H.R. 4979

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4979 Introduced in House (IH)]

<DOC>

118th CONGRESS
1st Session
H. R. 4979

To regulate market concentration and competition in the food and 
agriculture industry, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 27, 2023

Mr. Casar (for himself, Mr. Blumenauer, Ms. Adams, Mr. Bowman, Ms. 
Budzinski, Ms. Bush, Mr. Deluzio, Mr. Doggett, Mr. Frost, Mr. 
Garamendi, Mr. Garcia of Illinois, Ms. Jackson Lee, Ms. Jayapal, Mr. 
Johnson of Georgia, Mr. McGovern, Ms. Sanchez, Mr. Thanedar, Ms. Tlaib, 
and Mr. Vargas) introduced the following bill; which was referred to 
the Committee on Agriculture, and in addition to the Committee on the 
Judiciary, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the 
jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To regulate market concentration and competition in the food and 
agriculture industry, 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; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Fairness for 
Small-Scale Farmers and Ranchers Act''.
(b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--MORATORIUM ON AND REVIEW OF LARGE AGRIBUSINESS, FOOD AND 
BEVERAGE MANUFACTURING, AND GROCERY RETAIL MERGERS

Sec. 101. Moratorium on large agribusiness, food and beverage 
manufacturing, and grocery retail mergers.
Sec. 102. Retroactive review of large agribusiness, food and beverage 
manufacturing, and grocery retail mergers.
TITLE II--FARM SYSTEM REFORMS

Sec. 201. Local agriculture market program.
Sec. 202. Restoration of mandatory country of origin labeling for beef 
and pork; inclusion of dairy products.
Sec. 203. Definitions in Packers and Stockyards Act, 1921.
Sec. 204. Unlawful practices.
Sec. 205. Spot market purchases of livestock by packers.
Sec. 206. Investigation of live poultry dealers.
Sec. 207. Ensuring fair practices in agriculture.
Sec. 208. Award of attorney fees.
Sec. 209. Review and report on fragility and national security in the 
food system.
Sec. 210. Technical amendments.
TITLE III--PROVIDING RESOURCES FOR BEGINNING, RETIRING, AND SOCIALLY 
DISADVANTAGED FARMERS AND RANCHERS

Sec. 301. Reauthorization and increased funding for beginning, 
retiring, and socially disadvantaged 
farmers and ranchers.
TITLE IV--LIVESTOCK, DAIRY, AND POULTRY SUPPLY CHAIN INFRASTRUCTURE

Sec. 401. Livestock, dairy, and poultry supply chain infrastructure 
grants and loans.
Sec. 402. Pilot program for increased accessibility to inspection and 
technical assistance for eligible 
processing facilities.

SEC. 2. FINDINGS.

