LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.

SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS. Section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended by adding at the end the following:“(9) Locally or regionally produced agricultural food products.—“(A) Definitions.—In this paragraph:“(i) Locally or regionally produced agricultural food product.—The term ‘locally or regionally produced agricultural food product’ means any agricultural food product that is raised, produced, and distributed in—“(I) the locality or region in which the final product is marketed, so that the total distance that the product is transported is less than 400 miles from the origin of the product; or“(II) the State in which the product is produced.“(ii) Underserved community.—The term ‘underserved community’ means a community (including an urban or rural community and an Indian tribal community) that has, as determined by the Secretary—“(I) limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets; and“(II) a high rate of hunger or food insecurity or a high poverty rate.“(B) Loan and loan guarantee program.—“(i) In general.—The Secretary shall make or guarantee loans to individuals, cooperatives, cooperative organizations, businesses, and other entities to establish and facilitate enterprises that process, distribute, aggregate, store, and market locally or regionally produced agricultural food products to support community development and farm and ranch income.“(ii) Requirement.—The recipient of a loan or loan guarantee under clause (i) shall include in an appropriate agreement with retail and institutional facilities to which the recipient sells locally or regionally produced agricultural food products a requirement to inform consumers of the retail or institutional facilities that the consumers are purchasing or consuming 122 STAT. 1930 locally or regionally produced agricultural food products.“(iii) Priority.—In making or guaranteeing a loan under clause (i), the Secretary shall give priority to projects that have components benefitting underserved communities.“(iv) Reports.—Not later than 2 years after the date of enactment of this paragraph and annually thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes projects carried out using loans or loan guarantees made under clause (i), including—“(I) the characteristics of the communities served; and“(II) resulting benefits.“(v) Reservation of funds.—“(I) In general.—For each of fiscal years 2008 through 2012, the Secretary shall reserve not less than 5 percent of the funds made available to carry out this subsection to carry out this subparagraph.“(II) Availability of funds.—Funds reserved under subclause (I) for a fiscal year shall be reserved until April 1 of the fiscal year.”.