I
110th CONGRESS
1st Session
H. R. 2720
IN THE HOUSE OF REPRESENTATIVES
June 14, 2007
Mr. Kind (for himself, Mr. Flake, Mr. Crowley, Mr. Reichert, Ms. Berkley, Mr. Blumenauer, Mr. Kirk, Mr. McDermott, Mr. Petri, Mr. Ryan of Wisconsin, Mr. Shays, and Mr. Smith of Washington) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committees on Education and Labor, Foreign Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Farm Security and Rural Investment Act of 2002 to reform commodity programs and to increase nutrition, conservation, and energy programs of the Department of Agriculture, to reduce the national budget deficit, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Food and Agriculture Risk
Management for the 21st Century Act of 2007
or the
FARM 21 Act of 2007
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Risk Management Accounts
Sec. 101. Adjusted gross income limitation.
Sec. 102. Risk management accounts.
Sec. 103. Direct payments.
Sec. 104. Counter-cyclical payments.
Sec. 105. Dairy.
Sec. 106. Repeal of other commodity programs.
Sec. 107. Recourse loan program.
Sec. 108. Crop insurance reimbursement rate.
Title II—Reallocations
Subtitle A—Conservation
Sec. 201. Conservation.
Subtitle B—Healthy Foods
Sec. 221. Domestic Nutrition and Health.
Subtitle C—McGovern-Dole
Sec. 231. Reauthorization of McGovern-Dole International Food for Education and Child Nutrition Program.
Subtitle D—Renewable Energy
Sec. 241. Energy.
Subtitle E—Rural Development
Sec. 251. Rural development.
Sec. 252. Rural entrepreneur and microenterprise assistance program.
Sec. 253. Enhancing rural infrastructure.
Subtitle F—Nutrition
Sec. 261. Exclusion of combat-related military pay from countable income.
Sec. 262. Strengthening the food purchasing power of low-income Americans.
Sec. 263. Supporting working families with child care expenses.
Sec. 264. Increasing the minimum benefit.
Sec. 265. Exclusion of retirement accounts from countable financial resources.
Sec. 266. Facilitating simplified reporting.
Sec. 267. Reauthorization of food stamp program and food distribution program on Indian reservations, and the commodity supplemental food program.
Sec. 268. Outreach grants.
Sec. 269. Funds to States for improving and innovating program access and integrity.
Sec. 270. Supporting State efforts during natural disasters.
Sec. 271. Community food grants.
Sec. 272. Expanding the use of food stamps at farmers’ markets.
Sec. 273. Commodities for the emergency food assistance program.
Sec. 274. Community food assistance and food bank infrastructure grants under the Food Stamp Act.
Sec. 275. Food for the hungry transportation grant program.
Subtitle G—Deficit Reduction
Sec. 281. Deficit reduction.
Risk Management Accounts
Adjusted gross income limitation
Section 1001D(b) of the Farm Security Act of 1985 is amended by adding at the end the following new paragraph:
Further limitations on payments
After 2007, notwithstanding any other provision of law, an individual or entity shall not be eligible to receive any direct, counter-cyclical or transition payment under any provision of law administered by the Department of Agriculture if the average adjusted gross income of the individual or entity exceeds $200,000. For purposes of this paragraph,
.
Risk management accounts
Accounts required
The Secretary shall offer to enter into a risk management account contract with an operator of a farm.
Operator
For the purposes of this section, an operator means an individual or entity that—
either—
during each of the preceding 5 taxable years, filed a schedule F of the Federal income tax returns or a comparable tax form related to the agricultural operations of the individual or entity, as approved by the Secretary; or
is a beginning farmer or rancher, as determined by the Secretary; and
earned—
at least $10,000 in average adjusted gross revenue for the preceding 5 taxable years;
less than such amount, but is a limited resource farmer or rancher, as determined by the Secretary; or
at least $10,000 in estimated income from all agricultural operations for the applicable year, as determined by the Secretary, and is a beginning farmer or rancher under paragraph (1)(B).
Farm
For the purposes of this section, a farm is land used for production of crops, livestock and other agricultural products of which the operator has more than de-minimis control or ownership.
Adjusted gross revenue
In this section, the term adjusted gross revenue means the adjusted gross income as determined by the Secretary, from the sale of agricultural crops grown, dairy products produced, and livestock raised as part of an agricultural operation—
by taking into account gross receipts from the sale of agricultural crops, eligible livestock and dairy products on the agricultural operation, including insurance indemnities;
by including all farm payments paid by the Secretary or any other government entity for the agricultural operation related to agricultural crops, eligible livestock and dairy products;
by deducting the cost or basis of livestock or other items purchased for resale, such as feeder livestock, on the agricultural operation;
by excluding revenues that do not arise from the sale of crops grown, dairy products produced or livestock raised on an agricultural operation, such as revenues associated with the packaging, merchandising, marketing and reprocessing of the agricultural product beyond that typically undertaken by a producer of the crop, dairy products or livestock as determined by the Secretary;
by using with such adjustments, additions and additional documentation as the Secretary determines is appropriate, information presented on—
a schedule F of the Federal income tax returns of the producer; or
a comparable tax form related to the agricultural operations of the producer, as approved by the Secretary.
Average adjusted gross revenue
In this section, the term average adjusted gross revenue means—
the rolling average of the adjusted gross revenue of a producer for each of the preceding 5 taxable years; or
in the case of a beginning farmer or rancher or other agricultural operation that does not have adjusted gross revenue for each of the preceding 5 taxable years, the estimated income of the agricultural operation for the applicable year, as determined by the Secretary.
Establishment
Any operator of a farm may establish a risk management account in the name of the farm to be jointly administered by the Secretary and the Federal Retirement Thrift Investment Board.
Voluntary contributions
An operator of a farm may make voluntary contributions up to the limits specified in section 219(b)(5)(A) of the Internal Revenue Code of 1986.
Withdrawals
An operator who establishes an account may withdraw funds under following conditions and amounts:
In a year when the farm’s adjusted gross revenue is less than 95 percent of the five-year average adjusted gross revenue, the producer may withdraw funds up to the amount of the difference.
Up to 10 percent of the account balance for investments in rural enterprises that contribute to the agricultural economy, as defined by the Secretary, no more than once in any five-year period.
When withdrawals are necessary to protect the solvency of the farm, as determined by the Secretary.
To purchase revenue or crop insurance.
