,,ii #aacth ,,congress #ast ,session ,s4 #fgh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #i1 #bjac ,mr4 ,casey 7for himself and ,mr4 ,harkin7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to amend the ,food1 ,conservation1 and ,energy ,act of #bjjh to establish a program to provide loans for local farms1 ranches1 and market gardens to improve public health and nutrition1 reduce energy consumption1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,growing ,opportunities for ,agriculture and ,responding to ,markets ,act of #bjac4 #b4 ,local farm business and market garden competitive loan program ,subtitle ,d of title ,x of the ,food1 ,conservation1 and ,energy ,act of #bjjh is amended by adding after section #ajdjd 7,public ,law #aaj-bdf2 #abb ,stat4 #baaa7 the following3 #ajdje4 ,local farm business and market garden competitive loan program 7a7 ,definitions ,in this section3 7#a7 ,agricultural commodity ,the term agricultural commodity has the meaning given the term in section #ajb of the ,agricultural ,trade ,act of #aigh 7#g ,u4,s4,c4 #efjb74 7#b7 ,eligible lending entity ,the term eligible lending entity means a government agency1 nonprofit organization1 or any other entity that the ,secretary designates to finance and facilitate the development of a local farm business project or market garden project4 7#c7 ,eligible producer ,the term eligible producer means an individual or group of individuals who carry out a local farm business project or market garden project4 7#d7 ,food desert ,the term food desert has the meaning given the term in section #gebg7;a74 7#e7 ,local farm business project ,the term local farm business project means a project on a farm or ranch that-- 7,a7 is for the production of an agricultural commodity for local markets in the local service area2 and 7,b7 is located on #a or more property lots1 the cumulative acreage of which shall be more than #a acre4 7#f7 ,local service area ,the term local service area means an area consisting of a certain mile radius 7as determined by the ,secretary7 from the physical location of production by an eligible local farm business or market garden project4 7#g7 ,market garden project ,the term market garden project means a project that-- 7,a7 is for the production of an agricultural commodity for local markets in the local service area2 and 7,b7 is located on #a or more property lots 7regardless of the population density of the area in which the property lots are located71 the cumulative acreage of which shall be more than acre4 7#h7 ,revolving loan fund ,the term revolving loan fund means a revolving loan fund established by an eligible lending entity as described in subsection 7c74 7#i7 ,socially disadvantaged farmer or rancher ,the term socially disadvantaged farmer or rancher has the meaning given the term in section #cee7;e7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #bjjc7;e774 7#aj7 ,specialty crop ,the term specialty crop has the meaning given the term in section #c of the ,specialty ,crops ,competitiveness ,act of #bjjd 7#g ,u4,s4,c4 #afba note2 ,public ,law #ajh-dfe74 7#aa7 ,sustainable agriculture ,the term sustainable agriculture has the meaning given the term in section #adjd of the ,national ,agricultural ,research1 ,extension1 and ,teaching ,policy ,act of #aigg 7#g ,u4,s4,c4 #cajc74 7b7 ,competitive loan program for eligible lending entities 7#a7 ,in general ,to support new entrepreneurship and job creation1 the ,secretary shall establish a local farm business and market garden competitive loan program under which the ,secretary shall make available to eligible lending entities loans to develop revolving loan funds to assist-- 7,a7 eligible producers in establishing local farm business projects or market garden projects that will locally produce fresh foods2 and 7,b7 local farm business projects and market garden projects to create local employment opportunities by-- 7i7 increasing farm and garden income by connecting producers and consumers2 7ii7 creating more reliable local food systems2 7iii7 diversifying food production2 7iv7 increasing consumer access to fresh1 local healthful foods produced by local farms1 ranches1 and market gardens in urban1 suburban1 or rural areas2 7v7 supporting nutrition education that incorporates participation of school children in farm- and garden-based agricultural education activities2 and 7vi7 preserving farmland4 7#b7 ,eligibility ,to be eligible to receive a loan under the program established under paragraph 7#a71 an eligible lending entity shall submit to the ,secretary an application at such time1 in such form1 and containing such information as the ,secretary may require4 7#c7 ,selection criteria 7,a7 ,approval ,not later than #a year after the date of enactment of this section and in accordance with this paragraph1 the ,secretary shall1 on a competitive basis1 begin assessing and approving such applications received under paragraph 7#b7 as the ,secretary considers appropriate4 7,b7 ,criteria ,in considering a loan application received under paragraph 7#b71 the ,secretary shall-- 7i7 evaluate the extent to which the application demonstrates the ability of the eligible lending entity-- 7,i7 to manage1 market1 and administer a revolving loan fund2 7,,ii7 to assist local eligible producers to successfully meet local service area opportunities2 7,,iii7 to work with partners to provide technical support to eligible local farm business projects and market garden projects2 7,,iv7 to recruit1 educate1 and assist local producers to advance local farming and ranching opportunities that meet local service area needs2 and 7,v7 subject to paragraph 7#e71 to provide matching funds