[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 559 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 559
To make improvements with respect to the pricing of cattle in the
United States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 26, 2023
Mr. Johnson of South Dakota (for himself, Ms. Spanberger, Mr. Baird,
Mr. Gottheimer, Mr. Feenstra, Ms. Wexton, and Mr. Cuellar) introduced
the following bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To make improvements with respect to the pricing of cattle in the
United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Butcher Block Act''.
SEC. 2. ASSISTANCE FOR NEW AND EXPANDED LIVESTOCK OR MEAT PROCESSORS.
(a) In General.--The Secretary of Agriculture (in this section
referred to as the ``Secretary'') may make or guarantee a loan for the
purpose of--
(1) increasing capacity of livestock and poultry
processing, facilitating economic opportunity for livestock and
poultry producers through processing activities, and
diversifying processing ownership;
(2) increasing the customer base or revenue returns of
livestock and poultry producers through investment in
processing capacity;
(3) improving, developing, or financing livestock and
poultry processing capacity or employment including through the
financing of working capital; or
(4) promoting the interstate trade and local sales of
processed livestock and poultry by financing improvements to
meet relevant Federal, State, and local regulatory standards.
(b) Eligibility; General Limitations.--
(1) Eligible recipient.--An entity shall be eligible for a
loan or guarantee under this section if the entity is--
(A) a public, private, or cooperative organization
organized on a for-profit or nonprofit basis;
(B) an Indian tribe on a Federal or State
reservation, or any other federally recognized Indian
tribal group; or
(C) an individual.
(2) Facility location.--
(A) In general.--Except as provided in subparagraph
(B), a facility constructed, expanded, modified,
refurbished, or re-equipped with proceeds from a loan
made or guaranteed under this section shall be in a
rural area.
(B) Exception.--A facility constructed, expanded,
modified, refurbished, or re-equipped with proceeds
from a loan made or guaranteed under this section may
be in a non-rural area if--
(i) the primary use of the loan involved is
for the facility, and the facility will
increase the customer base or revenue returns
of livestock and poultry producers that are
located within 300 miles of the facility;
(ii) the loan involved will be used to
increase the capacity in livestock and poultry
processing in a region; and
(iii) the principal amount of the loan
involved does not exceed $50,000,000.
(C) Rural area defined.--In this paragraph, the
term ``rural area'' has the meaning given the term in
section 343(a)(13) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(13)).
(3) Limitations.--
(A) Limitation on amount of loan involved.--A loan
of more than $50,000,000 may not be made or guaranteed
under this section.
(B) Limitation on eligibility.--A loan may not be
made or guaranteed under this section to an entity that
is owned in partnership or in whole by--
(i) a foreign entity; or
(ii) an entity that currently processes
over 5 percent of the daily harvest of any
species.
(c) Special Rules Applicable With Respect to Cooperatives.--
(1) Limitation on amount of loan involved.--
(A) In general.--Notwithstanding subsection (b)(3),
a loan of not more than $100,000,000 may be made or
guaranteed for a cooperative organization under this
section.
(B) Conditions applicable if loan involved is for
more than $50,000,000.--A loan of more than $50,000,000
may not be made or guaranteed for a cooperative
organization under this section unless the loan is used
to carry out a project that significantly increases the
livestock and poultry processing in a region, where
insufficient processing capacity exists, as determined
by the Secretary.
(2) Intangible assets.--
(A) In general.--In determining whether a
cooperative organization is eligible for a loan or
guarantee under this section, the Secretary may
consider the market value of a properly appraised brand
name, patent, or trademark of the cooperative.
(B) Accounts receivable.--In the sole discretion of
the Secretary, if the Secretary determines that the
action would not create or otherwise contribute to an
unreasonable risk of default or loss to the Federal
Government, the Secretary may take accounts receivable
as security for the obligations entered into in
connection with a loan made or guaranteed under this
section, and a borrower may use accounts receivable as
collateral to secure such a loan.