Limitation
Payments to an account created under this section shall be made in the interest of the farm.
Tax treatment
Contributions shall not be subject to Federal income tax, except that withdrawals will be counted toward the gross income of the producer in the year withdrawn.
Violations
If an operator fails to meet the conditions established for a contribution to an account, the operator shall refund to the Secretary an amount equal to the contribution in any fiscal year in which a violation occurred.
Sale or transfer
If an operator sells or transfers a farm, the operator may elect to—
transfer all or a portion of the account to another farm in which the operator has a controlling ownership interest or acquires a controlling ownership interest within two years of the sale or transfer of the original agricultural operation;
transfer the account to the purchaser of the farm if the operator is not already a holder of a account; or
rollover the account into an Individual Retirement Account pursuant to section 408 of the Internal Revenue Code of 1986 of the operator, if the operator is a natural person, or, if the operator is an entity, into the accounts of any natural person who has a substantial beneficial interest in the farm that is the subject of the account.
Conservation compliance
Any operator and any holder of a beneficial interest in a farm subject to an account shall—
comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); and
comply with applicable wetland conservation requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
Direct payments
In general
Section 1103 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7913) is amended by striking 2007
each
place it appears and inserting 2012
.
Reduction in direct payment amounts
Notwithstanding subsection (c) of section 1103 of the Farm Security and Rural Investment Act of 2002, producers otherwise eligible for direct payments under such section shall receive—
65 percent of their direct payment for fiscal year 2008;
45 percent of their direct payment for fiscal year 2009;
25 percent of their direct payment for fiscal year 2010;
20 percent of their direct payment for fiscal year 2011; and
10 percent of their direct payment for fiscal years 2012 through 2014.
Payment limit
Section 1001(b)(1) of the Food Security of 1985 (7 U.S.C.
1308) is amended by striking $40,000
and insert
$30,000
.
Planting restrictions
Section 1105(a)(1)(C) and section 1106 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7915(a)(1)(C), 7916) are repealed.
Additional eligibility requirement
Section 1103(a) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7913(a)) is amended by inserting at the
end the following new sentence: To be eligible to receive a direct
payment under this section, a producer must be actively engaged in agriculture
on the land for which the direct payment is paid, as determined by the
Secretary.
.
Contribution to account
Section 1103 of the Farm Security and Rural Investment Act of 2002 is amended by adding at the end the following new subsection:
Contributions to risk management account
50 percent of the direct payments of a producer in fiscal years 2008 and 2009 shall be deposited in the risk management account of the producer, 75 percent of the direct payments of a producer for fiscal years 2010 and 2011 shall be deposited in the risk management account of the producer, and 100 percent of the direct payments of a producer for fiscal year 2012 shall be deposited in the risk management account of the producer.
.
Stewardship
Section 1103 of Farm Security and Rural Investment Act of 2002 is amended by inserting after subsection (d), as added by subsection (f), the following new subsection:
Environmental stewardship
Direct payments shall be linked to environmental stewardship as follows:
The Secretary, acting through the Chief of the Natural Resources Conservation Service, shall develop an index of environmental performance, to be linked to management intensity and significant resource concerns, for the each of the crops provided a direct payment under this section.
To be eligible for a direct payment linked to stewardship, an individual or entity shall develop a plan that describes the level of stewardship to be achieved and the conversation practices or measures to be implemented. The individual or entity shall certify environmental performance through a qualified third-party.
Subject to the percentage restrictions on direct payment amounts imposed by section 102(b) of the Food and Agriculture Risk Management for the 21st Century Act of 2007, 85 percent of the available direct payment shall be provided so long as the agricultural producer meets the conservation requirements of subtitles B and C of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.).
Subject to the percentage restrictions on direct payment amounts imposed by section 102(b) of the Food and Agriculture Risk Management for the 21st Century Act of 2007, 90 percent of the available direct payment shall be provided so long as the agricultural producers meet the first level of environmental performance, as determined by the index of environmental performance.
Subject to the percentage restrictions on direct payment amounts imposed by section 102(b) of the Food and Agriculture Risk Management for the 21st Century Act of 2007, 95 percent of the available direct payment shall be provided so long as the agricultural producers meet the second level of environmental performance, as determined by the index of environmental performance.
Subject to the percentage restrictions on direct payment amounts imposed by section 102(b) of the Food and Agriculture Risk Management for the 21st Century Act of 2007, 100 percent of the available direct payment shall be provided so long as the agricultural producers meet the third level of environmental performance, as determined by the index of environmental performance.
.
Counter-cyclical payments
One-year extension
Section 1104 of the
Farm Security and Rural Investment Act of 2002 is amended by striking
2007
each place it appears and inserting
2008
.
Relation to other changes made by this Act
Counter-cyclical payments described in section 1104 of the Farm Security and Rural Investment Act of 2002 for the 2007 and 2008 crop years are to be calculated under such section without regard to the changes made by section 103 with regard to direct payments or the repeal of other commodity programs under section 106. Under no circumstances may counter-cyclical payments be made for the 2011 or subsequent crop years.
Dairy
Milk price support program
Section 1501 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7981) is repealed.
MILC program
Section 1502 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is amended to read as follows:
Support for milk producers
Dairy operators shall receive equal annual payments in each of the fiscal years 2008 through 2012, cumulatively equal to 90 percent of the milk income loss contract payments the operator received in fiscal years 2003 through 2007. One half of the annual payment shall be immediately available to the producer, and one half of the payment shall be placed in the risk management account of the operator
.
Repeal of other commodity programs
Repeal of commodity programs
Except as otherwise provided by this Act, all commodity programs set forth in subtitles A, B, C, and D of title I of the Farm Security and Rural Investment Act of 2002 and sections 1501 and 1502 of such Act are repealed.
Repeal of suspended authorities
The provisions of law that were suspended by section 1602 of the Farm Security and Rural Investment Act of 2002 pursuant to paragraphs (1), (2), (3), and (4) of subsection (a), paragraphs (1) through (12) of subsection (b), and subsection (c) are repealed.
Repeal of sugar tariff rate quota
The existing sugar tariff rate quota is repealed.
Recourse loan program
The Secretary of Agriculture shall establish a recourse loan program for all commodities, including sugar, for which marketing loans were available under the terms of title I of the Farm Security and Rural Investment Act of 2002 at a rate of interest determined by the Secretary.
