Small Farm to School Act of 2021
Bill: H.R.5249 | Sponsor: Rep. Delgado, Antonio (D-NY)
Policy area: Agriculture and Food

Summary:
Small Farm to School Act of 2021
This bill directs the Department of Agriculture (USDA) to award three-year grants to eight states or tribal organizations to provide school food authorities with an increased reimbursement for free and reduced price lunches that include at least one component that is comprised entirely of locally-produced and unprocessed foods procured directly from certain agricultural producers.
USDA must select at least one state or tribal organization located in each of the following regions: (1) the Mid-Atlantic Region, (2) the Midwest Region, (3) the Mountain Plains Region, (4) the Northeast Region, (5) the Southern Region, (6) the Southwest Region, and (7) the Western Region.
USDA must give the highest priority to applications that propose to carry out certain projects, including projects that (1) serve a high proportion of children from socially disadvantaged backgrounds, and (2) increase the availability of locally-produced foods to children. Additionally, priority must be given to states or tribal organizations with a high quantity and variety of growers of local fruits and vegetables on a per capita basis, and with a demonstrated commitment to farm-to-school activities.
Each state or tribal organization that receives a grant must provide, from nonfederal sources, an amount equal to 100% of the awarded grant amount.

To amend the Richard B. Russell National School Lunch Act to establish 
     a pilot program to provide selected States with an increased 
 reimbursement for school lunches that are comprised of locally grown 
                     foods, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Farm to School Act of 2021''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Across the United States, school food service directors 
        of school lunch programs face very tight budgets, and many find 
        it challenging to shift their procurement practices without 
        additional support.
            (2) One way to encourage school food service directors to 
        procure more locally produced foods is to offer reimbursements 
        to provide financial incentives for purchases and ease the 
        process of shifting existing procurement practices.
            (3) Research suggests that providing financial incentives 
        to school food service directors for purchasing of locally 
        produced foods, can result in an overall positive economic 
        effect for farmers and local economies.
            (4) In one such study, Cornell University researchers found 
        that providing an additional $0.05-per-lunch subsidy incentive 
        to school food service directors in New York State that use 
        local fruits or vegetables one day per week would have an 
        overall positive economic effect for farmers and local 
        economies.
            (5) In a report on Michigan's ``10 Cents a Meal for School 
        Kids and Farms'' State pilot program, researchers found that 
        providing schools with up to $0.10-per-meal in incentive match 
        funding to purchase and serve Michigan-grown fruits, 
        vegetables, and dry beans resulted in an overall positive 
        economic effect for the State's economy, doubling the 
        investment of such State in the program.
    (b) Purpose.--The purpose of this Act is to provide incentives for 
school food service directors of school lunch programs to increase 
purchases of locally produced, processed, and unprocessed foods from 
small farmers, thereby providing healthier lunches for children and 
creating a positive economic effect for small farmers and local 
economies.

