I 
117TH CONGRESS 
1ST SESSION H. R. 4169 
To increase market access for Black farmers and socially disadvantaged 
farmers and ranchers, to ensure civil rights accountability, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2021 
Mr. DAVID SCOTT of Georgia introduced the following bill; which was referred 
to the Committee on Agriculture, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To increase market access for Black farmers and socially 
disadvantaged farmers and ranchers, to ensure civil 
rights accountability, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Black Farmers and 
Socially Disadvantaged Farmers Increased Market Share 
Act’’. 
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SEC. 2. FOOD HUB GRANTS TO INCREASE MARKET ACCESS 
FOR SOCIALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
(a) DEFINITIONS.—In this section: 
(1) AGRICULTURAL FOOD PRODUCT.—The term 
‘‘agricultural food product’’ means a raw, cooked, or 
a processed edible substance, beverage, or ingredient 
produced and otherwise prepared for sale in the 
United States (including any insular area (as de-
fined in section 1404 of the National Agricultural, 
Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3103))), derived from one or more 
agricultural commodities of United States origin, 
and used or intended for use or for sale in whole or 
in part for human consumption. 
(2) DONATED
FOOD.—The term ‘‘donated 
food’’ has the meaning given the term in section 
250.2 of title 7 of the Code of Federal Regulations 
(or any successor regulation). 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) an entity formed by two or more agri-
cultural producers, not less than half of whom 
are members of a socially disadvantaged group; 
or 
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(B) a non-profit organization or Tribal or-
ganization with demonstrated experience work-
ing with socially disadvantaged farmers or 
ranchers. 
(4) ELIGIBLE
PARTNER.—The term ‘‘eligible 
partner’’ means a non-profit organization, a State 
cooperative extension service or a college or univer-
sity (as such terms are defined in section 1404 of 
the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3103)), Trib-
al organization, or other State or local government 
entities with demonstrated experience in providing 
assistance such as grants management, technical as-
sistance, and business plan development, to agricul-
tural producers. 
(5) FOOD HUB.—The term ‘‘food hub’’ means 
a business or organization that actively manages the 
aggregation, distribution, and marketing of source- 
identified agricultural food products from producers 
for wholesale, retail, or institutional markets. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(7) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘‘socially disadvantaged farm-
er or rancher’’ has the meaning given the term in 
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section 2501(a) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279(a)). 
(8) SOCIALLY
DISADVANTAGED
GROUP.—The 
term ‘‘socially disadvantaged group’’ has the mean-
ing given the term in section 2501(a) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(a)). 
(9) TRIBAL ORGANIZATION.—The term ‘‘Tribal 
organization’’ has the meaning given the term in 
section 3 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2012). 
(b) GRANTS TO INCREASE MARKET ACCESS.— 
(1) IN GENERAL.—The Secretary shall establish 
a program to make grants on a competitive basis to 
eligible entities to support new or expanding food 
hubs designed to increase market access for socially 
disadvantaged farmers and ranchers, but may also 
increase market access for other farmers and ranch-
ers. 
(2) USE OF FUNDS.—An eligible entity selected 
to receive a grants under this subsection may use 
grants funds— 
(A) to purchase and develop land, build-
ings, and associated infrastructure for commer-
cial or industrial properties, including expansion 
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or modernization, for use in processing, distrib-
uting, aggregating, storing, transporting, or 
marketing agricultural food products; 
(B) to construct or equip facilities for use 
in processing, distributing, aggregating, storing, 
transporting, or marketing agricultural food 
products; 
(C) to purchase machinery and equipment 
for use in processing, distributing, aggregating, 
storing, transporting, or marketing agricultural 
food products; 
(D) for general operating expenses directly 
related to a food hub, including planning and 
development related to the establishment or ex-
pansion of any food hub; 
(E) to provide marketing services for agri-
cultural food products, including providing plat-
forms (such as electronic or web-based plat-
forms) for sales, inventory, and aggregation; 
and 
(F) to conduct other activities supporting 
the development or expansion of a food hub, as 
determined by the Secretary. 
(3) APPLICATION.— 
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(A) IN GENERAL.—An eligible entity seek-
ing a grant under this subsection shall submit 
to the Secretary an application that contains— 
(i) a description of the activities the 
eligible entity will carry out to support one 
or more new or existing food hubs, includ-
ing a plan for each such food hub to proc-
ess, distribute, store, or market agricul-
tural food products for wholesale, retail, or 
institutional markets; 
(ii) a description of the ways in which 
each such food hub that the eligible entity 
is proposing to establish or expand is de-
signed to increase market access for so-
cially disadvantaged farmers or ranchers; 
(iii) except as provided in subpara-
graph (B), a description of the eligible en-
tity’s demonstrated competency to develop 
and manage each such food hub, provide 
fiscal accountability, collect data, and pre-
pare reports and other necessary docu-
mentation; and 
(iv) any other information, as deter-
mined by the Secretary. 
