Title: Local FARM Act of 2020
Policy area: Agriculture and Food

Summary:
Local Food Assistance and Resilient Markets Act of 2020 or the Local FARM Act of 2020
This bill addresses provisions related to programs of the Department of Agriculture (USDA), including the Specialty Block Grant Program, the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program), the Loan Agriculture Market Program, and the Farm Microloan Program.
USDA must provide grants to states under the Specialty Block Grant Program to procure and distribute specialty crops to needy persons at zero cost to those persons. Each grant distributed shall not exceed $2.5 million.
The Food and Nutrition Service of USDA must distribute grants to state agencies to develop tools and provide technical assistance to (1) increase the quantity of retailers that accept and redeem SNAP benefits online, and (2) expand the capacity of retailers to accept and redeem SNAP benefits online.
The bill temporarily reduces the matching funds requirement for certain nutrition programs under the Local Agriculture Market Program. Additionally, the bill expands funding under such program to include (1) providing grants to organizations that serve socially disadvantaged farmers or ranchers, and (2) making payments to certain entities for COVID-19-related losses.
The bill also extends the Farm Microloan Program and temporarily waives certain eligibility requirements for the program during the COVID-19 public health emergency.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4140 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4140

To provide additional emergency funding for certain nutrition programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 1, 2020

  Mr. Booker introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To provide additional emergency funding for certain nutrition programs.

    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 ``Local Food Assistance and Resilient 
Markets Act of 2020'' or the ``Local FARM Act of 2020''.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

SEC. 3. SPECIALTY CROP BLOCK GRANTS.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) an emergency feeding organization (as defined 
                in section 201A of the Emergency Food Assistance Act of 
                1983 (7 U.S.C. 7501)); and
                    (B) a local or regional food enterprise, including 
                a farmers market, a food hub, an agricultural 
                cooperative, a producer association, a nonprofit 
                organization, and a for-profit entity focused primarily 
                on marketing locally grown food.
            (2) Program.--The term ``program'' means the specialty crop 
        block grant program established under section 101 of the 
        Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 
        note; Public Law 108-465).
    (b) Grants.--
            (1) In general.--The Secretary shall provide grants to 
        States under the program to award as subgrants to eligible 
        entities to procure and distribute specialty crops to needy 
        persons at zero cost to those persons.
            (2) Distribution requirement.--Of the grant amount provided 
        to a State under paragraph (1), a State shall use 50 percent to 
        award subgrants to eligible entities that purchase specialty 
        crops--
                    (A) from small, beginning, and socially 
                disadvantaged farmers or ranchers (as defined in 
                section 355(e) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2003(e))); and
                    (B) that would otherwise be sold through direct-to-
                consumer, direct-to-institution, direct-to-retail, or 
                direct-to-restaurant marketing channels, including 
                local and regional food enterprises such as food hubs, 
                agricultural cooperatives, and producer associations.
    (c) Use of Funds.--An eligible entity receiving a subgrant under 
subsection (b)(1)--
            (1) shall use not less than 50 percent of the subgrant 
        funds for specialty crop purchases; and
            (2) may use the remaining subgrant funds for 
        transportation, storage, overhead, and investment in cold 
        storage infrastructure.
    (d) Funding.--
            (1) In general.--There is appropriated to the Secretary, 
        out of funds of the Treasury not otherwise appropriated, 
        $1,000,000,000 to carry out this section, to remain available 
        until expended.
            (2) Emergency designation.--
                    (A) In general.--The amounts provided by this 
                subsection are designated as an emergency requirement 
                pursuant to section 4(g) of the Statutory Pay-As-You-Go 
                Act of 2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                subsection is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.

SEC. 4. ONLINE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    (a) Definition of Program.--In this section, the term ``program'' 
means the supplemental nutrition assistance program established under 
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
    (b) Grants.--
            (1) In general.--Not later than August 15, 2020, the 
        Secretary, acting through the Administrator of the Food and 
        Nutrition Service, shall distribute grants to State agencies 
        that administer the program in the State to develop tools and 
        provide technical assistance--
                    (A) to increase the quantity of retailers that 
                accept and redeem program benefits online; and
                    (B) to expand the capacity of retailers to accept 
                and redeem program benefits online.
            (2) Priority for use of funds.--In using a grant received 
        under paragraph (1), a State agency shall give priority, and 
        use not less than 25 percent of the grant funds, to assist--
                    (A) farmers markets, food hubs, agricultural and 
                consumer cooperatives, producer associations, nonprofit 
                organizations, and for-profit entities focused 
                primarily on marketing locally grown food; and
                    (B) retailers in food deserts that sold less than 
                $500,000 in food products in the preceding year.
            (3) Maximum amount.--The amount of a grant distributed 
        under paragraph (1) shall not exceed $2,500,000.
    (c) Funding.--
            (1) In general.--There is appropriated to the Secretary, 
        out of amounts in the Treasury not otherwise appropriated, 
        $100,000,000 to carry out subsection (b), to remain available 
        until expended.
            (2) Emergency designation.--
                    (A) In general.--The amounts provided by this 
                subsection are designated as an emergency requirement 
                pursuant to section 4(g) of the Statutory Pay-As-You-Go 
                Act of 2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                subsection is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.

SEC. 5. TEMPORARY MODIFICATIONS TO MATCHING REQUIREMENTS UNDER CERTAIN 
              NUTRITION PROGRAMS.

    (a) Access to Local Foods: Farm to School Program.--Section 
18(g)(4) of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1769(g)(4)) is amended--
            (1) in subparagraph (A), by striking ``The Federal'' and 
        inserting ``Subject to subparagraph (C), the Federal'';
            (2) in subparagraph (B), by striking ``As a condition'' and 
        inserting ``Subject to subparagraph (C), as a condition''; and
            (3) by adding at the end the following:
                    ``(C) Temporary waiver.--
                            ``(i) Definition of covered period.--In 
                        this subparagraph, the term `covered period' 
                        means the period beginning on the date of 
                        enactment of the Local FARM Act of 2020 and 
                        ending on the last day of the second fiscal 
                        year beginning after that date of enactment.
                            ``(ii) Temporary waiver.--During the 
                        covered period, the Federal share of costs for 
                        a project funded through a grant awarded under 
                        this subsection shall equal 100 percent of the 
                        total cost of the project.''.
    (b) Gus Schumacher Nutrition Incentive Program.--Section 
4405(b)(1)(C) of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 7517(b)(1)(C)) is amended--
            (1) by striking ``Except as provided in subparagraph 
        (D)(iii)'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii) and subparagraph (D)(iii)''; and
            (2) by adding at the end the following:
                            ``(ii) Temporary reduction.--
                                    ``(I) Definition of covered 
                                period.--In this clause, the term 
                                `covered period' means the period 
                                beginning on the date of enactment of 
                                the Local FARM Act of 2020 and ending 
                                on the last day of the second fiscal 
                                year beginning after that date of 
                                enactment.
                                    ``(II) Temporary reduction.--During 
                                the covered period, the Federal share 
                                of the cost of carrying out an activity 
                                under this subsection shall not exceed 
                                75 percent of the total cost of the 
                                activity.''.
    (c) Community Food Projects.--Section 25(e) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2034(e)) is amended--
            (1) in paragraph (1), by striking ``The Federal'' and 
        inserting ``Subject to paragraph (4), the Federal''; and
            (2) by adding at the end the following:
            ``(4) Temporary waiver.--
                    ``(A) Definition of covered period.--In this 
                paragraph, the term `covered period' means the period 
                beginning on the date of enactment of the Local FARM 
                Act of 2020 and ending on the last day of the second 
                fiscal year beginning after that date of enactment.
                    ``(B) Temporary reduction.--During the covered 
                period, the Federal share of the cost of establishing 
                or carrying out a community food project under 
                subsection (b) shall equal 100 percent of the total 
                cost of the project.''.

SEC. 6. LOCAL AGRICULTURE MARKET PROGRAM; BEGINNING FARMER AND RANCHER 
              DEVELOPMENT GRANT PROGRAM.

    (a) Local Agriculture Market Program.--
            (1) In general.--There is appropriated for the Department 
        of Agriculture, out of amounts in the Treasury not otherwise 
        appropriated, $500,000,000 for fiscal year 2020, to remain 
        available until expended, to carry out the Local Agriculture 
        Market Program established under section 210A of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1627c).
            (2) Reservations of amounts.--Of the amount made available 
        under paragraph (1)--
                    (A) $100,000,000 shall be used to provide grants 
                under the program described in that paragraph to 
                recipients of grants under that program that were 
                awarded before the date of enactment of this Act for 
                projects to respond to the COVID-19 pandemic;
                    (B) $100,000,000 shall be used to provide grants 
                under the program described in that paragraph to 
                organizations that serve socially disadvantaged farmers 
                or ranchers (as defined in section 355(e) of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                2003(e)));
                    (C) $25,000,000 shall be used for grants under 
                paragraph (5) of section 210A(d) of the Agricultural 
                Marketing Act of 1946 (7 U.S.C. 1627c(d)) to carry out 
                market rebuilding projects authorized under paragraph 
                (2)(K) of that section; and
                    (D) $25,000,000 shall be used for grants under 
                paragraph (6) of that section to carry out those market 
                rebuilding projects.
            (3) Market rebuilding projects.--Section 210A(d)(2) of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1627c(d)(2)) is 
        amended--
                    (A) in subparagraph (I), by striking ``or'' at the 
                end;
                    (B) in subparagraph (J)(ii), by striking the period 
                at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(K) to rebuild a market for a value-added 
                agricultural product that has been impacted by COVID-19 
                during the period beginning on the date of enactment of 
                this subparagraph and ending on the last day of the 
                second fiscal year beginning after that date of 
                enactment.''.
            (4) Payments for covid-19 losses.--Section 210A(d) of the 
        Agricultural Marketing Act of 1946 (7 U.S.C. 1627c(d)) is 
        amended by adding at the end the following:
            ``(7) Payments for covid-19 losses.--
                    ``(A) In general.--The Secretary may make payments 
                to entities eligible to receive a grant under paragraph 
                (5) or (6) that submit to the Secretary an application 
                at such time, in such manner, and containing--
                            ``(i) a description of how the business of 
                        the applicant has been impacted by COVID-19;
                            ``(ii) a narrative explaining how the 
                        applicant proposes to use those payments to 
                        expand the capacity of the sales of the 
                        applicant to properly package and sell 
                        agricultural products to consumers; and
                            ``(iii) such other information as the 
                        Secretary may require.
                    ``(B) Applicability of limitations.--A payment 
                under this paragraph shall not be subject to the 
                limitations specified in subparagraphs (D) and (E) of 
                paragraph (5) or (6), as applicable.''.
    (b) Waiver of Matching Funds Requirements.--
            (1) Definition of covered period.--In this subsection, the 
        term ``covered period'' means the period beginning on the date 
        of enactment of this Act and ending on the last day of the 
        second fiscal year beginning after that date of enactment.
            (2) Value-added producer grants.--Subparagraph (E) of 
        section 210A(d)(5) of the Agricultural Marketing Act of 1946 (7 
        U.S.C. 1627c(d)(5)) shall not apply to a grant awarded under 
        that section during the covered period.
            (3) Farmers' markets and local food promotion program.--
        Subparagraph (E) of section 210A(d)(6) of the Agricultural 
        Marketing Act of 1946 (7 U.S.C. 1627c(d)(6)) shall not apply to 
        a grant awarded under that section during the covered period.
            (4) Regional partnerships.--Paragraph (4) of section 
        210A(e) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
        1627c(e)) shall not apply to a grant awarded under that section 
        during the covered period.
            (5) Beginning farmer and rancher development grant 
        program.--Paragraph (5) of section 2501(d) of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279(d)) shall not apply to a grant awarded under that section 
        during the covered period.

SEC. 7. FARM MICROLOANS.

