travels to the point of retail purchase as a 
measure of product freshness and compliance 
with the purpose in subsection (b); 
‘‘(B) are from partnerships of 2 or more 
eligible entities; 
‘‘(C) include features effectively targeting 
participation by socially disadvantaged farmers 
or ranchers or beginning farmers or ranchers; 
‘‘(D) increase employment opportunities in 
underserved communities; 
‘‘(E) support small and mid-sized farm vi-
ability and increase farming opportunities; or 
‘‘(F) establish and maintain satisfactory 
environmental and labor standards, including 
worker protection. 
‘‘(5) MAXIMUM
AMOUNT.—The amount of a 
grant provided under this subsection shall not exceed 
$250,000. 
‘‘(6) TERM.—A grant provided under this sub-
section shall have a term of not more than 3 years. 
‘‘(7) REPORTS.— 
‘‘(A) IN
GENERAL.—Each eligible entity 
that receives a grant under this subsection shall 
submit to the Secretary an annual report de-
scribing the results and progress of each feasi-
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
bility study to ensure sufficient progress is 
achieved with respect to the goals of the 
projects carried out by the eligible entity. 
‘‘(B) PUBLIC
AVAILABILITY.—The Sec-
retary shall ensure that any information con-
tained in a report under subparagraph (A) re-
lating to consumer preference or producer avail-
ability is made available to the public. 
‘‘(8) FUNDING.—On October 1, 2008, and on 
each October 1 thereafter through October 1, 2013, 
out of any funds in the Treasury not otherwise ap-
propriated, the Secretary of the Treasury shall 
transfer to the Secretary to carry out this subsection 
$5,000,000, to remain available until expended. 
‘‘(e) 
ENTERPRISE
DEVELOPMENT
LOAN
PRO-
GRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary, acting 
through the Agricultural Marketing Service, shall es-
tablish a program under which the Secretary shall 
provide loans and loan guarantees to eligible entities 
and individual producers for use in accordance with 
paragraph (6). 
‘‘(2) COORDINATION WITH OTHER AGENCIES.— 
In carrying out the program under this subsection, 
the Secretary shall coordinate, with respect to the 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
development of the program, reviews of applications, 
and implementation with the Rural Business Coop-
erative Service. 
‘‘(3) APPLICATION.—To be eligible to receive a 
loan or loan guarantee under this subsection, an eli-
gible entity or individual producer shall submit to 
the Secretary an application at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) PRIORITY.—In providing loans and 
loan guarantees under this subsection, the Sec-
retary shall give priority to applications with 
proposed projects that— 
‘‘(i) convey food products produced, 
processed, distributed near to point of final 
retail purchase, with the total distance a 
food product travels to the point of retail 
purchase 
as 
a 
measure 
of 
product 
freshness and compliance with the purpose 
in subsection (b); 
‘‘(ii) are from partnerships of 2 or 
more eligible entities; 
‘‘(iii) include features effectively tar-
geting participation by socially disadvan-
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
taged farmers or ranchers or beginning 
farmers or ranchers; 
‘‘(iv) increase employment opportuni-
ties in underserved communities; 
‘‘(v) establish and maintain clear envi-
ronmental and labor standards, including 
worker protection; or 
‘‘(vi) support small and mid-sized 
farm viability and increase farming oppor-
tunities. 
‘‘(B) LIMITATION.—The Secretary shall 
ensure that no recipient of a loan or loan guar-
antee under this subsection holds, or signifi-
cantly benefits from, more than 1 loan or guar-
antee for the term of the loan or guarantee. 
‘‘(5) DIRECT LOANS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide loans under this subsection— 
‘‘(i) on an annual and competitive 
basis; 
‘‘(ii) after conducting a review of ap-
plicable applications in accordance with 
subsection (c)(3); 
‘‘(iii) in a manner that is economically 
sound, as determined by the Secretary; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(iv) that may be subordinated to 
loans made by local private lenders; and 
‘‘(v) in an amount equal to not more 
than $1,500,000, as adjusted to reflect 
changes for the 12-month period ending 
the preceding November 30 in the Con-
sumer Price Index for All Urban Con-
sumers published by the Bureau of Labor 
Statistics of the Department of Labor. 
