Collapse to view only § 1621. Congressional declaration of purpose; use of existing facilities; cooperation with States

§ 1621. Congressional declaration of purpose; use of existing facilities; cooperation with States

The Congress declares that a sound, efficient, and privately operated system for distributing and marketing agricultural products is essential to a prosperous agriculture and is indispensable to the maintenance of full employment and to the welfare, prosperity, and health of the Nation. It is further declared to be the policy of Congress to promote through research, study, experimentation, and through cooperation among Federal and State agencies, farm organizations, and private industry a scientific approach to the problems of marketing, transportation, and distribution of agricultural products similar to the scientific methods which have been utilized so successfully during the past eighty-four years in connection with the production of agricultural products so that such products capable of being produced in abundance may be marketed in an orderly manner and efficiently distributed. In order to attain these objectives, it is the intent of Congress to provide for (1) continuous research to improve the marketing, handling, storage, processing, transportation, and distribution of agricultural products; (2) cooperation among Federal and State agencies, producers, industry organizations, and others in the development and effectuation of research and marketing programs to improve the distribution processes; (3) an integrated administration of all laws enacted by Congress to aid the distribution of agricultural products through research, market aids and services, and regulatory activities, to the end that marketing methods and facilities may be improved, that distribution costs may be reduced and the price spread between the producer and consumer may be narrowed, that dietary and nutritional standards may be improved, that new and wider markets for American agricultural products may be developed, both in the United States and in other countries, with a view to making it possible for the full production of American farms to be disposed of usefully, economically, profitably, and in an orderly manner. In effectuating the purposes of this chapter, maximum use shall be made of existing research facilities owned or controlled by the Federal Government or by State agricultural experiment stations and of the facilities of the Federal and State extension services. To the maximum extent practicable marketing research work done under this chapter in cooperation with the States shall be done in cooperation with the State agricultural experiment stations; marketing educational and demonstrational work done under this chapter in cooperation with the States shall be done in cooperation with the State agricultural extension service; market information, inspection, regulatory work and other marketing service done under this chapter in cooperation with the State agencies shall be done in cooperation with the State departments of agriculture, and State bureaus and departments of markets.

(Aug. 14, 1946, ch. 966, title II, § 202, 60 Stat. 1087.)
§ 1622. Duties of Secretary relating to agricultural productsThe Secretary of Agriculture is directed and authorized:
(a) Determination of methods of processing, packaging, marketing, etc.; publication of results

To conduct, assist, and foster research, investigation, and experimentation to determine the best methods of processing, preparation for market, packaging, handling, transporting, storing, distributing, and marketing agricultural products: Provided, That the results of such research shall be made available to the public for the purpose of expanding the use of American agricultural products in such manner as the Secretary of Agriculture may determine.

(b) Determination of costs

To determine costs of marketing agricultural products in their various forms and through the various channels and to foster and assist in the development and establishment of more efficient marketing methods (including analyses of methods and proposed methods), practices, and facilities, for the purpose of bringing about more efficient and orderly marketing, and reducing the price spread between the producer and the consumer.

(c) Improvement of standards of quality, condition, etc.; standard of quality for ice cream

To develop and improve standards of quality, condition, quantity, grade, and packaging, and recommend and demonstrate such standards in order to encourage uniformity and consistency in commercial practices. Within thirty days after September 29, 1977, the Secretary shall by regulation adopt a standard of quality for ice cream which shall provide that ice cream shall contain at least 1.6 pounds of total solids to the gallon, weigh not less than 4.5 pounds to the gallon and contain not less than 20 percent total milk solids, constituted of not less than 10 percent milkfat. In no case shall the span of milk solids not fat be less than 6 percent. Whey shall not, by weight, be more than 25 percent of the milk solids not fat. Only those products which meet the standard issued by the Secretary may bear a symbol thereon indicating that they meet the Department of Agriculture standard for “ice cream”.

(d) Elimination of artificial barriers to free movement

To conduct, assist, foster, and direct studies and informational programs designed to eliminate artificial barriers to the free movement of agricultural products.

(e) Development of new markets
(1) In general

To foster and assist in the development of new or expanded markets (domestic and foreign) and new and expanded uses and in the moving of larger quantities of agricultural products through the private marketing system to consumers in the United States and abroad.

(2) Fees and penalties
(A) In general

In carrying out paragraph (1), the Secretary may assess and collect reasonable fees and late payment penalties to mediate and arbitrate disputes arising between parties in connection with transactions involving agricultural products moving in foreign commerce under the jurisdiction of a multinational entity.

(B) Deposit

Fees and penalties collected under subparagraph (A) shall be deposited into the account that incurred the cost of providing the mediation or arbitration service.

(C) Availability

Fees and penalties collected under subparagraph (A) shall be available to the Secretary without further Act of appropriation and shall remain available until expended to pay the expenses of the Secretary for providing mediation and arbitration services under this paragraph.

(D) No requirement for use of services

No person shall be required by the Secretary to use the mediation and arbitration services provided under this paragraph.

(f) Increasing consumer education

To conduct and cooperate in consumer education for the more effective utilization and greater consumption of agricultural products: Provided, That no money appropriated under the authority of this Act shall be used to pay for newspaper or periodical advertising space or radio time in carrying out the purposes of this section and subsection (e).

(g) Collection and dissemination of marketing information

To collect and disseminate marketing information, including adequate outlook information on a market-area basis, for the purpose of anticipating and meeting consumer requirements, aiding in the maintenance of farm income, and bringing about a balance between production and utilization of agricultural products.

(h) Inspection and certification of products in interstate commerce; credit and future availability of funds; investment; certificates as evidence; penalties
(1) To inspect, certify, and identify the class, quality, quantity, and condition of agricultural products when shipped or received in interstate commerce, under such rules and regulations as the Secretary of Agriculture may prescribe, including assessment and collection of such fees as will be reasonable and as nearly as may be to cover the cost of the service rendered, to the end that agricultural products may be marketed to the best advantage, that trading may be facilitated, and that consumers may be able to obtain the quality product which they desire, except that no person shall be required to use the service authorized by this subsection.
(2)
(A) Any fees collected under this subsection, late payment penalties, the proceeds from the sales of samples, and interest earned from the investment of such funds shall be credited to the trust fund account that incurs the cost of the services provided under this subsection and shall remain available without fiscal year limitation to pay the expenses of the Secretary incident to providing such services.
(B) Such funds may be invested by the Secretary in insured or fully collateralized, interest-bearing accounts or, at the discretion of the Secretary, by the Secretary of the Treasury in United States Government debt instruments.
(3) Any official certificate issued under the authority of this subsection shall be received by all officers and all courts of the United States as prima facie evidence of the truth of the statements therein contained.
(4) Whoever knowingly shall falsely make, issue, alter, forge, or counterfeit any official certificate, memorandum, mark, or other identification, or device for making such mark or identification, with respect to inspection, class, grade, quality, size, quantity, or condition, issued or authorized under this section or knowingly cause or procure, or aid, assist in, or be a party to, such false making, issuing, altering, forging, or counterfeiting, or whoever knowingly shall possess, without promptly notifying the Secretary of Agriculture or his representative, utter, publish, or use as true, or cause to be uttered, published, or used as true, any such falsely made, altered, forged, or counterfeited official certificate, memorandum, mark, identification, or device, or whoever knowingly represents that an agricultural product has been officially inspected or graded (by an authorized inspector or grader) under the authority of this section when such commodity has in fact not been so graded or inspected shall be fined not more than $1,000 or imprisoned not more than one year, or both.
(5) Shell eggs packed under the voluntary grading program of the Department of Agriculture shall not have been shipped for sale previous to being packed under the program, as determined under a regulation promulgated by the Secretary.
(6)Identification of honey.—
(A)In general.—The use of a label or advertising material on, or in conjunction with, packaged honey that bears any official certificate of quality, grade mark or statement, continuous inspection mark or statement, sampling mark or statement, or any combination of the certificates, marks, or statements of the Department of Agriculture is hereby prohibited under this Act unless there appears legibly and permanently in close proximity (such as on the same side(s) or surface(s)) to the certificate, mark, or statement, and in at least a comparable size, the 1 or more names of the 1 or more countries of origin of the lot or container of honey, preceded by the words “Product of” or other words of similar meaning.
(B)Violation.—A violation of the requirements of subparagraph (A) may be deemed by the Secretary to be sufficient cause for debarment from the benefits of this Act only with respect to honey.
(i) Development of facilities for assembling, processing, transporting, etc.

To determine the needs and develop or assist in the development of plans for efficient facilities and methods of operating such facilities for the proper assembly, processing, transportation, storage, distribution, and handling of agricultural products.

(j) Improvement of transportation facilities and rates

To assist in improving transportation services and facilities and in obtaining equitable and reasonable transportation rates and services and adequate transportation facilities for agricultural products and farm supplies by making complaint or petition to the Surface Transportation Board, the Federal Maritime Commission, or other Federal or State transportation regulatory body, or the Secretary of Transportation, with respect to rates, charges, tariffs, practices, and services, or by working directly with individual carriers or groups of carriers.

(k) Collection and dissemination of marketing statistics

To collect, tabulate, and disseminate statistics on marketing agricultural products, including, but not restricted to statistics on market supplies, storage stocks, quantity, quality, and condition of such products in various positions in the marketing channel, utilization of such products, and shipments and unloads thereof.

(l) Development of procurement standards and specifications

To develop and promulgate, for the use and at the request of any Federal agency or State, procurement standards and specifications for agricultural products, and submit such standards and specifications to such agency or State for use or adoption for procurement purposes.

(m) Promotion of research for handling, storing, preserving, etc.