Crop insurance reimbursement rate
Section
508(k)(4)(A)(ii) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)(ii))
is amended by striking 24.5
and inserting
23.2
.
Reallocations
Conservation
Conservation
Extension of environmental quality incentives program
Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (6) and inserting the following new paragraph:
The environmental quality incentives program under chapter 4, using, to the maximum extent practicable—
$1,550,000,000 in fiscal year 2008;
$1,700,000,000 in fiscal year 2009;
$1,800,000,000 in fiscal year 2010;
$1,900,000,000 in fiscal year 2011; and
$2,000,000,000 in fiscal year 2012.
.
Extension of conservation innovation grants program
Section 1240H of such Act (16 U.S.C. 3839aa–8) is amended by adding at the end the following:
Funding
Of the funds made available under section 1241(a)(6), the Secretary shall use funds of the Commodity Credit Corporation to carry out this section in the following amounts:
$40,000,000 for fiscal year 2008.
$50,000,000 for fiscal year 2009.
$60,000,000 for fiscal year 2010.
$75,000,000 for each of fiscal years 2011 through 2012.
.
Extension of wetlands reserve program
Funding extension
Section 1241(a)(2) of the Food Security Act of 1985 (16
U.S.C. 3841(a)(2)) is amended by striking The
and inserting
For each of fiscal years 2002 through 2012, the
.
Conforming amendment
Section 1237(c) of such Act (16 U.S.C. 3837(c)) is
amended by striking 2007
and inserting
2012
.
Maximum and yearly enrollment
Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended—
by striking
2,275,000 acres
and inserting 3,350,000 acres
;
and
by striking
250,000
and inserting 250,000 acres in 2008 and 2009,
275,000 acres in 2010 and 2011, and 300,000 acres in 2012.
.
Extension of grasslands reserve program
Extension and funding
Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (5) and inserting the following new paragraph:
For each of fiscal years 2002 through 2012, the grassland reserve program under subchapter C of chapter 2.
.
Enrollment goals
Section 1238N(b) of such Act (16 U.S.C. 3838N(b)) is
amended in paragraph (1), by striking 2,000,000 acres
and
inserting 500,000 acres in each of fiscal years 2008 through
2012
.
Extension of wildlife habitat incentives program
Section 1241(a)(7) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(7)) is amended by striking subparagraphs (A) through (D) and inserting the following new subparagraphs:
$80,000,000 in fiscal years 2008 and 2009;
$100,000,000 in fiscal years 2010 and 2011; and
$150,000,000 in fiscal year 2012.
.
Extension of farm and ranchland protection program
Paragraph (4) of subsection (a) of section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended to read as follows:
The farmland protection program under subchapter B of chapter 2, using $100,000,000 in each of fiscal years 2008 through 2012.
.
Healthy forests reserve program
Section 508 of the Food Security Act of 1985 (16 U.S.C. 6578) is amended to read as follows:
Funding for healthy forests reserve program
For each of fiscal years 2008 through 2012, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the healthy forests reserve program, including the provision of technical assistance under the program, in an amount not to exceed $50,000,000 each fiscal year.
.
Healthy Foods
Domestic Nutrition and Health
Fruit and vegetable snack program
Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended in subsection (g)—
in paragraph (1)—
in the matter
preceding subparagraph (A), by striking July 2004
and inserting
July 2007
; and
by striking subparagraphs (A) and (B) and inserting the following:
100 elementary or secondary schools in each State;
additional elementary or secondary schools in each State in proportion to the student population of the State; and
;
in paragraph (3)(A), by striking
paragraph (1)(B)
and inserting paragraph
(1)
;
in paragraph (5),
in each of subparagraphs (A) and (B), by striking 2008
and
inserting 2011
; and
in paragraph (6)(B)(i)—
by striking
October 1, 2004,
and inserting October 1, 2007,
;
and
by striking
$9,000,000
and inserting $9,000,000 in fiscal year 2008,
$12,000,000 in fiscal year 2009, and $75,000,000 in each of fiscal years 2010
through 2012
.
Farm to school program
Section 18 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769) is amended in subsection (i)(2) by striking
such sums as are necessary
and all that follows through the
period at the end and inserting to carry out this subsection $5,000,000
for each of fiscal years 2008 and 2009, $8,000,000 for each of fiscal years
2010 through 2012.
.
Farmers market promotion program
Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended by striking subsections (d) and (e) and inserting the following:
Criteria and Guidelines
In general
The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under the Program.
Priority
The Secretary shall prioritize the funding of projects that will support, encourage, or promote the transition to organic and other environmentally beneficial forms of agricultural production.
Funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use $25,000,000 for each of the fiscal years 2008 through 2012 to carry out this section, of which $5,000,000 shall be used to support the use of electronic benefit transfers at farmers’ markets.
.
Fruit and vegetable nutrition promotion program
In general
The Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service, shall establish and carry out a program to provide assistance to eligible trade organizations described in paragraph (3) to increase the consumption of fruits and vegetables in the United States to meet Federal health guidelines.
Requirements for participation
To be eligible for assistance under this section, an eligible trade organization shall—
prepare and submit a plan to increase the consumption of fruits and vegetables in the United States to the Administrator of the Agricultural Marketing Service that meets any guidelines governing such plans established by the Administrator; and
meet any other requirements established by the Administrator.
Eligible trade organizations
An eligible trade organization referred to in paragraph (1) means any of the following:
A nonprofit fruit and vegetable trade organizations in the United States.
A nonprofit State or regional fruit and vegetable organization.
A fruit and vegetable agricultural cooperative in the United States.
A commodity board or commission in the United States.
A small business engaged in the fruit and vegetable industry in the United States.
Matching funds
Assistance provided under this section shall not exceed—
in the case of an organization described in subparagraphs (A) through (D) of paragraph (3), 90 percent of the cost of the plan to increase the consumption of fruits and vegetables in the United States submitted under paragraph (2)(A); and
in the case of an organization described in paragraph (3)(E), 50 percent of the cost of the plan to increase the consumption of fruits and vegetables in the United States submitted under paragraph (2)(A).
Funding
Of the funds of the Commodity Credit Corporation, the Administrator of the Agricultural Marketing Service shall use $10,000,000 in each of fiscal years 2008 through 2012 to carry out this section.
