Resilient food systems infrastructure program

Subtitle A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end the following: 210B. Resilient food systems infrastructure program (a) Definitions In this section: (1) Eligible entity The term eligible entity means— (A) a local government entity that carries out middle-of-the-supply-chain activities; (B) a Tribal government that carries out middle-of-the-supply-chain activities; (C) an agricultural producer or processor, or group of agricultural producers or processors; (D) a nonprofit organization that carries out middle-of-the-supply-chain activities; (E) a for-profit entity— (i) that carries out middle-of-the-supply-chain activities; (ii) that is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)); and (iii) the activities of which primarily benefit local and regional producers; and (F) an institution, such as an institution of higher education or hospital, in a partnership with agricultural producers to establish cooperative or shared infrastructure, or to invest in equipment, that will benefit middle-of-the-supply-chain activities of multiple producers. (2) Infrastructure grant The term infrastructure grant means a grant made by a State under subsection (e). (3) Middle-of-the-supply-chain activity The term middle-of-the-supply-chain activity means aggregation, processing, manufacturing, storing, transporting, wholesaling, or distribution of a targeted agricultural product. (4) Program The term program means the resilient food systems infrastructure program established under subsection (b). (5) Secretary The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service. (6) Specialty crop The term specialty crop has the meaning given the term in section 3 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465). (7) State The term State includes— (A) American Samoa; (B) the Commonwealth of the Northern Mariana Islands; and (C) the Commonwealth of Puerto Rico. (8) Targeted agricultural product (A) In general The term targeted agricultural product means— (i) a specialty crop; (ii) dairy; (iii) grain; (iv) meat; (v) poultry; and (vi) an aquacultural product. (B) Exclusions The term targeted agricultural product does not include— (i) animal feed; (ii) fuel; (iii) cotton; (iv) fiber; or (v) any other product not intended for human consumption. (9) Underserved producer The term underserved producer means— (A) a beginning farmer or rancher (as defined in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a))); (B) a veteran farmer or rancher (as defined in that section); and (C) a socially disadvantaged farmer or rancher (as defined in that section). (b) Establishment The Secretary shall establish a program, to be known as the resilient food systems infrastructure program, under which the Secretary shall seek to enter into cooperative agreements with States— (1) to build resilience in the middle of the supply chain; and (2) to strengthen local and regional food systems by creating new revenue streams for producers in those States. (c) Application (1) In general A State seeking to enter into a cooperative agreement under the program shall submit an application at such time, in such manner, and containing such information as the Secretary may require, including a State plan described in paragraph (2). (2) State plan A State plan submitted as part of an application under paragraph (1) shall include— (A) the anticipated priorities and needs of the State in carrying out the cooperative agreement; (B) a plan for awarding infrastructure grants, including— (i) how the State will ensure that the purpose and priorities of the program are fulfilled; and (ii) how the State will ensure the prioritization described in subsection (e)(2); (C) whether and in what manner the State will use funds for supply chain coordination under subsection (f)(1); (D) a plan for conducting outreach required under subsection (g); and (E) metrics that will be tracked by the State in carrying out the cooperative agreement. (d) Cooperative agreement amounts (1) Value basis Subject to paragraph (2), the amount that a State shall receive under a cooperative agreement under the program for a fiscal year shall bear the same ratio to the total amount made available under subsection (j)(1) for that fiscal year as the ratio that the average of the most recent available value of the combined targeted agricultural product production in the State bears to the average of the most recent available value of the combined targeted agricultural product production in all States. (2) Minimum amount A cooperative agreement under the program shall provide not less than $1,000,000 to a State in a fiscal year. (e) Infrastructure grants (1) In general A State entering into a cooperative agreement under the program shall award, on a competitive basis, grants to eligible entities for the purposes of— (A) expanding middle-of-the-supply-chain capacity for locally or regionally produced targeted agricultural products; (B) offering more and better market opportunities and new streams of revenue to small and mid-sized producers of locally or regionally produced targeted agricultural