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(B) REQUIREMENT TO INCLUDE ELIGIBLE 
PARTNERS.—An eligible entity that does not 
have one or more of the demonstrated com-
petencies described in clause (iii) of subpara-
graph (A) shall submit to the Secretary in its 
application— 
(i) a list of one or more eligible part-
ners such eligible entity is partnering with; 
(ii) the responsibilities of each eligible 
partner in supporting such eligible entity; 
and 
(iii) a description of the demonstrated 
competencies of the eligible partner or 
partners in performing such responsibil-
ities. 
(C) ELIGIBLE ENTITIES SERVING AS ELI-
GIBLE PARTNERS.—An eligible entity specified 
in subparagraph (B) of subsection (a)(3) seek-
ing a grant under this section may serve as an 
eligible partner for other eligible entities in one 
or more grant applications under this sub-
section. 
(4) PRIORITY.—In making grants under this 
subsection, the Secretary may give priority to grant 
applications for food hubs that— 
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(A) benefit underserved communities, as 
defined in section 310B(g)(9)(A)(ii) of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 1932(g)(9)(A)(ii)); 
(B) aggregate, distribute, and market agri-
cultural food products that meet the standards 
for donated foods, as determined by the Sec-
retary; or 
(C) have not been awarded a Department 
of Agriculture grant, including a grant under 
section 210A of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1627c), in the preceding or 
current fiscal year. 
(5) MAXIMUM GRANT TERM.—The term of a 
grant under this subsection may not exceed 5 years. 
(6) NO MATCHING FUNDS.—An eligible entity 
receiving a grant under this section shall not be re-
quired to provide non-Federal matching funds with 
respect to such grant. 
(c) PRIORITIZING PURCHASES FOR USDA DOMESTIC 
FOOD ASSISTANCE PROGRAMS.— 
(1) IN GENERAL.—The Secretary shall establish 
a process— 
(A) to prioritize the purchase of agricul-
tural food products from socially disadvantaged 
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farmers and ranchers, including from food hubs 
developed or expanded under this section, for 
use in Department of Agriculture programs 
that distribute agricultural food products within 
the United States (including any insular area 
(as defined in section 1404 of the National Ag-
ricultural, Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3103))); and 
(B) that is designed to account for barriers 
to market entry faced by socially disadvantaged 
farmers and ranchers while maintaining the in-
tegrity of the purchasing process established 
under this subsection, including ensuring that 
any entity that is suspended or debarred from 
participation in any Federal program is not eli-
gible to participate in the purchasing process 
established under this subsection. 
(2) WAIVERS.— 
(A) IN
GENERAL.—In establishing the 
process described in paragraph (1), the Sec-
retary may provide for the waiver of the full 
and open competition procedures for the award 
of Federal contracts, section 3324 of title 31, 
United States Code, and section 725 of the Ag-
riculture, Rural Development, Food and Drug 
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(1) a description of the status of each grant 
awarded under subsection (b); 
(2) the number of socially disadvantaged farm-
ers and ranchers participating in the food hub sup-
ported by such grant in the previous fiscal year; 
(3) to the maximum extent practicable, the 
amount of agricultural food products produced by 
socially disadvantaged farmers and ranchers proc-
essed, distributed, aggregated, stored, or marketed 
by the food hub supported by such grant in the pre-
vious fiscal year; and 
(4) the total amount of donated food purchased 
by the Secretary from food hubs supported with 
grants awarded under this section in the previous 
fiscal year. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out subsection 
(b) $100,000,000 for fiscal year 2022, to remain available 
until expended. 
SEC. 3. AGRICULTURE HUB CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45U. AGRICULTURE HUB CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
agriculture hub credit determined under this section for 
any taxable year is an amount equal to 25 percent of the 
qualified food hub expenses for the taxable year. 
‘‘(b) QUALIFIED FOOD HUB EXPENSES.—For pur-
poses of this section, the term ‘qualified food hub ex-
penses’ means amounts paid or incurred by the taxpayer 
during the taxable year— 
‘‘(1) for agricultural food products from a food 
hub developed or expanded under section 2 of the 
Black Farmers and Socially Disadvantaged Farmers 
Increased Market Share Act, and 
‘‘(2) in accordance with a contract certified by 
the Secretary of Agriculture under section 3(c) of 
the Black Farmers and Socially Disadvantaged 
Farmers Increased Market Share Act. 