McGovern-Dole
Reauthorization of McGovern-Dole International Food for Education and Child Nutrition Program
Administration of program
Section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1) is amended—
in subsection (d),
in the matter preceding paragraph (1), by striking The President shall
designate 1 or more Federal agencies to
and inserting The
Secretary shall
;
in subsection
(f)(2), in the matter preceding subparagraph (A), by striking
implementing agency
and inserting Secretary
;
and
in subsections
(c)(2)(B), (f)(1), (h)(1) and (2), and (i), by striking
President
each place it appears and inserting
Secretary
.
Funding
Section 3107(l) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)) is amended—
by striking paragraphs (1) and (2) and inserting the following:
Use of commodity credit corporation funds
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section—
not less than $50,000,000 for fiscal year 2008;
not less than $50,000,000 for fiscal year 2009;
not less than $100,000,000 for fiscal year 2010;
not less than $150,000,000 for fiscal year 2011; and
not less than $150,000,000 for fiscal year 2012.
;
by redesignating paragraph (3) as paragraph (2); and
in paragraph (2)
(as redesignated by paragraph (2)), by striking any Federal agency
implementing or assisting
and inserting the Department of
Agriculture or any other Federal agency assisting
.
Renewable Energy
Energy
Extension of biorefeinery grants and loans
Assistance methods
Subsection (c) of section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) to read as follows:
Assistance
The Secretary shall award grants and make loans and loan guarantees to eligible entities to assist in covering the cost of development and construction of biorefineries or for the construction or deployment of methane digesters used to capture the methane gas from livestock manure for use as a fuel source for biofuel production to carry out projects to demonstrate the commercial viability of one or more processes for converting biomass to fuels or chemicals.
.
Environmental goals
Subsection (e)(2)(A) of such section is amended—
by striking
and
at the end of clause (i);
by redesignating clause (ii) as clause (iii); and
by inserting after clause (i) the following new clause:
shall select projects based on the extent to which the projects meet environmental goals for feed stocks and refineries, including goals related to reductions in greenhouse gas emissions and improvement in water quality and wildlife habitat, developed by the Secretary in consultation with the Secretary of the Interior, the Secretary of Energy, and the National Academy of Sciences; and
.
Funding
Subsection (i) of such section, as amended by subsection (d)(1), is amended to read as follows:
Funding
Of the funds of the Commodity Credit Corporation, the Secretary shall make available $50,000,000 for each of fiscal years 2008 and 2009 and $75,000,000 for each of the fiscal years 2010 through 2012 to carry out this section.
.
Conforming amendments
Such section is further amended—
in the heading, by striking
grants
and inserting
assistance
;
in subsection (c)—
in the heading, by striking
Grants
and inserting
Grants, loans, and loan
guarantees
; and
by
striking grants
and inserting grants and make loans and
loan guarantees
; and
in subsection (e)—
in
paragraph (1), by striking grants
and inserting grants
and make loans and loan guarantees
; and
in
paragraph (2)(A), by striking grants
and inserting
grants, loans, and loan guarantees
.
Extension of renewable energy systems and energy efficiency improvements program
Priorities
Section 9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) is amended—
by redesignating subsections (c), (d), (e), and (f) as subsections (d), (e), (f), and (g), respectively; and
by inserting after subsection (b) the following new subsection:
Priority
The Secretary shall prioritize for the awarding of a grant, loan, or loan guarantee under this section projects that—
will produce environmental benefits, including reductions in greenhouse gas emissions, other improvements in air quality, and improvements in water quality; and
foster community or cooperative approaches to renewable energy development.
.
Funding
Subsection (g) of such section, as redesignated by paragraph (1)(A), is amended to read as follows:
Funding
In general
Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section—
$75,000,000 for fiscal year 2008;
$75,000,000 for fiscal year 2009;
$75,000,000 for fiscal year 2010;
$75,000,000 for fiscal year 2011; and
$100,000,000 for fiscal year 2012.
Availability
Funds made available under paragraph (1) shall remain available until expended.
.
Reauthorization of and increased funding for biomass research and development
Section 310 of the Biomass Research and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106–224) is amended to read as follows:
Funding
Funding
Of funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this title $75,000,000 for each of fiscal years 2008 through 2012.
Authorization of appropriations
In addition to amounts transferred under subsection (a), there are authorized to be appropriated to carry out this title $200,000,000 for each of fiscal years 2008 through 2012.
Availability of funds
Amounts made available under subsection (a) or appropriated pursuant to the authorization of appropriations in subsection (b) shall remain available until expended.
.
Rural Development
Rural development
Targeting of rural development funding to low-income rural areas
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008r) is amended by inserting after section 364 the following:
Criteria to be applied in considering applications for rural development projects
The Secretary shall not approve an application which is submitted under any program authorized or modified by, or funded pursuant to, an amendment made by title VI of the Farm Security and Rural Investment Act of 2002, and which proposes to serve a rural area (as defined by the applicable law), unless—
the median family income in the area is not more than 85 percent of the median household income in the State in which the area is located; and
the area is not—
included within the boundaries of any city, town, borough, or village, whether incorporated or unincorporated, with a population of more than 20,000 inhabitants;
included within the boundaries of an urbanized area or urban cluster; or
within 10 miles of the boundary of any such city, village, borough, town, urbanized area, or urban cluster;
the area—
is in a county designated as Non-metro by the Economic Research Service of the Department of Agriculture; and
has experienced net population out-migration over the last 5 years; or
the area is in a county designated a Non-metro Persistent Poverty County by the Economic Research Service of the Department of Agriculture.
.
Value-added producer grant program
Section 231(b) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is amended—
in paragraph (4)—
by striking
2002
and inserting 2008
; and
by striking
2006
and inserting 2012
; and
by adding at the end the following:
Priority
In awarding grants under this section, the Secretary shall give priority to proposals that are most likely to increase the profitability and viability of small- and medium-sized farms and ranches.
Set-aside for beginning farmers and ranchers
Not less than 10 percent and not more than 15 percent of the amounts made available for grants under this section for a fiscal year shall be available for grants to qualified beginning farmers or ranchers (as defined in section 343(a)(11) of the Consolidated Farm and Rural Development Act).
Set-aside for socially disadvantaged farmer and ranchers
Not less than 10 percent and not more than 15 percent of the amounts made available for grants under this section for a fiscal year shall be available for grants to socially disadvantaged farmers or ranchers (as defined in section 355(e) of the Consolidated Farm and Rural Development Act).
.
