7 USC 1621 - Sec. 1621. Congressional declaration of purpose; use of existing facilities; cooperation with States

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The Congress declares that a sound, efficient, and privately operated system for distributing and marketing agricultural products is essential to a prosperous agriculture and is indispensable to the maintenance of full employment and to the welfare, prosperity, and health of the Nation.

It is further declared to be the policy of Congress to promote through research, study, experimentation, and through cooperation among Federal and State agencies, farm organizations, and private industry a scientific approach to the problems of marketing, transportation, and distribution of agricultural products similar to the scientific methods which have been utilized so successfully during the past eighty-four years in connection with the production of agricultural products so that such products capable of being produced in abundance may be marketed in an orderly manner and efficiently distributed.

In order to attain these objectives, it is the intent of Congress to provide for (1) continuous research to improve the marketing, handling, storage, processing, transportation, and distribution of agricultural products; (2) cooperation among Federal and State agencies, producers, industry organizations, and others in the development and effectuation of research and marketing programs to improve the distribution processes; (3) an integrated administration of all laws enacted by Congress to aid the distribution of agricultural products through research, market aids and services, and regulatory activities, to the end that marketing methods and facilities may be improved, that distribution costs may be reduced and the price spread between the producer and consumer may be narrowed, that dietary and nutritional standards may be improved, that new and wider markets for American agricultural products may be developed, both in the United States and in other countries, with a view to making it possible for the full production of American farms to be disposed of usefully, economically, profitably, and in an orderly manner.

In effectuating the purposes of this chapter, maximum use shall be made of existing research facilities owned or controlled by the Federal Government or by State agricultural experiment stations and of the facilities of the Federal and State extension services.

To the maximum extent practicable marketing research work done under this chapter in cooperation with the States shall be done in cooperation with the State agricultural experiment stations; marketing educational and demonstrational work done under this chapter in cooperation with the States shall be done in cooperation with the State agricultural extension service; market information, inspection, regulatory work and other marketing service done under this chapter in cooperation with the State agencies shall be done in cooperation with the State departments of agriculture, and State bureaus and departments of markets.

Short Title Of 2000 Amendment

Pub. L. 106-532, Sec. 1, Nov. 22, 2000, 114 Stat. 2541, provided that: "This Act [enacting subchapter III of this chapter] may be cited as the 'Dairy Market Enhancement Act of 2000'." SHORT TITLE Section 201 of title II of act Aug. 14, 1946, provided that: "This title [enacting this chapter] may be cited as the 'Agricultural Marketing Act of 1946'."

Transfer Of Functions

Functions of all officers, agencies, and employees of Department of Agriculture transferred, with certain exceptions, to Secretary of Agriculture by 1953 Reorg.

Plan No. 2, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this title.

