Grants to assist municipalities to help local farmers to grow food crops or raise certain livestock to be sold locally

(a)

In general

The Secretary of Agriculture, through the respective State Department of Agriculture, may make a grant in accordance with this section to a municipality to enable the municipality to facilitate the ability of local farmers to grow food crops or raise livestock to be sold to the local community. (b)

Maximum amount of grant

The amount of a grant under this section shall not exceed $100,000. (c)

Use of grants

(1)

In general

A municipality to which a grant is made under this section shall use the grant, subject to paragraph (2), to establish a community-supported agriculture project, by— (A)leasing municipal land to a participating farmer; (B)providing a loan guarantee for a loan made for the purchase or lease of equipment or facilities to be used by a participating farmer; (C)establishing a kitchen certified by relevant health authorities for use by farmers or nongovernmental farming associations operating, as determined by the municipality, locally or regionally; or (D)establishing a plant for the processing of food crops or livestock, which is certified by relevant health authorities for use by farmers or nongovernmental farming associations operating, as determined by the municipality, locally or regionally. (2)

Requirements relating to minimum output, local sale, and under-served communities

(A)

In general

A lease entered into or a loan guarantee provided pursuant to this section shall provide that the municipality may terminate the lease or rescind the loan guarantee, as the case may be, if, during any year for which the lease or loan guarantee is in effect— (i)the total value of the food crops or livestock produced from the land involved is less than— (I)$2,500, in the case of the first year of operation; (II)$3,500, in the case of the second year of operation; or (III)$5,000, in the case of any subsequent year of operation; (ii)at least 30 percent of the sales of the food crops or livestock are not made in an under-served community within 50 miles of the community-supported agricultural project; or (iii)at least 70 percent of the sales of the food crops or livestock are not made locally or regionally. (B)

Local or regional sale

An agricultural product shall be considered to be made available for sale locally or regionally for purposes of this section if the product is distributed within the locality or region where produced, in a manner which— (i)ensures that information regarding the product origin, production practices, or other similar information which is a source of value to the end-use consumer is typically conveyed; (ii)facilitates the likelihood that the income of the community-supported agriculture operation is increased through maximization of the share of the retail food price retained by the producer; (iii)ensures that consumers are provided with a product produced, processed, and distributed in the locality or region where the end-use consumers acquire the product; and (iv)ensures that the product has traveled less than 200 miles. (3)

Requirements relating to termination of lease or rescinding of loan guarantee

If the municipality determines that a lease entered into or a loan guarantee provided pursuant to this section will be terminated pursuant to paragraph (2), the municipality— (A)shall announce the impending termination and seek to transition the operation for which the lease was entered into or loan guarantee was provided as a going concern to a new operator under the terms and conditions of this Act; and (B)may convert the operation to another use if, during the 6-month period beginning with the announcement, the municipality does not receive an application for the lease or loan guarantee from such a new operator who is eligible for the lease or loan guarantee under such terms and conditions. (4)

Public bidding required

(A)

In general

The municipality shall solicit bids from the general public for the leases and loan guarantees to be provided by the municipality pursuant to this section, and shall submit the bids to the State Department of Agriculture for review and award of funding in accordance with the schedule of priorities set forth in subparagraph (B). (B)

Priority for certain participating farmers

The municipality shall conduct the bidding in a manner that results in, and the Secretary of Agriculture, through the respective State Department of Agriculture, shall award grants and loan guarantees to municipalities that have demonstrated that they have conducted bidding in a manner that results in applications by participating farmers who are socially disadvantaged farmers (as defined in section 355(e) of the Consolidated Farm and Rural Development Act) or beginning farmers or ranchers (as defined in section 7405(a) of the Farm Security and Rural Investment Act of 2002) being considered first in the order of priority to receive funding. (d)

Limitations on authorization of appropriations

For grants under this section, there are authorized to be appropriated to the Secretary not more than $40,000,000 for each of fiscal years 2009 through 2014.

Grants to enable local nongovernmental farming associations support the formation of community-supported agricultural projects

(a)

In general

The Secretary of Agriculture may make a grant to enable a local nongovernmental farming association that promotes community-based farming, or a qualified farmer, to provide technical, advisory, and other assistance to support the formation of a municipally-based community-supported agricultural project. (b)

Maximum amount of grant

The amount of a grant under this section shall not exceed $25,000. (c)

Use of grants

The recipient of a grant made under this section shall use the grant to— (1)provide public information about the assistance available pursuant to this Act; (2)provide technical and advisory assistance to participating farmers who enter into a lease or receive a loan guarantee from a municipality pursuant to section 1; or (3)conduct training sessions on subjects relevant to starting, operating, maintaining, or marketing crops produced by participating farmers. (d)

Definition of qualified farmer

In this section, the term qualified farmer means a farmer who has established a profit-making enterprise such as a farm, a community-supported agriculture operation, or a farmers’ market, which has been in operation at least 5 years or a designated representative of such enterprise. (e)

Mediation condition

As a condition of receiving a grant under this section, the grantee shall agree that, if a dispute arises between a participating farmer and a municipality from which the farmer has entered into a lease pursuant to section 1, concerning ownership rights to infrastructure improved with funds provided under this Act, or other matters with respect to the funds or activities engaged in pursuant to this Act, the parties shall use the services of the Certified State Agricultural Mediation Program of the Farm Service Agency of the Department of Agriculture. (f)

Limitations on authorization of appropriations

For grants under this section, there are authorized to be appropriated to the Secretary not more than $10,000,000 for each of fiscal years 2009 through 2014.

Grants to provide start-up funds to farmers who must diversify their operations in order to participate in community-supported agricultural projects

(a)

In general

The Secretary of Agriculture may make a one-time grant to provide start-up funding to an agricultural producer who must diversify the agricultural operations of the producer in order to participate in a community-supported agricultural project. (b)

Maximum amount of grant

The amount of a grant under this section shall not exceed $10,000. (c)

Use of grants

An agricultural producer to whom a grant is made under this section shall use the grant to begin or participate in a community-supported agricultural project under this Act. (d)

Limitations on authorization of appropriations

For grants under this section, there are authorized to be appropriated to the Secretary not more than $4,000,000 for each of fiscal years 2009 through 2014.

Marketing assistance for community-supported agriculture projects

The Secretary of Agriculture shall provide marketing assistance to a participating farmer who has received a lease or loan guarantee under section 1 that has not been terminated, to assist the farmer in marketing to community institutions, including schools, child care centers, and senior centers.

Definitions

In this Act: (1)

Community-supported agricultural project

The term community-supported agricultural project means a contract under which a group of consumers, a nonprofit organization, or a public agency which represents consumers is obligated to purchase a specified amount of one or more agricultural products directly from one or more agricultural producers during a specific period. (2)

Farm vendor

The term farm vendor means a farmer, a member of the family of a farmer, or an employee of a farmer, who sells at a farmers’ market agricultural products produced only by the farmer. (3)

Livestock

The term livestock means cattle, bison, deer, swine, sheep, goats, and poultry, whether raised directly for human consumption or for the production of milk or eggs for human consumption. (4)

Marketing alliance

The term marketing alliance means a legally recognized entity from which farmers and managers of farmers’ markets can obtain technical support on issues relating to farmers’ markets. (5)

Municipality

The term municipality includes any city, town, borough, county, parish, district, transportation district, assessment jurisdiction, or other public body, or any other political subdivision within the territorial limits of the United States, created by or pursuant to State law or the law of an Indian tribe or tribal organization, with the authority to impose a tax, charge, or fee. (6)

Nongovernmental farming association

The term nongovernmental farming association means any of the following entities that has legal standing: (A)A group of agricultural producers that operates as a marketing alliance. (B)A cooperative association, each of whose owners and members is an agricultural producer. (C)A group of two or more agricultural producers or farm vendors who sell an agricultural product through a common distribution channel. (D)A nonprofit organization with expertise in farming. (E)A network or association of agricultural producers. (7)

Participating farmer

The term participating farmer means an agricultural producer who has made a binding commitment to participate in a community-supported agricultural project. (8)

State

The term State includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, and American Samoa. (9)

Under-served community

The term under-served community means an urban, rural, or tribal community which has— (A)limited access to affordable, healthy foods, including fresh fruits and vegetables, in retail grocery stores or farmer-to-consumer direct markets; (B)a high incidence of diet-related diseases, including obesity; (C)a high rate of hunger or food insecurity; or (D)severe or persistent poverty.

Regulations

The Secretary of Agriculture shall prescribe such regulations as may be necessary to carry out this Act.