H.R. 5097: To amend the Agricultural Marketing Act of 1946 to direct the Secretary of Agriculture to establish a program under which the Secretary will award grants to specialty crop producers to acquire certain equipment and provide training with respect to the use of such equipment.

This bill proposes to amend the Agricultural Marketing Act of 1946 by creating a new program designed to support specialty crop producers in the United States. The main objectives of the program include:

Grant Program

The bill mandates the Secretary of Agriculture to establish a grant program aimed at enhancing the competitiveness of specialty crop producers. Under this program, eligible entities will be able to apply for and receive grants to help them:

• Acquire mechanized or automated systems and tools that improve task efficiency or reduce the need for human labor.
• Provide training and professional services for effectively utilizing these systems and tools.

Use of Funds

Entities that receive grants must use the funds for:

• Purchasing equipment or systems that are mechanized or automated, as determined by the Secretary of Agriculture.
• Offering training to workers and others on how to properly use and manage these systems and tools.

Grant Amounts

The bill specifies that the Secretary should ensure grants are substantial enough to cover a significant portion of the costs incurred by the grantee for the activities mentioned above. This means the grants should be impactful in helping the producers transition to more mechanized operations.

Matching Funds Requirement

Recipients of the grants will be required to provide non-federal matching funds equal to at least 50% of the grant amount they receive. This requirement is likely intended to encourage investment from the producers themselves, ensuring they have a stake in the projects being funded.

Definitions

The bill includes definitions for key terms used in the program:

• Mechanized or automated systems and tools: This includes a wide range of equipment such as:
  • Low dust harvesting equipment
  • Grinding and chipping tools
  • Sorting machines
  • Phytosanitary tools
  • Traceability equipment
  • Drones for agricultural monitoring
  • Robotics and autonomous systems
  • Precision irrigation and pest detection tools
• Eligible entity: This refers to individuals or businesses involved in the commercial production of specialty crops in the United States.

The overall aim of the bill is to foster technological advancement and improve the efficiency of agricultural practices among specialty crop producers, potentially leading to greater productivity and market competitiveness.

Relevant Companies

• DE (Deere & Company) - Likely impacted through sales of agricultural machinery and technology.
• AGCO - Produces equipment for farming, which may see increased demand due to grants for mechanization.
• CAT (Caterpillar Inc.) - Might experience increased sales of industrial machines and technology related to automation in agriculture.