products; and (C) expanding capacity and infrastructure for middle-of-the-supply-chain activities. (2) Priority In awarding infrastructure grants under the program, a State shall give priority to projects that will benefit— (A) underserved producers; (B) processors and other middle-of-the-supply-chain businesses owned by socially disadvantaged individuals (as defined in section 8 of the Small Business Act (15 U.S.C. 637)); and (C) institutions described in subsection (a)(1)(F); (D) retail markets; and (E) intermediaries in the food supply chain, such as food hubs, aggregators, wholesalers, and distributors. (3) Grant amount The amount of an infrastructure grant shall be not less than $100,000 and not more than $3,000,000. (4) Eligible uses An eligible entity may use an infrastructure grant— (A) to expand capacity for processing, aggregation, and distribution of targeted agricultural products to create improved local and regional markets for targeted agricultural products; (B) to modernize manufacturing, tracking, storage, and information technology systems; (C) to enhance worker safety through adoption of new technologies or investment in equipment or facility improvements; (D) to improve the capacity of the eligible entity to comply with Federal, State, and local food safety requirements; (E) to improve operations through training opportunities; (F) to support construction of a new facility; (G) to modernize or expand an existing facility, including expansion and modifications to existing buildings and construction of new buildings at existing facilities; (H) to construct wastewater management structures; (I) to modernize processing and manufacturing equipment; (J) to develop, customize, or install equipment that improves energy efficiency, increases efficiency in water use, and improves air or water quality; and (K) for such other purposes as the Secretary determines to be appropriate. (5) Simplified equipment-only projects (A) In general A State may award small infrastructure grants— (i) in an amount that is not less than $10,000 and not more than $100,000; and (ii) that are to be used solely for purchasing equipment. (B) Simplified application The Secretary shall establish a simplified application for small infrastructure grants awarded under subparagraph (A). (6) Domestic requirement An eligible entity shall not use an infrastructure grant for any facility or equipment that is not located in or will not be used in any State. (f) Other uses of cooperative agreement funds (1) Supply chain coordination Of the amount that a State receives under a cooperative agreement under the program for a fiscal year, the State may use not more than the lesser of 20 percent and $1,000,000 for activities to develop or enhance supply chain coordination in a manner that focuses on business support and market development to benefit local and regional food systems and contributes to the success and impact of the infrastructure grants awarded by the State. (2) Coordination and technical assistance A State may coordinate with a regional food systems hub established under section 210C(b) to complement any technical assistance. (3) Administrative costs Of the amount that a State receives under a cooperative agreement under the program for a fiscal year, not more than 8 percent may be used for administrative costs. (g) Outreach A State that enters into a cooperative agreement under the program shall conduct outreach to interested parties, including underserved producers, farm and food businesses in supply chains for locally and regionally produced targeted agricultural products, and regional communities— (1) prior to opening submission for applications for infrastructure grants; and (2) through a transparent process of receiving and considering public comment to identify State funding priorities. (h) Audit Each State that enters into a cooperative agreement under the program shall— (1) conduct an audit of the expenditures under that cooperative agreement for each fiscal year; and (2) submit the audit to the Secretary not later than 30 days after the completion of the audit. (i) Performance measures and evaluation (1) Development The Secretary, in consultation with State departments of agriculture and stakeholders, shall develop performance measures to be used as the sole measures for evaluating the program. (2) Evaluation The Secretary, in consultation with State departments of agriculture, shall periodically evaluate the performance of the program. (3) Cooperative agreements The Secretary may enter into cooperative agreements— (A) to develop the performance measures under paragraph (1); or (B) to conduct the evaluation under paragraph (2). (j) Funding (1) Authorization of appropriations In addition to any other funds made available to carry out this section, there is authorized to be appropriated to the Secretary to carry out this section $200,000,000 for each of fiscal years 2027 through 2031, to remain available until expended. (2) Administrative costs Of the funds made available to carry out this section for a fiscal year, the Secretary shall use not more than 3 percent for administrative expenses..