Agriculture Innovation Center Demonstration Program

Pub. L. 107-171, title VI, Sec. 6402, May 13, 2002, 116 Stat. 426, provided that: "(a) Purpose. - The purpose of this section is to direct the Secretary of Agriculture to establish a demonstration program under which agricultural producers are provided - "(1) technical assistance, consisting of engineering services, applied research, scale production, and similar services, to enable the agricultural producers to establish businesses to produce value-added agricultural commodities or products; "(2) assistance in marketing, market development, and business planning; and "(3) organizational, outreach, and development assistance to increase the viability, growth, and sustainability of businesses that produce value-added agricultural commodities or products. "(b) Definitions. - In this section: "(1) Program. - The term 'Program' means the Agriculture Innovation Center Demonstration Program established under subsection (c). "(2) Secretary. - The term 'Secretary' means the Secretary of Agriculture. "(c) Establishment of Program. - The Secretary shall establish a demonstration program, to be known as the 'Agriculture Innovation Center Demonstration Program' under which the Secretary shall - "(1) make grants to assist eligible entities in establishing Agriculture Innovation Centers to enable agricultural producers to obtain the assistance described in subsection (a); and "(2) provide assistance to eligible entities in establishing Agriculture Innovation Centers through the research and technical services of the Department of Agriculture. "(d) Eligibility Requirements. - "(1) In general. - An entity shall be eligible for a grant and assistance described in subsection (c) to establish an Agriculture Innovation Center if - "(A) the entity - "(i) has provided services similar to the services described in subsection (a); or "(ii) demonstrates the capability of providing such services; "(B) the application of the entity for the grant and assistance includes a plan, in accordance with regulations promulgated by the Secretary, that outlines - "(i) the support for the entity in the agricultural community; "(ii) the technical and other expertise of the entity; and "(iii) the goals of the entity for increasing and improving the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; "(C) the entity demonstrates that adequate resources (in cash or in kind) are available, or have been committed to be made available, to the entity, to increase and improve the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; and "(D) the Agriculture Innovation Center of the entity has a board of directors established in accordance with paragraph (2). "(2) Board of directors. - Each Agriculture Innovation Center of an eligible entity shall have a board of directors composed of representatives of each of the following groups: "(A) The 2 general agricultural organizations with the greatest number of members in the State in which the eligible entity is located. "(B) The department of agriculture, or similar State department or agency, of the State in which the eligible entity is located. "(C) Entities representing the 4 highest grossing commodities produced in the State, determined on the basis of annual gross cash sales. "(e) Grants and Assistance. - "(1) In general. - Subject to subsection (i), under the Program, the Secretary shall make, on a competitive basis, annual grants to eligible entities. "(2) Maximum amount of grants. - A grant under paragraph (1) shall be in an amount that does not exceed the lesser of - "(A) $1,000,000; or "(B) twice the dollar amount of the resources (in cash or in kind) that the eligible entity demonstrates are available, or have been committed to be made available, to the eligible entity in accordance with subsection (d)(1)(C). "(3) Maximum number of grants. - "(A) First fiscal year of program. - In the first fiscal year of the Program, the Secretary shall make grants to not more than 5 eligible entities. "(B) Second fiscal year of program. - In the second fiscal year of the Program, the Secretary may make grants to - "(i) the eligible entities to which grants were made under subparagraph (A); and "(ii) not more than 10 additional eligible entities. "(4) State limitation. - "(A) In general. - Subject to subparagraph (B), in the first 3 fiscal years of the Program, the Secretary shall not make a grant under the Program to more than 1 entity in any 1 State. "(B) Collaboration. - Nothing in subparagraph (A) precludes a recipient of a grant under the Program from collaborating with any other institution with respect to activities conducted using the grant. "(f) Use of Funds. - An eligible entity to which a grant is made under the Program may use the grant only for the following purposes (but only to the extent that the use is not described in section 231(d) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224)): "(1) Applied research. "(2) Consulting services. "(3) Hiring of employees, at the discretion of the board of directors of the Agriculture Innovation Center of the eligible entity. "(4) The making of matching grants, each of which shall be in an amount not to exceed $5,000, to agricultural producers, except that the aggregate amount of all such matching grants made by the eligible entity shall be not more than $50,000. "(5) Legal services. "(6) Any other related cost, as determined by the Secretary. "(g) Research on Effects on the Agricultural Sector. - "(1) In general. - Of the amount made available under subsection (i) for each fiscal year, the Secretary shall use $300,000 to support research at a university concerning the effects of projects for value-added agricultural commodities or products on agricultural producers and the commodity markets. "(2) Research elements. - Research under paragraph (1) shall systematically examine, using linked, long-term, global projections of the agricultural sector, the potential effects of projects described in subparagraph (A) on - "(A) demand for agricultural commodities; "(B) market prices; "(C) farm income; and "(D) Federal outlays on commodity programs. "(h) Report to Congress. - "(1) In general. - Not later than 3 years after the date on which the last of the first 10 grants is made under the Program, 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 on - "(A) the effectiveness of the Program in improving and expanding the production of value-added agricultural commodities or products; and "(B) the effects of the Program on the economic viability of agricultural producers. "(2) Required elements. - The report under paragraph (1) shall - "(A) include a description of the best practices and innovations found at each of the Agriculture Innovation Centers established under the Program; and "(B) specify the number and type of