Congress finds the following:
(1) Concentration in the food and agricultural economy, 
including mergers, acquisitions, and other combinations and 
alliances among suppliers, packers, integrators, other food 
processors, distributors, and retailers has been accelerating 
at a rapid pace since the 1980s, and particularly since the 
2007 through 2009 recession.
(2) The trend toward greater concentration in food and 
agriculture has important and far reaching implications not 
only for family farmers, but also for food chain workers, the 
food we eat, the communities we live in, the integrity of the 
natural environment upon which we all depend, and for our 
collective public health.
(3) The infant formula industry, for example, has reached 
an alarming level of corporate concentration with 4 companies 
now controlling nearly 90 percent of the infant formula market. 
A disruption in the supply of just 1 infant formula producer 
now presents a grave risk to infant health in the United 
States.
(4) In the past 4 decades, the top 4 largest pork packers 
have seized control of 70 percent of the market, up from 36 
percent. Over the same period, the top 4 beef packers have 
expanded their market share from 32 percent to 85 percent. The 
top 4 flour millers have increased their market share from 40 
percent to 64 percent. The market share of the top 4 soybean 
crushers has jumped from 54 percent to 79 percent, and the top 
4 wet corn processors control of the market has increased from 
63 percent to 86 percent.
(5) Today the top 4 sheep, poultry, and fluid milk 
processors now control 62 percent, 54 percent, and 50 percent 
of the market, respectively.
(6) The top 4 grain companies today control as much as 90 
percent of the global grain trade.
(7) During the past 5 years there has been a wave of 
consolidation among global seed and crop-chemical firms, 3 
companies now control nearly 2/3 of the world's commodity crop 
seeds. Those same 3 companies now also control nearly 70 
percent of all agricultural chemicals and pesticides.
(8) In the United States, the 4 largest corn seed sellers 
accounted for 85 percent of the market in 2015, up from 60 
percent in 2000. Over the past 20 years, the cost for an acre's 
worth of seeds for an average corn farmer has nearly 
quadrupled, and the cost of fertilizer has more than doubled. 
Yet corn yields increased only 36 percent over that time, and 
the price received for the sale of a bushel of corn increased 
only 31 percent.
(9) A handful of firms dominate the processing of every 
major commodity. Many of them are vertically integrated, which 
means that they control successive stages of the food chain, 
from inputs to production to distribution. The growing number 
and scale of cross-border agribusiness and food mergers have 
put foreign firms, often with considerable government backing, 
into prominent and even dominant positions in the United States 
beef, hog, poultry, seed, fertilizer, and agrichemical sectors.
(10) Growing concentration of the agricultural sector has 
restricted choices for farmers trying to sell their products. 
As the bargaining power of agribusiness firms over farmers 
increases, concentrated agricultural commodity markets are 
stacked against the farmer, with buyers of agricultural 
commodities often possessing regional dominance in the form of 
oligopsony or monopsony relative to sellers of such 
commodities.
(11) The high concentration and consolidation of buyers in 
agricultural markets has resulted in the thinning of both cash 
and future markets, thereby allowing dominant buyers to 
leverage their market shares to move those markets to the 
detriment of family farmers and ranchers.
(12) Buyers with oligopsonistic or monopsonistic power have 
incentives to engage in unfair and discriminatory acts that 
cause farmers to receive less than a competitive price for 
their goods. At the same time, some Federal courts have 
incorrectly required a plaintiff to show harm to competition 
generally, in addition to harm to the individual farmer, when 
making a determination that an unfair, unjustly discriminatory, 
deceptive, or preferential act exists under the Packers and 
Stockyards Act of 1921.
(13) The farmer's share of every retail dollar has 
plummeted from 41 percent in 1950, to less than 15 percent 
today, while the profit share for farm input, marketing, and 
processing companies has risen.
(14) While agribusiness conglomerates are posting record 
earnings, farmers are facing desperate times. Since 2013, net 
farm income for United States farmers has fallen by more than 
half and median on farm income was negative in 2020.
(15) The benefits of low commodity prices are not being 
passed on to American consumers. The gap between what shoppers 
pay for food and what farmers are paid is growing wider.
(16) The steadily rising price of food has outpaced growth 
in incomes for typical workers. Since the Great Recession, the 
annual growth of real prices for food at the supermarket have 
risen nearly 3 times faster than typical earnings.
(17) There is a growing consensus that economic 
consolidation contributes to the widening gap in economic 
opportunity in the United States and bigger, more dominant 
firms are more likely to deliver profits to investors than to 
raise wages or benefits. Mega-mergers in the food and 
agribusiness industries can lead to growing monopsony power 
abuse resulting in wage suppression, along with massive layoffs 
as companies shutter factories and facilities, harming working 
families and communities.
(18) Concentration, low prices, anticompetitive practices, 
and other manipulations and abuses of the agricultural economy 
are driving small family farmers out of business. Farmers are 
going bankrupt or giving up, and few are taking their places; 
more farm families are having to rely on other jobs to stay 
afloat. Seventy-nine percent of farm household income came from 
off farm work in 2020, up from 53 percent in 1960.
(19) Eighty-one percent of America's farmed cropland is now 
controlled by 15 percent of farms, and the number of farmers 
leaving the land will continue to increase unless and until 
these trends are reversed.
(20) The decline of small family farms undermines the 
economies of rural communities across America; it has pushed 
Main Street businesses, from equipment suppliers to small 
banks, out of business or to the brink of insolvency.
(21) Increased concentration in the agribusiness sector has 
a harmful effect on the environment; corporate hog farming, for 
example, threatens the integrity of local water supplies and 
creates noxious odors in neighboring communities. Concentration 
also can increase the risks to food safety and limit the 
biodiversity of plants and animals.
(22) The decline of family farming poses a direct threat to 
American families and family values, by subjecting farm 
families to turmoil and stress. Farm advocates across the 
country are reporting an increase in farmer suicides over the 
past several years.
(23) The decline of family farming causes the demise of 
rural communities, as stores lose customers, churches lose 
congregations, schools and clinics become under-used, career 
opportunities for young people dry up, and local inequalities 
of wealth and income grow wider.
(24) These developments are not the result of inevitable 
market forces. Its problems arise rather from policies made in 
Washington, including farm, antitrust, and trade policies.
(25) Past congressional action to remediate market failure, 
such as enacting country-of-origin labeling to provide 
transparency for domestic farmers, ranchers, and consumers 
regarding agricultural commodity origins, have been overturned 
for key commodities by oligopolistic conglomerates that use 
undifferentiated imports to reduce domestic farm prices.
(26) To restore competition in the agricultural economy, 
and to increase the bargaining power and enhance economic 
prospects for family farmers, the trend toward concentration 
must be reversed.