To conduct, assist, encourage, and promote research, investigation, and experimentation to determine the most efficient and practical means, methods, and processes for the handling, storing, preserving, protecting, processing, and distributing of agricultural commodities to the end that such commodities may be marketed in an orderly manner and to the best interest of the producers thereof.

(n) Grading programTo establish within the Department of Agriculture a voluntary fee based grading program for—
(1) all fish of the order Siluriformes; and
(2) any additional species of farm-raised fish or farm-raised shellfish—
(A) for which the Secretary receives a petition requesting such voluntary fee based grading; and
(B) that the Secretary considers appropriate.
(o) General research, services, and activities

To conduct such other research and services and to perform such other activities as will facilitate the marketing, distribution, processing, and utilization of agricultural products through commercial channels.

(Aug. 14, 1946, ch. 966, title II, § 203, 60 Stat. 1087; Aug. 9, 1955, ch. 632, § 1, 69 Stat. 553; Pub. L. 95–113, title II, § 206, Sept. 29, 1977, 91 Stat. 920; Pub. L. 97–31, § 12(2), Aug. 6, 1981, 95 Stat. 153; Pub. L. 98–403, § 2, Aug. 28, 1984, 98 Stat. 1480; Pub. L. 98–443, § 9(j), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 105–277, div. A, § 101(a) [title VII, § 755(a)], Oct. 21, 1998, 112 Stat. 2681, 2681–34; Pub. L. 106–472, title III, § 303, Nov. 9, 2000, 114 Stat. 2069; Pub. L. 110–234, title X, § 10402(a), title XI, § 11016(a), May 22, 2008, 122 Stat. 1349, 1368; Pub. L. 110–246, § 4(a), title X, § 10402(a), title XI, § 11016(a), June 18, 2008, 122 Stat. 1664, 2110, 2130; Pub. L. 113–79, title VI, § 6202, title XII, § 12106(a)(4), Feb. 7, 2014, 128 Stat. 856, 981.)
§ 1622a. Authority to assist farmers and elevator operators

The Secretary may provide technical assistance (including information on such financial assistance as may be available) to grain producers and elevator operators to assist such producers and operators in installing or improving grain cleaning, drying or storage equipment.

(Pub. L. 101–624, title XX, § 2014, Nov. 28, 1990, 104 Stat. 3933.)
§ 1622b. Specialty crops market news allocation
(a) In general
The Secretary shall—
(1) carry out market news activities to provide timely price and shipment information of specialty crops in the United States; and
(2) use funds made available under subsection (b) to increase the reporting levels for specialty crops in effect on the date of enactment of this Act.
(b) Authorization of appropriations

In addition to any other funds made available through annual appropriations for market news services, there is authorized to be appropriated to carry out this section $9,000,000 for each of fiscal years 2008 through 2023, to remain available until expended.

(Pub. L. 110–234, title X, § 10107, May 22, 2008, 122 Stat. 1337; Pub. L. 110–246, § 4(a), title X, § 10107, June 18, 2008, 122 Stat. 1664, 2099; Pub. L. 113–79, title X, § 10001, Feb. 7, 2014, 128 Stat. 939; Pub. L. 115–334, title X, § 10101, Dec. 20, 2018, 132 Stat. 4888.)
§ 1622c. Repealed. Pub. L. 113–79, title X, § 10002, Feb. 7, 2014, 128 Stat. 940
§ 1623. Authorization of appropriations; allotments to States
(a) In order to conduct research and service work in connection with the preparation for market, processing, packaging, handling, storing, transporting, distributing, and marketing of agricultural products as authorized by this chapter, there is hereby authorized to be appropriated the following sums:
(1) $2,500,000 for the fiscal year ending June 30, 1947, and each subsequent fiscal year.
(2) An additional $2,500,000 for the fiscal year ending June 30, 1948, and each subsequent fiscal year.
(3) An additional $5,000,000 for the fiscal year ending June 30, 1949, and each subsequent fiscal year.
(4) An additional $5,000,000 for the fiscal year ending June 30, 1950, and each subsequent fiscal year.
(5) An additional $5,000,000 for the fiscal year ending June 30, 1951, and each subsequent fiscal year.
(6) In addition to the foregoing, such additional funds beginning with the fiscal year ending June 30, 1952, and thereafter, as the Congress may deem necessary.
Such sums appropriated in pursuance of this chapter shall be in addition to, and not in substitution for, sums appropriated or otherwise made available to the Department of Agriculture.
(b) The Secretary of Agriculture is authorized to make available from such funds such sums as he may deem appropriate for allotment to State departments of agriculture, State bureaus and departments of markets, State agricultural experiment stations, and other appropriate State agencies for cooperative projects in marketing service and in marketing research to effectuate the purposes of this chapter: Provided, That no such allotment and no payment under any such allotment shall be made for any fiscal year to any State agency in excess of the amount which such State agency makes available out of its own funds for such research. The funds which State agencies are required to make available in order to qualify for such an allotment shall be in addition to any funds now available to such agencies for marketing services and for marketing research. The allotments authorized under this section shall be made to the agency or agencies best equipped and qualified to conduct the specific project to be undertaken. Such allotments shall be covered by cooperative agreements between the Secretary of Agriculture and the cooperating agency and shall include appropriate provisions for preventing duplication or overlapping of work within the State or States cooperating. Should duplication or overlapping occur subsequent to approval of a cooperative project or allotment of funds, the Secretary of Agriculture is authorized and directed to withhold unexpended balances on such projects notwithstanding the prior approval thereof.
(Aug. 14, 1946, ch. 966, title II, § 204, 60 Stat. 1089.)
§ 1623a. Omitted
§ 1624. Cooperation with Government and State agencies, private research organizations, etc.; rules and regulations
(a) In carrying out the provisions of this chapter, the Secretary of Agriculture may cooperate with other branches of the Government, State agencies, private research organizations, purchasing and consuming organizations, boards of trade, chambers of commerce, other associations of business or trade organizations, transportation and storage agencies and organizations, or other persons or corporations engaged in the production, transportation, storing, processing, marketing, and distribution of agricultural products whether operating in one or more jurisdictions. The Secretary of Agriculture shall have authority to enter into contracts and agreements under the terms of regulations promulgated by him with States and agencies of States, private firms, institutions, and individuals for the purpose of conducting research and service work, making and compiling reports and surveys, and carrying out other functions relating thereto when in his judgment the services or functions to be performed will be carried out more effectively, more rapidly, or at less cost than if performed by the Department of Agriculture. Contracts under this section may be made for work to be performed within a period not more than four years from the date of any such contract, and advance, progress, or other payments may be made. The provisions of section 3324(a) and (b) of title 31 and section 6101 of title 41 shall not be applicable to contracts or agreements made under the authority of this section. Any unexpended balances of appropriations obligated by contracts as authorized by this section may, notwithstanding the provisions of section 5 of the Act of June 20, 1874, as amended (31 U.S.C., sec. 713), remain upon the books of the Treasury for not more than five fiscal years before being carried to the surplus fund and covered into the Treasury. Any contract made pursuant to this section shall contain requirements making the result of such research and investigations available to the public by such means as the Secretary of Agriculture shall determine.
(b) The Secretary of Agriculture shall promulgate such orders, rules, and regulations as he deems necessary to carry out the provisions of this chapter.
(Aug. 14, 1946, ch. 966, title II, § 205, 60 Stat. 1090; Aug. 30, 1954, ch. 1076, § 1(7), 68 Stat. 966.)
§ 1625. Transfer and consolidation of functions, powers, bureaus, etc.

In order to facilitate administration and to increase the effectiveness of the marketing research, service, and regulatory work of the Department of Agriculture to the fullest extent practicable, the Secretary of Agriculture is authorized, notwithstanding any other provisions of law, to transfer, group, coordinate, and consolidate the functions, powers, duties, and authorities of each and every agency, division, bureau, service, section, or other administrative unit in the Department of Agriculture primarily concerned with research, service, or regulatory activities in connection with the marketing, transportation, storage, processing, distribution of, or service or regulatory activities in connection with, the utilization of, agricultural products, into a single administrative agency. In making such changes as may be necessary to carry out effectively the purposes of this chapter, the records, property, personnel, and funds of such agencies, divisions, bureaus, services, sections, or other administrative units in the Department of Agriculture affected are authorized to be transferred to and used by such administrative agency to which the transfer may be made, but such unexpended balances of appropriations so transferred shall be used only for the purposes for which such appropriations were made.

(Aug. 14, 1946, ch. 966, title II, § 206, 60 Stat. 1090.)
§ 1626. Definitions

When used in this chapter, the term “agricultural products” includes agricultural, horticultural, viticultural, and dairy products, livestock and poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured product thereof, and the term “State” when used in this chapter 1

1 See References in Text note below.
shall include the Virgin Islands and Guam.

(Aug. 14, 1946, ch. 966, title II, § 207, 60 Stat. 1091; Pub. L. 92–318, title V, § 506(f), June 23, 1972, 86 Stat. 351.)
§ 1627. Appointment of personnel; compensation; employment of specialists

The Secretary of Agriculture shall have the power to appoint, remove, and fix, in accordance with existing law, the compensation of such officers and employees, and to make such expenditures as he deems necessary, including expenditures for rent outside the District of Columbia, travel, supplies, books, equipment, and such other expenditures as may be necessary to the administration of this chapter: Provided, That the Secretary of Agriculture may appoint any technically qualified person, firm, or organization by contract or otherwise on a temporary basis and for a term not to exceed six months in any fiscal year to perform research, inspection, classification, technical, or other special services, without regard to the civil-service laws.