Rural broadband access
Section 601(j) of the Rural Electrification Act of 1936 (7
U.S.C. 950bb(j)) is amended by striking —
and all that follows
and inserting $10,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
.
Rural business opportunity grants
Section
306(a)(11)(D) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a)(11)(D)) is amended by striking 2007
and inserting
2012
.
Farmworker training grant program
Section 379C(c) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008q(c)) is amended by striking
2007
and inserting 2012
.
Rural entrepreneur and microenterprise assistance program
Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008r), as amended by section 251(a) of this Act, is amended by inserting after section 365 the following::
Rural entrepreneur and microenterprise assistance program
Definitions
In this section:
Economically disadvantaged microentrepreneur
The term economically disadvantaged microentrepreneur means an owner, majority owner, or developer of a microenterprise that has the ability to compete in the private sector but has been impaired because of diminished capital and credit opportunities, as compared to other microentrepreneurs in the industry.
Indian tribe
The term Indian tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
Intermediary
The term intermediary means a private, nonprofit entity that provides assistance—
to a microenterprise development organization; or
for a microenterprise development program.
Low-income individual
The term low-income individual means an individual with an income (adjusted for family size) of not more than the greatest of—
80 percent of median income of an area;
80 percent of the statewide non-metropolitan area median income; or
80 percent of the national median income.
Microcredit
The term microcredit means a business loan or loan guarantee of not more than $50,000 that is provided to a rural entrepreneur.
Microenterprise
The term microenterprise means—
a sole proprietorship; or
a business entity with not more than 10 full-time-equivalent employees.
Microenterprise development organization
In general
The term microenterprise development organization means a private, nonprofit entity that—
provides training and technical assistance to rural entrepreneurs; and
facilitates access to capital or another service described in subsection (b) for rural entrepreneurs.
Inclusions
The term microenterprise development organization includes an organization described in subparagraph (A) with a demonstrated record of delivering services to economically disadvantaged microentrepreneurs, or an effective plan to develop a program to deliver microenterprise services to rural entrepreneurs effectively, as determined by the Secretary.
Microenterprise development program
The term microenterprise development organization means a program administered by an organization serving a rural area.
Microentrepreneur
The term microentrepreneur means the owner, operator, or developer of a microenterprise.
Program
The term program means the rural entrepreneur and microenterprise program established under subsection (b)(1).
Qualified organization
The term qualified organization means—
a microenterprise development organization or microenterprise development program that has a demonstrated record of delivering microenterprise services to rural entrepreneurs, or an effective plan to develop a program to deliver microenterprise services to rural entrepreneurs effectively, as determined by the Secretary.
an intermediary that has a demonstrated record of delivery assistance to microenterprise development organizations or microenterprise development programs;
a microenterprise development organization or microenterprise development program that serves rural entrepreneurs;
an Indian tribe, the tribal government of which certifies to the Secretary that no microenterprise development organization or microenterprise development program exists under the jurisdiction of the Indian tribe;
a group of 2 or more organizations or Indian tribes described in any of subparagraphs (A) through (D) that agree to act jointly as a qualified organization under this section; or
for purposes of subsection (b), a public college or university.
Rural area
The term rural area means any community that is rural in character and has a population of not more than 25,000 individuals.
Rural capacity building service
The term rural capacity building service means a service provided to an organization that—
is, or is in the process of becoming, a microenterprise development organization or microenterprise development program; and
serves rural areas for the purpose of enhancing the ability of the organization to provide training, technical assistance, and other related services to rural entrepreneurs.
Rural entrepreneur
The term rural entrepreneur means a microentrepreneur, or prospective microentrepreneur—
the principal place of business of which is in a rural area; and
that is unable to obtain sufficient training, technical assistance, or microcredit elsewhere, as determined by the Secretary.
Secretary
The term Secretary means the Secretary of Agriculture, acting through the Rural Business-Cooperative Service.
Tribal government
The term tribal government means the governing body of an Indian tribe.
Rural Entrepreneurship and Microenterprise Program
Establishment
The Secretary shall establish a rural entrepreneurship and microenterprise program.
Purpose
The purpose of the program shall be to provide low-income individuals and moderate-income individuals with—
the skills necessary to establish new small businesses in rural areas; and
continuing technical and financial assistance as individuals and business starting or operating small businesses.
Grants
In general
The Secretary may make a grant under the program to a qualified organization—
to provide training, operational support, or a rural capacity building service to a qualified organization to assist the qualified organization in developing microenterprise training, technical assistance, market development assistance, and other related services, primarily for business with 5 or fewer full-time-equivalent employees;
to assist in researching and developing the best practices in delivering training, technical assistance, and microcredit to rural entrepreneurs; and
to carry out such other projects and activities as the Secretary determines to be consistent with the purposes of this section.
Subgrants
Subject to such regulations as the Secretary may promulgate, a qualified organization that receives a grant under this paragraph may use the grant to provide assistance to other qualified organizations, such as small or emerging qualified organizations.
Diversity
In making grants under this paragraph, the Secretary shall ensure, to the maximum extent practicable, that grant recipients include qualified organizations—
of varying sizes; and
that serve racially- and ethnically-diverse populations.
Cost sharing
Federal share
The Federal share of the cost of a project carried out using funds from a grant made under this paragraph shall be 75 percent.
Form of non-Federal share
The non-Federal share of the cost of a project described in clause (i) may be provided—
in cash (including through fees, grants (including community development block grants), and gifts); or
in kind.
Rural Microloan Program
Establishment
In carrying out the program, the Secretary may carry out a rural microloan program.
Purpose
The purpose of the rural microloan program shall be to provide technical and financial assistance to sole proprietorships and small businesses located in rural areas with a particular focus on those businesses with 5 or fewer full-time equivalent employees.
Authority of secretary
In carrying out the rural microloan program, the Secretary may—
make direct loans to qualified organizations for the purpose of making short-term, fixed interest rate microloans to startup, newly established, and growing rural microbusiness concerns; and
in conjunction with those loans, provide grants in accordance with subparagraph (E) to those qualified organizations for the purpose of providing intensive marketing, management, and technical assistance to small business concerns that are borrowers under this paragraph.
Loan duration; interest rates; conditions
Loan duration
A loan made by the Secretary under this paragraph shall be for a term of 20 years.
Applicable interest rates
A loan made by the Secretary under this paragraph to a qualified organization shall bear an annual interest rate of at least 1 percent.