SEC. 3. DEFINITIONS.

In this Act:
(1) Agricultural input supplier.--The term ``agricultural 
input supplier'' means any person (excluding agricultural 
cooperatives) engaged in the business of selling, in interstate 
or foreign commerce, any product to be used as an input 
(including seed, germ plasm, hormones, antibiotics, fertilizer, 
and chemicals, but excluding farm machinery) for the production 
of any agricultural commodity, except that no person shall be 
considered an agricultural input supplier if sales of such 
products are for a value less than $10,000,000 per year.
(2) Broker.--The term ``broker'' means any person engaged 
in the business of negotiating sales and purchases of any 
agricultural commodity in interstate or foreign commerce for or 
on behalf of the vendor or the purchaser, except that no person 
shall be considered a broker if the only sales of such 
commodities are for a value less than $10,000,000 per year.
(3) Commission merchant.--The term ``commission merchant'' 
means any person engaged in the business of receiving in 
interstate or foreign commerce any agricultural commodity for 
sale, on commission, or for or on behalf of another, except 
that no person shall be considered a commission merchant if the 
only sales of such commodities are for a value less than 
$10,000,000 per year.
(4) Dealer.--The term ``dealer'' means any person 
(excluding agricultural cooperatives) engaged in the business 
of buying, selling, or marketing agricultural commodities in 
interstate or foreign commerce, except that--
(A) no person shall be considered a dealer with 
respect to sales or marketing of any agricultural 
commodity of that person's own raising; and
(B) no person shall be considered a dealer if the 
only sales of such commodities are for a value less 
than $10,000,000 per year.
(5) Distributor.--The term ``distributor'' means any entity 
engaged in the business of distributing agricultural products 
from producers or manufacturers to consumers, restaurants, or 
retailers.
(6) Integrator.--The term ``integrator'' means an entity 
that contracts with farmers for grower services to raise 
chickens or hogs to slaughter size and weight. The integrator 
owns the chickens or hogs, supplies the feed, slaughters, and 
further processes the poultry or pork.
(7) Processor.--The term ``processor'' means any person 
(excluding agricultural cooperatives) engaged in the business 
of handling, preparing, or manufacturing (including 
slaughtering and food and beverage manufacturing) of an 
agricultural commodity, or the products of such agricultural 
commodity, for sale or marketing for human consumption, except 
that no person shall be considered a processor if the only 
sales of such products are for a value less than $10,000,000 
per year.
(8) Retailer.--The term ``retailer'' means any person 
(excluding agricultural cooperatives, cooperative retailers, 
and cooperative distributers) licensed as a retailer under the 
Perishable Agriculture Commodities Act of 1930 (7 U.S.C. 
499a(b)), except that no person shall be considered a retailer 
if the only sales of such products are for a value less than 
$10,000,000 per year.

TITLE I--MORATORIUM ON AND REVIEW OF LARGE AGRIBUSINESS, FOOD AND 
BEVERAGE MANUFACTURING, AND GROCERY RETAIL MERGERS

SEC. 101. MORATORIUM ON LARGE AGRIBUSINESS, FOOD AND BEVERAGE 
MANUFACTURING, AND GROCERY RETAIL MERGERS.