SEC. 3. LOCALLY PRODUCED FOODS PILOT PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by inserting before subsection (b) the 
following:
    ``(a) Locally Produced Foods Pilot Program.--
            ``(1) In general.--The Secretary shall carry out a grant 
        program to make 3-year grants to 8 States or Indian tribal 
        organizations to provide school food authorities with an 
        increased reimbursement for free and reduced price lunches that 
        are qualified lunches (as defined in paragraph (10)).
            ``(2) Application.--To be eligible to receive a grant under 
        this subsection, a State or Indian tribal organization shall 
        submit an application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(3) Selection of states.--
                    ``(A) Regional requirement.--In awarding grants to 
                States or Indian tribal organizations under this 
                subsection, the Secretary shall select at least one 
                State or Indian tribal organization located in each of 
                the following regions designated by the Administrator 
                of the Food and Nutrition Service:
                            ``(i) The Mid-Atlantic Region.
                            ``(ii) The Midwest Region.
                            ``(iii) The Mountain Plains Region.
                            ``(iv) The Northeast Region.
                            ``(v) The Southern Region.
                            ``(vi) The Southwest Region.
                            ``(vii) The Western Region.
                    ``(B) Priority.--
                            ``(i) Highest priority.--To the maximum 
                        extent practicable, in awarding grants under 
                        this subsection, the Secretary shall give the 
                        highest priority to a State or Indian tribal 
                        organization that proposes in an application 
                        under paragraph (2) to carry out a project 
                        that, as determined by the Secretary--
                                    ``(I) makes local food products 
                                available on the menu of the eligible 
                                institution;
                                    ``(II) serves a high proportion of 
                                children who are eligible for free or 
                                reduced price meals;
                                    ``(III) incorporates experiential, 
                                and traditional and culturally 
                                appropriate nutrition, food, or 
                                agricultural education activities in 
                                curriculum planning;
                                    ``(IV) serves a high proportion of 
                                children from socially disadvantaged 
                                backgrounds;
                                    ``(V) demonstrates collaboration 
                                between State and local agencies, 
                                Tribal organizations and agencies, 
                                agricultural producers or groups of 
                                agricultural producers, land-grant 
                                colleges and universities, and 
                                nonprofit entities;
                                    ``(VI) includes adequate and 
                                participatory evaluation plans, as 
                                determined by the Secretary;
                                    ``(VII) demonstrates the potential 
                                for long-term sustainability;
                                    ``(VIII) increases the availability 
                                of locally produced foods to children; 
                                and
                                    ``(IX) meets any other criteria 
                                that the Secretary determines 
                                appropriate.
                            ``(ii) Additional priority.--In awarding 
                        grants to States or Indian tribal organizations 
                        under this subsection, the Secretary shall, in 
                        addition to the priority described in clause 
                        (i), give priority to--
                                    ``(I) a State or Indian tribal 
                                organization with a high quantity and 
                                variety of growers of local fruits and 
                                vegetables on a per capita basis; and
                                    ``(II) a State or Indian tribal 
                                organization with a demonstrated 
                                commitment to farm-to-school 
                                activities.
            ``(4) Use of funds.--
                    ``(A) In general.--A State or Indian tribal 
                organization that receives a grant under this 
                subsection shall use the grant funds to provide to an 
                additional 2.5 cents reimbursement to each school food 
                authority located in such State for each qualified 
                lunch served by such school food authority.
                    ``(B) Matching funds requirement.--A State or 
                Indian tribal organization that receives a grant under 
                this subsection shall provide, toward the cost of the 
                activities assisted under the grant, from non-Federal 
                sources, an amount equal to 100 percent of the amount 
                of the grant.
            ``(5) Reports.--
                    ``(A) State report.--Not later than 1 year after 
                the date of the enactment of this subsection, a State 
                or Indian tribal organization awarded a grant under 
                this subsection shall submit a report to the Secretary 
                that includes--
                            ``(i) the quantity of locally grown foods 
                        annually purchased and served prior to a grant 
                        under this subsection;
                            ``(ii) the locally grown foods purchased 
                        and served pursuant to a grant under this 
                        subsection;
                            ``(iii) the source, quantity, and cost of 
                        each such food described in clauses (i) and 
                        (ii); and
                            ``(iv) an assessment of the activities 
                        carried out by such State pursuant to such 
                        grant.
                    ``(B) Department report.--Not later than 1 year 
                after the date of the enactment of this subsection, the 
                Secretary shall submit a report to Congress that 
                includes--
                            ``(i) an analysis of the pilot project 
                        under this subsection;
                            ``(ii) the data reported to the Secretary 
                        by participating States and Indian tribal 
                        organizations under subparagraph (A); and
                            ``(iii) a benefit-cost ratio analysis 
                        taking into account the increased economic 
                        activity on farms, input suppliers, and others 
                        employed in the food distribution sector.
            ``(6) Supplement, not supplant.--Grant funds provided under 
        this subsection shall be used to supplement, not supplant, 
        other Federal or State funds available to carry out activities 
        described in this subsection.
            ``(7) Allocation of funds.--
                    ``(A) In general.--Of the funds made available to 
                carry out this subsection in a fiscal year, the 
                Secretary shall make an allocation to the 8 States or 
                Indian tribal organizations awarded a grant under this 
                subsection. Such allocation shall be made on a pro rata 
                basis determined by the total number of reimbursable 
                meals served during the previous school year.
                    ``(B) Administrative.--Of the funds made available 
                to a State or Indian tribal organization under this 
                subsection, not more than 3 percent may be used for 
                administrative expenses.
            ``(8) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $20,000,000 for 
        fiscal year 2021 and each succeeding fiscal year, to remain 
        available until expended.
            ``(9) Definitions.--In this subsection:
                    ``(A) Farm-to-school activities.--The term `farm-
                to-school activities' includes the following 
                activities:
                            ``(i) Planting and maintenance of farms or 
                        gardens.
                            ``(ii) Procurement from local agricultural 
                        producers.
                            ``(iii) Educational activities relating to 
                        agriculture, nutrition, or food.
                    ``(B) Locally produced.--The term `locally 
                produced' means food that is--
                            ``(i) raised, produced, and distributed in 
                        a locality that is less than 400 miles from the 
                        point of sale of such food, or
                            ``(ii) raised, produced, distributed, and 
                        sold within the same State, territory, or 
                        Tribal land.
                    ``(C) Majority-controlled producer-based business 
                venture.--The term `majority-controlled producer-based 
                venture' has the meaning given the term in section 210A 
                for the Agricultural Marketing Act of 1946 (7 U.S.C. 
                1627(c)).
                    ``(D) Qualified lunch.--The term `qualified lunch' 
                means a lunch served by a school food authority under 
                this Act of which at least one component of such lunch 
                is comprised entirely of locally produced and 
                unprocessed foods procured directly from--
                            ``(i) an independent producer;
                            ``(ii) an agricultural producer group, 
                        farmer, or rancher cooperative or majority-
                        controlled producer-based venture--
                                    ``(I) that is privately held and 
                                incorporated within a 400-mile radius 
                                of the school food authority procuring 
                                such locally produced and unprocessed 
                                foods; and
                                    ``(II) of which the majority of the 
                                owners are located within a 400-mile 
                                radius of such school food authority; 
                                or
                            ``(iii) an intermediary--
                                    ``(I) that is privately held and 
                                incorporated within a 400-mile radius 
                                of the school food authority procuring 
                                such locally produced and unprocessed 
                                foods; and
                                    ``(II) of which the majority of the 
                                owners are located within a 400-mile 
                                radius of such school food authority.
                    ``(E) Unprocessed.--The term `unprocessed' means 
                only those agricultural products that retain their 
                inherent character. The effects of the following food 
                handling and preservation techniques shall not be 
                considered as changing an agricultural product into a 
                product of a different kind or character: cooling; 
                refrigerating; freezing; size adjustment made by 
                peeling, slicing, dicing, cutting, chopping, shucking, 
                and grinding; forming ground products into patties 
                without any additives or fillers; drying/dehydration; 
                washing; packaging (such as placing eggs in cartons), 
                vacuum packing and bagging (such as placing vegetables 
                in bags or combining 2 or more types of vegetables or 
                fruits in a single package); the addition of ascorbic 
                acid or other preservatives to prevent oxidation of 
                produce; butchering livestock and poultry; cleaning 
                fish; and the pasteurization of milk.
                    ``(F) State.--The term `State' means any of the 
                several States, the District of Columbia, the 
                Commonwealth of Puerto Rico, or any other territory or 
                possession of the United States.''.
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