i)(4), the Secretary shall con-
duct an evaluation of the Program that— 
‘‘(A) measures the economic impact of the 
Program on new and existing market outcomes; 
‘‘(B) measures the effectiveness of the Pro-
gram in improving and expanding— 
‘‘(i) 
the 
regional 
food 
economy 
through public and private partnerships; 
‘‘(ii) the production of value-added ag-
ricultural products; 
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‘‘(iii) 
producer-to-consumer 
mar-
keting, including direct producer-to-con-
sumer marketing; 
‘‘(iv) local and regional food systems, 
including regional food chain coordination 
and business development; 
‘‘(v) new business opportunities and 
marketing strategies to reduce on-farm 
food waste; 
‘‘(vi) the use of new technologies in 
producer-to-consumer marketing, including 
direct 
producer-to-consumer 
marketing; 
and 
‘‘(vii) the workforce and capacity of 
regional food systems; and 
‘‘(C) provides a description of— 
‘‘(i) each partnership agreement; and 
‘‘(ii) each grant provided under sub-
section (d). 
‘‘(2) REPORT.—Not later than 3 years after the 
date of enactment of this section, the Secretary shall 
submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate a 
report describing the evaluation conducted under 
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paragraph (1), including a thorough analysis of the 
outcomes of the evaluation. 
‘‘(i) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $80,000,000 for 
each of fiscal years 2018 through 2022, to remain 
available until expended. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $20,000,000 for each of fiscal years 
2018 through 2022, to remain available until ex-
pended. 
‘‘(3) USE OF FUNDS.— 
‘‘(A) PRODUCERS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), of the funds made available to carry 
out this section for a fiscal year, 35 per-
cent shall be used for grants under sub-
section (d) provided to eligible entities de-
scribed in subparagraphs (A) through (C) 
of subsection (a)(4). 
‘‘(ii) 
MAJORITY-CONTROLLED
PRO-
DUCER-BASED BUSINESS VENTURES.—The 
total amount of grants under subsection 
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(d) provided to majority-controlled pro-
ducer-based business ventures for a fiscal 
year shall not exceed 10 percent of the 
amount reserved under clause (i). 
‘‘(B) REGIONAL
PARTNERSHIPS.—Of the 
funds made available to carry out this section 
for a fiscal year, 10 percent shall be used to 
enter into partnership agreements. 
‘‘(C) UNOBLIGATED
FUNDS.—Any funds 
reserved under subparagraph (A) or (B) that 
are not obligated for the uses described in that 
subparagraph, as applicable, by September 30 
of the fiscal year for which the funds were 
made available— 
‘‘(i) shall be available to carry out any 
function of the Program; and 
‘‘(ii) may carry over to the next fiscal 
year. 
‘‘(4) ADMINISTRATIVE EXPENSES.—Not greater 
than 8 percent of amounts made available to carry 
out this section for a fiscal year may be used for ad-
ministrative expenses.’’. 
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SEC. 3. FOOD SAFETY OUTREACH PROGRAM. 
(a) ELIGIBILITY AND PROJECT PRIORITIES.—Section 
405 of the Agricultural Research, Extension, and Edu-
cation Reform Act of 1998 (7 U.S.C. 7625) is amended— 
(1) by striking subsection (c) and inserting the 
following new subsection: 
‘‘(c) PROJECT
PRIORITIES.—In awarding grants 
under this section, the Secretary shall give priority to the 
following types of projects: 
‘‘(1) A project that targets small and medium- 
sized farms, beginning farmers, socially disadvan-
taged farmers, small food processors, or small fresh 
fruit and vegetable merchant wholesalers. 