(a) In General.--
(1) Moratorium.--Until the date referred to in paragraph 
(2) and except as provided in subsection (b)--
(A) no dealer, processor, commission merchant, 
agricultural input supplier, broker, or operator of a 
warehouse of agricultural commodities or retailer with 
annual net sales or total assets of more than 
$222,000,000 shall merge or acquire, directly or 
indirectly, any voting securities or assets of any 
other dealer, processor, commission merchant, 
agricultural input supplier, broker, or operator of a 
warehouse of agricultural commodities or retailer with 
annual net sales or total assets of more than 
$22,000,000; and
(B) no dealer, processor, commission merchant, 
agricultural input supplier, broker, or operator of a 
warehouse of agricultural commodities or retailer with 
annual net sales or total assets of more than 
$22,000,000 shall merge or acquire, directly or 
indirectly, any voting securities or assets of any 
other dealer, processor, commission merchant, 
agricultural input supplier, broker, or operator of a 
warehouse of agricultural commodities or retailer with 
annual net sales or total assets of more than 
$222,000,000 if the acquiring person would hold--
(i) 15 percent or more of the voting 
securities or assets of the acquired person; or
(ii) an aggregate total amount of the 
voting securities and assets of the acquired 
person in excess of $21,000,000.
(2) Date.--The date referred to in this paragraph is the 
effective date of comprehensive legislation enacted on or after 
the date on which the reviews referred to in section 102(a) are 
completed--
(A) for addressing the problem of market 
concentration in the food and agricultural sector; and
(B) that terminates the moratorium under paragraph 
(1).
(b) Waiver Authority.--The Attorney General shall have authority to 
waive the moratorium imposed by subsection (a) only under extraordinary 
circumstances, such as insolvency or similar financial distress of 1 of 
the affected parties.
(c) Exemptions.--The classes of transactions described in section 
7A(c) of the Clayton Act (15 U.S.C. 18a(c)) are exempt from subsection 
(a).
(d) Avoidance.--Any transaction or other device entered into or 
employed for the purpose of avoiding the moratorium contained in 
subsection (a) shall be disregarded, and the application of the 
moratorium shall be determined by applying subsection (a) to the 
substance of the transaction.
(e) Rulemaking.--The Attorney General shall promulgate regulations 
that the Attorney General determines are necessary to implement this 
section. In making the determination under the preceding sentence, the 
Attorney General shall consult with the Federal Trade Commission.

SEC. 102. RETROACTIVE REVIEW OF LARGE AGRIBUSINESS, FOOD AND BEVERAGE 
MANUFACTURING, AND GROCERY RETAIL MERGERS.

(a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Attorney General and the Federal Trade Commission 
shall review each merger that the Attorney General and the Federal 
Trade Commission have reviewed since January 1, 2006, that was subject 
to a premerger notification and waiting period pursuant to section 7A 
of the Clayton Act (15 U.S.C. 18a) in which a dealer, processor, 
distributor, commission merchant, agricultural input supplier, broker, 
or operator of a warehouse of agricultural commodities or retailer 
merged or acquired, directly or indirectly, any voting securities or 
assets of any other dealer, processor, distributor, commission 
merchant, agricultural input supplier, broker, or operator of a 
warehouse of agricultural commodities or retailer.
(b) Unwinding.--The Attorney General and the Federal Trade 
Commission shall consider whether to unwind a merger reviewed under 
subsection (a) to restore competition, and may so unwind such merger, 
if the Attorney General or the Federal Trade Commission determines that 
the merger brought material harm to--
(1) competition nationally or in local markets;
(2) farmers and ranchers;
(3) workers; or
(4) consumers.
(c) Investigative Authority.--In conducting a review of a merger 
under subsection (a), the Attorney General shall have the same power as 
the Federal Trade Commission under section 6(b) of the Federal Trade 
Commission Act (15 U.S.C. 46(b)) with respect to such review.
(d) Authorization of Appropriations.--In addition to such other 
amounts as may be made available to the Federal Trade Commission and 
the Antitrust Division of the Department of Justice, there is 
authorized to be appropriated to carry out this section for fiscal year 
2024 and each fiscal year thereafter--
(1) $50,000,000 for the Federal Trade Commission; and
(2) $50,000,000 for the Antitrust Division of the 
Department of Justice.
(e) Fines and Penalties.--The Federal Trade Commission and the 
Antitrust Division of the Department of Justice may use any funds from 
fines, penalties, and settlements not returned to consumers for their 
respective future operations.
(f) Additional Appropriations.--To the extent there are 
insufficient funds from fines, penalties, settlements, and fees 
received by the Federal Trade Commission and the Antitrust Division of 
the Department of Justice for the costs of their respective programs, 
projects, and activities, there are appropriated, out of monies in the 
Treasury not otherwise appropriated, for fiscal year 2024 and each 
fiscal year thereafter such sums as are necessary for the costs of such 
programs, projects, and activities.