activities assisted, and the type of assistance provided, under the Program. "(i) Funding. - Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) for each fiscal year, the Secretary shall use to carry out this section - "(1) not less than $3,000,000 for fiscal year 2002; and "(2) not less than $6,000,000 for each of fiscal years 2003 and 2004." VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS Pub. L. 106-224, title II, Sec. 231, June 20, 2000, 114 Stat. 409; as amended by Pub. L. 107-171, title VI, Sec. 6401(a), May 13, 2002, 116 Stat. 424, provided that: "(a) Definition of Value-Added Agricultural Product. - "(1) In general. - The term 'value-added agricultural product' means any agricultural commodity or product that - "(A)(i) has undergone a change in physical state; "(ii) was produced in a manner that enhances the value of the agricultural commodity or product, as demonstrated through a business plan that shows the enhanced value, as determined by the Secretary; or "(iii) is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product; and "(B) as a result of the change in physical state or the manner in which the agricultural commodity or product was produced or segregated - "(i) the customer base for the agricultural commodity or product has been expanded; and "(ii) a greater portion of the revenue derived from the marketing, processing, or physical segregation of the agricultural commodity or product is available to the producer of the commodity or product. "(2) Inclusion. - The term 'value-added agricultural product' includes farm- or ranch-based renewable energy. "(b) Grant Program. - "(1) In general. - From amounts made available under paragraph (4), the Secretary shall award competitive grants - "(A) to an eligible independent producer (as determined by the Secretary) of a value-added agricultural product to assist the producer - "(i) in developing a business plan for viable marketing opportunities for the value-added agricultural product; or "(ii) in developing strategies that are intended to create marketing opportunities for the producer; and "(B) to an eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture (as determined by the Secretary) to assist the entity - "(i) in developing a business plan for viable marketing opportunities in emerging markets for a value-added agricultural product; or "(ii) in developing strategies that are intended to create marketing opportunities in emerging markets for the value-added agricultural product. "(2) Amount of grant. - "(A) In general. - The total amount provided under this subsection to a grant recipient shall not exceed $500,000. "(B) Majority-controlled producer-based business ventures. - The amount of grants provided to majority-controlled producer-based business ventures under paragraph (1)(B) for a fiscal year may not exceed 10 percent of the amount of funds that are used to make grants for the fiscal year under this subsection. "(3) Grantee strategies. - A grantee under paragraph (1) shall use the grant - "(A) to develop a business plan or perform a feasibility study to establish a viable marketing opportunity for a value-added agricultural product; or "(B) to provide capital to establish alliances or business ventures that allow the producer of the value-added agricultural product to better compete in domestic or international markets. "(4) Funding. - Not later than 30 days after the date of enactment of this paragraph [May 13, 2002], on October 1, 2002, and on each October 1 thereafter through October 1, 2006, of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection $40,000,000, to remain available until expended. "(c) Agricultural Marketing Resource Center Pilot Project. - "(1) Establishment. - Notwithstanding the limitation on grants in subsection (b)(2), the Secretary shall not use more than 5 percent of the funds made available under subsection (b) to establish a pilot project (to be known as the 'Agricultural Marketing Resource Center') at an eligible institution described in paragraph (2) that will - "(A) develop a resource center with electronic capabilities to coordinate and provide to independent producers and processors (as determined by the Secretary) of value-added agricultural commodities and products of agricultural commodities information regarding research, business, legal, financial, or logistical assistance; and "(B) develop a strategy to establish a nationwide market information and coordination system. "(2) Eligible institution. - To be eligible to receive funding to establish the Agricultural Marketing Resource Center, an applicant shall demonstrate to the Secretary - "(A) the capacity and technical expertise to provide the services described in paragraph (1)(A); "(B) an established plan outlining support of the applicant in the agricultural community; and "(C) the availability of resources (in cash or in kind) of definite value to sustain the Center following establishment. "(d) Matching Funds. - A recipient of funds under subsection (a) or (b) shall contribute an amount of non-Federal funds that is at least equal to the amount of Federal funds received. "(e) Limitation. - Funds provided under this section may not be used for - "(1) planning, repair, rehabilitation, acquisition, or construction of a building or facility (including a processing facility); or "(2) the purchase, rental, or installation of fixed equipment." [Pub. L. 107-171, title VI, Sec. 6401(b), May 13, 2002, 116 Stat. 426, provided that: ["(1) In general. - Except as provided in paragraph (2), the amendments made by subsection (a) [amending section 231 of Pub. L. 106-224, set out above] apply beginning on October 1, 2002. ["(2) Funding. - Funds made available under section 231(b)(4)(A)(i) of the Agricultural Risk Protection Act of 2000 [Pub. L. 106-224] (as amended by subsection (a)(2)) shall be made available not later than 30 days after the date of enactment of this Act [May 13, 2002]."] [Pub. L. 107-171, Sec. 6401(a)(4), which directed amendment of section 231(d) of Pub. L. 106-224, as redesignated, set out above, by substituting "subsections (b) and (c)" for "subsections (a) and (b)", could not be executed because that phrase does not appear.] NATIONAL COMMISSION ON FOOD MARKETING Pub. L. 88-354, July 3, 1964, 78 Stat. 269, as amended by Pub. L. 89-20, May 15, 1965, 79 Stat. 111, provided for the establishment of a bipartisan National Commission on Food Marketing composed of fifteen members, five from the Senate, five from the House of Representatives and five from outside the Federal Government, to study and appraise the marketing structure of the food industry and to make a final report of its findings and conclusions to the President and to the Congress by July 1, 1966. The Commission ceased to exist ninety days after submission of its final report.