(3) Purchase of cooperative stock.--
(A) In general.--The Secretary may make or
guarantee a loan in accordance with this section to an
individual farmer or rancher for the purpose of
purchasing capital stock of a farmer or rancher
cooperative undertaking an eligible project under this
section.
(B) Processing contracts during initial period.--A
cooperative described in subparagraph (A) with respect
to which a farmer or rancher receives a guarantee to
purchase stock under subparagraph (A) may contract for
services to fulfill any eligible purpose under this
section, during the 5-year period beginning on the date
the cooperative commences operations, in order to
provide adequate time for the planning and construction
of the processing facility of the cooperative.
(C) Financial information.--A farmer or rancher
from whom the Secretary requires financial information
as a condition of making or guaranteeing a loan under
subparagraph (A) shall provide the information in the
manner generally required by commercial agricultural
lenders in the geographical area in which the farmer or
rancher is located.
(d) Conditions Applicable With Respect to Using Loan Involved for
Refinancing.--A borrower may use 25 percent of a loan made or
guaranteed under this section to refinance a loan made for a purpose
described in subsection (a) if--
(1) the borrower is current and performing with respect to
the loan to be refinanced;
(2) the borrower has not defaulted on any payment required
to be made with respect to the loan to be refinanced;
(3) none of the collateral for the loan to be refinanced
has been converted; and
(4) there is adequate security or full collateral for the
loan to be refinanced.
(e) Loan Appraisal.--The Secretary may require that any appraisal
made in connection with a loan made or guaranteed under this section be
conducted by a specialized appraiser that uses standards that are
similar to standards used for similar purposes in the private sector,
as determined by the Secretary.
(f) Preference.--In making or guaranteeing a loan under this
section, the Secretary shall give a preference to applicants that have
experience in livestock and poultry processing and can quickly scale-up
to increase overall processing capacity in the region involved.
(g) Limitations on Authorization of Appropriations.--There is
authorized to be appropriated to carry out this section $100,000,000
for each of fiscal years 2024 through 2026.
SEC. 3. NEW AND EXPANDING LIVESTOCK OR MEAT PROCESSING GRANTS.
(a) In General.--The Secretary of Agriculture may make grants to--
(1) expand, diversify, and increase capacity in livestock
or poultry processing activities;
(2) improve compliance with livestock and poultry
processing statutes (including the regulations issued
thereunder), such as the Federal Meat Inspection Act (21 U.S.C.
601 et seq.) and the Poultry Products Inspection Act (21 U.S.C.
451 et seq.);
(3) identify and reduce barriers to entry for new livestock
and poultry processers; or
(4) update, expand, or otherwise improve existing
facilities.
(b) Eligible Grantees.--An entity shall be eligible for a grant
under this section if the entity is--
(1) a governmental entity;
(2) a public, private, or cooperative organization
organized on a for-profit or nonprofit basis; or
(3) an Indian tribe on a Federal or State reservation or
any other federally recognized Indian tribal group.
(c) Use of Funds.--An entity to which a grant is made under this
section may use the grant funds to establish or support new or expanded
livestock or poultry processing activity, or other activity which will
increase the customer base or revenue returns of livestock and poultry
producers, by undertaking a project that--
(1) identifies and analyzes business opportunities,
including feasibility studies as required for creditworthiness;
(2) identifies, trains, and provides technical assistance
to existing or prospective rural entrepreneurs and managers or
processing facilities;
(3) provides technical assistance to gain compliance with
Federal, State, or local regulations;
(4) conducts regional, community, and local economic
development planning and coordination, and leadership
development; or
(5) establishes a center for training, technology, and
trade that will provide training to livestock or poultry
processing employees.
(d) Preference.--In awarding grants under this section, the
Secretary shall give a preference to applicants that have experience in
livestock and poultry processing and can quickly scale-up to increase
overall processing capacity in the region involved.
(e) Limitations on Authorization of Appropriations.--There is
authorized to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2024 through 2026.
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