Section 1 Short title
This Act may be cited as the “Butcher Block Act of 2023”.
Butcher Block Act of 2023
A BILL
To require the Secretary of Agriculture to establish a program to provide loans and loan guarantees to assist new and expanded meat processors and renderers, and for other purposes.
Sec. 2 Assistance for new and expanded meat processors and renderers
Definitions— In this section:
Covered facility— The term covered facility means a facility—
for which a loan or loan guarantee is provided to an eligible entity under the program; and
that is—
a meat processing establishment that employs fewer than 500 employees; or
a rendering facility establishment that employs fewer than 200 employees.
Eligible entity—
In general— The term eligible entity means—
a public, private, or cooperative organization organized on a for-profit or nonprofit basis;
an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); and
an individual farmer, rancher, or business owner.
Exclusions— The term eligible entity does not include—
an entity described in subparagraph (A)(i) that is partly or wholly owned by a foreign entity; or
an entity that has processed an average of not less than 5 percent of the beef, pork, chicken, or turkey processed nationally during the immediately preceding 5 calendar years.
Meat— The term “meat” includes poultry.
Program— The term program means the program established under subsection (b).
Rural area— The term rural area has the meaning given the term in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).
Secretary— The term Secretary means the Secretary of Agriculture.
Establishment— The Secretary shall establish a program under which the Secretary shall provide loans and loan guarantees to eligible entities to use in accordance with subsection (f).
Program purposes— The purposes of the program are—
to increase capacity of meat processing and rendering;
to diversify meat processing and rendering ownership;
to bolster local and regional food security through increased meat processing and rendering capacity; and
to improve, develop, or finance meat processing and rendering capacity or employment, including through the financing of working capital.
Maximum amount— Except as provided in subsection (g)(1), the amount of a loan or loan guarantee provided under the program shall not exceed $50,000,000.
Priority— In providing a loan or loan guarantee under the program, the Secretary shall give priority to eligible entities that—
are able to increase overall meat processing or rendering capacity in the region involved, as determined by the Secretary; and
are located in a rural area.
Use of loans and loan guarantees— An eligible entity that receives a loan or loan guarantee under the program shall use that loan or loan guarantee, as applicable, to construct, expand, modify, refurbish, or re-equip a covered facility described in clause (i) or (ii) of subsection (a)(1)(B).
Special rules for cooperatives—
Amount of loan or loan guarantee— The Secretary may provide a loan or loan guarantee of not more than $100,000,000 to an eligible entity described in subsection (a)(2)(A)(i) if the loan involved is used to carry out a project that significantly increases meat processing or rendering in the State or region—
in which the applicable covered facility is or will be located; and
that has insufficient processing or rendering capacity, as determined by the Secretary.
Accounts receivable— In the case of a loan or loan guarantee provided to an eligible entity described in subsection (a)(2)(A)(i), the Secretary may take accounts receivable as security for the obligations entered into in connection with the loan or loan guarantee, and the eligible entity may use accounts receivable as collateral to secure the loan or loan guarantee, if the Secretary determines that such actions would not create or otherwise contribute to an unreasonable risk of default or loss to the Federal Government.
Conditions applicable with respect to using loan involved for refinancing— An eligible entity receiving a loan or loan guarantee under the program may use not more than 25 percent of the involved loan to refinance a loan obtained for carrying out an activity described in subsection (f) if—
the eligible entity is current and performing with respect to the loan to be refinanced;
the eligible entity has not defaulted on any payment required to be made with respect to the loan to be refinanced;
none of the collateral for the loan to be refinanced has been converted; and
there is adequate security or full collateral for the loan to be refinanced.
Conditions relating to carcasses— An eligible entity receiving a loan or loan guarantee under the program—
shall accept all carcasses allowed under Federal law; and
shall not limit the size or type of producers from which the eligible entity procures carcasses.
Appraisal— The Secretary may require that any appraisal made in connection with a loan or loan guarantee provided under the program 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.
Authorization of appropriations— There is authorized to be appropriated to the Secretary to carry out this section $100,000,000 for each of fiscal years 2024 through 2029.
Sec. 3 New, mobile, and expanded meat processing and rendering grants
Definitions— In this section:
Eligible entity— The term “eligible entity” means—
a governmental entity;
a public, private, or cooperative organization organized on a for-profit or nonprofit basis;
an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); and
an institution of higher education.
Meat— The term “meat” includes poultry.
Secretary— The term Secretary means the Secretary of Agriculture.
Grants— The Secretary shall make grants to eligible entities to use in accordance with subsection (d).
Purposes— The purposes of this section are—
to create more resilient local and regional food systems;
to expand, diversify, and increase resilience in meat processing and rendering activities;
to improve compliance of meat processors with livestock and poultry processing statutes (including regulations), including 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.);
to reduce barriers to entry for new meat processors and renderers; and
to update, expand, or otherwise improve existing meat processing and rendering facilities.
Use of funds— An eligible entity receiving a grant under this section may use the grant to establish or support new, innovative, or expanded meat processing or rendering activities, or other activities that will increase the customer base or revenue returns of livestock and poultry producers, including by undertaking projects—
to identify and analyze business opportunities, including feasibility studies required for creditworthiness;
to identify, train, and provide technical assistance to existing or prospective entrepreneurs and managers or processing or rendering facilities;
to achieve compliance with applicable Federal, State, or local regulations;
to conduct regional, community, and local economic development planning and coordination and leadership development;
to establish a center for training, technology, and trade that will provide training to meat processing and rendering employees; and
to incentivize new, innovative, or mobile enterprises to increase or improve local and regional meat processing and rendering.
Conditions relating to carcasses— An eligible entity receiving a grant under this section—
shall accept all carcasses allowed under Federal law; and
shall not limit the size or type of producers from which the eligible entity procures carcasses.
Authorization of appropriations— There is authorized to be appropriated to the Secretary to carry out this section $25,000,000 for each of fiscal years 2024 through 2029.