,,ii #aahth ,,congress #ast ,session ,s4 #bgib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ac1 #bjbc,mr4 ,fetterman introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to amend the ,agricultural ,marketing ,act of #aidf to require the ,secretary of ,agriculture to procure a minimum amount of meat and poultry products from small meat processors and to develop a digital livestock exchange platform1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,local ,meat ,economies ,act of #bjbc4 #b4 ,procurement of meat and poultry ,subtitle ,a of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afba et seq47 is amended by adding at the end the following3 #baj;,b4 ,procurement of meat and poultry 7a7 ,definitions ,in this section3 7#a7 ,digital livestock exchange platform ,the term digital livestock exchange platform has the meaning given the term in section #baj;,c7a74 7#b7 ,eligible processor ,the term eligible processor means a livestock or poultry processor that-- 7,a7 is engaged in the slaughter of livestock or poultry2 7,b7 7i7 employs fewer than #aej full-time employees2 or 7ii7 processes less than #a1jjj1jjj total pounds of meat food product and poultry product per month2 7,c7 is not owned or in partnership with any entity that-- 7i7 employs #aej or more full-time employees2 or 7ii7 processes #a1jjj1jjj total pounds or more of meat food product and poultry product per month2 and 7,d7 is not owned or in partnership with any foreign entity4 7#c7 ,livestock ,the term livestock means cattle1 sheep1 swine1 and goats1 whether alive or dead4 7#d7 ,meat food products ,the term meat food products has the meaning given the term in section #b7;a7 of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #ahb74 7#e7 ,poultry ,the term poultry has the meaning given the term in section #d of the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dec74 7#f7 ,poultry product ,the term poultry product has the meaning given the term in section #d of the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dec74 7#g7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7b7 ,procurement requirements ,in procuring meat food products and poultry products for the ,department of ,agriculture1 the ,secretary-- 7#a7 shall increase procurement of meat food products and poultry products from eligible processors-- 7,a7 in the first fiscal year that begins on or after the date that is #a year after the date of enactment of this section1 by an amount that is the greater of-- 7i7 #ej1jjj1jjj2 and 7ii7 #ej percent of the amount spent in the previous fiscal year for that procurement2 and 7,b7 in the first fiscal year following the fiscal year described in subparagraph 7,a71 by an amount that is the greater of-- 7i7 #ajj1jjj1jjj2 and 7ii7 #ge percent of the amount spent in the previous fiscal year for that procurement2 7#b7 shall1 in each fiscal year following the fiscal year described in paragraph 7#a77;,b71 procure not less than #bj percent of meat food products and poultry products from eligible processors2 7#c7 shall establish procurement contracts for the procurement increases under paragraphs 7#a7 and 7#b7 through a digital livestock exchange platform2 7#d7 notwithstanding any other provision of law1 shall not accept the lowest possible bid on a meat food products or poultry products procurement contract if that acceptance would result in prices that would not be commercially viable for eligible processors1 as determined by the ,secretary in consultation with the advisory board established under section #baj;,c7g7 and using the data described in section #baj;,c7d77#d72 7#e7 shall post competitive or sole source contracts exclusively to eligible processors through a digital livestock exchange platform2 7#f7 shall determine fair market price for meat food products and poultry products processed by eligible processors 7taking into account product attributes such as organic1 regenerative1 and high-welfare7 through the price reporting expertise of the ,secretary2 and 7#g7 shall prioritize procurement from-- 7,a7 enterprises owned by beginning farmers or ranchers1 socially disadvantaged farmers or ranchers1 or veteran farmers or ranchers 7as those terms are defined in section #beja7;a7 of the ,food1 ,agriculture1 ,conservation1 and ,trade ,act of #aiij 7#g ,u4,s4,c4 #bbgi7;a7772 7,b7 enterprises that-- 7i7 source at least #ea percent of their livestock1 poultry1 meat food products1 or poultry products from producers or processors within a #bej-mile radius2 7ii7 exclusively sell meat food products or poultry products with a label of the ,department of ,agriculture designating the product as a product of the ,united ,states1 if such label exists2 or 7iii7 purchase at least #ea percent of their livestock1 poultry1 meat food products1 or poultry products to fulfill ,federal procurement contracts through a digital livestock exchange platform2 and 7,c7 enterprises with labor agreements4 7c7 ,interagency assistance ,the ,secretary shall assist other ,federal agencies seeking to procure meat food products and poultry products by-- 7#a7 sharing information about the #a or more digital livestock exchange platforms2 7#b7 offering technical assistance on how to utilize a digital livestock exchange platform2 and 7#c7 facilitating through a digital livestock exchange platform procurement contract opportunities with eligible processors4 7d7 ,offset ,of amounts available to the ,secretary for procurement in a fiscal year1 the ,secretary shall use not less than #ce1jjj1jjj to carry out procurement in accordance with this section4 7e7 ,outreach ,the ,secretary shall conduct outreach1 and provide technical assistance1 to eligible processors and producers of meat food products and poultry products seeking procurement contracts with the ,federal ,government4 7f7 ,report ,not later than #a year after the date of enactment of this section1 the ,secretary shall submit to ,congress a report that-- 7#a7 describes all procurement of meat food products and poultry products by the ,department of ,agriculture during the preceding #e years1 including-- 7,a7 the companies that those products were sourced from2 and 7,b7 by disaggregating information by categories of slaughter volume and processed volume2 and 7#b7 7,a7 analyzes barriers to eligible processors engaging in procurement contracts with the ,department of ,agriculture2 and 7,b7 makes recommendations on how to remove those barriers4 4 #c4 ,digital livestock exchange platform ,subtitle ,a of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afba et seq47 7as amended