§ 1621. — Congressional declaration of purpose; use of existing facilities; cooperation with States.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1621]
TITLE 7--AGRICULTURE
CHAPTER 38--DISTRIBUTION AND MARKETING OF AGRICULTURAL PRODUCTS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1621. Congressional declaration of purpose; use of existing
facilities; cooperation with States
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.
(Aug. 14, 1946, ch. 966, title II, Sec. 202, 60 Stat. 1087.)
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.
