[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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