(Aug. 14, 1946, ch. 966, title II, § 208, 60 Stat. 1091.)
§ 1627a. Sheep production and marketing grant program
(a) EstablishmentThe Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service, shall establish a competitive grant program for the purposes of strengthening and enhancing the production and marketing of sheep and sheep products in the United States, including through—
(1) the improvement of—
(A) infrastructure;
(B) business; and
(C) resource development; and
(2) the development of innovative approaches to solve long-term needs.
(b) Eligibility

The Secretary shall make grants under this section to at least one national entity, the mission of which is consistent with the purpose of the grant program.

(c) Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $2,000,000 for fiscal year 2019, to remain available until expended.

(Aug. 14, 1946, ch. 966, title II, § 209, as added Pub. L. 113–79, title XII, § 12102(a), Feb. 7, 2014, 128 Stat. 978; amended Pub. L. 115–334, title XII, § 12102, Dec. 20, 2018, 132 Stat. 4942.)
§ 1627b. National Sheep Industry Improvement Center
(a) DefinitionsIn this section:
(1) Board

The term “Board” means the Board of Directors established under subsection (f).

(2) Center

The term “Center” means the National Sheep Industry Improvement Center established under subsection (b).

(3) Eligible entityThe term “eligible entity” means an entity that promotes the betterment of the United States sheep or goat industries and that is—
(A) a public, private, or cooperative organization;
(B) an association, including a corporation not operated for profit;
(C) a federally recognized Indian Tribe; or
(D) a public or quasi-public agency.
(4) Fund

The term “Fund” means the National Sheep Industry Improvement Center Revolving Fund established under subsection (e).

(5) Intermediary

The term “intermediary” means a financial institution receiving Center funds for establishing a revolving fund and relending to an eligible entity.

(b) Establishment of Center

The Secretary shall establish a National Sheep Industry Improvement Center.

(c) PurposesThe purposes of the Center shall be to—
(1) promote strategic development activities and collaborative efforts by private and State entities to maximize the impact of Federal assistance to strengthen and enhance production and marketing of sheep or goat products in the United States;
(2) optimize the use of available human capital and resources within the sheep or goat industries;
(3) provide assistance to meet the needs of the sheep or goat industry for infrastructure development, business development, production, resource development, and market and environmental research;
(4) advance activities that empower and build the capacity of the United States sheep or goat industry to design unique responses to the special needs of the sheep or goat industries on both a regional and national basis; and
(5) adopt flexible and innovative approaches to solving the long-term needs of the United States sheep or goat industry.
(d) Strategic plan
(1) In general

The Center shall submit to the Secretary an annual strategic plan for the delivery of financial assistance provided by the Center.

(2) RequirementsA strategic plan shall identify—
(A) goals, methods, and a benchmark for measuring the success of carrying out the plan and how the plan relates to the national and regional goals of the Center;
(B) the amount and sources of Federal and non-Federal funds that are available for carrying out the plan;
(C) funding priorities;
(D) selection criteria for funding; and
(E) a method of distributing funding.
(e) Revolving Fund
(1) Establishment

There is established in the Treasury the National Sheep Industry Improvement Center Revolving Fund. The Fund shall be available to the Center, without fiscal year limitation, to carry out the authorized programs and activities of the Center under this section.

(2) Contents of FundThere shall be deposited in the Fund—
(A) such amounts as may be appropriated, transferred, or otherwise made available to support programs and activities of the Center;
(B) payments received from any source for products, services, or property furnished in connection with the activities of the Center;
(C) fees and royalties collected by the Center from licensing or other arrangements relating to commercialization of products developed through projects funded, in whole or part, by grants, contracts, or cooperative agreements executed by the Center;
(D) proceeds from the sale of assets, loans, and equity interests made in furtherance of the purposes of the Center;
(E) donations or contributions accepted by the Center to support authorized programs and activities; and
(F) any other funds acquired by the Center.
(3) Use of Fund
(A) In general

The Center may use amounts in the Fund to make direct loans, loan guarantees, cooperative agreements, equity interests, investments, repayable grants, and grants to eligible entities, either directly or through an intermediary, in accordance with a strategic plan submitted under subsection (d).

(B) Continued existence

The Center shall manage the Fund in a manner that ensures that sufficient amounts are available in the Fund to carry out subsection (c). The Fund is intended to furnish the initial capital for a revolving fund that will eventually be privatized for the purposes of assisting the United States sheep and goat industries.

(C) Diverse area

The Center shall, to the maximum extent practicable, use the Fund to serve broad geographic areas and regions of diverse production.

(D) AdministrationThe Center may not use more than 10 percent of the amounts in the portfolio of the Center for each fiscal year for the administration of the Center. The portfolio shall be calculated at the beginning of each fiscal year and shall include a total of—
(i) all outstanding loan balances;
(ii) the Fund balance;
(iii) the outstanding balance to intermediaries; and
(iv) the amount the Center paid for all equity interests.
(E) Influencing legislation

None of the amounts in the Fund may be used to influence legislation.

(F) Accounting

To be eligible to receive amounts from the Fund, an entity must agree to account for the amounts using generally accepted accounting principles.

(G) Uses of FundThe Center may use amounts in the Fund to—
(i) participate with Federal and State agencies in financing activities that are in accordance with a strategic plan submitted under subsection (d), including participation with several States in a regional effort;
(ii) participate with other public and private funding sources in financing activities that are in accordance with the strategic plan, including participation in a regional effort;
(iii) provide security for, or make principal or interest payments on, revenue or general obligation bonds issued by a State, if the proceeds from the sale of the bonds are deposited in the Fund;
(iv) accrue interest;
(v) guarantee or purchase insurance for local obligations to improve credit market access or reduce interest rates for a project that is in accordance with the strategic plan;
(vi) sell assets, loans, and equity interests acquired in connection with the financing of projects funded by the Center; or
(vii) purchase equity interests.
(4) Loans
(A) Rate

A loan from the Fund may be made at an interest rate that is below the market rate or may be interest free.

(B) TermThe term of a loan may not exceed the shorter of—
(i) the useful life of the activity financed; or
(ii) 40 years.
(C) Source of repayment

The Center may not make a loan from the Fund unless the recipient establishes an assured source of repayment.

(D) Proceeds

All payments of principal and interest on a loan made from the Fund shall be deposited into the Fund.

(5) Maintenance of effort

The Center shall use the Fund only to supplement and not to supplant Federal, State, and private funds expended for rural development.

(f) Board of Directors
(1) In general

The management of the Center shall be vested in a Board of Directors.

(2) PowersThe Board shall—
(A) be responsible for the general supervision of the Center;
(B) review any contract, direct loan, loan guarantee, cooperative agreement, equity interest, investment, repayable grant, and grant to be made or entered into by the Center and any financial assistance provided to the Center;
(C) make the final decision, by majority vote, on whether and how to provide assistance to an applicant; and
(D) develop and establish a budget plan and a long-term operating plan to carry out the goals of the Center.
(3) CompositionThe Board shall be composed of—
(A) 7 voting members, of whom—
(i) 4 members shall be active producers of sheep or goats in the United States;
(ii) 2 members shall have expertise in finance and management; and
(iii) 1 member shall have expertise in lamb, wool, goat, or goat product marketing; and
(B) 2 nonvoting members, of whom—
(i) 1 member shall be the Under Secretary of Agriculture for Rural Development; and
(ii) 1 member shall be the Under Secretary of Agriculture for Research, Education, and Economics.
(4) Nomination
(A) Nominating body

The Secretary shall appoint the voting members of the Board from nominations submitted by organizations described in subparagraph (B).

(B) National organizationsA national organization is described in this subparagraph if the organization—
(i) consists primarily of active sheep or goat producers in the United States; and
(ii) has as the primary interest of the organization the production of sheep or goats in the United States.
(5) Term of office
(A) In general

Subject to subparagraph (B), the term of office of a voting member of the Board shall be 3 years.

(B) Staggered initial terms
(C) Reappointment

A voting member may be reappointed for not more than one additional term.

(6) Vacancy
(A) In general

A vacancy on the Board shall be filled in the same manner as the original Board.

(B) Reappointment

A voting member appointed to fill a vacancy for an unexpired term may be reappointed for one full term.

(7) Chairperson
(A) In general

The Board shall select a chairperson from among the voting members of the Board.

(B) Term

The term of office of the chairperson shall be 2 years.

(8) Annual meeting
(A) In general

The Board shall meet not less than once each fiscal year at the call of the chairperson or at the request of the executive director appointed under subsection (g)(1).

(B) Location

The location of a meeting of the Board shall be established by the Board.

(9) Voting
(A) Quorum

A quorum of the Board shall consist of a majority of the voting members.

(B) Majority vote

A decision of the Board shall be made by a majority of the voting members of the Board.

(10) Conflicts of interest
(A) In generalExcept as provided in subparagraph (D), a member of the Board shall not vote on any matter respecting any application, contract, claim, or other particular matter pending before the Board in which, to the knowledge of the member, an interest is held by—
(i) the member;
(ii) any spouse of the member;
(iii) any child of the member;
(iv) any partner of the member;
(v) any organization in which the member is serving as an officer, director, trustee, partner, or employee; or
(vi) any person with whom the member is negotiating or has any arrangement concerning prospective employment or with whom the member has a financial interest.
(B) Removal

Any action by a member of the Board that violates subparagraph (A) shall be cause for removal from the Board.

(C) Validity of action

An action by a member of the Board that violates subparagraph (A) shall not impair or otherwise affect the validity of any otherwise lawful action by the Board.

(D) Disclosure
(i) In general

If a member of the Board makes a full disclosure of an interest and, prior to any participation by the member, the Board determines, by majority vote, that the interest is too remote or too inconsequential to affect the integrity of any participation by the member, the member may participate in the matter relating to the interest, except as provided in subparagraph (E)(iii).

