IB 
Union Calendar No. 279 
117TH CONGRESS 
2D SESSION 
H. R. 4140 
[Report No. 117–368] 
To make improvements with respect to the pricing of cattle in the United 
States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2021 
Mr. JOHNSON of South Dakota (for himself, Ms. SPANBERGER, Mr. MANN, 
Mrs. HARTZLER, Mr. BAIRD, Mr. CUELLAR, Mrs. FISCHBACH, Mr. 
FEENSTRA, and Mr. LUCAS) introduced the following bill; which was re-
ferred to the Committee on Agriculture 
JUNE 14, 2022 
Additional sponsors: Mr. SMITH of Nebraska, Mr. DELGADO, Mrs. CAMMACK, 
Mr. WESTERMAN, Mrs. HARSHBARGER, Ms. CHENEY, Mr. CLINE, Mr. 
EMMER, Mrs. AXNE, Ms. WEXTON, Mr. O’HALLERAN, and Mr. 
GOTTHEIMER 
JUNE 14, 2022 
Reported with an amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
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[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 24, 2021] 
A BILL 
To make improvements with respect to the pricing of cattle 
in the United States, and for other purposes. 
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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 ‘‘Butcher Block Act’’. 
SEC. 2. ASSISTANCE FOR NEW AND EXPANDED LIVESTOCK 
OR MEAT PROCESSORS. 
(a) IN GENERAL.—The Secretary of Agriculture (in 
this section referred to as the ‘‘Secretary’’) may make or 
guarantee a loan for the purpose of— 
(1) increasing capacity of livestock and poultry 
processing, facilitating economic opportunity for live-
stock and poultry producers through processing ac-
tivities, and diversifying processing ownership; 
(2) increasing the customer base or revenue re-
turns of livestock and poultry producers through in-
vestment in processing capacity; 
(3) improving, developing, or financing livestock 
and poultry processing capacity or employment in-
cluding through the financing of working capital; or 
(4) promoting the interstate trade and local sales 
of processed livestock and poultry by financing im-
provements to meet relevant Federal, State, and local 
regulatory standards. 
(b) ELIGIBILITY; GENERAL LIMITATIONS.— 
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(1) ELIGIBLE RECIPIENT.—An entity shall be el-
igible for a loan or guarantee under this section if the 
entity is— 
(A) a public, private, or cooperative organi-
zation organized on a for-profit or nonprofit 
basis; 
(B) an Indian tribe on a Federal or State 
reservation, or any other federally recognized In-
dian tribal group; or 
(C) an individual. 
(2) FACILITY LOCATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), a facility constructed, ex-
panded, modified, refurbished, or re-equipped 
with proceeds from a loan made or guaranteed 
under this section shall be in a rural area. 
(B) EXCEPTION.—A facility constructed, ex-
panded, modified, refurbished, or re-equipped 
with proceeds from a loan made or guaranteed 
under this section may be in a non-rural area 
if— 
(i) the primary use of the loan in-
volved is for the facility, and the facility 
will increase the customer base or revenue 
returns of livestock and poultry producers 
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that are located within 300 miles of the fa-
cility; 
(ii) the loan involved will be used to 
increase the capacity in livestock and poul-
try processing in a region; and 
(iii) the principal amount of the loan 
involved does not exceed $50,000,000. 
(C) RURAL AREA DEFINED.—In this para-
graph, the term ‘‘rural area’’ has the meaning 
given the term in section 343(a)(13) of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 1991(a)(13)). 
(3) LIMITATIONS.— 
(A) LIMITATION ON AMOUNT OF LOAN IN-
VOLVED.—A loan of more than $50,000,000 may 
not be made or guaranteed under this section. 
(B) LIMITATION ON ELIGIBILITY.—A loan 
may not be made or guaranteed under this sec-
tion to an entity that is owned in partnership 
or in whole by— 
(i) a foreign entity; or 
(ii) an entity that currently processes 
over 5 percent of the daily harvest of any 
species. 
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(c) SPECIAL RULES APPLICABLE WITH RESPECT TO 
COOPERATIVES.— 
(1) LIMITATION
ON
AMOUNT
OF
LOAN
IN-
VOLVED.— 
(A) IN
GENERAL.—Notwithstanding sub-
section (b)(3), a loan of not more than 
$100,000,000 may be made or guaranteed for a 
cooperative organization under this section. 
(B) CONDITIONS APPLICABLE IF LOAN IN-
VOLVED IS FOR MORE THAN $50,000,000.—A loan 
of more than $50,000,000 may not be made or 
guaranteed for a cooperative organization under 
this section unless the loan is used to carry out 
a project that significantly increases the livestock 
and poultry processing in a region, where insuf-
ficient processing capacity exists, as determined 
by the Secretary. 
(2) INTANGIBLE ASSETS.— 
(A) IN GENERAL.—In determining whether 
a cooperative organization is eligible for a loan 
or guarantee under this section, the Secretary 
may consider the market value of a properly ap-
praised brand name, patent, or trademark of the 
cooperative. 