‘‘(B) INTEREST RATE.—The interest rate 
of a loan provided under this subsection— 
‘‘(i) shall be equivalent to the interest 
rate of securities of the United States 
Treasury of comparable maturity as of the 
date on which the loan is provided; 
‘‘(ii) may be offered as a variable rate 
to allow lower-interest payments until an 
eligible entity is able to pay higher-interest 
payments, subject to the condition that the 
total interest rate does not exceed the 
standard interest rate of the Department 
of the Treasury, as in existence on the 
date on which the loan is approved; and 
‘‘(iii) shall not change, in the aggre-
gate, during the term of the loan. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(C) REPAYMENT.—An eligible entity or 
individual producer shall repay the Secretary an 
amount equal to the amount of the loan re-
ceived by the eligible entity or individual pro-
ducer (including interest) by not later than 15 
years after the date on which the loan is pro-
vided. 
‘‘(D) UNDERSERVED COMMUNITIES.—The 
Secretary shall defer repayment of a loan (in-
cluding interest) provided to an eligible entity 
located in an underserved community for the 3- 
year period beginning on the date on which the 
loan is provided. 
‘‘(6) LOAN GUARANTEES.— 
‘‘(A) RATES.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), the rate of a 
loan guarantee provided under this sub-
section shall be not less than 80 percent 
and not more than 90 percent. 
‘‘(ii) CERTAIN RECIPIENTS.—The rate 
of a loan guarantee provided under this 
subsection to an eligible entity that serves 
primarily a majority of socially disadvan-
taged farmers or ranchers or beginning 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
farmers or ranchers, as determined by the 
Secretary, shall be not less than 95 per-
cent. 
‘‘(iii) CERTAIN PROJECTS.—The rate 
of a loan guarantee provided under this 
subsection for a project that, as deter-
mined by the Secretary, will result in in-
creased employment in a low-income com-
munity, an economic empowerment zone, 
or such other similar area as the Secretary 
may designate, shall be not less than 95 
percent. 
‘‘(B) ELIGIBLE LENDERS.—For purposes 
of loan guarantees under this paragraph, eligi-
ble lender institutions include— 
‘‘(i) community development financial 
institutions; 
‘‘(ii) community development banks; 
‘‘(iii) credit unions; 
‘‘(iv) banks owned by Indian tribes; 
and 
‘‘(v) such other institutions as the 
Secretary may designate to ensure equi-
table access to loan guarantees— 
‘‘(I) in each State; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(II) to Indian tribal organiza-
tions. 
‘‘(C) MAXIMUM AMOUNT.—The amount of 
a loan guarnateed under this subsection shall 
not exceed $1,500,000, as adjusted to reflect 
changes for the 12-month period ending the 
preceding November 30 in the Consumer Price 
Index for All Urban Consumers published by 
the Bureau of Labor Statistics of the Depart-
ment of Labor. 
‘‘(7) USE OF FUNDS.—An eligible entity or in-
dividual producer shall use funds provided pursuant 
to a loan or loan guarantee under this subsection to 
develop processing, distribution, and information in-
frastructure for locally or regionally produced food, 
in accordance with the purpose of this section, in-
cluding through— 
‘‘(A) construction of new infrastructure; 
‘‘(B) rehabilitation of existing infrastruc-
ture; 
‘‘(C) activities to support the development 
of marketing networks and alliances; 
‘‘(D) development of information infra-
structure, including websites; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(E) purchases of equipment for proc-
essing, distribution, transportation, storage, 
and other related purposes; and 
‘‘(F) other activities, as the Secretary de-
termines to be appropriate. 
‘‘(8) FUNDING.—On October 1, 2008, and on 
each October 1 thereafter through October 1, 2013, 
out of any funds in the Treasury not otherwise ap-
propriated, the Secretary of the Treasury shall 
transfer to the Secretary to carry out this subsection 
$35,000,000, to remain available until expended, of 
which— 
‘‘(A) not less than $15,000,000 shall be 
used for each fiscal year to provide loans under 
paragraph (4); and 
‘‘(B) not less than $10,000,000 shall be 
used for each fiscal year to provide loan guar-
antees under paragraph (5). 
‘‘(f) GRANT AND LOAN PROGRAM REQUIREMENTS.— 
‘‘(1) 
TECHNICAL
ASSISTANCE
AND
OUT-
REACH.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) provide to the public information 
relating to the grant and loan programs 
under this section; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(ii) provide technical assistance to— 
‘‘(I) socially disadvantaged farm-
ers or ranchers; 
‘‘(II) Indian tribal organizations; 
‘‘(III) 
low-income 
populations; 
and 
‘‘(IV) other underserved commu-
nities and producers. 