(ii) Vote

A member that discloses an interest under clause (i) shall not vote on a determination of whether the member may participate in the matter relating to the interest.

(E) Remands
(i) In general

The Secretary may vacate and remand to the Board for reconsideration any decision made pursuant to subsection (e)(3)(H) if the Secretary determines that there has been a violation of this paragraph or any conflict of interest provision of the bylaws of the Board with respect to the decision.

(ii) Reasons

In the case of any violation and remand of a funding decision to the Board under clause (i), the Secretary shall inform the Board of the reasons for the remand.

(iii) Conflicted members not to vote on remanded decisions

If a decision with respect to a matter is remanded to the Board by reason of a conflict of interest faced by a Board member, the member may not participate in any subsequent decision with respect to the matter.

(11) Compensation
(A) In general

A member of the Board shall not receive any compensation by reason of service on the Board.

(B) Expenses

A member of the Board shall be reimbursed for travel, subsistence, and other necessary expenses incurred by the member in the performance of a duty of the member.

(12) Bylaws

The Board shall adopt, and may from time to time amend, any bylaw that is necessary for the proper management and functioning of the Center.

(13) Public hearings

Not later than 1 year after April 4, 1996, the Board shall hold public hearings on policy objectives of the program established under this section.

(14) Organizational system

The Board shall provide a system of organization to fix responsibility and promote efficiency in carrying out the functions of the Board.

(15) Use of Department of Agriculture

The Board may, with the consent of the Secretary, utilize the facilities of and the services of employees of the Department of Agriculture, without cost to the Center.

(g) Officers and employees
(1) Executive director
(A) In general

The Board shall appoint an executive director to be the chief executive officer of the Center.

(B) Tenure

The executive director shall serve at the pleasure of the Board.

(C) Compensation

Compensation for the executive director shall be established by the Board.

(2) Other officers and employees

The Board may select and appoint officers, attorneys, employees, and agents who shall be vested with such powers and duties as the Board may determine.

(3) Delegation

The Board may, by resolution, delegate to the chairperson, the executive director, or any other officer or employee any function, power, or duty of the Board other than voting on a grant, loan, contract, agreement, budget, or annual strategic plan.

(h) ConsultationTo carry out this section, the Board may consult with—
(1) State departments of agriculture;
(2) Federal departments and agencies;
(3) nonprofit development corporations;
(4) colleges and universities;
(5) banking and other credit-related agencies;
(6) agriculture and agribusiness organizations; and
(7) regional planning and development organizations.
(i) Oversight
(1) In general

The Secretary shall review and monitor compliance by the Board and the Center with this section.

(2) SanctionsIf, following notice and opportunity for a hearing, the Secretary finds that the Board or the Center is not in compliance with this section, the Secretary may—
(A) cease making deposits to the Fund;
(B) suspend the authority of the Center to withdraw funds from the Fund; or
(C) impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this Act and disqualification from receipt of financial assistance under this section.
(3) Rescission of sanctions

The Secretary shall rescind sanctions imposed under paragraph (2) on a finding by the Secretary that there is no longer any failure by the Board or the Center to comply with this section or that the noncompliance will be promptly corrected.

(Aug. 14, 1946, ch. 966, title II, § 210, formerly Pub. L. 87–128, title III, § 375, as added Pub. L. 104–127, title VII, § 759, Apr. 4, 1996, 110 Stat. 1132; amended Pub. L. 106–78, title VIII, § 816, Oct. 22, 1999, 113 Stat. 1182; Pub. L. 106–387, § 1(a) [title VII, § 756], Oct. 28, 2000, 114 Stat. 1549, 1549A–43; Pub. L. 107–76, title VII, § 731, Nov. 28, 2001, 115 Stat. 736; Pub. L. 108–7, div. A, title VII, § 728, Feb. 20, 2003, 117 Stat. 42; Pub. L. 108–199, div. A, title VII, § 726, Jan. 23, 2004, 118 Stat. 35; Pub. L. 108–447, div. A, title VII, § 725, Dec. 8, 2004, 118 Stat. 2842; Pub. L. 110–234, title XI, § 11009(a), (b)(1), May 22, 2008, 122 Stat. 1359; Pub. L. 110–246, § 4(a), title XI, § 11009(a), (b)(1), June 18, 2008, 122 Stat. 1664, 2120, 2121; renumbered act Aug. 14, 1946, § 210, and amended Pub. L. 113–79, title XII, § 12102(b), Feb. 7, 2014, 128 Stat. 979.)
§ 1627c. Local agriculture market program
(a) DefinitionsIn this section:
(1) Beginning farmer or rancher

The term “beginning farmer or rancher” has the meaning given the term in section 1991(a) of this title.

(2) Direct producer-to-consumer marketing

The term “direct producer-to-consumer marketing” has the meaning given the term “direct marketing from farmers to consumers” in section 3002 of this title.

(3) Family farm

The term “family farm” has the meaning given the term in section 1632a(a) of this title.

(4) Food councilThe term “food council” means a food policy council or food and farm system network, as determined by the Secretary, that—
(A) represents—
(i) multiple organizations involved in the production, processing, and consumption of food; and
(ii) local, Tribal, or State governments; and
(B) addresses food and farm-related issues and needs within city, county, State, Tribal region, multicounty region, or other region designated by the food council or food system network.
(5) Majority-controlled producer-based business venture
(A) In generalThe term “majority-controlled producer-based business venture” means a venture greater than 50 percent of the ownership and control of which is held by—
(i) 1 or more producers; or
(ii) 1 or more entities, 100 percent of the ownership and control of which is held by 1 or more producers.
(B) Entity describedFor purposes of subparagraph (A), the term “entity” means—
(i) a partnership;
(ii) a limited liability corporation;
(iii) a limited liability partnership; and
(iv) a corporation.
(6) Mid-tier value chainThe term “mid-tier value chain” means a local or regional supply network that links independent producers with businesses and cooperatives that market value-added agricultural products in a manner that—
(A) targets and strengthens the profitability and competitiveness of small and medium-sized farms and ranches that are structured as a family farm; and
(B) obtains agreement from an eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture that is engaged in the value chain on a marketing strategy.
(7) PartnershipThe term “partnership” means a partnership entered into under an agreement between—
(A) 1 or more eligible partners (as defined in subsection (e)(1)); and
(B) 1 or more eligible entities (as defined in subsection (e)(1)).
(8) Program

The term “Program” means the Local Agriculture Market Program established under subsection (b).

(9) Regional food chain coordination

The term “regional food chain coordination” means coordination and collaboration along the supply chain to increase connections between producers and markets.

(10) Secretary

The term “Secretary” means the Secretary of Agriculture.

(11) Socially disadvantaged farmer or rancher

The term “socially disadvantaged farmer or rancher” has the meaning given the term in section 2003(e) of this title.

(12) Value-added agricultural productThe term “value-added agricultural product” means any agricultural commodity or product that—
(A)
(i) has undergone a change in physical state;
(ii) was produced in a manner that enhances the value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced value, as determined by the Secretary;
(iii) is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product;
(iv) is a source of farm- or ranch-based renewable energy, including E–85 fuel; or
(v) is aggregated and marketed as a locally produced agricultural food product; and
(B) as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated—
(i) the customer base for the agricultural commodity or product is expanded; and
(ii) a greater portion of the revenue derived from the marketing, processing, or physical segregation of the agricultural commodity or product is available to the producer of the commodity or product.
(13) Veteran farmer or rancher

The term “veteran farmer or rancher” has the meaning given the term in section 2279(a) of this title.

(b) Establishment and purposeThe Secretary shall establish a program, to be known as the “Local Agriculture Market Program”, that—
(1) supports the development, coordination, and expansion of—
(A) direct producer-to-consumer marketing;
(B) local and regional food markets and enterprises; and
(C) value-added agricultural products;
(2) connects and cultivates regional food economies through public-private partnerships;
(3) supports the development of business plans, feasibility studies, and strategies for value-added agricultural production and local and regional food system infrastructure;
(4) strengthens capacity and regional food system development through community collaboration and expansion of mid-tier value chains;
(5) improves income and economic opportunities for producers and food businesses through job creation; and
(6) simplifies the application processes and the reporting processes for the Program.
(c) AdministrationIn administering the Program, the Secretary shall—
(1) streamline the Program to better support the activities carried out by the recipient of a grant under the Program;
(2) connect producers with local food markets and value-added agricultural product opportunities;
(3) partner with cooperative extension services, as appropriate, to provide Program technical assistance and outreach to Program stakeholders; and
(4) ensure that the Rural Business-Cooperative Service and Agricultural Marketing Service provide Program technical assistance and outreach to Program stakeholders.
(d) Grants
(1) In general

Under the Program, the Secretary may, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023, in accordance with the purposes of the Program described in subsection (b), for the conduct of activities described in paragraph (2).

(2) Eligible activitiesThe recipient of a grant may use a grant provided under paragraph (1)—
(A) to support and promote—
(i) domestic direct producer-to-consumer marketing;
(ii) farmers’ markets;
(iii) roadside stands;
(iv) agritourism activities,
(v) community-supported agriculture programs; or
(vi) online sales;
(B) to support local and regional food business enterprises that engage as intermediaries in indirect producer-to-consumer marketing;
(C) to support the processing, aggregation, distribution, and storage of—
(i) local and regional food products that are marketed locally or regionally; and
(ii) value-added agricultural products;
(D) to encourage the development of value-added agricultural products;
(E) to assist with business development plans and feasibility studies;
(F) to develop marketing strategies for producers of local food products and value-added agricultural products in new and existing markets;
(G) to facilitate regional food chain coordination and mid-tier value chain development;
(H) to promote new business opportunities and marketing strategies to reduce on-farm food waste;
(I) to respond to changing technology needs in direct producer-to-consumer marketing; or
(J) to cover expenses relating to costs incurred in—
(i) obtaining food safety certification; and
(ii) making changes and upgrades to practices and equipment to improve food safety.
(3) Criteria and guidelines
(A) In general

The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under paragraph (1) as the Secretary determines are appropriate.

