[Federal Register Volume 79, Number 83 (Wednesday, April 30, 2014)]
[Notices]
[Pages 24393-24394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09870]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Locally or Regionally Produced Agricultural Food Products

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Locally or Regionally Produced Agricultural Food Products 
provision, under the Business and Industry (B&I) Guaranteed Loan 
Program, is designed to help facilitate the production, processing, and 
distribution of locally and regionally produced agricultural food 
products. Although demand exists for locally and regionally produced 
foods, producers in many parts of the country have difficulties 
accessing markets and processing facilities as well as establishing 
distribution channels. In addition, some retail outlets are less 
willing to buy from smaller volume producers because the volume of food 
that the producers can supply at any one time is insufficient.
    The Locally or Regionally Produced Agricultural Food Products 
provision provides loan guarantees for the purpose of establishing or 
facilitating enterprises that process, distribute, aggregate, store, 
and market locally or regionally produced agricultural food products to 
support community development and farm and ranch income. For purposes 
of this provision under the B&I Guaranteed Loan Program, 7 U.S.C. 
1932(g)(9) provides: ``The term `locally or regionally produced 
agricultural food product' means any agricultural food product that is 
raised, produced, and distributed in the locality or region in which 
the final product is marketed, so that the total distance that the 
product is transported is less than 400 miles from the origin of the 
product, or in the State in which the product is produced.'' Food 
products could be raw, cooked, or a processed edible substance, 
beverages, or ingredients used or intended for use or for sale in whole 
or in part for human consumption.
    To be eligible for funding through the Locally or Regionally 
Produced Agricultural Food Products provision, projects must ensure 
that there is an agreement that the local or regional nature of the 
food product is conveyed to the end consumer. If the end product is 
sold at a grocery retail facility or institution, local products must 
be identified to the consumer with a sticker, sign, or other indicator 
of the product's local or regional origin.
    The Locally or Regionally Produced Agricultural Food Products 
provision gives priority to the financing of projects that provide a 
benefit to underserved communities. An underserved community is defined 
as a community (including an urban or rural community and an Indian 
tribal community) that has limited access to affordable, healthy foods, 
including fresh fruits and vegetables, in grocery retail stores or

[[Page 24394]]

farmer to consumer direct markets AND has a high rate of hunger or food 
insecurity or a high poverty rate as determined by the Secretary. 
Applicants that serve schools may also be eligible. Projects that have 
components that benefit underserved communities will receive priority.
    For the purpose of this provision, projects that are physically 
located in an urban area are eligible for priority funding if the 
project provides a clear benefit to an underserved community by 
increasing that underserved community's access to affordable, healthy, 
locally, or regionally produced foods. For example, an aggregation and 
distribution center that is physically located in an urban area would 
be eligible for priority funding if a meaningful portion of the 
aggregated product is made available to consumers at grocery retail 
establishments located within the underserved community or to food 
banks, schools, or other institutions serving low-income populations, 
thus providing a benefit to the underserved community. An aggregation 
and distribution center in an urban area would not be eligible for 
priority funding under the provision if it distributes all of its food 
to high-end markets. When there is a tie in priority scoring, projects 
that serve underserved communities will be funded over those that do 
not serve underserved communities.
    Through Fiscal Year 2018, the Agency is required to reserve not 
less than 5 percent of the funds available to the B&I program until 
April 1 of each year for entities that establish and facilitate the 
processing, distributing, aggregating, storing, and marketing of 
locally or regionally produced agricultural food products. The Agency 
will also continue to fund local or regionally produced agricultural 
food products projects after the April 1 reserve expires. Requirements 
for submission can be found in 7 CFR, part 4279, subpart B.

FOR FURTHER INFORMATION CONTACT: Brenda Griffin, USDA, Rural 
Development, Business Programs, Business and Industry Division, STOP 
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224, 
telephone (202) 720-6802, email [email protected].

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866, as 
amended by Executive Order 13258.

    Dated: April 18, 2014.
Andrew Jermolowicz,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2014-09870 Filed 4-29-14; 8:45 am]
BILLING CODE 3410-XY-P