‘‘(A) in developing a business plan for via-
ble marketing opportunities in emerging mar-
kets for a value-added agricultural product; or 
‘‘(B) in developing strategies that are in-
tended to create marketing opportunities in 
emerging markets for the value-added agricul-
tural product; and 
‘‘(3) to nonprofit organizations, educational in-
stitutions, and units of government to assist pro-
ducers and groups eligible under paragraph (A) or 
(B) by— 
‘‘(A) providing training or technical assist-
ance; or 
‘‘(B) conducting outreach on the avail-
ability of the program and application require-
ments. 
‘‘(c) GRANT AMOUNTS AND ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the total amount provided under this sec-
tion to a grant recipient shall not exceed $500,000. 
‘‘(2) FEASIBILITY STUDY GRANTS.—The total 
amount provided under this section to a grant recipi-
ent for a feasibility study grant shall not exceed 
$100,000. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(3) MAJORITY-CONTROLLED PRODUCER-BASED 
BUSINESS VENTURES.—The amount of grants pro-
vided to majority-controlled producer-based business 
ventures under subsection (b)(2) for a fiscal year 
may not exceed 10 percent of the amount of funds 
that are used to make grants for the fiscal year 
under this section. 
‘‘(4) FARM AND RANCH-BASED RENEWABLE EN-
ERGY.—The amount of grants provided for farm and 
ranch-based renewable energy conservation and gen-
eration for a fiscal year may not exceed 15 percent 
of the amount of funds that are used to make grants 
for the fiscal year under this section. 
‘‘(5) MID-TIER VALUE CHAINS.—To the max-
imum extent practicable, the amount of grants pro-
vided for mid-tier value chains for a fiscal year shall 
be not less than 15 percent of the amount of funds 
that are used to make grants for the fiscal year 
under this section. 
‘‘(6) SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS.—To the maximum extent practicable, 
the amount of grants provided for projects which in-
clude the significant participation of socially dis-
advantaged farmers and ranchers for a fiscal year 
shall be not less than 10 percent of the amount of 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
funds that are used to make grants for the fiscal 
year under this section. 
‘‘(7) TRAINING, TECHNICAL ASSISTANCE, AND 
OUTREACH.—The amount of grants provided to non-
profit organizations, educational institutions, and 
units of government under subsection (b)(3) for a 
fiscal year may not exceed 10 percent of the amount 
of funds that are used to make grants for the fiscal 
year under this section. 
‘‘(8) 
SMALL
AND
INDIVIDUAL
PRODUCER 
GRANTS.—The Secretary may provide for separate 
funding pools for proposals requesting less than 
$50,000 grants and for individual producer grants. 
‘‘(d) GRANTEE STRATEGIES.—A recipient of a grant 
under this section shall use the grant— 
‘‘(1) to develop a business plan or perform a 
feasibility study to establish a viable marketing op-
portunity for a value-added agricultural product; or 
‘‘(2) to provide capital to establish alliances or 
business ventures that allow the producer of the 
value-added agricultural product to better compete 
in domestic or international markets. 
‘‘(e) PRIORITY.— 
‘‘(1) IN
GENERAL.—In awarding grants the 
Secretary shall give the priority to projects that— 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(A) are 100 percent producer owned; 
‘‘(B) contribute to increasing the number 
and quality of self-employment opportunities in 
farming and ranching by increasing value-added 
opportunities for beginning farmers and ranch-
ers, socially disadvantaged farmers and ranch-
ers, and other operations that are not larger 
than family farms, as defined in regulations 
pursuant to section 302 of the Consolidated 
Farm and Rural Development Act; 
‘‘(C) help retain and enhance small and 
medium-sized farms and ranches and preserve 
productive farm and ranch lands; 
‘‘(D) conserve and enhance the quality of 
land, water, and energy resources, wildlife habi-
tat, and other landscape values and amenities 
in rural areas; and 
‘‘(E) support new ventures that do not 
have well-established market or product devel-
opment staffs and budgets. 
‘‘(2) MID-TIER
VALUE
CHAIN
GRANTS.—In 
awarding grants pursuant to subsection (b)(2), the 
Secretary shall give priority to projects that facili-
tate partnerships that may involve businesses, co-
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
operatives, non-profit organizations, agencies, and 
educational institutions. 
‘‘(3) REGIONAL BALANCE.—In awarding grants 
the Secretary shall to the maximum extent prac-
ticable ensure that all States and regions are able to 
participate. 
‘‘(f) TERM.—A grant under this section shall have 
a term that does not exceed three years. 
‘‘(g) SIMPLIFIED APPLICATION.—The Secretary shall 
offer a simplified application form and process for project 
proposals requesting less than $50,000. 
‘‘(h) FUNDING.—Not later than 30 days after the 
date of enactment of the Local Food and Farm Support 
Act, on October 1, 2008, and on each October 1 thereafter 
through October 1, 2012, of the funds of the Commodity 
Credit Corporation, the Secretary shall make available to 
carry out this section $60,000,000. Such amounts shall 
remain available until expended. 
‘‘SEC. 232. FAMILY FARMER AND RANCHER VIABILITY AND 
INNOVATION FUND. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a demonstration program to be known as the ‘Family 
Farmer and Rancher Viability and Innovation Fund’ 
under which the Secretary shall make grants to groups 
of producers who operate not larger than family farms, 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
as defined in regulations pursuant to section 302 of the 
Consolidated Farm and Rural Development Act, for inno-
vative strategies, other than marketing value-added agri-
cultural products, that enhance viability, profitability, and 
competitiveness through joint efforts. 