TITLE II--FARM SYSTEM REFORMS

SEC. 201. LOCAL AGRICULTURE MARKET PROGRAM.

Section 210A(i)(1) of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1627c(i)(1)) is amended by striking ``fiscal year 2019'' and 
inserting ``each of fiscal years 2024 and 2025, and $500,000,000 for 
fiscal year 2026''.

SEC. 202. RESTORATION OF MANDATORY COUNTRY OF ORIGIN LABELING FOR BEEF 
AND PORK; INCLUSION OF DAIRY PRODUCTS.

(a) Definitions.--Section 281 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1638) is amended--
(1) by redesignating paragraphs (1), (2) through (5), (6), 
and (7) as paragraphs (2), (4) through (7), (9), and (10), 
respectively;
(2) by inserting before paragraph (2) (as so redesignated) 
the following:
``(1) Beef.--The term `beef' means meat produced from 
cattle (including veal).'';
(3) in paragraph (2) (as so redesignated)--
(A) in subparagraph (A)--
(i) in clause (i), by striking ``lamb'' and 
inserting ``beef, lamb, pork,'';
(ii) in clause (ii), by striking ``ground 
lamb'' and inserting ``ground beef, ground 
lamb, ground pork,'';
(iii) in clause (x), by striking ``and'' at 
the end;
(iv) in clause (xi), by striking the period 
at the end and inserting ``; and''; and
(v) by adding at the end the following:
``(xii) dairy products.''; and
(B) in subparagraph (B), by inserting ``(other than 
clause (xii) of that subparagraph)'' after 
``subparagraph (A)'';
(4) by inserting after paragraph (2) (as so redesignated) 
the following:
``(3) Dairy product.--The term `dairy product' means--
``(A) fluid milk;
``(B) cheese, including cottage cheese and cream 
cheese;
``(C) yogurt;
``(D) ice cream;
``(E) butter; and
``(F) any other dairy product.''; and
(5) by inserting after paragraph (7) (as so redesignated) 
the following:
``(8) Pork.--The term `pork' means meat produced from 
hogs.''.
(b) Notice of Country of Origin.--Section 282(a) of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1638a(a)) is amended by 
adding at the end the following:
``(5) Designation of country of origin for dairy 
products.--
``(A) In general.--A retailer of a covered 
commodity that is a dairy product shall designate the 
origin of the covered commodity as--
``(i) each country in which or from which 
the 1 or more dairy ingredients or dairy 
components of the covered commodity were 
produced, originated, or sourced; and
``(ii) each country in which the covered 
commodity was processed.
``(B) State, region, locality of the united 
states.--With respect to a covered commodity that is a 
dairy product produced exclusively in the United 
States, designation by a retailer of the State, region, 
or locality of the United States where the covered 
commodity was produced shall be sufficient to identify 
the United States as the country of origin.''.

SEC. 203. DEFINITIONS IN PACKERS AND STOCKYARDS ACT, 1921.