in the form of cash or in-kind services to properly implement and manage the revolving loan fund2 7ii7 assess-- 7,i7 the number and type of local farm business projects and market garden projects to be affected by local farm business project loan funding2 7,,ii7 the number of new jobs and eligible local farm business projects and market garden projects to be created by the revolving loan fund2 7,,iii7 the ability of an eligible local farm business project or market garden project-- 7aa7 to preserve farmland through economically and environmentally sustainable agriculture practices 7as determined by the ,secretary72 and 7bb7 to serve schools and institutions with a high proportion of students who are eligible for free or reduced price lunches under the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agea et seq472 7,,iv7 the degree to which an eligible local farm business project or market garden project-- 7aa7 incorporates experiential nutrition education2 7bb7 demonstrates the potential positive economic impact for the local economy2 7cc7 demonstrates environmentally sustainable agriculture practices2 and 7dd7 demonstrates a collaboration between schools or educational institutions1 nongovernmental organizations1 producer groups1 and other community and business partners2 and 7,v7 the market opportunity for eligible local farm business projects or market garden projects to sell products in the local community2 and 7iii7 consider any other factors that the ,secretary determines to be appropriate4 7,c7 ,regional balance ,to the maximum extent practicable1 in awarding loans under this section1 the ,secretary shall ensure that loan recipients-- 7i7 are geographically diverse2 7ii7 serve clients targeted by the loan program1 including socially disadvantaged farmers or ranchers2 7iii7 serve clients located in areas with a variety of population densities1 including rural1 suburban1 urban1 and tribal areas2 and 7iv7 identify and serve food deserts within the local service area4 7,d7 ,priority 7i7 ,in general ,in considering loan applications received under paragraph 7#b71 the ,secretary shall give priority to applications that demonstrate the ability and willingness of the eligible lending entity-- 7,i7 to serve clients targeted by the program1 including1 as appropriate1 socially disadvantaged farmers or ranchers2 7,,ii7 to assist with the financial management aspects of specialty crop farming and other types of local agricultural projects2 and 7,,iii7 to address the nutritional needs of an underserved area1 as determined in accordance with clause 7ii74 7ii7 ,underserved areas ,in determining whether an area is an underserved area1 the ,secretary shall consider-- 7,i7 population density2 7,,ii7 below-average supermarket density or sales2 7,,iii7 the rate of ownership of motor vehicles2 and 7,,iv7 geographical or physical barriers1 such as highways1 mountains1 major parks1 or bodies of water4 7#d7 ,loan terms for eligible lending entities 7,a7 ,in general ,for each fiscal year for which the ,secretary makes a loan to an eligible lending entity under this subsection1 the loan shall-- 7i7 be in an amount that is not less than #bjj1jjj and not more than #a1jjj1jjj2 and 7ii7 be used by the eligible lending entity to establish a revolving loan fund to provide loans for local farm business projects or market garden projects4 7,b7 ,term ,the term of a loan under this subsection shall not exceed #bj years from the date on which the loan is finalized4 7,c7 ,loan financing terms ,in making loans to eligible lending entities under this subsection1 the ,secretary shall-- 7i7 set the rate of interest at not more than #b percent per year2 and 7ii7 ensure that no payments are due on the loan during the first #b years of the loan4 7#e7 ,matching funds ,the ,secretary may not require an eligible lending entity that receives a loan under this subsection to provide1 from non-,federal sources1 in cash or in-kind1 the cost of carrying out activities under the loan4 7#f7 ,administrative expenses 7,a7 ,in general ,each eligible lending entity that receives a loan under this subsection shall be eligible additionally to receive a #a-time grant for purposes described in subparagraph 7,b7 in an amount that is not more than the lesser of-- 7i7 #aj percent of the total amount of the loan received by the eligible lending entity2 or 7ii7 #ej1jjj4 7,b7 ,use of grant funds ,grant funds received under subparagraph 7,a7 may be used by the eligible lending entity only to pay management and technical support costs associated with the loan4 7,c7 ,interest rate ,if an eligible lending entity receives a grant under subparagraph 7,a71 the eligible lending entity may not set the interest rate of loans made by the eligible lending entity to local farm business projects or market garden projects at more than #c percent per year4 7#g7 ,progress reports 7,a7 ,in general ,not later than #ij days after the last day of each fiscal year1 each eligible lending entity that has a loan under this subsection shall submit to the ,secretary a report that includes-- 7i7 an evaluation of the progress of the revolving loan fund carried out by the eligible lending entity2 7ii7 a description of the revolving loan fund1 including information on all loans made to local farm business projects or market garden projects2 7iii7 a status update for the local farm business projects and market garden projects funded by the revolving loan fund that describes-- 7,i7 the amount of food produced2 7,,ii7 the amount of revenue generated2 and 7,,iii7 the number of new and retained jobs2 and 7iv7 such other information as the ,secretary may require4 7,b7 ,reports by the ,secretary ,not