H.R. 8960: Local Beef Marketing Incentive Act of 2026

This bill, known as the Local Beef Marketing Incentive Act of 2026, aims to support beef producers who sell their products directly to consumers, restaurants, or retail stores. Here are the main components of the legislation:

Establishment of a Subsidy Program

The bill requires the Secretary of Agriculture to create a subsidy program to assist eligible beef producers facing revenue losses from direct-to-market sales. This program must be established within one year of the bill's enactment.

Determination of Subsidy Years

The Secretary will evaluate the direct-to-market sales of beef each year. If the sales in a given year decrease by 25% or more compared to the average sales of the previous five years (excluding the highest and lowest years), that year will be classified as a subsidy year.

Application Process

Producers who wish to receive subsidies must apply within a year after the subsidy year ends. Their application must include:

• Proof that they used a local processor for their beef.
• Documentation of direct-to-market sales during the subsidy year.
• A certification confirming that they meet all eligibility criteria.

Payment Structure

Eligible producers will receive payments based on their sales of cattle processed at local facilities during the subsidy year. The payment will be calculated as follows:

• 20% of the difference between the average beef cattle price for the previous five years (excluding the highest and lowest) and the current year's price, multiplied by the average live weight of the cattle sold.

Payments are capped at:

• $500 per head of cattle for which a claim is made.
• A total of $100,000 per producer in any subsidy year.

Rules and Regulations

The Secretary of Agriculture is required to establish rules within 180 days after the bill's enactment. These rules will outline procedures for verifying producer eligibility and measures to prevent fraud.

Funding Authorization

The bill authorizes necessary appropriations for the program for the fiscal years 2027 through 2031.

Definitions

A few key terms are defined in the bill:

• Beef cattle price: The average price received by producers for all beef cattle.
• Direct-to-market sale: Sales that occur directly to consumers or through local channels without intermediaries.
• Eligible producer: A farmer or rancher who raises cattle, uses a local processor, and engages in direct-to-market sales for at least 50% of their beef production.
• Local processor: A slaughter facility located within the same state or within 200 miles of the producer.

Relevant Companies

None found