‘‘(2) A project carried out in partnership with 
or led by a nonprofit community-based or non-gov-
ernmental organization, an organization representing 
owners and operators of farms, small food proc-
essors, or small fruit and vegetable merchant whole-
salers that work with or represent the target audi-
ence for the project.’’; and 
(2) in subsection (f)(1)— 
(A) by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (D), (E), and 
(F), respectively; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraphs: 
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‘‘(B) a Federal, State, local, or tribal agen-
cy; 
‘‘(C) a nonprofit community-based or non- 
governmental organization or an organization 
representing owners and operators of farms, 
small food processors, or small fruit and vege-
table merchant wholesalers that has a commit-
ment to public health and expertise in admin-
istering programs that contribute to food safe-
ty;’’. 
(b) COORDINATION
AND
COOPERATION.—Section 
405(d) of the Agricultural Research, Extension, and Edu-
cation Reform Act of 1998 (7 U.S.C. 7625(d)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘National In-
tegrated Food Safety Initiative’’ and inserting ‘‘Ag-
ricultural Marketing Service’’; and 
(2) by striking paragraph (2) and inserting the 
following new paragraphs: 
‘‘(2) CONSULTATION.—In carrying out the 
grant program under this section, the Secretary 
shall consult with the National Institute of Food and 
Agriculture— 
‘‘(A) to take into consideration applied re-
search, education, and extension results; and 
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‘‘(B) to integrate program evaluations and 
results into the research, education, and exten-
sion agenda. 
‘‘(3) FOOD SAFETY APPLIED RESEARCH AGEN-
DA.—In determining the applied research agenda for 
food safety, the Secretary shall take into consider-
ation the needs articulated by participants in 
projects funded by the program under this section.’’. 
(c) GRANT FEATURES AND REQUIREMENTS.—Sec-
tion 405(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(e)) is 
amended— 
(1) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) ENCOURAGED FEATURES.—The Secretary 
shall encourage projects carried out using grant 
funds under this section— 
‘‘(A) to include co-management of food 
safety, conservation systems, and ecological 
health; and 
‘‘(B) to be appropriate to the identified 
needs of the priority target audience.’’; 
(2) in paragraph (3)(B), by inserting before the 
period at the end the following: ‘‘, except that a con-
tinuation grant may be approved for a project that 
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meets one of the priorities specified in subsection (c) 
and demonstrates positive impacts to the target au-
dience from the prior funding cycle’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) LIMITATION ON INDIRECT COSTS.—A re-
cipient of a grant under this subsection may not use 
more than 20 percent on the funds provided by the 
grant for the indirect costs of carrying out the ini-
tiatives described in paragraph (1).’’. 
(d) FUNDING.—Subsection (j) of section 405 of the 
Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7625) is amended to read as fol-
lows: 
‘‘(j) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $20,000,000 for 
each of fiscal years 2018 through 2022. 
‘‘(2) LIMITATION
ON
ADMINISTRATIVE
EX-
PENSES.—Not more than 5 percent of the total 
amount made available to carry out this section for 
a fiscal year may be used for administrative ex-
penses.’’. 
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(e) CROSS-REFERENCE
AND TECHNICAL CORREC-
TION.—Section 405(a) of the Agricultural Research, Ex-
tension, and Education Reform Act of 1998 (7 U.S.C. 
7625(a)) is amended— 
(1) by inserting ‘‘(known as the Food Safety 
Outreach Program)’’ after ‘‘competitive grant pro-
gram’’; and 
(2) by striking ‘‘section 1011(d) of the Federal 
Food, Drug, and Cosmetic Act’’ and inserting ‘‘sec-
tion 1012(d) of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 399c(d))’’. 
SEC. 4. FOOD SAFETY COST-SHARE PROGRAM. 
(a) ESTABLISHMENT REQUIRED.—The Secretary of 
Agriculture, acting through the Administrator of the Agri-
cultural Marketing Service, shall establish a national food 
safety cost-share program to reimburse producers and 
handlers of agricultural products for costs incurred in ob-
taining food safety certification and in making necessary 
changes and upgrades to practices and equipment to im-
prove food safety. 
(b) ELIGIBILITY.— 
(1) IN GENERAL.—Any domestic producer or 
handler that obtains a food safety certification may 
request reimbursement under the national food safe-
ty cost-share program. 
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(2) LIMITATION.—A producer or handler that 
has successfully passed a food safety audit each year 
of the preceding three years is not eligible for reim-
bursement. 
(c) AMOUNT OF REIMBURSEMENT.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may reimburse a producer or handler 
under the national food safety cost-share program 
for— 
(A) not more than 75 percent of the costs 
incurred by the producer or handler in obtain-
ing food safety certification through an accred-
ited food safety certifier; and 
(B) not more than 50 percent of the costs 
incurred by the producer or handler for changes 
to agricultural practices and equipment nec-
essary to improve food safety. 
(2) 
MAXIMUM
AMOUNT.—The 
maximum 
amount of reimbursement provided to a producer or 
handler under the national food safety cost-share 
program shall be— 
(A) $1,500 under paragraph (1)(A); and 
(B) $5,000 under paragraph (1)(B). 
(3) INCREASED PAYMENTS FOR CERTAIN PRO-
DUCERS.—Notwithstanding paragraph (1), but sub-
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ject to paragraph (2), in the case of a producer that 
is a limited resource, socially disadvantaged farmer 
or rancher, a veteran farmer or rancher (as defined 
in section 2501(e) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 
2279(e))), or a beginning farmer or rancher, the 
Secretary may increase the amount that would oth-
erwise be provided to the producer under this sub-
section— 
(A) up to 90 percent of the cost of certifi-
cation; and 
(B) up to 75 percent of the cost of prac-
tices. 
(d) REPORTING REQUIREMENTS.—Not later than 
March 1 of each year, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that describes the requests 
by, disbursements to, and expenditures for each State 
under the national food safety cost-share program during 
the current and previous fiscal year, including the number 
of producers and handlers served by the program in the 
previous fiscal year. 
(e) FUNDING.— 
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(1) MANDATORY
FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall make available to carry out the national food 
safety cost-share program $10,000,000 for each of 
fiscal years 2018 through 2022. Such amounts shall 
remain available until expended. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
the 
national 
food 
safety 
cost-share 
program 
$10,000,000 for each of fiscal years 2018 through 
2022. 
SEC. 5. NATIONAL ORGANIC CERTIFICATION COST-SHARE 
PROGRAM. 
(a) ELIMINATION OF DIRECTED DELEGATION.—Sec-
tion 10606(a) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 6523(a)) is amended by striking 
‘‘(acting through the Agricultural Marketing Service)’’. 
(b) FUNDING.—Subsection (d) of section 10606 of 
the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 6523) is amended to read as follows: 
‘‘(d) MANDATORY FUNDING.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall make 
available to carry out the national organic certification 
cost-share program $11,500,000, to remain available until 
expended, for each of fiscal years 2018 through 2022.’’. 
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SEC. 6. LIVESTOCK, DAIRY, AND POULTRY SUPPLY CHAIN 
INFRASTRUCTURE GRANTS AND LOANS. 
Subtitle D of title III of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1981 et seq.) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 379I. LIVESTOCK, DAIRY, AND POULTRY SUPPLY 
CHAIN INFRASTRUCTURE. 
‘‘(a) IN GENERAL.—The Secretary is authorized to 
provide grants or make or insure loans under any of the 
programs authorized by this Act, the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1621 et seq.), or the Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.), as the 
Secretary determines to be appropriate, to assist farmers 
and rural businesses and cooperatives to maintain or in-
crease the production, aggregation, processing, distribu-
tion, and marketing of value-added, niche, or regionally- 
marketed meat, dairy, and poultry products. 
‘‘(b) PRIORITY.—In implementing subsection (a), the 
Secretary shall give priority to grants or loans that will 
help increase or enhance the availability and geographic 
distribution of State- and Department of Agriculture-in-
spected small processing facilities. 
‘‘(c) SMALL PROCESSING FACILITY DEFINED.—In 
this section, the term ‘small processing facility’ means— 
‘‘(1) with respect to an establishment that is 
subject to the requirements of the Federal Meat In-
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spection Act (21 U.S.C. 601 et seq.), a certain small 
establishment that is eligible to be selected under 
section 501(b) of such Act; or 
‘‘(2) a selected establishment (as defined in sec-
tion 31(a) of the Poultry Products Inspection Act 
(21 U.S.C. 472(a))).’’. 