Deferral of interest and principal
The Secretary may permit the deferral of payments, for principal and interest, on a loan made under this paragraph for a period of not more than 2 years, beginning on the date on which the loan was made.
Grant amounts
In general
Except as otherwise provided in this section, each qualified organization that receives a loan under this paragraph shall be eligible to receive a grant to provide marketing, management, and technical assistance to small business concerns that are borrowers or potential borrowers under this subsection.
Maximum amount of grant for microenterprise development organizations
Each microenterprise development organization that receives a loan under this paragraph shall receive an annual grant in an amount equal to not more than 25 percent of the total outstanding balance of loans made to the microenterprise development organization under this paragraph, as of the date of provision of the grant.
Matching Requirement
In general
As a condition of any grant made to a qualified organization under this subparagraph, the Secretary shall require the qualified organization to match not less than 15 percent of the total amount of the grant.
Sources
In addition to cash from non-Federal sources, a matching share provided by the qualified organization may include indirect costs or in-kind contributions funded under non-Federal programs.
Administrative expenses
Not more than 10 percent of assistance received by a qualified organization for a fiscal year under this section may be used to pay administrative expenses.
Funding
In general
Not later than 30 days after the date of enactment of this Act, and on October 1, 2008, and each October 1 thereafter through October 1, 2012, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section $50,000,000, to remain available until expended.
Allocation of funds
Of the amount made available by paragraph (1) for each fiscal year—
not less than $30,000,000 shall be available for use in carrying out subsection (b)(3); and
not less than $20,000,000 shall be available for use in carrying out subsection (b)(4), of which not more than $7,000,000 shall be used to support direct loans.
Receipt and acceptance
The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.
.
Enhancing rural infrastructure
Use of funds
The Secretary of Agriculture shall use funds made available under subsection (d) to provide funds for applications that are pending on the date of enactment of this Act for—
water or waste disposal grants or direct loans under paragraph (1) or (2) of section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a));
emergency community water assistance grants under section 306A of that Act (7 U.S.C. 1926a);
community facilities grants and direct loans under paragraphs (1), (19), (20), (21) of section 306(a) of that Act (7 U.S.C. 1926(a)) that support projects that assist rural first responders, as defined by the Secretary of Agriculture;
broadband access loans under title VI of the Rural Electrification Act (7 U.S.C. 950bb et seq.); and
distance learning and telemedicine grants under chapter 1 of subtitle D of title XXII of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.).
Limitations
Appropriated amounts
Funds made available under this section shall be available to the Secretary of Agriculture to provide funds for applications for loans and grants described in subsection (a) that are pending on the date of enactment of this Act only to the extent that funds for the loans and grants appropriated in the annual appropriations Act for fiscal years 2008 and 2009, as appropriate, have been exhausted.
Program requirements
The Secretary of Agriculture may use funds made available under this section to provide funds for a pending application for a loan or grant described in subsection (a) only if the Secretary of Agriculture processes, reviews, and approves the application in accordance with regulations in effect on the date of enactment of this Act.
Exclusion of certain pending applications
In this section, the term application does not include an application for a loan or grant that, as of the date of enactment of this Act, is in the preapplication phase of consideration under regulations of the Secretary of Agriculture in effect on the date of enactment of this Act.
Funding
Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available to carry out this section $50,000,000 in fiscal year 2008, $75,000,000 in fiscal year 2009, $100,000,000 in fiscal years 2010 and 2011, and $75,000,000 in fiscal year 2012.
Nutrition
Exclusion of combat-related military pay from countable income
Section 5(d) of the food stamp act of 2007 (7 U.S.C. 2014(d)) is amended—
by striking
and (18)
and inserting (18)
; and
by inserting before the period at the end the following:
, and (19) any additional payment received under chapter 5 of title 37, United States Code, by a member of the United States Armed Forces deployed to a designated combat zone for the duration of the members deployment if the additional pay is the result of deployment to or while serving in a combat zone, and it was not received immediately prior to serving in the combat zone
.
Strengthening the food purchasing power of low-income Americans
Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amended—
in
subparagraph (A)(ii) by striking not less than $134
and all that
follows to the end of the clause and inserting the following:
not less than $149, $255, $210, and $131, respectively. For October 1, 2008 and each fiscal year thereafter, such amounts shall be adjusted to the nearest lower dollar increment to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, for items other than food, for the twelve months ending the preceding June 30.
; and
in subparagraph
(B)(ii) by striking not less than $269.
and inserting the
following:
not less than $299. For October 1, 2008 and each fiscal year thereafter, such amount shall be adjusted to the nearest lower dollar increment to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics, for items other than food, for the twelve months ending the preceding June 30.
.
Supporting working families with child care expenses
Section 5(e)(3)(A) of the Food Stamp Act of
1977 (7 U.S.C. 2014(e)(3)(A)) is amended by striking , the maximum
allowable level of which shall be $200 per month for each dependent child under
2 years of age and $175 per month for each other dependent,
.
Increasing the minimum benefit
Section 8(a)
of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is amended by striking
$10 per month.
and inserting—
for fiscal year 2008 through 2011, 10 percent of the thrifty food plan for a household containing one member, as determined by the Secretary under section 3(o);
for fiscal year 2012 and each fiscal year thereafter, 15 percent of the thrifty food plan for a household containing one member, as determined by the Secretary under section 3(o).
.
Exclusion of retirement accounts from countable financial resources
Accounts
Section
5(g)(2)(B)(v) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)) is
amended by striking or retirement account (including an individual
account)
and inserting account
.
Mandatory and discretionary exclusions
Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end the following:
Exclusion of retirement accounts from countable financial resources
Mandatory exclusions
The Secretary shall exclude from financial resources under this subsection the value of any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title 5, United States Code.
Discretionary exclusions
The Secretary may exclude from financial resources under this subsection the value of any other retirement plans, contracts, or accounts (as determined by the Secretary through regulation).
.
Facilitating simplified reporting
Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is amended—
in paragraph (1)(A)—
by striking
reporting by
and inserting reporting
;
in clause (i) by
inserting for periods shorter than 4 months by
before
migrant
;
in clause (ii), by
inserting for periods shorter than 4 months by
before
households
; and
in clause (iii),
by inserting by
before households
; and
in paragraph (3), by—
in the third sentence—
by
striking Reports required to be filed monthly under paragraph
(1)
and inserting Except as provided in paragraph (1)(D)(ii),
periodic reports filed under paragraph (1)
; and
by
striking subject matter included in such reports
and inserting
the households required to make the reports
; and
by inserting after
the third sentence the following: The State agency shall not be required
to act on information about a household described in the preceding sentence
received from any source between the periodic reports unless the information
clearly indicated that the household is not eligible, subject to standards
established by the Secretary, or the household requested an increase in
benefits.