later than #c years after the date of enactment of this section1 the ,secretary shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report that describes the results and findings of the loan program carried out under this subsection4 7#h7 ,annual review ,the ,secretary shall conduct an annual review of the financial records of each eligible lending entity that receives funding under this subsection-- 7,a7 to assess the financial soundness of the eligible lending entity2 and 7,b7 to determine the effective use of loan and grant funds made available to the eligible lending entity under this subsection4 7c7 ,revolving loan fund 7#a7 ,establishment and purpose ,each eligible lending entity that receives a loan under subsection 7b7 shall use the funds to establish a revolving loan fund to provide loans to eligible producers in the local service area4 7#b7 ,eligible activities ,loans made by an eligible lending entity under this subsection shall be used by the eligible producer to carry out eligible activities in the local service area1 including-- 7,a7 to carry out production projects for value-added food products2 7,b7 to provide working capital for general operational costs of the local farm business project or market garden project2 7,c7 to purchase project-related equipment2 7,d7 to purchase seeds1 plants1 and fruit or nut trees2 7,e7 to purchase livestock1 poultry1 and breeding stock2 7,f7 to construct and maintain irrigation systems2 7,g7 to construct buildings 7including barns1 sheds1 greenhouses1 and dry and cold storage sheds7 necessary to support production2 7,h7 to lease1 lease to purchase1 or directly purchase farmland or make a down payment on an accepted purchase offer for farmland2 or 7,i7 to carry out any other activity that the ,secretary determines to be in accordance with this section4 7#c7 ,loan conditions 7,a7 ,in general ,to be eligible to receive a loan under this section from an eligible lending entity1 an eligible producer shall-- 7i7 supply a minimum level of support of the cost of the local farm business project1 market garden project1 or institution costs1 as determined by the ,secretary2 and 7ii7 submit to the eligible lending entity-- 7,i7 documentation of1 as appropriate-- 7aa7 a long-term land lease contract granting the right to perform local production agriculture2 7bb7 a building lease2 or 7cc7 a deed of property ownership2 and 7,,ii7 a conservation plan and a sound business plan that is likely to result in a profitable business with sustainable employment for the eligible producer and any employees4 7,b7 ,secretarial approval2 guarantee 7i7 ,approval ,before an eligible lending entity may make a loan or package of loans to an eligible producer under this section1 the ,secretary shall approve the loan or package of loans in accordance with the requirements of this section4 7ii7 ,loan guarantee ,the ,secretary shall guarantee not more than #he percent of the principal and interest on each loan approved under clause 7i74 7#d7 ,priority ,in making loans under this subsection1 the eligible lending entity shall give priority to eligible producers that are operated by1 or that support-- 7,a7 qualified beginning farmers or ranchers 7as defined in section #cdc7;a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a777 and socially disadvantaged farmers or ranchers2 7,b7 existing eligible producers1 whether owners or tenants1 who use loan funds to convert to agricultural production systems approved by the ,secretary2 7,c7 eligible producers who use loan funds to build conservation structures or carry out conservation practices2 7,d7 eligible producers who will supply fresh and locally produced food to underserved communities2 and 7,e7 existing eligible producers of agriculture commodities who want to diversify farm1 ranch1 or market garden production and income4 7#e7 ,loan terms for eligible producers 7,a7 ,in general ,a loan made by an eligible lending entity to an eligible producer under this subsection shall be in an amount that is-- 7i7 in the case of a local farm business project1 not less than #e1jjj and not more than #ajj1jjj2 and 7ii7 in the case of a market garden project1 not less than #c1jjj and not more than #ej1jjj4 7,b7 ,term ,the term of a loan under this subsection shall not exceed-- 7i7 in the case of a loan in an amount that is not more than #ce1jjj1 #ab years from the date on which the loan is finalized2 and 7ii7 in the case of all other loans1 #bj years from the date on which the loan is finalized4 7,c7 ,loan financing terms ,in making loans under this subsection1 an eligible lending entity shall-- 7i7 set the rate of interest at not more than #c percent per year2 7ii7 ensure that no payments are due on the loan during the first #i months of the loan2 and 7iii7 ensure that only interest is due on the loan during the period beginning on the last day of the period described in clause 7ii7 and ending #bd months after the issuance of the loan4 7,d7 ,loan forgiveness ,if an eligible producer has received a loan under this section to carry out a local farm business project or market garden project1 and after #c years the ,secretary determines that the project is successful1 the ,secretary may offer to forgive-- 7i7 up to #aj percent of the outstanding amount of the loan2 and 7ii7 in the case of an eligible producer supporting sustainable agriculture practices1 up to #bj percent of the outstanding amount of the loan4 7d7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary for each of fiscal years #bjad through #bjbd-- 7#a7 #bj1jjj1jjj to provide loans and grants under subsection 7b72 and 7#b7 #a1jjj1jjj for the administrative costs of carrying out this section4 4