(B) Producer or food business benefits
(i) In general

Except as provided in clause (ii), an application submitted for a grant under paragraph (1) shall include a description of the direct or indirect producer or food business benefits intended by the applicant to result from the proposed project within a reasonable period of time after the receipt of the grant.

(ii) Exception

Clause (i) shall not apply to a planning or feasibility project.

(4) Amount

Unless otherwise determined by the Secretary, the amount of a grant under this subsection shall be not more than $500,000.

(5) Value-added producer grantsIn the case of a grant provided under paragraph (1) to an eligible entity described in subparagraph (B), the following shall apply:
(A) Administration

The Secretary shall carry out this subsection through the Administrator of the Rural Business-Cooperative Service, in coordination with the Administrator of the Agricultural Marketing Service.

(B) Eligible entitiesAn entity shall be eligible for a grant under this paragraph if the entity is—
(i) an independent producer (as determined by the Secretary) of a value-added agricultural product; or
(ii) an agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture (as determined by the Secretary).
(C) PrioritiesThe Secretary shall give priority to applications—
(i) in the case of an application submitted by a producer, that are submitted by, or serve—(I) beginning farmers or ranchers;(II) socially disadvantaged farmers or ranchers;(III) operators of small or medium sized farms or ranches that are structured as family farms; or(IV) veteran farmers or ranchers; and
(ii) in the case of an application submitted by an eligible entity described in subparagraph (B)(ii), that provide the greatest contribution to creating or increasing marketing opportunities for producers described in subclauses (I) through (IV) of clause (i).
(D) Limitation on use of funds
(i) In general

Except as provided in clause (ii), an eligible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure.

(ii) Exception

An eligible entity described in subparagraph (B) may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety.

(E) Matching funds

An eligible entity described in subparagraph (B) receiving a grant shall contribute an amount of non-Federal funds that is at least equal to the amount of Federal funds received.

(6) Farmers’ markets and local food promotion programIn the case of a grant provided under paragraph (1) to an eligible entity described in subparagraph (B), the following shall apply:
(A) Administration

The Secretary shall carry out this subsection through the Administrator of the Agricultural Marketing Service, in coordination with the Administrator of the Rural Business-Cooperative Service.

(B) Eligible entitiesAn entity shall be eligible to receive a grant under this paragraph if the entity is—
(i) an agricultural cooperative or other agricultural business entity or a producer network or association, including a community-supported agriculture network or association;
(ii) a local or Tribal government;
(iii) a nonprofit corporation;
(iv) a public benefit corporation;
(v) an economic development corporation;
(vi) a regional farmers’ market authority;
(vii) a food council; or
(viii) such other entity as the Secretary may designate.
(C) PrioritiesThe Secretary shall give priority to applications that—
(i) benefit underserved communities, including communities that are located in areas of concentrated poverty with limited access to fresh locally or regionally grown food; or
(ii) are used to carry out eligible activities under a partnership agreement under subsection (e) and have not received benefits from the Program in the recent past.
(D) Limitation on use of funds
(i) In general

Except as provided in clause (ii), an eligible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure.

(ii) Exception

An eligible entity described in subparagraph (B) may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety.

(E) Matching funds

An eligible entity described in subparagraph (B) receiving a grant shall provide matching funds in the form of cash or an in-kind contribution in an amount that is equal to 25 percent of the total amount of the Federal portion of the grant.

(e) Partnerships
(1) DefinitionsIn this subsection:
(A) Eligible entityThe term “eligible entity” means—
(i) a producer;
(ii) a producer network or association;
(iii) a farmer or rancher cooperative;
(iv) a majority-controlled producer-based business venture;
(v) a food council;
(vi) a local or Tribal government;
(vii) a nonprofit corporation;
(viii) an economic development corporation;
(ix) a public benefit corporation;
(x) a community-supported agriculture network or association; and
(xi) a regional farmers’ market authority.
(B) Eligible partnerThe term “eligible partner” means—
(i) a State agency or regional authority;
(ii) a philanthropic organization;
(iii) a private corporation;
(iv) an institution of higher education;
(v) a commercial, Federal, or Farm Credit System lending institution; and
(vi) another entity, as determined by the Secretary.
(2) Grants to support partnerships
(A) In general

The Secretary, acting through the Administrator of the Agricultural Marketing Service, in accordance with the purposes of the Program described in subsection (b), shall, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023 to support partnerships to plan and develop a local or regional food system.

(B) Geographical diversity

To the maximum extent practicable, the Secretary shall ensure geographical diversity in selecting partnerships to receive grants under subparagraph (A).

(3) Authorities of partnershipsA partnership receiving a grant under paragraph (2) may—
(A) determine the scope of the regional food system to be developed, including goals, outreach objectives, and eligible activities to be carried out;
(B) determine the local, regional, State, multi-State, or other geographic area covered;
(C) create and conduct a feasibility study, implementation plan, and assessment of eligible activities under the partnership agreement;
(D) conduct outreach and education to other eligible entities and eligible partners for potential participation in the partnership agreement and eligible activities;
(E) describe measures to be taken through the partnership agreement to obtain funding for the eligible activities to be carried out under the partnership agreement;
(F) at the request of a producer or eligible entity desiring to participate in eligible activities under the partnership agreement, act on behalf of the producer or eligible entity in applying for a grant under subsection (d);
(G) monitor, evaluate, and periodically report to the Secretary on progress made toward achieving the objectives of eligible activities under the partnership agreement; or
(H) at the conclusion of the partnership agreement, submit to the Secretary a report describing—
(i) the results and effects of the partnership agreement; and
(ii) funds provided under paragraph (4).
(4) Contribution

A partnership receiving a grant under paragraph (2) shall provide funding in an amount equal to not less than 25 percent of the total amount of the Federal portion of the grant.

(5) Applications
(A) In general

To be eligible to receive a grant under paragraph (2), a partnership shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary considers necessary to evaluate and select applications.

(B) Competitive processThe Secretary—
(i) shall conduct a competitive process to select applications submitted under subparagraph (A);
(ii) may assess and rank applications with similar purposes as a group; and
(iii) shall make public the criteria to be used in evaluating applications prior to accepting applications.
(C) Priority to certain applicationsThe Secretary may give priority to applications submitted under subparagraph (A) that—
(i)(I) leverage significant non-Federal financial and technical resources; and(II) coordinate with other local, State, Tribal, or national efforts;
(ii) cover an area that includes distressed low-income rural or urban communities, including areas with persistent poverty; or
(iii) have multiple entities and partners in a partnership.
(D) Producer or food business benefits
(i) In general

Except as provided in clause (ii), an application submitted under subparagraph (A) shall include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of a grant.

(ii) Exception

Clause (i) shall not apply to a planning or feasibility project.

(6) Technical assistance

On request of an eligible entity, an eligible partner, or a partnership, the Secretary may provide technical assistance in carrying out a partnership agreement.

(f) Simplification of application and reporting processes
(1) ApplicationsThe Secretary shall establish a simplified application form for eligible entities that—
(A) request less than $50,000 under subsection (d); or
(B) apply for grants under subsection (d) under a single application through partnership agreements under subsection (e).
(2) ReportingThe Secretary shall—
(A) streamline and simplify the reporting process for eligible entities; and
(B) obtain from eligible entities and maintain such information as the Secretary determines is necessary to administer and evaluate the Program.
(g) Interdepartmental coordination

In carrying out the Program, to the maximum extent practicable, the Secretary shall ensure coordination among Federal agencies.

(h) Evaluation
(1) In generalUsing amounts made available under subsection (i)(3)(E), the Secretary shall conduct an evaluation of the Program that—
(A) measures the economic impact of the Program on new and existing market outcomes;
(B) measures the effectiveness of the Program in improving and expanding—
(i) the regional food economy through public and private partnerships;
(ii) the production of value-added agricultural products;
(iii) producer-to-consumer marketing, including direct producer-to-consumer marketing;
(iv) local and regional food systems, including regional food chain coordination and business development;
(v) new business opportunities and marketing strategies to reduce on-farm food waste;
(vi) the use of new technologies in producer-to-consumer marketing, including direct producer-to-consumer marketing; and
(vii) the workforce and capacity of regional food systems; and
(C) provides a description of—
(i) each partnership agreement; and
(ii) each grant provided under subsection (d).
(2) Report

Not later than 4 years after December 20, 2018, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the evaluation conducted under paragraph (1), including a thorough analysis of the outcomes of the evaluation.

(i) Funding
(1) Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $50,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended.

(2) Authorization of appropriations

There is authorized to be appropriated to carry out this section $20,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended.

(3) Allocation of funds
(A) Value-added producer grants
(i) In general

Subject to clause (ii), of the funds made available to carry out this section for a fiscal year, 35 percent shall be used for grants under subsection (d)(5).

(ii) Reservation of funds(I) Majority-controlled producer-based business ventures

The total amount of grants under subsection (d)(5) provided to majority-controlled producer-based business ventures for a fiscal year shall not exceed 10 percent of the amount allocated under clause (i).