by section #b7 is amended by adding at the end the following3 #baj;,c4 ,digital livestock exchange platform 7a7 ,definitions ,in this section3 7#a7 ,digital livestock exchange platform ,the term digital livestock exchange platform means a digital application or website that fulfills the purposes and activities described in subsection 7d74 7#b7 ,eligible processor ,the term eligible processor has the meaning given the term in section #baj;,b7a74 7#c7 ,formula price 7,a7 ,in general ,the term formula price means any price term that establishes a base from which a purchase price is calculated on the basis of a price that will not be determined or reported until a date that is after the date on which the forward price is established4 7,b7 ,exclusions ,the term formula price does not include-- 7i7 any price term that establishes a base from which a purchase price is calculated on the basis of a futures market price2 or 7ii7 any adjustment to the base for quality1 grade1 or other factors relating to the value of livestock that are readily verifiable market factors and are outside the control of the packer4 7#d7 ,forward contract ,the term forward contract means an oral or written contract for the purchase of livestock that provides for the delivery of the livestock to a packer at a date that is more than #g days after the date on which the contract is entered into1 without regard to whether the contract is for-- 7,a7 a specified lot of livestock2 or 7,b7 a specified number of livestock over a certain period of time4 7#e7 ,livestock ,the term livestock means cattle1 sheep1 swine1 and goats1 whether alive or dead4 7#f7 ,meat food products ,the term meat food products has the meaning given the term in section #b7;a7 of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #ahb74 7#g7 ,poultry ,the term poultry has the meaning given the term in section #d of the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dec74 7#h7 ,poultry product ,the term poultry product has the meaning given the term in section #d of the ,poultry ,products ,inspection ,act 7#ba ,u4,s4,c4 #dec74 7#i7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture1 acting through the ,administrator of the ,agricultural ,marketing ,service4 7b7 ,establishment ,the ,secretary shall enter into cooperative agreements with entities 7including private entities1 nonprofit organizations1 and small businesses7 to develop1 as determined by the ,secretary-- 7#a7 a single digital livestock exchange platform2 or 7#b7 multiple digital livestock exchange platforms by region4 7c7 ,status as market agency ,a digital livestock exchange platform shall be a market agency 7as defined in section #cja of the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #bja71 except that livestock in paragraph 7#a7 of that section shall include poultry7 for purposes of that ,act4 7d7 ,purposes and activities of platform ,a digital livestock exchange platform shall-- 7#a7 facilitate open access to online cash transfer and open bidding on forward contracts and procurement contracts between-- 7,a7 livestock and poultry producers2 7,b7 livestock and poultry producers and eligible processors2 7,c7 livestock and poultry producers or eligible processors and institutional1 private sector1 and government buyers2 and 7,d7 distributors of meat food products and poultry products to institutional1 private sector1 and government buyers2 7#b7 facilitate ease of access to-- 7,a7 ,federal procurement opportunities for eligible processors and producers of meat food products and poultry products2 and 7,b7 subcontracting opportunities by private entities fulfilling ,federal meat food products and poultry products procurement contracts2 7#c7 facilitate connection between producers and eligible processors offering copacking services1 so that producers may fulfill governmental1 retail1 restaurant1 or institutional contracts directly2 7#d7 facilitate reporting by the ,secretary of regional agricultural prices while ensuring data privacy and data ownership for individual digital livestock exchange platform participants2 7#e7 provide open-source access for producers to a tool that allows producers to enhance the traceability of their product attributes2 7#f7 aim to prevent manipulation within markets subject to the ,packers and ,stockyards ,act1 #aiba 7#g ,u4,s4,c4 #aia et seq471 and transactions across the livestock and poultry industry2 and 7#g7 test the value of new forms of technology1 including distributed ledger and smart contract technologies1 in livestock and poultry market platforms and supply chains1 to accomplish the objectives described in paragraphs 7#a7 through 7#f74 7e7 ,compliant forward contracts 7#a7 ,in general ,in effectuating any sale of livestock on a digital livestock exchange platform1 it shall be unlawful to use a forward contract that-- 7,a7 does not contain a firm base price that may be equated to a fixed dollar amount on the date on which the forward contract is entered into2 7,b7 is not offered for bid in an open1 public manner under which-- 7i7 buyers and sellers have the opportunity to participate in the bid2 7ii7 more than #a blind bid is solicited2 and 7iii7 buyers and sellers may witness bids that are made and accepted2 7,c7 is based on a formula price2 or 7,d7 provides for the sale of livestock in a quantity in excess of #ej animals4 7#b7 ,penalties ,any participant that violates paragraph 7#a7 shall-- 7,a7 be barred from participation in a digital livestock exchange platform or for consideration for any ,federal meat food product or poultry product procurement contract2 and 7,b7 forfeit any existing ,federal meat food product or poultry product procurement contract for the #e-year period following the violation4 7f7 ,prohibited participation 7#a7 ,daily harvest volume ,a meatpacker that has a daily harvest volume that is more than #e percent of the national daily harvest volume may not participate in a digital livestock exchange platform1 including by posting subcontracting opportunities on the digital livestock exchange platform4 7#b7 ,eligible processors ,a meatpacker that is not an eligible processor may not participate in a digital livestock exchange platform1 including by posting subcontracting opportunities on the digital livestock exchange platform4 7g7 ,outreach ,the ,secretary shall conduct outreach through extension services regarding the availability and use of a digital livestock exchange platform4 7h7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out subsection 7b7 #b1jjj1jjj1 to remain available until expended4 4