SEC. 7. GEOGRAPHIC PREFERENCE AND IDENTIFICATION 
FOR SCHOOL FOOD. 
Section 9(j) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(j)) is amended by 
striking paragraph (3) and inserting the following new 
paragraph: 
‘‘(3) allow institutions receiving funds under 
this Act and the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.), including the Department of 
Defense Fresh Fruit and Vegetable Program— 
‘‘(A) to use a geographic preference for the 
procurement of unprocessed agricultural prod-
ucts, both locally grown and locally raised; or 
‘‘(B) to use locally grown, locally raised, or 
locally caught as a product specification.’’. 
SEC. 8. HARVESTING HEALTH PROGRAM. 
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following 
new section: 
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‘‘SEC. 30. HARVESTING HEALTH PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in coordina-
tion with other Federal agencies, award grants to eligible 
entities to conduct pilot projects to demonstrate and evalu-
ate the impact of produce prescription programs for low- 
income individuals and households. 
‘‘(b) PURPOSE.—The purpose of the pilot projects re-
quired under this section is to demonstrate and evaluate 
the impact of produce prescription programs in areas with 
persistent poverty with respect to the following: 
‘‘(1) The reduction of individual and household 
food insecurity. 
‘‘(2) The support for local and regional agri-
culture and economic development. 
‘‘(3) The increased domestic consumption of 
produce. 
‘‘(4) The reduction in health care use and asso-
ciated costs. 
‘‘(c) ELIGIBLE ENTITY.—In this section, the term 
‘eligible entity’ means— 
‘‘(1) an emergency feeding organization (as de-
fined in section 201A of the Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 7501)), in partnership 
with— 
‘‘(A) a hospital; 
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‘‘(B) a Federally-qualified health center 
(as 
such 
term 
is 
defined 
in 
section 
1905(l)(2)(B) of the Social Security Act (42 
U.S.C. 1396d(l)(2)(B))); 
‘‘(C) a hospital or clinic operated by the 
Department of Veterans Affairs; 
‘‘(D) a provider group; 
‘‘(2) a farmer’s market, community supported 
agriculture entity, cooperative, local public benefit 
corporation, non-profit organization, retail food store 
authorized under the supplemental nutrition assist-
ance program; 
‘‘(3) a local or State government agency, in 
partnership with any of the entities described in sub-
paragraphs (A) through (D) of paragraph (1); and 
‘‘(4) any of the entities described in subpara-
graphs (A) through (D) of paragraph (1), in part-
nership with an— 
‘‘(A) emergency feeding organization; 
‘‘(B) entity described in paragraph (2); or 
‘‘(C) a local or State government agency. 
‘‘(d) DEMONSTRATION PROJECT.—To be eligible to 
receive a grant under this section, an eligible entity shall 
submit an application, at such time, in such manner, and 
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containing such information as the Secretary may require, 
including— 
‘‘(1) a description of methods for how the 
produce prescription program would be targeted to 
low-income individuals and households with existing 
diet-related health issues; 
‘‘(2) a description and plan for the screening 
and recruitment of low-income individuals and 
households with existing diet-related health issues; 
‘‘(3) a description of plans for the evaluation of 
program participants and partners focused on pur-
poses described under subsection (b); 
‘‘(4) a description of plans for the inclusion of 
nutrition education opportunities for program par-
ticipants; 
‘‘(5) a description of the program partnerships 
and the role of each partner in implementing and 
evaluating an effective program; 
‘‘(6) documentation of the necessary partner-
ship agreements with the relevant State Medicaid 
agency or other appropriate entity for the purpose of 
evaluating the programs effectiveness in reducing 
health care use and associated costs; and 
‘‘(7) data as requested by the Secretary for 
purposes of analyzing the impact of the project. 
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