VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.(a) Definitions.—Section 231 of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is amended by striking subsection (a) and inserting the following:“(a) Definitions.—In this section:“(1) Beginning farmer or rancher.—The term ‘beginning farmer or rancher’ has the meaning given the term in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).“(2) Family farm.—The term ‘family farm’ has the meaning given the term in section 761.2 of title 7, Code of Federal Regulations (as in effect on December 30, 2007).“(3) Mid-tier value chain.—The term ‘mid-tier value chain’ means local and regional supply networks that link independent producers with businesses and cooperatives that market value-added agricultural products in a manner that—“(A) targets and strengthens the profitability and competitiveness of small and medium-sized farms and ranches that are structured as a family farm; and“(B) obtains agreement from an eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture that is engaged in the value chain on a marketing strategy.“(4) Socially disadvantaged farmer or rancher.—The term ‘socially disadvantaged farmer or rancher’ has the meaning given the term in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)).“(5) Value-added agricultural product.—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;“(iii) is physically segregated in a manner that results in the enhancement of the value of the agricultural commodity or product;“(iv) is a source of farm- or ranch-based renewable energy, including E–85 fuel; or“(v) is aggregated and marketed as a locally-produced agricultural food product; and“(B) as a result of the change in physical state or the manner in which the agricultural commodity or product was produced, marketed, or segregated—“(i) the customer base for the agricultural commodity or product is expanded; and“(ii) a greater portion of the revenue derived from the marketing, processing, or physical segregation of the 122 STAT. 1207 agricultural commodity or product is available to the producer of the commodity or product.”.(b) Grant Program.—Section 231(b) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is amended—(1) in paragraph (1), by striking “paragraph (4)” and inserting “paragraph (7)”; and(2) by striking paragraph (4) and inserting the following:“(4) Term.—A grant under this subsection shall have a term that does not exceed 3 years.“(5) Simplified application.—The Secretary shall offer a simplified application form and process for project proposals requesting less than $50,000.“(6) Priority.—In awarding grants under this subsection, the Secretary shall give priority to projects that contribute to increasing opportunities for—“(A) beginning farmers or ranchers;“(B) socially disadvantaged farmers or ranchers; and“(C) operators of small- and medium-sized farms and ranches that are structured as a family farm.“(7) Funding.—“(A) Mandatory funding.—On October 1, 2008, of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection $15,000,000, to remain available until expended.“(B) Discretionary funding.—There is authorized to be appropriated to carry out this subsection $40,000,000 for each of fiscal years 2008 through 2012.“(C) Reservation of funds for projects to benefit beginning farmers or ranchers, socially disadvantaged farmers or ranchers, and mid-tier value chains.—“(i) In general.—The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this paragraph to fund projects that benefit beginning farmers or ranchers or socially disadvantaged farmers or ranchers.“(ii) Mid-tier value chains.—The Secretary shall reserve 10 percent of the amounts made available for each fiscal year under this paragraph to fund applications of eligible entities described in paragraph (1) that propose to develop mid-tier value chains.“(iii) Unobligated amounts.—Any amounts in the reserves for a fiscal year established under clauses (i) and (ii) that are not obligated by June 30 of the fiscal year shall be available to the Secretary to make grants under this subsection to eligible entities in any State, as determined by the Secretary.”.