H.R. 4529: Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act

This bill, known as the Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act, aims to enhance market access for Black farmers and other socially disadvantaged farmers and ranchers. The bill includes several key components focused primarily on providing grants to develop and improve food hubs, which are businesses that manage the aggregation, distribution, and marketing of agricultural food products.

Grants for Food Hubs

The bill proposes the establishment of a competitive grant program overseen by the Secretary of Agriculture. Eligible entities, which must consist of at least half members from socially disadvantaged groups, can apply for these grants to:

• Purchase land, buildings, and infrastructure for food hub operations.
• Construct or equip facilities for processing and marketing agricultural products.
• Buy machinery and equipment necessary for food hub functions.
• Cover general operational expenses related to the food hub.
• Provide marketing services, including electronic sales platforms.
• Engage in other activities related to the food hub’s development as approved by the Secretary.

Prioritization in USDA Programs

The Secretary is required to set up a procurement process prioritizing the purchase of agricultural food products from socially disadvantaged farmers and ranchers for USDA food assistance programs. This process aims to acknowledge and reduce barriers these farmers may face in market entry.

Civil Rights Accountability

The bill establishes a framework for holding USDA employees accountable for discriminatory practices and civil rights violations. It outlines corrective actions to be taken against employees found to have engaged in misconduct while administering USDA programs.

Creation of the Office of Civil Rights Ombudsperson

The bill mandates the establishment of an independent Office of the Civil Rights Ombudsperson within the Department of Agriculture. This office will assist clients in navigating the civil rights process and will be responsible for promoting awareness of civil rights issues in USDA programs.

Tax Credit for Food Hub Expenses

The bill introduces a tax credit available to entities that incur expenses for purchasing agricultural food products from food hubs developed under this legislation. The credit will cover 25% of qualified food hub expenses incurred during the taxable year.

Grant Program Funding

The bill authorizes a budget of $100 million for the fiscal year 2026 to support the food hub grant program, aimed at increasing market access for socially disadvantaged farmers and ranchers.

Reports and Oversight

The Secretary of Agriculture is required to publish annual reports detailing the status of grants awarded, participation rates, production levels of products from socially disadvantaged farmers, and the amount of donated food purchased from supported food hubs.

Equitable Relief and Transparency in Decision-Making

The bill includes provisions for granting equitable relief to those who have been adversely affected by prior USDA decisions or actions and stipulates that the Secretary should provide transparency in these processes.

Implementation Timeline

Most provisions in this bill will take effect after certain deadlines set within the text, with some requiring actions from the Secretary of Agriculture within specific time frames following the bill's enactment.

Relevant Companies

None found.