‘‘(c) FOOD HUB.—The term ‘food hub’ has the mean-
ing given such term in section 2 of the Black Farmers 
and Socially Disadvantaged Farmers Increased Market 
Share Act. 
‘‘(d) TERMINATION.—This section shall not apply to 
taxable years beginning after the Secretary determines the 
grant program under section 2 of the Black Farmers and 
Socially Disadvantaged Farmers Increased Market Share 
Act has ended.’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended— 
(A) in paragraph (32), by striking ‘‘plus’’ 
at the end, 
(B) in paragraph (33), by striking the pe-
riod at the end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(34) the agriculture hub credit determined 
under section 45U(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45U. Agriculture hub credit.’’. 
(3) Section 280C of such Code is amended by 
adding at the end the following new subsection: 
‘‘(i) AGRICULTURE HUB CREDIT.—Any deduction or 
other credit otherwise allowable with respect to an expense 
for which a credit is allowed under section 45U(a) shall 
be reduced by the amount of the credit under section 
45U(a) with respect to such expense. If a credit is allowed 
under section 45U(a) with respect to property of a kind 
which would properly be included in the inventory of the 
taxpayer if on hand at the close of the taxable year or 
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property held by the taxpayer primarily for sale to cus-
tomers in the ordinary course of the trade or business of 
such taxpayer, opening inventory or purchases shall be re-
duced by the amount of the credit so allowed.’’. 
(c) CERTIFICATION PROCESS.—Not later than 1 year 
after the date of enactment of this section, the Secretary 
of Agriculture shall issue regulations to establish a process 
to certify, at the request of entities seeking an agriculture 
hub credit section 45U of the Internal Revenue Code of 
1986, as added by subsection (b), that a contract under 
which expenditures referred to in such section 45U are 
made— 
(1) is not between related parties; 
(2) is the result of arm’s length negotiations; 
and 
(3) meets any other requirements, as deter-
mined by the Secretary of Agriculture, in consulta-
tion with the Secretary of Treasury. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred in 
taxable years beginning after December 31, 2021. 
SEC. 4. CIVIL RIGHTS ACCOUNTABILITY FOR USDA EM-
PLOYEES. 
(a) IN GENERAL.—The Secretary of Agriculture shall 
ensure that officials and employees of the Department of 
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Agriculture are held accountable in accordance with sub-
section (b) if, while in the course of their employment or 
in administering a Department of Agriculture program, 
such officials and employees are found to have engaged 
in any discriminatory actions, retaliatory actions, harass-
ment, civil rights violations, or related misconduct, includ-
ing any such actions or misconduct involving any of the 
following: 
(1) Failure to provide a receipt for service in 
accordance with section 2501A(e) of the Food, Agri-
culture, Conservation or Trade Act of 1990 (7 
U.S.C. 2279–1(e)) to any current or prospective ap-
plicants of or participants in Department of Agri-
culture programs. 
(2) Providing an inaccurate receipt for service 
under such section 2501A(e) to any current or pro-
spective applicants of or participants in Department 
of Agriculture programs. 
(3) Failure to provide appropriate information 
regarding relevant programs and services at the De-
partment of Agriculture, when requested by any cur-
rent or prospective applicants of or participants in 
Department of Agriculture programs. 
(4) Failure to timely process applications or 
otherwise delaying program services to any current 
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or prospective applicants of or participants in, De-
partment of Agriculture programs. 
(b) TAKING CORRECTIVE ACTION.—The Secretary 
shall ensure that appropriate corrective action is taken 
with respect to any official or employee of the Department 
of Agriculture who has been found to have engaged in any 
of the actions, violations, or misconduct referred to in sub-
section (a) while in the course of such official’s or employ-
ee’s employment or in administering a Department of Ag-
riculture program— 
(1) in any administrative finding by the Depart-
ment of Agriculture, including any final agency deci-
sion issued by the Assistant Secretary of Agriculture 
for Civil Rights and any civil rights compliance re-
view or misconduct investigation conducted by the 
Department of Agriculture; 
(2) in any administrative or judicial proceeding; 
(3) in any civil rights settlement; 
(4) in any audit or investigation conducted by 
the Office of the Inspector General of the Depart-
ment of Agriculture; or 
(5) in any investigation conducted by the Office 
of the Special Counsel. 
(c) CORRECTIVE ACTION DEFINED.—In this section, 
the term ‘‘corrective action’’ means any action taken to 
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