    Section 313(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1943(c)) is amended--
            (1) in paragraph (2), by striking ``$50,000'' and inserting 
        ``$100,000''; and
            (2) by adding at the end the following:
            ``(5) COVID-19 response.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered microloan.--The term `covered 
                        microloan' means a direct or guaranteed 
                        microloan under this subsection--
                                    ``(I) that is outstanding as of the 
                                date of enactment of this paragraph; or
                                    ``(II) that is made or guaranteed 
                                by the Secretary during the covered 
                                period.
                            ``(ii) Covered period.--The term `covered 
                        period' means the period beginning on the date 
                        of enactment of this paragraph and ending on 
                        the last day of the second fiscal year 
                        beginning after the date on which the public 
                        health emergency declared by the Secretary of 
                        Health and Human Services under section 319 of 
                        the Public Health Service Act (42 U.S.C. 247d) 
                        on January 31, 2020, with respect to COVID-19 
                        is lifted.
                    ``(B) Exemptions.--
                            ``(i) Prohibition of loans for borrowers 
                        that have received debt forgiveness.--
                        Notwithstanding section 373(b)(1), a borrower 
                        shall not be ineligible to receive a covered 
                        microloan because the borrower has received 
                        debt forgiveness described in subparagraph (A) 
                        or (B) of that section.
                            ``(ii) Prohibition on delinquent borrowers 
                        obtaining loans.--Notwithstanding section 
                        373(a) or any other provision of law, a 
                        borrower shall not be ineligible to receive a 
                        covered microloan because the borrower is 
                        delinquent on any loan made or guaranteed under 
                        this title or any other Federal law.
                            ``(iii) Requirement to be unable to obtain 
                        credit elsewhere.--Notwithstanding sections 
                        302(a)(1)(D), 311(a)(1)(D), and 333(1)(A), a 
                        borrower shall not be required to demonstrate 
                        an inability to obtain sufficient credit 
                        elsewhere to be eligible to receive a covered 
                        microloan.
                            ``(iv) Citizenship requirement.--
                        Notwithstanding sections 302(a)(1)(A) and 
                        311(a)(1)(A), a borrower shall not be required 
                        to be a citizen of the United States to receive 
                        a covered microloan.
                            ``(v) Acceptable credit history 
                        requirement.--Notwithstanding any other 
                        provision of this title, a borrower shall not 
                        be ineligible to receive a covered microloan 
                        because the borrower has a lack of an 
                        acceptable credit history.
                    ``(C) Extension of terms; interest assistance.--
                            ``(i) Extension of terms.--The Secretary 
                        shall extend the term of a covered microloan 
                        for a period of 10 years at an interest rate 
                        of--
                                    ``(I) 1 percent or less; or
                                    ``(II) in the case of guaranteed 
                                covered microloan under clause (ii), 
                                zero percent.
                            ``(ii) Interest assistance for guaranteed 
                        microloans.--
                                    ``(I) In general.--The Secretary 
                                shall enter into contracts under 
                                section 351 to reduce the interest rate 
                                paid by a borrower on a guaranteed 
                                covered microloan to zero percent for 
                                the remaining term of the guaranteed 
                                covered microloan.
                                    ``(II) Exemption of requirement to 
                                be unable to obtain credit elsewhere.--
                                Notwithstanding section 351(b)(1)(A), a 
                                borrower shall not be required to 
                                demonstrate an inability to obtain 
                                sufficient credit elsewhere to be 
                                eligible for an interest rate reduction 
                                described in subclause (I).
                    ``(D) Direct appropriation.--There is appropriated 
                for the Department of Agriculture, out of amounts in 
                the Treasury not otherwise appropriated, $350,000,000 
                for each fiscal year during the covered period to make 
                and guarantee microloans under this subsection.
            ``(6) Priority.--In making and guaranteeing microloans 
        under this subsection, the Secretary shall give priority to--
                    ``(A) beginning farmers or ranchers;
                    ``(B) socially disadvantaged farmers or ranchers 
                (as defined in section 355(e)); and
                    ``(C) owners or operators of niche or 
                nontraditional farm operations, as defined by the 
                Secretary.''.
                                 <all>