H.R. 4140House117th Congress (2021-2023)In Committee

Butcher Block Act

Introduced June 24, 2021

AI-Generated Summary

Updated February 8, 2026 at 4:56 AM UTC

The Butcher Block Act aims to improve cattle pricing by expanding and modernizing livestock and poultry processing capacity in the United States. It gives the USDA authority to provide loans, loan guarantees, and grants to a wide range of applicants—including producers, processors, cooperatives, Indian tribes, and individuals—especially in rural areas. The program is intended to increase processing options, boost revenue for producers, and enhance compliance with food‑safety regulations.

Key Provisions

  • The Secretary of Agriculture may make or guarantee loans up to $50 million (or up to $100 million for cooperatives) for building, expanding, or upgrading processing facilities, with a preference for projects that quickly increase regional capacity
  • Facilities must generally be located in rural areas, but loans up to $50 million can fund non‑rural sites if they serve producers within 300 miles and meet other criteria
  • Loans cannot be made to entities owned by foreign parties or to processors that handle more than 5 percent of the daily harvest of any species
  • The USDA may consider intangible assets like brand names or patents and may accept accounts receivable as collateral for eligible loans
  • A $100 million appropriation is authorized for these loan programs for fiscal years 2023‑2025
  • The Secretary may also award grants to governmental entities, private or cooperative organizations, and Indian tribes to expand processing capacity, improve regulatory compliance, reduce entry barriers, and provide training and technical assistance
  • Grant applicants receive preference if they have processing experience and can rapidly scale up regional capacity, with $20 million authorized each fiscal year from 2023‑2025

Legislative Activity

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7 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 279.

June 14, 2022

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HouseIntro Referral

Introduced in House

June 24, 2021

HouseIntro Referral

Referred to the House Committee on Agriculture.

June 24, 2021

HouseCommittee

Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.

July 20, 2021

HouseCommittee

Subcommittee on Commodity Exchanges, Energy, and Credit Discharged.

May 17, 2022

HouseCommittee

Committee Consideration and Mark-up Session Held.

May 17, 2022

HouseCommittee

Ordered to be Reported (Amended) by Voice Vote.

May 17, 2022

HouseCommittee

Reported (Amended) by the Committee on Agriculture. H. Rept. 117-368.

June 14, 2022

HouseCalendars

Placed on the Union Calendar, Calendar No. 279.

June 14, 2022

Floor Debate

21 members

What members said about H.R. 4140 on the floor

10 Republicans11 Democrats
Glenn Thompson
Rep. Glenn ThompsonR-PA-15 · Jun 16, 2022

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in opposition to H.R. 7606 because, simply put, this bill does nothing in the immediate future to lower food and fuel…

Abigail Davis Spanberger
Rep. Abigail Davis SpanbergerD-VA-7 · Jun 16, 2022

Mr. Speaker, I am proud to rise in support of my legislation, H.R. 7606, the Lower Food and Fuel Costs Act. Congress cannot shy away from addressing the urgent economic challenges that face our local…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Jun 16, 2022

Mr. Speaker, civilians and soldiers are dying in Ukraine and the American people are feeling it in their pocket, even as they rise up to support democracy. The American people know there is a…

Nancy Pelosi
Rep. Nancy PelosiD-CA-12 · Jun 16, 2022

Mr. Speaker, I thank the gentleman for yielding and for his leadership in bringing this important legislation to the floor. I commend him and the members of the committee, as we just heard from…

Steny H. Hoyer
Rep. Steny H. HoyerD-MD-5 · Jun 16, 2022

Mr. Speaker, the chairman has done a wonderful job as the chairman of the Agriculture Committee, and I know that you are working together to bring people together. One of the things that I most…

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David Scott
Rep. David ScottD-GA-13 · Jun 16, 2022

Mr. Speaker, pursuant to House Resolution 1170, I call up the bill (H.R. 7606) to establish the Office of the Special Investigator for Competition Matters within the Department of Agriculture, and…

