I 
118TH CONGRESS 
1ST SESSION 
H. R. 559 
To make improvements with respect to the pricing of cattle in the United 
States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 26, 2023 
Mr. JOHNSON of South Dakota (for himself, Ms. SPANBERGER, Mr. BAIRD, 
Mr. GOTTHEIMER, Mr. FEENSTRA, Ms. WEXTON, and Mr. CUELLAR) in-
troduced the following bill; which was referred to the Committee on Agri-
culture 
A BILL 
To make improvements with respect to the pricing of cattle 
in the United States, 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 ‘‘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— 
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(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 
improvements to meet relevant Federal, State, and 
local regulatory standards. 
(b) ELIGIBILITY; GENERAL LIMITATIONS.— 
(1) ELIGIBLE RECIPIENT.—An entity shall be 
eligible 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 
Indian tribal group; or 
(C) an individual. 
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(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, 
expanded, 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 
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 
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Consolidated 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 sec-
tion. 
(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. 
(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 
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loan of more than $50,000,000 may not be 
made or guaranteed for a cooperative organiza-
tion under this section unless the loan is used 
to carry out a project that significantly in-
creases the livestock and poultry processing in 
a region, where insufficient 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. 
(B) ACCOUNTS RECEIVABLE.—In the sole 
discretion of the Secretary, if the Secretary de-
termines that the action would not create or 
otherwise contribute to an unreasonable risk of 
default or loss to the Federal Government, the 
Secretary may take accounts receivable as secu-
rity for the obligations entered into in connec-
tion with a loan made or guaranteed under this 
section, and a borrower may use accounts re-
ceivable as collateral to secure such a loan. 
(3) PURCHASE OF COOPERATIVE STOCK.— 
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(A) IN
GENERAL.—The Secretary may 
make or guarantee a loan in accordance with 
this section 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 
services to fulfill any eligible purpose under this 
section, during the 5-year period beginning on 
the date the cooperative commences operations, 
in order to provide adequate time for the plan-
ning and construction of the processing facility 
of the cooperative. 
(C) FINANCIAL INFORMATION.—A farmer 
or rancher from whom the Secretary requires fi-
nancial information as a condition of making or 
guaranteeing a loan under subparagraph (A) 
shall provide the information in the manner 
generally required by commercial agricultural 
lenders in the geographical area in which the 
farmer or rancher is located. 
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(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. 
(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 spe-
cialized 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. 
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(g) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—There is authorized to be appropriated to 
carry out this section $100,000,000 for each of fiscal 
years 2024 through 2026. 
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 In-
spection Act (21 U.S.C. 601 et seq.) and the Poultry 
Products Inspection Act (21 U.S.C. 451 et seq.); 
(3) identify and reduce barriers to entry 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 organiza-
tion organized on a for-profit or nonprofit basis; or 
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(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 
customer base or revenue returns of livestock and poultry 
producers, by undertaking a project that— 
(1) identifies and analyzes business opportuni-
ties, including feasibility studies as required for 
creditworthiness; 
(2) identifies, trains, and provides technical as-
sistance to existing or prospective rural entre-
preneurs 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 
economic 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 
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that have experience in livestock and poultry processing 
and can quickly scale-up to increase overall processing ca-
pacity in the region involved. 
(e) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—There is authorized to be appropriated to 
carry out this section $20,000,000 for each of fiscal years 
2024 through 2026. 
Æ 
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