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(B) ACCOUNTS
RECEIVABLE.—In the sole 
discretion of the Secretary, if the Secretary deter-
mines that the action would not create or other-
wise contribute to an unreasonable risk of default 
or loss to the Federal Government, the Secretary 
may take accounts receivable as security for the 
obligations entered into in connection with a 
loan made or guaranteed under this section, and 
a borrower may use accounts receivable as collat-
eral to secure such a loan. 
(3) PURCHASE OF COOPERATIVE STOCK.— 
(A) IN GENERAL.—The Secretary may make 
or guarantee a loan in accordance with this sec-
tion to an individual farmer or rancher for the 
purpose of purchasing capital stock of a farmer 
or rancher cooperative undertaking an eligible 
project under this section. 
(B) PROCESSING CONTRACTS DURING INI-
TIAL PERIOD.—A cooperative described in sub-
paragraph (A) with respect to which a farmer or 
rancher receives a guarantee to purchase stock 
under subparagraph (A) may contract for serv-
ices to fulfill any eligible purpose under this sec-
tion, during the 5-year period beginning on the 
date the cooperative commences operations, in 
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order to provide adequate time for the planning 
and construction of the processing facility of the 
cooperative. 
(C) FINANCIAL INFORMATION.—A farmer or 
rancher from whom the Secretary requires finan-
cial information as a condition of making or 
guaranteeing a loan under subparagraph (A) 
shall provide the information in the manner gen-
erally required by commercial agricultural lend-
ers in the geographical area in which the farmer 
or rancher is located. 
(d) CONDITIONS APPLICABLE WITH RESPECT
TO 
USING LOAN INVOLVED FOR REFINANCING.—A borrower 
may use 25 percent of a loan made or guaranteed under 
this section to refinance a loan made for a purpose de-
scribed in subsection (a) if— 
(1) the borrower is current and performing with 
respect to the loan to be refinanced; 
(2) the borrower has not defaulted on any pay-
ment required to be made with respect to the loan to 
be refinanced; 
(3) none of the collateral for the loan to be refi-
nanced has been converted; and 
(4) there is adequate security or full collateral 
for the loan to be refinanced. 
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(e) LOAN APPRAISAL.—The Secretary may require 
that any appraisal made in connection with a loan made 
or guaranteed under this section be conducted by a special-
ized appraiser that uses standards that are similar to 
standards used for similar purposes in the private sector, 
as determined by the Secretary. 
(f) PREFERENCE.—In making or guaranteeing a loan 
under this section, the Secretary shall give a preference to 
applicants that have experience in livestock and poultry 
processing and can quickly scale-up to increase overall 
processing capacity in the region involved. 
(g) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appropriated to carry out 
this section $100,000,000 for each of fiscal years 2023 
through 2025. 
SEC. 3. NEW AND EXPANDING LIVESTOCK OR MEAT PROC-
ESSING GRANTS. 
(a) IN GENERAL.—The Secretary of Agriculture may 
make grants to— 
(1) expand, diversify, and increase capacity in 
livestock or poultry processing activities; 
(2) improve compliance with livestock and poul-
try processing statutes (including the regulations 
issued thereunder), such as the Federal Meat Inspec-
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tion Act (21 U.S.C. 661) and the Poultry Products 
Inspection Act (21 U.S.C. 454); 
(3) identify and reduce barriers to entry for new 
for new livestock and poultry processers; or 
(4) update, expand, or otherwise improve exist-
ing facilities. 
(b) ELIGIBLE GRANTEES.—An entity shall be eligible 
for a grant under this section if the entity is— 
(1) a governmental entity; 
(2) a public, private, or cooperative organization 
organized on a for-profit or nonprofit basis; or 
(3) an Indian tribe on a Federal or State res-
ervation or any other federally recognized Indian 
tribal group. 
(c) USE OF FUNDS.—An entity to which a grant is 
made under this section may use the grant funds to estab-
lish or support new or expanded livestock or poultry proc-
essing activity, or other activity which will increase the cus-
tomer base or revenue returns of livestock and poultry pro-
ducers, by undertaking project, that— 
(1) identifies and analyzes business opportuni-
ties, including feasibility studies as required for cred-
itworthiness; 
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(2) identifies, trains, and provides technical as-
sistance to existing or prospective rural entrepreneurs 
and managers or processing facilities; 
(3) provides technical assistance to gain compli-
ance with Federal, State, or local regulations; 
(4) conducts regional, community, and local eco-
nomic development planning and coordination, and 
leadership development; or 
(5) establishes a center for training, technology, 
and trade that will provide training to livestock or 
poultry processing employees. 
(d) PREFERENCE.—In awarding grants under this 
section, the Secretary shall give a preference to applicants 
that have experience in livestock and poultry processing and 
can quickly scale-up to increase overall processing capacity 
in the region involved. 
(e) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appropriated to carry out 
this section $20,000,000 for each of fiscal years 2023 
through 2025. 
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Union Calendar No. 279 
117TH CONGRESS 
2D SESSION 
H. R. 4140 
[Report No. 117–368] 
A BILL 
To make improvements with respect to the pricing 
of cattle in the United States, and for other pur-
poses. 
JUNE 14, 2022 
Reported with an amendment; committed to the Com-
mittee of the Whole House on the State of the Union 
and ordered to be printed 
VerDate Sep 11 2014 
23:41 Jun 14, 2022
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