‘‘(b) FUNDING.—Of the amounts made available 
under section 231(h) for each fiscal year, the Secretary 
shall use to carry out this section— 
‘‘(1) not less than $2 million for fiscal year 
2008; 
‘‘(2) not less than $3 million for fiscal year 
2009; and 
‘‘(3) not less than $10 million for fiscal years 
2010 through 2012.’’. 
SEC. 3. HEALTHY FOOD ENTERPRISE DEVELOPMENT PRO-
GRAM. 
Title II of the Specialty Crops Competitiveness Act 
of 2004 (Public Law 108–465) is amended by adding at 
the end the following: 
‘‘SEC. 204. HEALTHY FOOD ENTERPRISE DEVELOPMENT 
PROGRAM. 
‘‘(a) FINDINGS.—Congress makes the following find-
ings: 
‘‘(1) The average distance fresh foods, espe-
cially fresh fruits and vegetables, travel from point 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
of production to point of retail sale has increased 
over the past three decades to at least 1,500 miles 
as referenced in a 2003 report from Iowa State Uni-
versity. 
‘‘(2) It is in the public interest that agricultural 
producers, including small and mid-sized family 
farms and ranches, socially disadvantaged farmers 
and ranchers, and beginning farmers and ranchers, 
have access to a local and regional processors and 
distributors to foster competitive markets and im-
prove farm and ranch profitability. 
‘‘(3) Improving producer access to processing, 
distribution, and other marketing services can sig-
nificantly enhance consumer access to affordable lo-
cally and regionally-produced foods. 
‘‘(4) Increasing the availability of locally and 
regionally-produced food is especially in important 
for improving food access in underserved commu-
nities. 
‘‘(5) Renewal of local and regional food systems 
will encourage the preservation of farm and ranch 
lands and spur natural resource and environmental 
improvements. 
‘‘(b) PURPOSE.—The purpose of this section is to 
support farm and ranch income by significantly enhancing 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
a producer’s share of the final retail product price through 
improved access to competitive processing and distribution 
systems which deliver affordable, locally and regionally 
produced foods to consumers, improve food access in un-
derserved communities, and help save farm and ranch land 
and protect natural resources. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) BEGINNING FARMER OR RANCHER.—The 
term ‘beginning farmer or rancher’ has the meaning 
given the term ‘qualified beginning farmer or ranch-
er’ in section 343(a) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a)). 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ includes— 
‘‘(A) a small or midsized processor, dis-
tributor, wholesaler, or retail food outlet; 
‘‘(B) a group of producers operating as a 
legally recognized marketing alliance; 
‘‘(C) a producer-owned cooperative; 
‘‘(D) a nonprofit organization; 
‘‘(E) an economic development or commu-
nity development corporation; 
‘‘(F) a unit of State or local government; 
and 
‘‘(G) an academic institution. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
‘‘(4) LOCALLY
OR
REGIONALLY
PRODUCED 
FOOD.—The term ‘locally or regionally produced 
food’ means any agricultural product distributed 
within the locality or region in which the agricultural 
product is produced in a manner that ensures that— 
‘‘(A) typically convey information regard-
ing the product origin, production practices, or 
other similar information which is a source of 
value to the end-use consumer; 
‘‘(B) the income of the producer is in-
creased through maximization of the share of 
the retail food price retained by the producer; 
‘‘(C) consumers are provided with afford-
able agricultural products produced, processed, 
and distributed in the locality or region of the 
consumers; and 
‘‘(D) have traveled at least less than half 
of the current average distance of all food pro-
duced and consumed in the United States as 
determined by the Secretary 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(5) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Agriculture. 
‘‘(6) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term in sec-
tion 355(e) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2003(e)). 
‘‘(7) UNDERSERVED
COMMUNITY.—The term 
‘underserved community’ includes any community 
that may have, as determined by the Secretary— 
‘‘(A) limited access to affordable, healthy 
foods, including fresh fruits and vegetables, in 
grocery retail stores or farmer-to-consumer di-
rect markets; 
‘‘(B) high incidences of diet-related dis-
eases, including obesity; 
‘‘(C) high rates of hunger or food insecu-
rity; or 
‘‘(D) severe or persistent poverty in urban 
or rural communities, including Indian tribal 
communities. 
‘‘(d) GRANT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary, acting 
through the head of the market services branch of 
the Agricultural Marketing Service, shall establish a 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
program under which the Secretary shall provide 
grants, on a competitive basis, to eligible entities to 
conduct enterprise feasibility studies (including stud-
ies of consumer preference), in accordance with the 
purpose of this section. 
‘‘(2) APPLICATION.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit to the Secretary an application at such time, 
in such manner, and containing such information as 
the Secretary may require. 
‘‘(3) COORDINATION WITH OTHER AGENCIES.— 
In carrying out the program under this subsection, 
the Secretary shall coordinate, with respect to the 
development of the program and reviews of grant 
applications, with— 
‘‘(A) the Cooperative State Research, Edu-
cation, and Extension Service; and 
‘‘(B) the Rural Business Cooperative Serv-
ice. 
‘‘(4) PRIORITY.—In providing grants under this 
subsection, the Secretary shall give priority to appli-
cations with proposed projects that— 
‘‘(A) convey food products produced, proc-
essed, distributed near to point of final retail 
purchase, with the total distance a food product 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS