7 U.S.C. § 1627c
Local agriculture market program
United States · Title 7 — AGRICULTURE · Status: effective
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- 7 U.S.C. § 1627c, Local agriculture market program, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/429627
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Full text
In this section:
The term “beginning farmer or rancher” has the meaning given the term in section 1991(a) of this title.
The term “direct producer-to-consumer marketing” has the meaning given the term “direct marketing from farmers to consumers” in section 3002 of this title.
The term “family farm” has the meaning given the term in section 1632a(a) of this title.
The term “food council” means a food policy council or food and farm system network, as determined by the Secretary, that—
represents—
The term “majority-controlled producer-based business venture” means a venture greater than 50 percent of the ownership and control of which is held by—
For purposes of subparagraph (A), the term “entity” means—
The term “mid-tier value chain” means a local or regional supply network that links independent producers with businesses and cooperatives that market value-added agricultural products in a manner that—
The term “partnership” means a partnership entered into under an agreement between—
The term “Program” means the Local Agriculture Market Program established under subsection (b).
The term “regional food chain coordination” means coordination and collaboration along the supply chain to increase connections between producers and markets.
The term “Secretary” means the Secretary of Agriculture.
The term “socially disadvantaged farmer or rancher” has the meaning given the term in section 2003(e) of this title.
The term “value-added agricultural product” means any agricultural commodity or product that—
as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated—
The term “veteran farmer or rancher” has the meaning given the term in section 2279(a) of this title.
The Secretary shall establish a program, to be known as the “Local Agriculture Market Program”, that—
supports the development, coordination, and expansion of—
In administering the Program, the Secretary shall—
Under the Program, the Secretary may, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023, in accordance with the purposes of the Program described in subsection (b), for the conduct of activities described in paragraph (2).
The recipient of a grant may use a grant provided under paragraph (1)—
to support and promote—
to support the processing, aggregation, distribution, and storage of—
to cover expenses relating to costs incurred in—
The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under paragraph (1) as the Secretary determines are appropriate.
Except as provided in clause (ii), an application submitted for a grant under paragraph (1) shall include a description of the direct or indirect producer or food business benefits intended by the applicant to result from the proposed project within a reasonable period of time after the receipt of the grant.
Clause (i) shall not apply to a planning or feasibility project.
Unless otherwise determined by the Secretary, the amount of a grant under this subsection shall be not more than $500,000.
In the case of a grant provided under paragraph (1) to an eligible entity described in subparagraph (B), the following shall apply:
The Secretary shall carry out this subsection through the Administrator of the Rural Business-Cooperative Service, in coordination with the Administrator of the Agricultural Marketing Service.
An entity shall be eligible for a grant under this paragraph if the entity is—
The Secretary shall give priority to applications—
in the case of an application submitted by a producer, that are submitted by, or serve—
Except as provided in clause (ii), an eligible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure.
An eligible entity described in subparagraph (B) may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety.
An eligible entity described in subparagraph (B) receiving a grant shall contribute an amount of non-Federal funds that is at least equal to the amount of Federal funds received.
In the case of a grant provided under paragraph (1) to an eligible entity described in subparagraph (B), the following shall apply:
The Secretary shall carry out this subsection through the Administrator of the Agricultural Marketing Service, in coordination with the Administrator of the Rural Business-Cooperative Service.
An entity shall be eligible to receive a grant under this paragraph if the entity is—
The Secretary shall give priority to applications that—
Except as provided in clause (ii), an eligible entity described in subparagraph (B) may not use a grant for the purchase or construction of a building, general purpose equipment, or structure.
An eligible entity described in subparagraph (B) may use not more than $6,500 of the amount of a grant for an eligible activity described in paragraph (2)(J) to purchase or upgrade equipment to improve food safety.
An eligible entity described in subparagraph (B) receiving a grant shall provide matching funds in the form of cash or an in-kind contribution in an amount that is equal to 25 percent of the total amount of the Federal portion of the grant.
In this subsection:
The term “eligible entity” means—
The term “eligible partner” means—
The Secretary, acting through the Administrator of the Agricultural Marketing Service, in accordance with the purposes of the Program described in subsection (b), shall, using funds made available under subsection (i), provide grants for each of fiscal years 2019 through 2023 to support partnerships to plan and develop a local or regional food system.
To the maximum extent practicable, the Secretary shall ensure geographical diversity in selecting partnerships to receive grants under subparagraph (A).
A partnership receiving a grant under paragraph (2) may—
at the conclusion of the partnership agreement, submit to the Secretary a report describing—
A partnership receiving a grant under paragraph (2) shall provide funding in an amount equal to not less than 25 percent of the total amount of the Federal portion of the grant.
To be eligible to receive a grant under paragraph (2), a partnership shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary considers necessary to evaluate and select applications.
The Secretary—
The Secretary may give priority to applications submitted under subparagraph (A) that—
Except as provided in clause (ii), an application submitted under subparagraph (A) shall include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of a grant.
Clause (i) shall not apply to a planning or feasibility project.
On request of an eligible entity, an eligible partner, or a partnership, the Secretary may provide technical assistance in carrying out a partnership agreement.
The Secretary shall establish a simplified application form for eligible entities that—
The Secretary shall—
In carrying out the Program, to the maximum extent practicable, the Secretary shall ensure coordination among Federal agencies.
Using amounts made available under subsection (i)(3)(E), the Secretary shall conduct an evaluation of the Program that—
measures the effectiveness of the Program in improving and expanding—
provides a description of—
Not later than 4 years after December 20, 2018, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the evaluation conducted under paragraph (1), including a thorough analysis of the outcomes of the evaluation.
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $50,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended.
There is authorized to be appropriated to carry out this section $20,000,000 for fiscal year 2019 and each fiscal year thereafter, to remain available until expended.
Subject to clause (ii), of the funds made available to carry out this section for a fiscal year, 35 percent shall be used for grants under subsection (d)(5).
The total amount of grants under subsection (d)(5) provided to majority-controlled producer-based business ventures for a fiscal year shall not exceed 10 percent of the amount allocated under clause (i).
Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants provided to beginning, veteran, and socially disadvantaged farmers or ranchers.
Of the funds made available for grants under subsection (d)(5), 10 percent shall be reserved for grants to develop mid-tier value chains.
Of the funds made available for grants under subsection (d)(5), not more than 25 percent shall be reserved for grants for eligible activities described in subsection (d)(2)(J).
Of the funds made available to carry out this section for a fiscal year, 47 percent shall be used for grants under subsection (d)(6).
Of the funds made available to carry out this section for a fiscal year, 10 percent shall be used to provide grants to support partnerships under subsection (e).
Any funds under subparagraph (A), (B), or (C) that are not obligated for the uses described in that subparagraph, as applicable, by September 30 of the fiscal year for which the funds were made available—
Not greater than 8 percent of amounts made available to provide grants under subsections (d) and (e) for a fiscal year may be used for administrative expenses.
Legislative history
The public laws that enacted or amended this section. Tallies are for the whole bill as it passed each chamber — often an omnibus covering far more than this provision — not a vote on this section alone.
- Agriculture Improvement Act of 2018