‘‘(B) SERVICE
PROVIDERS.—In carrying 
out subparagraph (A), the Secretary may enter 
into contracts, on a competitive basis, with enti-
ties that, as determined by the Secretary— 
‘‘(i) demonstrate experience in serving 
socially disadvantaged farmers or ranchers 
and other underserved communities and 
producers; 
‘‘(ii) include, in the governance struc-
ture of the entity, 2 or more members rep-
resenting the targeted communities served 
by the entity; and 
‘‘(iii) will share information developed 
or used by the entity with— 
‘‘(I) researchers; 
‘‘(II) practitioners; and 
‘‘(III) other interested parties. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(C) FUNDING.—On October 1, 2008, and 
on each October 1 thereafter through October 
1, 2013, out of any funds in the Treasury not 
otherwise appropriated, the Secretary of the 
Treasury shall transfer to the Secretary to 
carry out this paragraph not less than 
$200,000 and not more than an amount equal 
to 5 percent of the funds required to carry out 
this program, to remain available until ex-
pended. 
‘‘(2) LIMITATIONS.—For purposes of the pro-
grams under this section, the Secretary— 
‘‘(A) shall not give preference to any entity 
based on an agricultural commodity produced 
or supported by the entity; and 
‘‘(B) shall encourage, to the maximum ex-
tent practicable, projects that use infrastructure 
efficiently for more than 1 agricultural product. 
‘‘(3) REPORT.—Not less frequently than once 
each year, the Secretary shall submit to Congress a 
report that describes the programs (including the 
level of participation in each program) under this 
section, including information relating to— 
‘‘(A) projects carried out under this sec-
tion; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(B) characteristics of the agricultural 
producers and communities served by the 
projects; 
‘‘(C) the benefits of the projects; 
‘‘(D) data necessary to comply with— 
‘‘(i) section 2501A of the Food, Agri-
culture, Conservation, and Trade Act of 
1990 (7 U.S.C. 2279–1); or 
‘‘(ii) section 8(b)(5)(B) of the Soil 
Conservation and Domestic Allotment Act 
(16 U.S.C. 590h(b)(5)); and 
‘‘(E) outreach and technical assistance ac-
tivities carried out by the Secretary under para-
graph (1).’’. 
SEC. 4. DIRECT FARMER TO CONSUMER MARKETING AS-
SISTANCE PROGRAM. 
Section 6 of the Farmers-to-Consumers Direct Mar-
keting Act of 1976 (7 U.S.C. 3005) is amended to read 
as follows: 
‘‘SEC. 6. DIRECT FARMER TO CONSUMER MARKETING AS-
SISTANCE PROGRAM. 
‘‘(a) FINDINGS.—The Congress finds that— 
‘‘(1) agricultural direct farmer to consumer 
marketing activities, including farmers markets, 
roadside stands, community supported agriculture, 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
internet, mail-order, and other similar direct order 
marketing activities significantly enhance the ability 
of agricultural producers to retain a greater share of 
their products’ retail value; 
‘‘(2) direct farmer-to-consumer marketing ac-
tivities are a crucial component of the current and 
future viability of small and mid-sized farms and 
ranches, and beginning and socially disadvantaged 
farmers and ranchers; and 
‘‘(3) agricultural direct marketing activities 
contribute to the health and well-being of consumers 
in rural, urban, and tribal communities by providing 
access to healthy, fresh, and affordable food. 
‘‘(b) ESTABLISHMENT.—The Secretary shall carry 
out a program, to be known as the ‘Direct to Consumer 
Marketing Assistance Program’ (referred to in this section 
as the ‘Program’), to make grants to eligible entities for 
projects to establish, expand, and promote farmers’ mar-
kets, and other farmer to consumer direct marketing op-
portunities. 
‘‘(c) PROGRAM PURPOSES.—The purposes of the Pro-
gram are— 
‘‘(1) to increase domestic consumption of agri-
cultural commodities by improving and expanding, 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
or assisting in the improvement and expansion of di-
rect producer to consumer marketing opportunities; 
‘‘(2) to develop, or aid in the development of, 
new direct producer to consumer marketing opportu-
nities; 
‘‘(3) to increase direct producer to consumer di-
rect marketing opportunities in underserved areas by 
providing, to the maximum extent possible, not less 
than twenty-five percent of program grants to 
projects in areas determined underserved by the Sec-
retary. 