(II) Beginning, veteran, and socially disadvantaged farmers and ranchers

Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants provided to beginning, veteran, and socially disadvantaged farmers or ranchers.

(III) Mid-tier value chains

Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants to develop mid-tier value chains.

(IV) Food safety assistance

Of the funds made available for grants under subsection (d)(5), not more than 25 percent shall be reserved for grants for eligible activities described in subsection (d)(2)(J).

(B) Farmers’ market and local food promotion grants

Of the funds made available to carry out this section for a fiscal year, 47 percent shall be used for grants under subsection (d)(6).

(C) Regional partnerships

Of the funds made available to carry out this section for a fiscal year, 10 percent shall be used to provide grants to support partnerships under subsection (e).

(D) Unobligated fundsAny funds under subparagraph (A), (B), or (C) that are not obligated for the uses described in that subparagraph, as applicable, by September 30 of the fiscal year for which the funds were made available—
(i) shall be available to the agency carrying out the Program with the unobligated funds to carry out any function of the Program, as determined by the Secretary; and
(ii) may carry over to the next fiscal year.
(E) Administrative expenses

Not greater than 8 percent of amounts made available to provide grants under subsections (d) and (e) for a fiscal year may be used for administrative expenses.

(Aug. 14, 1946, ch. 966, title II, § 210A, as added Pub. L. 115–334, title X, § 10102(b), Dec. 20, 2018, 132 Stat. 4888.)
§ 1628. Repealed. Pub. L. 93–86, § 2, Aug. 10, 1973, 87 Stat. 246
§ 1629. Establishment of committees to assist in research and service programs

In the furtherance of the research and service work authorized by this Act, the Secretary of Agriculture may, in addition to the national advisory committee, establish appropriate committees, including representatives of producers, industry, government and science, to assist in effectuating specific research and service programs.

(Aug. 14, 1946, ch. 966, title III, § 302, 60 Stat. 1091.)
§ 1630. Omitted
§ 1631. Protection for purchasers of farm products
(a) Congressional findingsCongress finds that—
(1) certain State laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender’s security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender;
(2) these laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender;
(3) the exposure of purchasers of farm products to double payment inhibits free competition in the market for farm products; and
(4) this exposure constitutes a burden on and an obstruction to interstate commerce in farm products.
(b) Declaration of purpose

The purpose of this section is to remove such burden on and obstruction to interstate commerce in farm products.

(c) DefinitionsFor the purposes of this section—
(1) The term “buyer in the ordinary course of business” means a person who, in the ordinary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products.
(2) The term “central filing system” means a system for filing effective financing statements or notice of such financing statements on a statewide basis and which has been certified by the Secretary of the United States Department of Agriculture; the Secretary shall certify such system if the system complies with the requirements of this section; specifically under such system—
(A) effective financing statements or notice of such financing statements are filed with the office of the Secretary of State of a State;
(B) the Secretary of State records the date and hour of the filing of such statements;
(C) the Secretary of State compiles all such statements into a master list—
(i) organized according to farm products;
(ii) arranged within each such product—(I) in alphabetical order according to the last name of the individual debtors, or, in the case of debtors doing business other than as individuals, the first word in the name of such debtors; and(II) in numerical order according to the social security number, or other approved unique identifier, of the individual debtors or, in the case of debtors doing business other than as individuals, the Internal Revenue Service taxpayer identification number, or other approved unique identifier, of such debtors, except that the numerical list containing social security or taxpayer identification numbers may be encrypted for security purposes if the Secretary of State provides a method by which an effective search of the encrypted numbers may be conducted to determine whether the farm product at issue is subject to 1 or more liens; and(III) geographically by county or parish; and(IV) by crop year;
(iii) containing the information referred to in paragraph (4)(D);
(D) the Secretary of State maintains a list of all buyers of farm products, commission merchants, and selling agents who register with the Secretary of State, on a form indicating—
(i) the name and address of each buyer, commission merchant and selling agent;
(ii) the interest of each buyer, commission merchant, and selling agent in receiving the lists described in subparagraph (E); and
(iii) the farm products in which each buyer, commission merchant, and selling agent has an interest;
(E) the Secretary of State distributes regularly as prescribed by the State to each buyer, commission merchant, and selling agent on the list described in subparagraph (D) a copy in written or printed form of those portions of the master list described in subparagraph (C) that cover the farm products in which such buyer, commission merchant, or selling agent has registered an interest except that—
(i) the distribution of the portion of the master list may be in electronic, written, or printed form; and
(ii) if social security or taxpayer identification numbers on the master list are encrypted, the Secretary of State may distribute the master list only—(I) by compact disc or other electronic media that contains—(aa) the recorded list of debtor names; and(bb) an encryption program that enables the buyer, commission merchant, and selling agent to enter a social security number for matching against the recorded list of encrypted social security or taxpayer identification numbers; and(II) on the written request of the buyer, commission merchant, or selling agent, by paper copy of the list to the requestor;
(F) the Secretary of State furnishes to those who are not registered pursuant to (2)(D) of this section 1
1 So in original. Probably should be “pursuant to subparagraph (D)”.
oral confirmation within 24 hours of any effective financing statement on request followed by written confirmation to any buyer of farm products buying from a debtor, or commission merchant or selling agent selling for a seller covered by such statement.
(3) The term “commission merchant” means any person engaged in the business of receiving any farm product for sale, on commission, or for or on behalf of another person.
(4) The term “effective financing statement” means a statement that—
(A) is an original or reproduced copy of the statement, or, in the case of a State which (under the applicable State law provisions of the Uniform Commercial Code) allows the electronic filing of financing statements without the signature of the debtor, is an electronically reproduced copy of the statement;
(B) other than in the case of an electronically reproduced copy of the statement, is signed, authorized, or otherwise authenticated by the debtor, and filed with the Secretary of State of a State by the secured party;
(C) contains,
(i) the name and address of the secured party;
(ii) the name and address of the person indebted to the secured party;
(iii) the social security number, or other approved unique identifier, of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number, or other approved unique identifier, of such debtor; and
(iv) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, and the name of each county or parish in which the farm products are produced or located;
(D) must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated by the debtor and filed, to reflect material changes;
(E) remains effective for a period of 5 years from the date of filing, subject to extensions for additional periods of 5 years each by refiling or filing a continuation statement within 6 months before the expiration of the initial 5 year period;
(F) lapses on either the expiration of the effective period of the statement or the filing of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first;
(G) is accompanied by the requisite filing fee set by the Secretary of State; and
(H) substantially complies with the requirements of this subparagraph even though it contains minor errors that are not seriously misleading.
(5)2
2 So in original. Another par. (5) follows par. (11).
The term “farm product” means an agricultural commodity such as wheat, corn, soybeans, or a species of livestock such as cattle, hogs, sheep, horses, or poultry used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state (such as ginned cotton, wool-clip, maple syrup, milk, and eggs), that is in the possession of a person engaged in farming operations.
(6) The term “knows” or “knowledge” means actual knowledge.
(7) The term “security interest” means an interest in farm products that secures payment or performance of an obligation.
(8) The term “selling agent” means any person, other than a commission merchant, who is engaged in the business of negotiating the sale and purchase of any farm product on behalf of a person engaged in farming operations.
(9) The term “State” means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Trust Territory of the Pacific Islands.
(10) The term “person” means any individual, partnership, corporation, trust, or any other business entity.
(11) The term “Secretary of State” means the Secretary of State or the designee of the State.
(5)3
3 So in original. Another par. (5) follows par. (4).
The term “approved unique identifier” means a number, combination of numbers and letters, or other identifier selected by the Secretary of State using a selection system or method approved by the Secretary of Agriculture.
(d) Purchases free of security interest

Except as provided in subsection (e) and notwithstanding any other provision of Federal, State, or local law, a buyer who in the ordinary course of business buys a farm product from a seller engaged in farming operations shall take free of a security interest created by the seller, even though the security interest is perfected; and the buyer knows of the existence of such interest.

(e) Purchases subject to security interestA buyer of farm products takes subject to a security interest created by the seller if—
(1)
(A) within 1 year before the sale of the farm products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that—
(i) is an original or reproduced copy thereof;
(ii) contains,(I) the name and address of the secured party;(II) the name and address of the person indebted to the secured party;(III) the social security number, or other approved unique identifier, of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number, or other approved unique identifier, of such debtor; and(IV) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, and the name of each county or parish in which the farm products are produced or located;
(iii) must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated and transmitted, to reflect material changes;
(iv) will lapse on either the expiration period of the statement or the transmission of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first; and
(v) contains any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and
(B) the buyer has failed to perform the payment obligations, or
(2) in the case of a farm product produced in a State that has established a central filing system—
(A) the buyer has failed to register with the Secretary of State of such State prior to the purchase of farm products; and
(B) the secured party has filed an effective financing statement or notice that covers the farm products being sold; or
(3) in the case of a farm product produced in a State that has established a central filing system, the buyer—
(A) receives from the Secretary of State of such State written notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm product being sold by such seller as being subject to an effective financing statement or notice; and
(B) does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise.
(f) Law governing “receipt”

What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides.

(g) Commission merchants or selling agents: sales free of or subject to security interest; law governing “receipt”
(1) Except as provided in paragraph (2) and notwithstanding any other provision of Federal, State, or local law, a commission merchant or selling agent who sells, in the ordinary course of business, a farm product for others, shall not be subject to a security interest created by the seller in such farm product even though the security interest is perfected and even though the commission merchant or selling agent knows of the existence of such interest.
(2) A commission merchant or selling agent who sells a farm product for others shall be subject to a security interest created by the seller in such farm product if—
(A) within 1 year before the sale of such farm product the commission merchant or selling agent has received from the secured party or the seller written notice of the security interest; organized according to farm products, that—
(i) is an original or reproduced copy thereof;
(ii) contains,(I) the name and address of the secured party;(II) the name and address of the person indebted to the secured party;(III) the social security number, or other approved unique identifier, of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number, or other approved unique identifier, of such debtor; and(IV) a description of the farm products subject to the security interest created by the debtor, including the amount of such products, where applicable, crop year, and the name of each county or parish in which the farm products are produced or located;
(iii) must be amended in writing, within 3 months, similarly signed, authorized, or otherwise authenticated and transmitted, to reflect material changes;
(iv) will lapse on either the expiration period of the statement or the transmission of a notice signed, authorized, or otherwise authenticated by the secured party that the statement has lapsed, whichever occurs first; and
(v) contains any payment obligations imposed on the commission merchant or selling agent by the secured party as conditions for waiver or release of the security interest; and
(B) the commission merchant or selling agent has failed to perform the payment obligations;
(C) in the case of a farm product produced in a State that has established a central filing system—
(i) the commission merchant or selling agent has failed to register with the Secretary of State of such State prior to the purchase of farm products; and
(ii) the secured party has filed an effective financing statement or notice that covers the farm products being sold; or
(D) in the case of a farm product produced in a State that has established a central filing system, the commission merchant or selling agent—
(i) receives from the Secretary of State of such State written notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm products being sold by such seller as being subject to an effective financing statement or notice; and
(ii) does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise.
(3) What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides.
(h) Security agreements; identity lists; notice of identity or accounting for proceeds; violations
(1) A security agreement in which a person engaged in farming operations creates a security interest in a farm product may require the person to furnish to the secured party a list of the buyers, commission merchants, and selling agents to or through whom the person engaged in farming operations may sell such farm product.
(2) If a security agreement contains a provision described in paragraph (1) and such person engaged in farming operations sells the farm product collateral to a buyer or through a commission merchant or selling agent not included on such list, the person engaged in farming operations shall be subject to paragraph (3) unless the person—
(A) has notified the secured party in writing of the identity of the buyer, commission merchant, or selling agent at least 7 days prior to such sale; or
(B) has accounted to the secured party for the proceeds of such sale not later than 10 days after such sale.
(3) A person violating paragraph (2) shall be fined $5,000 or 15 per centum of the value or benefit received for such farm product described in the security agreement, whichever is greater.
(i) Regulations

The Secretary of Agriculture shall prescribe regulations not later than 90 days after December 23, 1985, to aid States in the implementation and management of a central filing system.

(j) Effective date

This section shall become effective 12 months after December 23, 1985.

(Pub. L. 99–198, title XIII, § 1324, Dec. 23, 1985, 99 Stat. 1535; Pub. L. 104–127, title VI, § 662, Apr. 4, 1996, 110 Stat. 1107; Pub. L. 107–171, title X, § 10604, May 13, 2002, 116 Stat. 512; Pub. L. 108–447, div. A, title VII, § 776, Dec. 8, 2004, 118 Stat. 2849; Pub. L. 110–234, title XIV, § 14215, May 22, 2008, 122 Stat. 1466; Pub. L. 110–246, § 4(a), title XIV, § 14215, June 18, 2008, 122 Stat. 1664, 2228.)
§ 1632. Repealed. Pub. L. 107–171, title VII, § 7303, May 13, 2002, 116 Stat. 455
§ 1632a. Agricultural marketing resource center pilot project
(a) Establishment
The Secretary shall not use more than 2.5 percent of the funds made available to carry out the Local Agriculture Market Program established under section 1627c of this title to establish a pilot project (to be known as the “Agricultural Marketing Resource Center”) at an eligible institution described in subsection (b) that will—
(1) develop a resource center with electronic capabilities to coordinate and provide to independent producers and processors (as determined by the Secretary) of value-added agricultural commodities and products of agricultural commodities information regarding research, business, legal, financial, or logistical assistance; and
(2) develop a strategy to establish a nationwide market information and coordination system.
(b) Eligible institution
To be eligible to receive funding to establish the Agricultural Marketing Resource Center, an applicant shall demonstrate to the Secretary—
(1) the capacity and technical expertise to provide the services described in subsection (a)(1);
(2) an established plan outlining support of the applicant in the agricultural community; and
(3) the availability of resources (in cash or in kind) of definite value to sustain the Center following establishment.
(Pub. L. 106–224, title II, § 231, June 20, 2000, 114 Stat. 409; Pub. L. 107–171, title VI, § 6401(a), May 13, 2002, 116 Stat. 424; Pub. L. 110–234, title VI, § 6202, May 22, 2008, 122 Stat. 1206; Pub. L. 110–246, § 4(a), title VI, § 6202, June 18, 2008, 122 Stat. 1664, 1967; Pub. L. 113–79, title VI, § 6203, Feb. 7, 2014, 128 Stat. 857; Pub. L. 115–334, title X, § 10102(c)(1), Dec. 20, 2018, 132 Stat. 4897.)
§ 1632b. Agriculture Innovation Center Demonstration Program
(a) PurposeThe purpose of this section is to direct the Secretary of Agriculture to establish a demonstration program under which agricultural producers are provided—
(1) technical assistance, consisting of engineering services, applied research, scale production, and similar services, to enable the agricultural producers to establish businesses to produce value-added agricultural commodities or products;
(2) assistance in marketing, market development, and business planning; and
(3) organizational, outreach, and development assistance to increase the viability, growth, and sustainability of businesses that produce value-added agricultural commodities or products.
(b) DefinitionsIn this section:
(1) Program

The term “Program” means the Agriculture Innovation Center Demonstration Program established under subsection (c).

(2) Secretary

The term “Secretary” means the Secretary of Agriculture.

(c) Establishment of ProgramThe Secretary shall establish a demonstration program, to be known as the “Agriculture Innovation Center Demonstration Program” under which the Secretary shall—
(1) make grants to assist eligible entities in establishing Agriculture Innovation Centers to enable agricultural producers to obtain the assistance described in subsection (a); and
(2) provide assistance to eligible entities in establishing Agriculture Innovation Centers through the research and technical services of the Department of Agriculture.
(d) Eligibility requirements
(1) In generalAn entity shall be eligible for a grant and assistance described in subsection (c) to establish an Agriculture Innovation Center if—
(A) the entity—
(i) has provided services similar to the services described in subsection (a); or
(ii) demonstrates the capability of providing such services;
(B) the application of the entity for the grant and assistance includes a plan, in accordance with regulations promulgated by the Secretary, that outlines—
(i) the support for the entity in the agricultural community;
(ii) the technical and other expertise of the entity; and
(iii) the goals of the entity for increasing and improving the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products;
(C) the entity demonstrates that adequate resources (in cash or in kind) are available, or have been committed to be made available, to the entity, to increase and improve the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; and
(D) the Agriculture Innovation Center of the entity has a board of directors established in accordance with paragraph (2).
(2) Board of directorsEach Agriculture Innovation Center of an eligible entity shall have a board of directors composed of a diverse group of representatives of public and private entities, including the following:: 1
1 So in original.
(A) Two general agricultural organizations with the greatest number of members in the State in which the eligible entity is located.
(B) The department of agriculture, or similar State department or agency, or a State legislator, of the State in which the eligible entity is located.
(C) Four entities representing commodities produced in the State.
(e) Grants and assistance
(1) In general

Subject to subsection (g), under the Program, the Secretary shall make, on a competitive basis, annual grants to eligible entities.

(2) Maximum amount of grantsA grant under paragraph (1) shall be in an amount that does not exceed the lesser of—
(A) $1,000,000; or
(B) twice the dollar amount of the resources (in cash or in kind) that the eligible entity demonstrates are available, or have been committed to be made available, to the eligible entity in accordance with subsection (d)(1)(C).
(3) Maximum number of grants
(A) First fiscal year of Program

In the first fiscal year of the Program, the Secretary shall make grants to not more than 5 eligible entities.

(B) Second fiscal year of ProgramIn the second fiscal year of the Program, the Secretary may make grants to—
(i) the eligible entities to which grants were made under subparagraph (A); and
(ii) not more than 10 additional eligible entities.
(4) State limitation
(A) In general

Subject to subparagraph (B), in the first 3 fiscal years of the Program, the Secretary shall not make a grant under the Program to more than 1 entity in any 1 State.

(B) Collaboration

Nothing in subparagraph (A) precludes a recipient of a grant under the Program from collaborating with any other institution with respect to activities conducted using the grant.

(f) Use of fundsAn eligible entity to which a grant is made under the Program may use the grant only for the following purposes (but only to the extent that the use is not described in section 1627c(d)(5)(D) of this title 2
2 So in original. Probably should be followed by a closing parenthesis.
:
(1) Applied research.
(2) Consulting services.
(3) Hiring of employees, at the discretion of the board of directors of the Agriculture Innovation Center of the eligible entity.
(4) The making of matching grants, each of which shall be in an amount not to exceed $5,000, to agricultural producers, except that the aggregate amount of all such matching grants made by the eligible entity shall be not more than $50,000.
(5) Legal services.
(6) Any other related cost, as determined by the Secretary.
(g) Authorization of appropriations

There are authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2019 through 2023.