.
Reauthorization of food stamp program and food distribution program on Indian reservations, and the commodity supplemental food program
Reductions in payments for administrative costs
Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is amended—
in the first
sentence of subparagraph (A), by striking 2007
and inserting
2012
; and
in subparagraph
(B)(ii) by striking 2007
and inserting
2012
.
Cash payment pilot projects
Section 17(b)(1)(B)(vi) of the Food Stamp Act of
1977 (7 U.S.C. 2026(b)(1)(B(vi)) is amended by striking 2007
and
inserting 2012
.
Authorization of appropriations
Section 18(a)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2027(a)(1)) is amended in the first sentence by striking 2003
through 2007
and inserting 2008 through 2012
.
Consolidated block grants for puerto rico and american samoa
Section 19(a)(2)
of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(2)) is amended in subparagraph
(A)(ii) by striking 2007
and inserting
2012
.
Commodity distribution program
Section 4(a) of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended in the
first sentence by striking 2007
and inserting
2012
.
Outreach grants
Section 11(t) of the Food Stamp Act of 2007 (7 U.S.C. 2020(t)) is amended—
in paragraph (1)
by striking For each of fiscal years
and all that follows
through $5,000,000, and inserting For each of fiscal years 2008 through
2012, the Secretary shall use not more than amounts specified in paragraph (2)
out
;
by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6) respectively; and
by inserting after paragraph (1) the following::
Amounts
The amounts to be expended under paragraph (1) shall be—
for fiscal year 2008, 15,000,000; and
for fiscal year 2009 and each fiscal year thereafter, the amount specified in subparagraph (A), as adjusted to reflect changes in the Consumer Price Index for all urban consumers published by the Bureau of Labor Statistics for the twelve months ending the preceding June 30.
.
Funds to States for improving and innovating program access and integrity
Section 16 of the Food Stamp Act of 2007 (7 U.S.C. 2025), as amended by section 304, is amended by adding at the end the following:
Funds to States for improving and innovating program access and integrity
In general
Subject to paragraphs (2) and (3), the Secretary shall provide that with respect to administrative expenditures described in paragraph (2) the percent specified in (a) shall be increased to such percentage as the Secretary specifies.
Administrative expenditures described
The administrative expenditures described in this paragraph are expenditures described in (a) that a State demonstrates to the satisfaction of the Secretary are attributable to a program innovation that—
improves access to the food stamp program;
improves the efficiency and effectiveness of program operations; or
improves program integrity.
Limitations
The total amount of additional Federal funds that are made available under this subsection shall not exceed $10,000,000 in each of the fiscal years 2008 through 2012. In applying this paragraph, the Secretary shall use discretion in determining the State innovations that have the greatest likelihood of meeting the goals described in paragraph (2). The Secretary shall only make funds available under paragraph (2) that will result in new activities or operations.
.
Supporting State efforts during natural disasters
Section 5(h) of the Food Stamp Act of 1977 (7 U.S.C. 2014(h)) is amended by adding at the end the following:
In lieu of the payments section 16(a) would otherwise require, the Secretary shall pay each State agency an amount equal to 90 percent of administrative costs allowable under section 16(a) for costs related to planning and operating disaster food stamp programs under this subsection.
.
Community food grants
Section 25(b) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)) is amended—
in paragraph (1)
by striking From amounts made available to carry out this Act, the
Secretary may
and inserting The Secretary shall
;
and
by striking paragraph (2) and inserting the following:
Funding amounts
From amounts made available to carry out this Act, the Secretary shall use $25,000,000 for fiscal year 2008, and $30 million for each of the fiscal years 2009 through 2012, to make grants under this section.
.
Expanding the use of food stamps at farmers’ markets
Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is amended by adding at the end:
Grants to expand the number of farmers’ markets that accept food stamp benefits
In general
For fiscal year 2008, the Secretary shall use not more than $5 million of funds made available under section 18(a)(1) to make grants to pay 100 percent of the costs of eligible entities approved by the Secretary to carry out projects to expand the number of farmer’ markets that accept food stamp benefits by—
providing equipment and training necessary for markets to accept food stamp benefits;
educating and providing technical assistance to farmers and farmers’ market operators about the process and benefits of accepting food stamp benefits; or
other activities deemed appropriate by the Secretary.
Limitation
A grant made under this subsection shall not be made for the cost of the on-going cost of carrying out any project.
Eligible entities
To be eligible to receive a grant under this subsection, an entity shall be—
a State agency administering the food stamp program;
a State or local government; or
a private nonprofit entity that coordinates farmers’ markets in or within a State and that operates in cooperation with State or local government.
Selection of eligible entities
The Secretary—
shall develop criteria for the selection of eligible entities to receive grants under this subsection; and
may give preference to any eligible entity that consists of a partnership between a government entity and a nongovernmental entity.
.
Commodities for the emergency food assistance program
Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is amended—
by striking (a) purchase of
commodities
and all that follows through 2007
and
inserting the following:
Purchase of commodities
In general
As provided in paragraph (2), for each of fiscal years 2008 through 2012
;
by striking
$140,000,000 of
; and
by inserting at the end:
Amounts
The following amounts are made available to carry out this subsection:
for fiscal year 2008, $220,000,000;
for fiscal year 2009, $230,000,000;
for fiscal year 2010, $240,000,000;
for fiscal year 2011, $245,000,000; and
for fiscal year 2012 and each fiscal year thereafter, the dollar amount of commodities available in the immediately preceding fiscal year adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(o)(4) between June 30, 2007 and June 30 of the immediately preceding fiscal year.
.
Community food assistance and food bank infrastructure grants under the Food Stamp Act
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:
Community food assistance and food bank infrastructure competitive grants
Definition of eligible entity
In this section, the term eligible entity means an emergency feeding organization (as defined in section 201A(4) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501(4)).
Program authorized
To carry out this section, there are authorized to be appropriated $5,000,000 for each of fiscal years 2008 through 2012.
Application
In general
To receive a grant under this section, an eligible entity shall submit an application to the Secretary at the time and manner and accompanied by any information the Secretary may require.