‘‘(d) ELIGIBLE ENTITIES.—An entity shall be eligible 
to receive a grant under the Program if the entity is— 
‘‘(1) two or more farmers and or farm vendors 
who sell their own products through a common 
channel of distribution; 
‘‘(2) producer networks and associations; 
‘‘(3) a local government; 
‘‘(4) a nonprofit corporation; 
‘‘(5) a public benefit corporation; 
‘‘(6) an economic development corporation; 
‘‘(7) a regional farmers’ market authority; or 
‘‘(8) such other entity as the Secretary may 
designate. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(e) ELIGIBLE ACTIVITIES.—Eligible direct farmer- 
to-consumer activities include— 
‘‘(1) farmers markets; 
‘‘(2) roadside stands; 
‘‘(3) community supported agriculture; 
‘‘(4) activities to support the use of EBT at 
farmers markets and, where feasible, other direct 
market enterprises; 
‘‘(5) pick your own operations; 
‘‘(6) internet and mail-order sales with eligible 
entities qualifying as producer networks and associa-
tions under this section limited to those engaged in 
emerging markets; 
‘‘(7) producer-run agritourism activities facili-
tating the direct sale of agricultural products; and 
‘‘(8) other similar ventures as determined by 
the Secretary. 
‘‘(f) LIMITATIONS.—An eligible entity may not use a 
grant or other assistance provided under this Program for 
the purchase, construction, or rehabilitation of a building 
or structure. 
‘‘(g) CRITERIA
AND GUIDELINES.—The Secretary 
shall establish criteria and guidelines for the submission, 
evaluation, and funding of proposed projects under the 
Program. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(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 subsection $25,000,000. Such funds shall 
remain available until expended.’’. 
SEC. 5. WIC FARMER’S MARKET NUTRITION PROGRAM. 
Section 17(m)(9)(A) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(m)(9)(A)) is amended— 
(1) in clause (i), by striking ‘‘2009’’ and insert-
ing ‘‘2013’’; and 
(2) by striking clause (ii) and inserting the fol-
lowing: 
‘‘(ii) MANDATORY FUNDING.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall make 
available to carry out this subsection $20,000,000 for fis-
cal year 2008, $30,000,000 for fiscal year 2009, 
$45,000,000 for fiscal year 2010, $60,000,000 for fiscal 
year 2011, and not less than $75,000,000 for fiscal year 
2012 and each fiscal year thereafter. Such funds shall re-
main available until expended.’’. 
SEC. 6. SENIOR FARMERS’ MARKET NUTRITION PROGRAM. 
Section 4402 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3007) is amended— 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(1) in subsection (a) by striking ‘‘$5,000,000’’ 
and all that follows through ‘‘2007’’, and inserting 
‘‘$20,000,000 for fiscal year 2008, $30,000,000 for 
fiscal year 2009, $45,000,000 for fiscal year 2010, 
$60,000,000 for fiscal year 2011, and not less than 
$75,000,000 for fiscal year 2012 and each fiscal 
year thereafter’’, and 
(2) in subsection (b)— 
(A) in paragraph (2) by striking ‘‘and’’ at 
the end, 
(B) in paragraph (3) by striking the period 
at the end and inserting ‘‘; and’’, and 
(C) by adding at the end the following: 
‘‘(4) to promote the transition to organic and 
other environmentally beneficial food production sys-
tems.’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(d) ELIGIBLE PARTICIPANTS; BENEFITS LEVELS.— 
The regulations required by subsection (c) 
‘‘(1) shall allow for participation by farmers 
markets, and roadside stands, community supported 
agriculture programs; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
‘‘(2) shall not limit the ability of State or re-
gional programs to set benefit levels per individual 
senior.’’. 
SEC. 
7. 
COMMUNITY 
FOOD 
PROJECT 
COMPETITIVE 
GRANTS. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.—Section 
25(b) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)) 
is amended— 
(1) in paragraph (1) by striking ‘‘From 
amounts made available to carry out this Act, the 
Secretary may’’ and inserting ‘‘The Secretary shall’’; 
and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) 
FUNDING
AMOUNTS.—From 
amounts 
made available to carry out this Act, the Secretary 
shall use $60,500,000 for each of fiscal years 2008 
through 2013 to make grants under this section.’’. 