Ro Khanna
Rep. Ro KhannaD-CA-17 · Jun 16, 2022

Mr. Speaker, I have an amendment at the desk. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, my amendment would authorize a new program at the Department of Agriculture to…

Kat Cammack
Rep. Kat CammackR-FL-3 · Jun 16, 2022

Mr. Speaker, I rise today in opposition to H.R. 7606, the higher food and increased fuel costs act. I just cannot believe that at a time when we Americans all are paying more for everything, from…

Frank D. Lucas
Rep. Frank D. LucasR-OK-3 · Jun 16, 2022

Mr. Speaker, I rise in opposition to H.R. 7606 because American farmers and ranchers deserve real assistance, real relief, real policy solutions. To understand my opposition, you must understand the…

Frank Pallone, Jr.
Rep. Frank Pallone, Jr.D-NJ-6 · Jun 16, 2022

Mr. Speaker from New Jersey, I thank Chairman Scott for the time and all he has been doing with his committee to put this excellent bill together. Today, once again, in my opinion, the House is…

Tracey Mann
Rep. Tracey MannR-KS-1 · Jun 16, 2022

Mr. Speaker, I rise today to speak in opposition to H.R. 7606. I support our country's farmers, ranchers, and agricultural producers because they are the lifeblood of America. They keep us food and…

David N. Cicilline
Rep. David N. CicillineD-RI-1 · Jun 16, 2022

Mr. Speaker, I rise today in support of the Lower Food and Fuel Costs Act. Across the country, workers are calling out sick because of COVID, truck deliveries and other shipments are facing delays,…

David Rouzer
Rep. David RouzerR-NC-7 · Jun 16, 2022

Mr. Speaker, listening to the debate this morning reminds me of something President Ronald Reagan once said. He said: Our friends on the other side of the aisle, they know so much that just isn't so.…

Show 8 more
Kim Schrier
Rep. Kim SchrierD-WA-8 · Jun 16, 2022

Mr. Speaker, I thank the chairman for the opportunity to speak on this important bill, the Lower Food and Fuel Costs Act. American families are struggling. They are continuing to see rising gas…

Angie Craig
Rep. Angie CraigD-MN-2 · Jun 16, 2022

Mr. Speaker, Americans across the country are justifiably frustrated by the higher prices they are experiencing at the pump, in the grocery store, and across the board. Right now, working families in…

Eric A. "Rick" Crawford
Rep. Eric A. "Rick" CrawfordR-AR-1 · Jun 16, 2022

Mr. Speaker, I think the American people need to understand two things. One, if you eat, you are involved in agriculture. And, two, food security is national security. So, we keep those things in…

Adrian Smith
Rep. Adrian SmithR-NE-3 · Jun 16, 2022

Mr. Speaker, I rise today in opposition to this bill. To suggest that this bill is a collaborative effort is simply inaccurate. There could be a number of other ways to describe that as well, but it…

Ronny Jackson
Rep. Ronny JacksonR-TX-13 · Jun 16, 2022

Mr. Speaker, I rise today to bring attention to a serious issue facing all of rural America: the Biden administration and the radical left's war on agriculture. Today, the House will vote on H.R.…

Josh Harder
Rep. Josh HarderD-CA-10 · Jun 16, 2022

Mr. Speaker, I rise today frustrated, and to be honest, just plain tired. For months now, my community has been paying over $6 a gallon for gas and $5 for a jug of milk. Prices are out of control,…

Rick W. Allen
Rep. Rick W. AllenR-GA-12 · Jun 16, 2022

Mr. Speaker, I stand here in disbelief at how Washington is trying to run this economy. That is the reason I ran for office because things were so bad, and it was impossible to grow your business. I…

John W. Rose
Rep. John W. RoseR-TN-6 · Jun 16, 2022

Mr. Speaker, I want to make it clear: just because Democrats named their bill the Lower Food and Fuel Costs Act does not mean this bill will achieve that goal. The only thing it really achieves is a…

Bill Text

2 versions available

Reading Mode
Latest
Reported in HouseIssued June 14, 2022

IB

Union Calendar No. 279

117th CONGRESS

2d Session

H. R. 4140

[Report No. 117–368]

IN THE HOUSE OF REPRESENTATIVES

June 24, 2021

Mr. Johnson of South Dakota (for himself, Ms. Spanberger, Mr. Mann, Mrs. Hartzler, Mr. Baird, Mr. Cuellar, Mrs. Fischbach, Mr. Feenstra, and Mr. Lucas) introduced the following bill; which was referred to the Committee on Agriculture

June 14, 2022

Additional sponsors: Mr. Smith of Nebraska, Mr. Delgado, Mrs. Cammack, Mr. Westerman, Mrs. Harshbarger, Ms. Cheney, Mr. Cline, Mr. Emmer, Mrs. Axne, Ms. Wexton, Mr. O'Halleran, and Mr. Gottheimer

June 14, 2022

Reported with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed


Strike out all after the enacting clause and insert the part printed in italic

For text of introduced bill, see copy of bill as introduced on June 24, 2021

A BILL

To make improvements with respect to the pricing of cattle in the United States, and for other purposes.


1.

Short title

This Act may be cited as the Butcher Block Act.

2.

Assistance for new and expanded livestock or meat processors

(a)

In general

The Secretary of Agriculture (in this section referred to as the Secretary) may make or guarantee a loan for the purpose of—

(1)

increasing capacity of livestock and poultry processing, facilitating economic opportunity for livestock and poultry producers through processing activities, and diversifying processing ownership;

(2)

increasing the customer base or revenue returns of livestock and poultry producers through investment in processing capacity;

(3)

improving, developing, or financing livestock and poultry processing capacity or employment including through the financing of working capital; or

(4)

promoting the interstate trade and local sales of processed livestock and poultry by financing improvements to meet relevant Federal, State, and local regulatory standards.

(b)

Eligibility; general limitations

(1)

Eligible recipient

An entity shall be eligible for a loan or guarantee under this section if the entity is—

(A)

a public, private, or cooperative organization organized on a for-profit or nonprofit basis;

(B)

an Indian tribe on a Federal or State reservation, or any other federally recognized Indian tribal group; or

(C)

an individual.

(2)

Facility location

(A)

In general

Except as provided in subparagraph (B), a facility constructed, expanded, modified, refurbished, or re-equipped with proceeds from a loan made or guaranteed under this section shall be in a rural area.

(B)

Exception

A facility constructed, expanded, modified, refurbished, or re-equipped with proceeds from a loan made or guaranteed under this section may be in a non-rural area if—

(i)

the primary use of the loan involved is for the facility, and the facility will increase the customer base or revenue returns of livestock and poultry producers that are located within 300 miles of the facility;

(ii)

the loan involved will be used to increase the capacity in livestock and poultry processing in a region; and

(iii)

the principal amount of the loan involved does not exceed $50,000,000.

(C)

Rural area defined

In this paragraph, the term rural area has the meaning given the term in section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).

(3)

Limitations

(A)

Limitation on amount of loan involved

A loan of more than $50,000,000 may not be made or guaranteed under this section.

(B)

Limitation on eligibility

A loan may not be made or guaranteed under this section to an entity that is owned in partnership or in whole by—

(i)

a foreign entity; or

(ii)

an entity that currently processes over 5 percent of the daily harvest of any species.

(c)

Special rules applicable with respect to cooperatives

(1)

Limitation on amount of loan involved

(A)

In general

Notwithstanding subsection (b)(3), a loan of not more than $100,000,000 may be made or guaranteed for a cooperative organization under this section.

(B)

Conditions applicable if loan involved is for more than $50,000,000

A loan of more than $50,000,000 may not be made or guaranteed for a cooperative organization under this section unless the loan is used to carry out a project that significantly increases the livestock and poultry processing in a region, where insufficient processing capacity exists, as determined by the Secretary.

(2)

Intangible assets

(A)

In general

In determining whether a cooperative organization is eligible for a loan or guarantee under this section, the Secretary may consider the market value of a properly appraised brand name, patent, or trademark of the cooperative.

(B)

Accounts receivable

In the sole discretion of the Secretary, if the Secretary determines that the action would not create or otherwise contribute to an unreasonable risk of default or loss to the Federal Government, the Secretary may take accounts receivable as security for the obligations entered into in connection with a loan made or guaranteed under this section, and a borrower may use accounts receivable as collateral to secure such a loan.

(3)

Purchase of cooperative stock

(A)

In general

The Secretary may make or guarantee a loan in accordance with this section to an individual farmer or rancher for the purpose of purchasing capital stock of a farmer or rancher cooperative undertaking an eligible project under this section.

(B)

Processing contracts during initial period

A cooperative described in subparagraph (A) with respect to which a farmer or rancher receives a guarantee to purchase stock under subparagraph (A) may contract for services to fulfill any eligible purpose under this section, during the 5-year period beginning on the date the cooperative commences operations, in order to provide adequate time for the planning and construction of the processing facility of the cooperative.

(C)

Financial information

A farmer or rancher from whom the Secretary requires financial information as a condition of making or guaranteeing a loan under subparagraph (A) shall provide the information in the manner generally required by commercial agricultural lenders in the geographical area in which the farmer or rancher is located.

(d)

Conditions applicable with respect to using loan involved for refinancing

A borrower may use 25 percent of a loan made or guaranteed under this section to refinance a loan made for a purpose described in subsection (a) if—

(1)

the borrower is current and performing with respect to the loan to be refinanced;

(2)

the borrower has not defaulted on any payment required to be made with respect to the loan to be refinanced;

(3)

none of the collateral for the loan to be refinanced has been converted; and

(4)

there is adequate security or full collateral for the loan to be refinanced.

(e)

Loan appraisal

The Secretary may require that any appraisal made in connection with a loan made or guaranteed under this section be conducted by a specialized appraiser that uses standards that are similar to standards used for similar purposes in the private sector, as determined by the Secretary.

(f)

Preference

In making or guaranteeing a loan under this section, the Secretary shall give a preference to applicants that have experience in livestock and poultry processing and can quickly scale-up to increase overall processing capacity in the region involved.

(g)

Limitations on authorization of appropriations

There is authorized to be appropriated to carry out this section $100,000,000 for each of fiscal years 2023 through 2025.

3.

New and expanding livestock or meat processing grants

(a)

In general

The Secretary of Agriculture may make grants to—

(1)

expand, diversify, and increase capacity in livestock or poultry processing activities;

(2)

improve compliance with livestock and poultry processing statutes (including the regulations issued thereunder), such as the Federal Meat Inspection Act (21 U.S.C. 661) and the Poultry Products Inspection Act (21 U.S.C. 454);

(3)

identify and reduce barriers to entry for new for new livestock and poultry processers; or

(4)

update, expand, or otherwise improve existing facilities.

(b)

Eligible grantees

An entity shall be eligible for a grant under this section if the entity is—

(1)

a governmental entity;

(2)

a public, private, or cooperative organization organized on a for-profit or nonprofit basis; or

(3)

an Indian tribe on a Federal or State reservation or any other federally recognized Indian tribal group.

(c)

Use of funds

An entity to which a grant is made under this section may use the grant funds to establish or support new or expanded livestock or poultry processing activity, or other activity which will increase the customer base or revenue returns of livestock and poultry producers, by undertaking project, that—

(1)

identifies and analyzes business opportunities, including feasibility studies as required for creditworthiness;

(2)

identifies, trains, and provides technical assistance to existing or prospective rural entrepreneurs and managers or processing facilities;

(3)

provides technical assistance to gain compliance with Federal, State, or local regulations;

(4)

conducts regional, community, and local economic development planning and coordination, and leadership development; or

(5)

establishes a center for training, technology, and trade that will provide training to livestock or poultry processing employees.

(d)

Preference

In awarding grants under this section, the Secretary shall give a preference to applicants that have experience in livestock and poultry processing and can quickly scale-up to increase overall processing capacity in the region involved.

(e)

Limitations on authorization of appropriations

There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2023 through 2025.

June 14, 2022

Reported with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed