Title: Small Family Farmer And Rancher Relief Act
Policy area: Agriculture and Food

Summary:
Small Family Farmer And Rancher Relief Act
This bill increases premium and insurance subsidies for certain small family farmers and ranchers, creates a program to provide relief to small producers when cattle prices and values exceed a specified threshold level, and establishes a grant program to assist cattle producers to market and add value to beef products.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8590 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8590

To provide assistance to certain small family farmers and ranchers, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2022

  Mr. David Scott of Georgia introduced the following bill; which was 
                referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To provide assistance to certain small family farmers and ranchers, 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 Family Farmer And Rancher 
Relief Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Beginning farmer or rancher.--The term ``beginning 
        farmer or rancher'' has the meaning given the term in section 
        502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).
            (2) Cattle.--The term ``cattle'' includes steers, heifers, 
        fed cattle, feeder cattle, and calves.
            (3) Livestock risk protection insurance policy.--The term 
        ``livestock risk protection insurance policy'' means the 
        livestock risk protection insurance policy authorized pursuant 
        to section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
        1508(h)) and offered by the Risk Management Agency of the 
        Department of Agriculture.
            (4) Veteran farmers or ranchers.--The term ``veteran farmer 
        or rancher'' has the meaning given the term in section 502(b) 
        of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).

SEC. 3. ADDITIONAL PREMIUM ASSISTANCE FOR SMALL RANCHERS, BEGINNING 
              FARMERS OR RANCHERS, AND VETERAN FARMERS OR RANCHERS 
              UNDER LIVESTOCK RISK PROTECTION INSURANCE POLICIES.

    (a) Additional Premium Assistance for Eligible Livestock 
Operations.--
            (1) In general.--With respect to livestock risk protection 
        insurance policies, producers eligible under subsection (c) 
        shall receive premium assistance that is 20 percentage points 
        greater than the premium assistance that would otherwise be 
        available under such policies.
            (2) No duplicative coverage.--Producers receiving premium 
        assistance under this section shall be ineligible for livestock 
        risk protection premium assistance for beginning farmers or 
        ranchers or veteran farmers or ranchers.
            (3) Applicability.--With respect to the first reinsurance 
        year that begins after the date of the enactment of this Act, 
        and each reinsurance year thereafter, the additional premium 
        assistance under this subsection shall apply to producers 
        eligible under this section, beginning farmers or ranchers, and 
        veteran farmers or ranchers who obtain coverage under a 
        livestock risk protection insurance policy.
    (b) Additional Administrative and Operating Costs Reimbursement.--
Notwithstanding section 508(k)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)(4)), in the case of a livestock risk protection policy 
obtained by a livestock producer receiving premium assistance under 
this section, the rate to reimburse approved insurance providers and 
agents for the administrative and operating costs of the providers and 
agents with respect to such policy shall be at least 25 percent of the 
premium used to define loss ratio.
    (c) Eligibility.--To be eligible to receive premium assistance 
under this section, a livestock operation within the United States or 
the territories thereof or on Tribal lands, shall have a cumulative 
number of cattle sold that is less than or equal to 100 in one year.
    (d) Outreach and Education.--The Secretary of Agriculture shall--
            (1) make available additional education opportunities and 
        prioritize outreach to eligible livestock operations, beginning 
        farmers or ranchers, and veteran farmers or ranchers with 
        respect to risk management for livestock and the assistance 
        available under this section; and
            (2) conduct outreach to approved insurance providers and 
        agents with respect to the livestock risk protection insurance 
        policies and the additional administrative and operating costs 
        reimbursement under subsection (b).

SEC. 4. BEEF CATTLE SPREAD COVERAGE PROGRAM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Agriculture, acting through the 
Administrator of the Farm Service Agency (in this section referred to 
as the ``Secretary''), shall establish a program under which the 
Secretary will provide payments to eligible producers when the choice 
boxed beef cutout values, dressed fed cattle prices, and retail beef 
values (in this section referred to as ``the spread'') exceeds the 
coverage threshold level specified in subsection (b).
    (b) Coverage Threshold Level.--The coverage threshold level 
specified in this subsection, with respect to the sale of beef, is the 
level that is reached when the farmer's share falls below 51.7 percent.
    (c) Beef Cattle Spread Payment.--
            (1) In general.--The Secretary shall make payments to 
        eligible producers at a rate equal to the difference between--
                    (A) the 80th percentile of the 10-year historical 
                average spread; and
                    (B) the current spread.
            (2) Application of payment.--A payment made under this 
        section shall be applied on a per animal basis for the number 
        of cattle sold by eligible producers up to 100 head.
            (3) Secretarial adjustment.--Beginning on the date that is 
        5 years after the date of the enactment of this Act, the 
        Secretary may reassess and adjust years contained in the 10-
        year historical average spread referred to in paragraph (1).
            (4) Timing.--The Secretary shall issue a payment on a 
        quarterly basis for months in which the coverage threshold 
        level specified in subsection (b) is met.
            (5) Certification.--Before making a payment under this 
        section, the Secretary shall require that an eligible producer 
        certify to the Secretary the number of beef cattle sold.
    (d) Payment of Fee.--
            (1) Amount of fee.--An eligible producer seeking a payment 
        under this section shall pay a fee to the Secretary on an 
        annual basis in the amount of $100. The Secretary shall collect 
        such fee in the first quarter of the respective calendar year.
            (2) Use of fee.--The Secretary shall use fees collected 
        under this subsection to administer the program under this 
        section.
            (3) Waiver of fee.--The fee under this subsection may be 
        waived for limited resource farmers, beginning farmers, veteran 
        farmers, or socially disadvantaged farmers.
    (e) Eligible Producer.--
            (1) In general.--In this section, the term ``eligible 
        producer'' means a livestock producer--
                    (A)(i) within the United States (including the 
                territories thereof) or Tribal lands, with a cumulative 
                number of beef cattle sold in one calendar year that is 
                less than or equal to 100 head; or
                    (ii) that owns multiple operations within the 
                United States (including the territories thereof) or 
                Tribal lands with a cumulative number of beef cattle 
                sold in a calendar year across such multiple operations 
                that is less than or equal to 100 head;
                    (B) that has paid the fee specified in subsection 
                (d) during the applicable registration period; and
                    (C) that has owned such cattle for a period of 60 
                days or longer.
            (2) Shared ownership.--In applying the definition under 
        paragraph (1), the Secretary shall consider, in the case of an 
        operation controlled by multiple producers, only one producer 
        in such operation to be an eligible producer.
            (3) Adjusted gross income limitation.--In determining 
        whether a livestock producer meets the definition under 
        paragraph (1), the Secretary shall apply the adjusted gross 
        income payment limitation described in section 1001D of the 
        Food Security Act of 1985 (7 U.S.C. 1308-3a).
    (f) Registration and Operation.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall specify the 
        manner and form by which an eligible producer may register to 
        receive a payment under this section.
            (2) Treatment of multi-producer beef cattle operations.--In 
        the case of an eligible producer that is a beef cattle 
        operation operated by more than 1 beef cattle producer, all of 
        the beef cattle producers of the operation shall be treated as 
        a single beef cattle operation for purposes of receiving a 
        payment under this section.
    (g) Outreach and Education.--The Secretary shall make available 
additional education opportunities and prioritize outreach to eligible 
ranchers, beginning farmers or ranchers, and veteran farmers or 
ranchers with respect to risk management for livestock and the 
assistance available under this section.
    (h) Regulations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, not later than 90 days after the date of the 
        enactment of this Act, the Secretary shall promulgate such 
        regulations as are necessary to implement this section.
            (2) Procedure.--The promulgation of the regulations and 
        administration of this section shall be made without regard 
        to--
                    (A) the notice and comment provisions of section 
                553 of title 5, United States Code; and
                    (B) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'').
            (3) Congressional review of agency rulemaking.--In carrying 
        out this subsection, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.

SEC. 5. SMALL RANCHER MARKET ACCESS.

    (a) In General.--The Secretary of Agriculture, acting through the 
Administrator of the Agricultural Marketing Service (in this section 
referred to as the ``Secretary''), shall establish a program under 
which the Secretary shall award grants to eligible cattle producers, 
cooperatives of such cattle producers, or other eligible entities, for 
the purposes of aggregating, adding value to, and marketing beef 
cattle, beef, and beef food products to local markets with a focus on 
direct-to-consumer and direct-to-institution sales.
    (b) Covered Activities.--An eligible cattle producer that is the 
recipient of a grant under this section may use funds received through 
the grant to further the marketing of cattle and meat, and the purpose 
described in subsection (a) including for any of the following items:
            (1) The purchase of facilities, including land or 
        processing equipment.
            (2) Construction or related infrastructure.
            (3) Financial and business planning services.
            (4) Butcher and mobile processing.
            (5) Aggregation and distribution services.
            (6) Department of Agriculture process verification.
            (7) Costs associated with meeting Federal and State 
        inspection standards.
            (8) Labeling and packaging.
            (9) Technical assistance relating to starting and operating 
        a cooperative or food hub.
            (10) Establishing a small, local, cattle feeding operation 
        (as defined by the Secretary).
            (11) Refrigeration and frozen storage expenses, including 
        refrigerated transportation.
            (12) Costs associated with meeting institutional 
        procurement guidelines.
            (13) Value-added activities that enable producers to 
        distinguish their cattle in such a way that would capture 
        premiums.
            (14) Value-added production practices.
            (15) Other costs associated with the development, 
        coordination, and expansion of direct producer-to-consumer and 
        producer-to-institution marketing, including participating in 
        farmers' markets, roadside stands, community supported 
        agriculture programs, online sales, and other value-added local 
        and regional marketing activity.
    (c) Application of Existing Exemptions.--The Secretary shall take 
such steps as may be necessary to extend any exemptions in effect as of 
the date of the enactment of this Act with respect to land use by the 
Department of Agriculture to an eligible cattle producer using funds 
received through a grant awarded under this section to carry out an 
activity described in paragraph (1), (2), or (3) of subsection (b).
    (d) Grant Terms.--
            (1) Duration.--The term of a grant under this section may 
        not exceed 5 years.
            (2) Maximum amount.--The amount of a grant under this 
        section to a single grant recipient shall not exceed $500,000.
    (e) Priority.--In awarding grants under this section, the Secretary 
shall give priority to--
            (1) historically underserved farmers or ranchers or limited 
        resource producers; or
            (2) eligible cattle producers described in paragraphs (3) 
        through (8) of subsection (f).
    (f) Eligible Cattle Producer Defined.--In this section, the term 
``eligible cattle producer'' means--
            (1) a cattle producer with 100 head or fewer of cattle;
            (2) a cooperative of small cattle producers, of which a 
        majority of its members own 100 head or fewer of cattle;
            (3) a non-profit organization;
            (4) a land-grant college or university;
            (5) a minority serving institution eligible to receive 
        funds under section 371 of the Higher Education Act of 1965 (20 
        U.S.C. 1067q);
            (6) a Tribal government;
            (7) a food hub; or
            (8) a community supported agriculture entity with 
        experience working with small cattle producers and 
        cooperatives.
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