(b) PREFERENCE FOR CERTAIN PROJECTS.—Section 
25(d) of the Food Stamp Act of 1977 (7 U.S.C. 2034(d)) 
is amended— 
(1) in paragraph (3) by striking ‘‘or’’ at the 
end; 
(2) in paragraph (4) by striking the period at 
the end and inserting ‘‘; or’’; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(3) by adding at the end the following: 
‘‘(5) serve special project needs in areas of— 
‘‘(A) transportation and processing for ex-
panding institutional and emergency food serv-
ice demand for local food; 
‘‘(B) retail access to healthy foods in un-
derserved markets; 
‘‘(C) integration of urban and metro-area 
food production in food projects; and 
‘‘(D) technical assistance for youth, so-
cially disadvantaged individuals, and limited re-
source groups.’’. 
(c) MATCHING
FUNDS
REQUIREMENTS.—Section 
25(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2034(e)(1)) is amended by striking ‘‘50’’ and inserting 
‘‘75’’. 
(d) TERM OF GRANT.—Section 25(f)(2) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(f)(2)) is amended by 
striking ‘‘3’’ and inserting ‘‘5’’. 
(e) FUNDING.—Section 25(h)(4) of the Food Stamp 
Act of 1977 (7 U.S.C. 2034(h)(4)) is amended— 
(1) by striking ‘‘fiscal years 2003 through 
2007’’ and inserting ‘‘fiscal years 2008 through 
2013’’; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(2) by striking ‘‘$200,000’’ and inserting 
‘‘$500,000’’. 
SEC. 8. AUTHORIZATION LEVEL FOR FARM-TO-CAFETERIA 
ACTIVITIES. 
Section 18 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769) is amended in subsection 
(i)(2) by striking ‘‘such sums as are necessary’’ and all 
that follows through the period at the end and inserting 
‘‘to carry out this subsection $20,000,000 for each of fis-
cal years 2008 through 2013.’’. 
SEC. 9. PURCHASES OF LOCALLY PRODUCED FOODS. 
(a) IN GENERAL.—The Secretary shall— 
(1) allow institutions participating in the school 
lunch program under this Act, the Department of 
Defense Farm to School Program and the programs 
established by the Child Nutrition Act of 1966 (42 
U.S.C. 1773) to use geographic preferences in their 
bidding and procurement programs to purchase, in 
addition to other food purchases, locally produced 
foods for meal programs; 
(2) advise institutions participating in a pro-
gram described in paragraph (1) of the policy de-
scribed in that subparagraph and post information 
concerning the policy on the website maintained by 
the Secretary; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(3) in accordance with requirements established 
by the Secretary, provide startup grants to not more 
than 200 institutions to defray the initial costs of 
equipment, materials, and storage facilities, and 
similar costs, incurred in carrying out the policy de-
scribed in paragraph (1); 
(4) report to Congress annually concerning im-
plementation of this section. 
(b) CLARIFICATION REGARDING GEOGRAPHIC PREF-
ERENCES.—Nothing in this Act or any other provision of 
law shall be construed to preempt, prohibit, or otherwise 
limit the authority of institutions participating in the pro-
grams described in subsection (a)(1) of this section
from 
using geographic preferences in their bidding and procure-
ment programs to purchase, in addition to other food pur-
chases, locally produced foods for meal programs. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section $400,000 for 
each of fiscal years 2007 through 2012 to remain 
available until expended. 
(2) LIMITATION.—No amounts may be made 
available to carry out this section unless specifically 
provided by an appropriation Act. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
SEC. 10. SCHOOL PREFERENCE STUDY. 
The Secretary of Agriculture shall carry out a study 
on the preferences of elementary and secondary schools 
for commodity distribution, including the extent to which 
such schools prefer commodity distribution to include 
fresh fruits and vegetables, and submit to Congress a re-
port on the results of the study. The report shall include 
an analysis of the logistical issues that would impede ef-
forts to increase the extent to which commodity distribu-
tion to schools includes fresh fruits and vegetables, and 
shall include recommendations for improving the avail-
ability of fresh fruits and vegetables to schools. 
SEC. 11. FOOD STAMP FRUIT AND VEGETABLE INCENTIVE 
PROGRAM. 
(a) ESTABLISHMENT.—There is hereby established a 
demonstration project within the Food Stamp Program to 
provide incentives for program participants to purchase 
more fruits and vegetables. This demonstration project 
shall be available to all States that submit to the Secretary 
a plan that meets the requirements of this section. Ap-
proved projects that meet plan requirements may operate 
within a State for a period of up to five years but not 
beyond September 30, 2012. 
(b) STATE PLAN REQUIREMENTS.—State proposals 
to operate a fruit and vegetable incentive demonstration 
project shall provide a description of the following: 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(1) the incentive mechanism that will be imple-
mented and how it will be implemented; 
(2) the categories of fruit and vegetable pur-
chases to which the incentive will apply; 
(3) the plan to inform food stamp consumers of 
the incentive and of the categories of fruits and 
vegetables to which the incentive applies; 
(4) the nutrition education activities that will 
be conducted to support the incentive; 
(5) the methodology to be used to evaluate the 
impact of the incentive on the food purchases of food 
stamp households when utilizing Food Stamp Pro-
gram benefits; 
(6) the plan to meet the following assurances: 
(A) that if project incentives apply to fresh 
fruits and/or fresh vegetables, the incentive will 
be operative in established farmers’ markets for 
food stamp consumers who purchase fruits or 
vegetables in those venues; 
(B) that operation of the demonstration 
project at the point of sale will not cause food 
stamp consumers to be delayed or to be identi-
fied to the general public as Food Stamp Pro-
gram participants; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(C) that food retailers and farmers’ market 
vendors approved to accept food stamp pur-
chases have participated in the planning of the 
operation of the incentive mechanism at point 
of purchase; 
(D) that no more than 25 percent of the 
federal funds expended by or pursuant to the 
State agency plan will be utilized for adminis-
trative, educational and or evaluative purposes; 
and 
(E) that the State agency will provide 
quarterly reports on the administrative costs of 
the project and annual reports on the impact of 
the project on food stamp purchases of fruits 
and vegetables; 
(c) PLAN APPROVAL.—The Secretary shall approve 
State fruit and vegetable incentive demonstration project 
proposals that adequately address the required elements. 
(d) INCENTIVE MECHANISM.—A State submitting a 
proposed plan for the fruit and vegetable demonstration 
project shall select one of the following incentive mecha-
nisms for implementation— 
(1) bonus payments, not to exceed 10 percent 
of purchases of qualifying fruits and vegetables, 
which will be credited to the electronic benefit ac-
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
count of the food stamp consumer and may be used 
to make additional purchases; or 
(2) bonus vouchers, not to exceed the value of 
10 percent of purchases of qualifying fruits and 
vegetables, which may be used to purchase addi-
tional fruits or vegetables. 
(e) CATEGORIES OF FRUITS AND VEGETABLES.—A 
State submitting a proposed plan for the fruit and vege-
table demonstration project shall apply the incentive 
mechanism to one or more of the following food categories: 
(1) fresh fruits; 
(2) fresh vegetables; 
(3) canned fruits; 
(4) canned vegetables; 
(5) frozen fruits; 
(6) frozen vegetables; 
(7) dried fruits; 
(8) dried vegetables. 
A food product that consists of one or more reconstituted 
or reprocessed fruits or vegetables, or which consists of 
less than 100 percent fruit juice, may not be included in 
a State’s plan of food products to which the incentive ap-
plies. 
(f) ADMINISTRATIVE COSTS.—The Secretary shall re-
imburse all State administrative costs related to the oper-
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
ation and evaluation of a demonstration project. No State 
administrative cost share may be required. 
(g) EVALUATION.—On or before January 1, 2012, 
the Secretary shall report to Congress on the impact of 
the incentives implemented by the States on total food 
purchases by food stamp consumers. 
SEC. 12. INDEPENDENT EVALUATION OF DEPARTMENT OF 
AGRICULTURE 
COMMODITY 
PURCHASE 
PROCESS. 
(a) EVALUATION REQUIRED.—The Secretary of Agri-
culture shall arrange to have performed an independent 
evaluation of the commodity purchasing processes (and 
the statutory and regulatory authority underlying such 
processes) used by the Department of Agriculture to re-
move surplus commodities from the market and support 
commodity prices and producer incomes, especially with 
regard to activities under section 32 of the Act of August 
24, 1935 (7 U.S.C. 612c) and the importance of increas-
ing purchases of perishable specialty crops. 
(b) SUBMISSION OF RESULTS.—Not later than one 
year after the date of the enactment of this Act, the Sec-
retary of Agriculture shall submit to Congress a report 
on the results of the evaluation. 
SEC. 13. URBAN AGRICULTURE PRODUCTION PROGRAM. 
(a) FINDINGS.— 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(1) Urban agriculture production serves health, 
food security, economic and community development 
goals. 
(2) Urban communities at risk for obesity, 
Type II diabetes and other chronic diet related dis-
eases benefit from the access to fresh agricultural 
products and gardens where good nutritional behav-
ior and healthy food choices are modeled. 
(3) Community and school gardens and other 
urban agriculture enterprises are entry points for 
new food system workers and farmers who value 
healthy food choices. 
(b) PURPOSE.—To improve food security, address 
obesity, increase access to healthy food and nutrition edu-
cation in low income areas, grow the number of urban ag-
ricultural enterprises, community and school gardens, and 
the services provided to them. 
(c) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Natural Resources Conservation Service 
(NRCS) and in cooperation with Cooperative State Re-
search, Education and Extension Service (CSREES) and 
other agencies as appropriate, establish an Urban Agri-
culture Production Program which will promote agricul-
tural production capacity in metropolitan counties. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(d) ASSISTANCE.—In carrying out this program, the 
Secretary shall— 
(1) 
provide 
urban 
agriculture 
production 
grants, provide technical assistance and carry out in-
formation and education programs to foster food 
production in towns and cities; and 
(2) provide a priority for projects seeking to di-
rect fresh produce to food insecure communities and 
neighborhoods surrounding production sites. 
(e) FUNDING AMOUNTS.—From amounts made avail-
able to carry out this section the Secretary shall use 
$5,000,000 for each of fiscal years 2008 through 2012 
to make grants under this section. 
(f) ELIGIBLE ENTITIES.—To be eligible for a grant 
under subsection (b), a private nonprofit entity, must— 
(1) have experience in areas of— 
(A) planning, constructing and maintain-
ing public community or school gardens; and 
(B) nonprofit entrepreneurial youth or job 
skills training in low-income communities; 
(2) demonstrate competency to implement a 
project, provide fiscal accountability, collect data, 
and prepare reports and other necessary documenta-
tion; and 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
(3) demonstrate a willingness to share informa-
tion with researchers, practitioners, and other inter-
ested parties. 
(g) PREFERENCE FOR CERTAIN PROJECTS.—In se-
lecting urban agriculture production projects to receive as-
sistance under subsection (b), the Secretary shall give a 
preference to projects designed to— 
(1) develop and strengthen linkages between 
urban producers, community-based organizations, 
private businesses, schools and other public institu-
tions and agencies; 
(2) operate in underserved markets and low in-
come neighborhoods; and 
(3) engage with youth, the elderly, and immi-
grant communities. 
(h) MATCHING FUNDS REQUIREMENTS.— 
(1) REQUIREMENTS.—The Federal share of the 
cost of establishing or carrying out a community 
food project that receives assistance under sub-
section (b) may not exceed 75 percent of the cost of 
the project during the term of the grant. 
(2) CALCULATION.—In providing for the non- 
Federal share of the cost of carrying out a commu-
nity food project, the entity receiving the grant shall 
provide for the share through a payment in cash or 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS
in kind, fairly evaluated, including facilities, equip-
ment, or services. 
(3) SOURCES.—An entity may provide for the 
non-Federal share through State government, local 
government, or private sources. 
(i) TERM OF GRANT.— 
(1) SINGLE
GRANT.—An urban food project 
may be supported by only a single grant under sub-
section (b). 
(2) TERM.—The term of a grant under sub-
section (b) may not exceed 3 years. 
(j) TECHNICAL ASSISTANCE AND RELATED INFOR-
MATION.—In carrying out this section, the Secretary may 
provide technical assistance regarding urban food projects, 
processes, and development to any entity seeking the as-
sistance. 
Æ 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6301
E:\BILLS\H2364.IH
H2364
hmoore on PRODPC68 with HMBILLS