Contents
Each application submitted under paragraph (1) shall—
identify the activity described in subsection (d) that the grant will be used to fund; and
describe the means by which an activity identified under subparagraph (A) will reduce hunger in the community or support the efforts of food banks or other nonprofit emergency feeding organizations as defined in subsection (a) to reduce hunger or food insecurity in their communities.
Priority
In making grants under this section, the Secretary shall give priority to eligible entities the applications of which demonstrate 2 of the following criteria:
The eligible entity serves a predominantly rural and geographically underserved area.
The eligible entity serves a community in which the rates of food insecurity, very low food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates.
The eligible entity serves a community that provides demonstrable public support for the efforts of the eligible entity through the direct provision of private sector food assistance to low-income individuals.
The eligible entity can show that the grant will assist in the support of rural communities, small or mid-size farms, and the consumption of locally produced agricultural products by low-income people in need of temporary food assistance.
Use of funds
An eligible entity shall use a grant received under this section for fiscal year to carry out activities of the eligible entity, including—
constructing, expanding, or repairing a facility or equipment to support hunger relief agencies in the community;
assisting an emergency feeding organization in the community in obtaining locally-grown or raised produce, dairy or protein products; and
assisting an emergency feeding organization in the community for the procurement, storage, handling and distribution of locally produced agricultural products.
.
Food for the hungry transportation grant program
Purposes
The purposes of this section are—
to authorize the creation of the National Food For the Hungry Transportation, Self-Help, and Job Training Fund to facilitate the procurement and transportation of highly perishable, healthy food to low-income individuals in the United States;
to establish a competitive mechanism in the Department of Agriculture by which appropriations made available from the Fund would be allocated;
to ensure the direct involvement of the private carrier trucking fleet of the United States in carrying out this section;
to increase the quantity of nutritious food available to low-income individuals in the United States by supporting the procurement and distribution of highly perishable food, such as fresh produce and protein products, to the low-income individuals;
to offer job training and employment opportunities in the food transportation and distribution systems;
to better identify potential providers of donated foods and enhance the nonprofit food donation system; and
to provide adequate funding to carry out this section.
Definitions
In this section:
Fund
The term Fund means the National Food For the Hungry Transportation, Self-Help, and Job Training Fund established under subsection (c).
Nongovernmental organization
The term nongovernmental organization means a national nonprofit charitable organization that—
is described in section 501(c)(3) of the Internal Revenue Code of 1986;
is capable of, and has at least 10 years experience in, procuring donated food and other services from major domestic food manufacturers and processors, grocery wholesalers and retailers, food warehouse operations, agricultural producer organizations, fishing interests commercial transport providers (such as trucking companies), and Federal and State food assistance agencies;
is capable of, and has shown proficiency in, the national distribution of highly perishable food through contracts with member emergency feeding organizations (as defined in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501));
has at least 10 years experience in procuring commercial freight for the distribution of time-sensitive food products through a network of emergency food assistance organizations;
has at least 10 years experience in working with transport providers in creating, coordinating, and maintaining transfer systems designed to assist, at the national level, the delivery of time-sensitive food products, for distribution to emergency food assistance organizations in all 50 States and the District of Columbia;
does not operate any commercial, private, or public subsidiary trucking or freight operations for the purposes of transporting food; and
agrees—
to contribute in-kind resources to help carry out this section;
to provide to eligible emergency food assistance organizations services and information free of charge; and
to regularly certify and inspect any member emergency feeding organization with which the nongovernmental organization entered into a contract to carry out an activity described in subparagraph (B).
Primary nongovernmental organization
The term primary nongovernmental organization means a nongovernmental organization selected by the Secretary on a competitive basis from among nongovernmental organizations.
Secretary
The term Secretary means the Secretary of Transportation.
Time-sensitive food product
In general
The term time-sensitive food product means a fresh, raw, or processed food with a short time limitation for safe and acceptable consumption, as determined by the Secretary.
Inclusions
The term time-sensitive food product includes fruits, vegetables, dairy products, meat, fish, and poultry.
National food for the hungry transportation fund
The Secretary shall offer to enter into a contract or grant agreement with a primary nongovernmental organization to establish the National Food for the Hungry Transportation Fund to track, collect, and deliver time-sensitive food products.
Program requirements
The Secretary shall ensure that funds made available under this Act are used for
the development and maintenance of a computerized system for the tracking of time-sensitive food products;
capital and operating costs associated with the collection and transportation of time-sensitive food products;
capital and operating costs associated with the storage and distribution of time-sensitive food products;
job training opportunities in trucking, food handling, food recovery, and related industries;
improving the security and diversity of the food distribution and recovery systems of the United States with the use of—
family-sized farms; and
donations from entities of food products to persons in need;
providing recovered healthy foods to non-profit emergency food providers to reduce hunger in the United States; and
improving the identification of—
potential providers of donated foods;
potential nonprofit emergency food providers; and
persons in need of emergency food assistance throughout the United States.
Additional nongovernmental organizations
In general
The primary nongovernmental organization may enter into 1 or more contracts with, and provide funds to, not more than 2 additional nongovernmental organizations that the Secretary determines meet the requirements in paragraph (2) to carry out some of the functions required by this section.
Requirements
An additional nongovernmental organization selected under paragraph (1) shall—
have expertise in operating for several years a national information clearinghouse relating to anti-hunger activities;
have extensive experience in working with other anti-hunger organizations throughout the United States;
have significant experience in working with the Department of Agriculture; and
operate, at a national level, a hotline to provide information about—
access to food for low-income families;
programs in existence on the date of enactment of this Act that transport fresh produce to food pantries, homeless shelters, and soup kitchens that could serve as national models for replication in other areas; and
ways low-income individuals and families may become self-reliant.
Audits
The Secretary shall establish fair and reasonable procedures to audit the expenditure of funds made available to carry out this section.
Authorization of appropriations
There are authorized to be appropriated, $5,000,000 for fiscal year 2008 and for each of fiscal years 2009 through 2012, the amount available in the immediately preceding fiscal year adjusted to reflect changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics for the twelve months ending the preceding June 30.
Deficit Reduction
Deficit reduction
Notwithstanding any other provisions of law, savings resulting from provisions of this Act, when compared with the Congressional Budget Office March 2008 baseline estimate, are to be applied direct towards deficit reduction and are not available for offsetting additional spending unrelated to this Act.