(Pub. L. 107–171, title VI, § 6402, May 13, 2002, 116 Stat. 426; Pub. L. 110–234, title VI, § 6203, May 22, 2008, 122 Stat. 1207; Pub. L. 110–246, § 4(a), title VI, § 6203, June 18, 2008, 122 Stat. 1664, 1969; Pub. L. 113–79, title VI, § 6204, Feb. 7, 2014, 128 Stat. 857; Pub. L. 115–334, title VII, § 7608, title X, § 10102(c)(2), Dec. 20, 2018, 132 Stat. 4829, 4898; Pub. L. 117–103, div. A, title VII, § 777, Mar. 15, 2022, 136 Stat. 99.)
§ 1632c. Acer access and development program
(a) Grants authorizedThe Secretary of Agriculture may make competitive grants to States, tribal governments, and research institutions to support the efforts of such States, tribal governments, and research institutions to promote the domestic maple syrup industry through the following activities:
(1) Promotion of research and education related to maple syrup production.
(2) Promotion of natural resource sustainability in the maple syrup industry.
(3) Market promotion for maple syrup and maple-sap products.
(4) Encouragement of owners and operators of privately held land containing species of trees in the genus Acer—
(A) to initiate or expand maple-sugaring activities on the land; or
(B) to voluntarily make the land available, including by lease or other means, for access by the public for maple-sugaring activities.
(b) ApplicationIn submitting an application for a competitive grant under this section, a State, tribal government, or research institution shall include—
(1) a description of the activities to be supported using the grant funds;
(2) a description of the benefits that the State, tribal government, or research institution intends to achieve as a result of engaging in such activities; and
(3) an estimate of the increase in maple-sugaring activities or maple syrup production that the State, tribal government, or research institution anticipates will occur as a result of engaging in such activities.
(c) Rule of construction

Nothing in this section shall be construed so as to preempt a State or tribal government law, including a State or tribal government liability law.

(d) Definition of maple-sugaring

In this section, the term “maple-sugaring” means the collection of sap from any species of tree in the genus Acer for the purpose of boiling to produce food.

(e) Regulations

The Secretary of Agriculture shall promulgate such regulations as are necessary to carry out this section.

(f) Authorization of appropriations

There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2014 through 2023.

(Pub. L. 113–79, title XII, § 12306, Feb. 7, 2014, 128 Stat. 988; Pub. L. 115–334, title XII, § 12501, Dec. 20, 2018, 132 Stat. 4982.)
§ 1632d. Dairy business innovation initiatives
(a) Definitions
In this section:
(1) Dairy business

The term “dairy business” means a business that develops, produces, markets, or distributes dairy products.

(2) Initiative

The term “initiative” means a dairy product and business innovation initiative established under subsection (b).

(b) Establishment
The Secretary shall establish not less than 3 regionally-located dairy product and business innovation initiatives for the purposes of—
(1) diversifying dairy product markets to reduce risk and develop higher-value uses for dairy products;
(2) promoting business development that diversifies farmer income through processing and marketing innovation; and
(3) encouraging the use of regional milk production.
(c) Selection of initiatives
An initiative—
(1) shall be positioned to draw on existing dairy industry resources, including activities conducted by the National Dairy Promotion and Research Board and other dairy promotion entities, research capacity, academic and industry expertise, a density of dairy farms or farmland suitable for dairying, and dairy businesses; and
(2) may serve a certain product niche, such as specialty cheese, or serve dairy businesses with dairy products derived from the milk of a specific type of dairy animal, including dairy products made from cow milk, sheep milk, and goat milk.
(d) Entities eligible to host initiative
(1) In general
Subject to paragraph (2), any of the following entities may submit to the Secretary an application to host an initiative:
(A) A State department of agriculture or other State entity.
(B) A nonprofit organization.
(C) An institution of higher education.
(D) A cooperative extension service.
(2) Capacity of eligible entity
Any entity described in subparagraphs (A) through (D) of paragraph (1) shall be eligible to submit an application under that paragraph if the entity has—
(A) a capacity to provide consultation and expertise necessary to advance the purpose and activities of the proposed initiative; and
(B) expertise in grant distribution and tracking.
(3) Ineligible entity

A dairy promotion program shall not be eligible to host an initiative under this section.

(e) Partners
(1) In general
An entity described in subsection (d)(1) may establish as a partner an organization or entity described in paragraph (2)—
(A) prior to the submission of the application under that subsection; or
(B) after approval of the application, in consultation with the Secretary.
(2) Partner described

A partner under paragraph (1) shall be an organization or entity with expertise or experience in dairy, including the marketing, research, education, or promotion of dairy.

(f) Activities of initiatives
(1) Direct assistance to dairy businesses
An initiative shall provide nonmonetary assistance directly to dairy businesses through private consultation or widely available distribution—
(A) by the entity that hosts the initiative under subsection (d)(1);
(B) through contracting with industry experts;
(C) through the provision of technical assistance, such as informational websites, webinars, conferences, trainings, plant tours, and field days; or
(D) through research institutions, including cooperative extension services.
(2) Types of assistance
Eligible forms of assistance include—
(A) business consulting, including business plan development for processed dairy products, strategic planning assistance, and distribution and supply chain innovation;
(B) marketing and branding assistance, including market messaging, packaging innovation, consumer assessments, innovation in emerging market opportunities, and evaluation of regional, national, and international markets;
(C) assistance in product innovation, including the development of value-added products, innovation in byproduct reprocessing and use maximization, and dairy product production training, including in new, rare, or innovative techniques; and
(D) other nonmonetary assistance, as determined by the Secretary.
(3) Grants to dairy businesses
(A) In general
An initiative shall provide grants on a competitive basis to new and existing dairy businesses for the purposes of—
(i) modernization, specialization, and grazing transition on dairy farms;
(ii) value chain and commodity innovation and facility and process updates for dairy processors; and
(iii) product development, packaging, and marketing of dairy products.
(B) Grants to certain entities

An initiative may provide a grant on a noncompetitive basis to an entity that receives assistance under paragraph (1) to advance the business activities recommended as a result of that assistance.

(C) Grant amounts

Grants provided under this paragraph shall not exceed $500,000, unless a greater amount is approved by the Secretary.

(4) Consultation

An entity that hosts an initiative shall consult with the National Dairy Promotion and Research Board, the Secretary, and the Administrator of the Agricultural Marketing Service in carrying out the initiative.

(5) Conflict of interest
(A) In general

The Secretary shall establish guidelines and procedures to prevent any conflict of interest or the appearance of a conflict of interest by an initiative (including a partner of the initiative) during the allocation of direct assistance under paragraph (1) or grant funding under paragraph (3).

(B) Penalty

The Secretary may suspend or terminate an initiative if the initiative (including a partner of the initiative) is found to be in violation of the guidelines and procedures established under subparagraph (A).

(g) Distribution of funds
(1) In general
Using the funds made available to carry out this section, the Secretary—
(A) shall provide not less than 3 awards to eligible entities described in subsection (d) for the purposes of carrying out the activities under subsection (f); and
(B) is encouraged to award funds under subparagraph (A) in multiyear funding allocations.
(2) Use of funds

Not less than 50 percent of the funds made available under subsection (i) shall be allocated to grants under subsection (f)(3).

(3) Priority
An entity hosting an initiative shall give priority to the provision of direct assistance under subsection (f)(1) and grants under subsection (f)(3) to—
(A) dairy farms and dairy businesses with limited access to other forms of assistance;
(B) employee-owned dairy businesses;
(C) cooperatives; and
(D) dairy businesses that seek to create dairy products that add substantial value in processing or marketing, such as specialty cheeses.
(4) Requirement
Assistance or a grant shall not be made available to a foreign person making direct investment (as those terms are defined in section 801.2 of title 15, Code of Federal Regulations (or successor regulations)) in the United States in the case of—
(A) direct assistance under subsection (f)(1) that is provided to a specific dairy business and is not publicly available, as determined by the Secretary; or
(B) a grant under subsection (f)(3).
(5) Supplementation

To the extent practicable, the Secretary shall ensure that funds provided to an initiative supplement, and do not duplicate or replace, existing dairy product research, development, and promotion activities.

(h) Report

Not later than January 31, 2022, the Secretary shall submit to Congress a report on the outcomes of the program under this section and any related activities and opportunities to further increase dairy innovation.

(i) Authorization of appropriations

There is authorized to be appropriated to carry out this section $20,000,000 for each fiscal year.

(Pub. L. 115–334, title XII, § 12513, Dec. 20, 2018, 132 Stat. 4996.)
§ 1632e. Cattle Contracts Library

There is hereby appropriated $1,000,000, to remain available until September 30, 2023, for a Cattle Contracts Library pilot program that the Agricultural Marketing Service shall develop and maintain within the Livestock, Poultry, and Grain Market News Division. This program shall be similar, as determined by the Secretary, to the swine contract library the U.S. Department of Agriculture currently maintains pursuant to section 198a of this title. The promulgation of the regulations and administration of this section shall be made without regard to: (1) the notice and comment provisions of section 553 of title 5; and (2) chapter 35 of title 44 (commonly known as the “Paperwork Reduction Act”).

(Pub. L. 117–103, div. A, title VII, § 779, Mar. 15, 2022, 136 Stat. 100.)
§ 1633. Cooperation with State agencies in administration and enforcement of laws relating to marketing of agricultural products and control or eradication of plant and animal diseases and pests; coordination of administration of Federal and State laws

In order to avoid duplication of functions, facilities, and personnel, and to attain closer coordination and greater effectiveness and economy in administration of Federal and State laws and regulations relating to the marketing of agricultural products and to the control or eradication of plant and animal diseases and pests, the Secretary of Agriculture is authorized, in the administration and enforcement of such Federal laws within his area of responsibility, whenever he deems it feasible and in the public interest, to enter into cooperative arrangements with State departments of agriculture and other State agencies charged with the administration and enforcement of such State laws and regulations and to provide that any such State agency which has adequate fac

(Pub. L. 87–718, Sept. 28, 1962, 76 Stat. 663.)