Section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
182(a)), is amended--
(1) in the matter preceding paragraph (1), by striking 
``When used in this Act--'' and inserting ``In this Act:'';
(2) in paragraph (8), by striking ``for slaughter'' and all 
that follows through ``of such poultry'' and inserting ``under 
a poultry growing arrangement, regardless of whether the 
poultry is owned by that person or another person'';
(3) in paragraph (9), by striking ``and cares for live 
poultry for delivery, in accord with another's instructions, 
for slaughter'' and inserting ``or cares for live poultry in 
accordance with the instructions of another person'';
(4) in each of paragraphs (1) through (9), by striking the 
semicolon at the end and inserting a period;
(5) in paragraph (10)--
(A) by striking ``for the purpose of either 
slaughtering it or selling it for slaughter by 
another''; and
(B) by striking ``; and'' at the end and inserting 
a period; and
(6) by adding at the end the following:
``(15) Formula price.--
``(A) In general.--The term `formula price' means 
any price term that establishes a base from which a 
purchase price is calculated on the basis of a price 
that will not be determined or reported until a date 
that is after the date on which the forward price is 
established.
``(B) Exclusion.--The term `formula price' does not 
include--
``(i) any price term that establishes a 
base from which a purchase price is calculated 
on the basis of a futures market price; or
``(ii) any adjustment to the base for 
quality, grade, or other factors relating to 
the value of livestock or livestock products 
that are readily verifiable market factors and 
are outside the control of the packer.
``(16) Forward contract.--The term `forward contract' means 
an oral or written contract for the purchase of livestock that 
provides for the delivery of the livestock to a packer at a 
date that is more than 7 days after the date on which the 
contract is entered into, without regard to whether the 
contract is for--
``(A) a specified lot of livestock; or
``(B) a specified number of livestock over a 
certain period of time.''.

SEC. 204. UNLAWFUL PRACTICES.

(a) In General.--Section 202 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 192), is amended to read as follows:

``SEC. 202. UNLAWFUL ACTS.

``(a) Definitions.--In this section:
``(1) Base price.--
``(A) In general.--The term `base price' means the 
price established in a poultry production contract that 
corresponds to the stated value provided by the 
independent contract producer under the terms of the 
contract, prior to the assessment of any performance-
based premium or penalty.
``(B) Square footage.--The price described in 
subparagraph (A) may be established using the price per 
square foot of contracted farm infrastructure or price 
per pound of poultry production.
``(2) Cooperative association of producers.--The term 
`cooperative association of producers' means a cooperative 
association (as defined in section 15(a) of the Agricultural 
Marketing Act (12 U.S.C. 1141j(a))) engaged in marketing, 
bargaining, shipping, or processing agricultural products.
``(3) Expected performance standard.--The term `expected 
performance standard' means, with respect to a poultry 
production contract, a standard established in the contract for 
the growth and health performance of live poultry under the 
management of an independent contract producer, which may 
include expected mortality, weight gain, or feed conversion 
efficiency.
``(4) Independent contract producer.--The term `independent 
contract producer' means an agricultural producer that--
``(A) enters into a contract to manage the 
production of an agricultural commodity owned by a live 
poultry dealer or another contracting party; and
``(B) is not a member of a cooperative association 
of producers that has engaged in bargaining with the 
other contracting party.
``(5) Minimum price.--The term `minimum price' means a 
contractually guaranteed price floor within a poultry 
production contract below which the final price delivered to an 
independent contract producer may not be reduced, including by 
performance-based penalties.
``(6) Performance-based incentive formula.--The term 
`performance-based incentive formula' means a formula designed 
to compare the real performance of live poultry being managed 
by an independent contract producer relative to an expected 
performance standard.
``(7) Poultry production contract.--The term `poultry 
production contract' means an oral or written contract 
established between a live poultry dealer and an independent 
contract producer in which the independent contract producer 
provides the land, farm infrastructure, or management labor of 
the independent contract producer to house and raise live 
poultry owned by the live poultry dealer.
``(b) General Rule.--It shall be unlawful for any packer or swine 
contractor with respect to livestock, meats, meat food products, or 
livestock products in unmanufactured form, or for any live poultry 
dealer with respect to live poultry, to do any of the following:
``(1) Engage in or use any unfair, unjustly discriminatory, 
or deceptive practice or device.
``(2) Make or give any undue or unreasonable preference or 
advantage to any particular person or locality in any respect, 
or subject any particular person or locality to any undue or 
unreasonable prejudice or disadvantage in any respect.
``(3) Sell or otherwise transfer to or for any other 
packer, swine contractor, or any live poultry dealer, or buy or 
otherwise receive from or for any other packer, swine 
contractor, or any live poultry dealer, any article for the 
purpose or with the effect of apportioning the supply between 
any such persons, if such apportionment has the tendency or 
effect of restraining commerce or of creating a monopoly.
``(4) Sell or otherwise transfer to or for any other 
person, or buy or otherwise receive from or for any other 
person, any article for the purpose or with the effect of 
manipulating or controlling prices, or of creating a monopoly 
in the acquisition of, buying, selling, or dealing in, any 
article, or of restraining commerce.
``(5) Engage in any course of business or do any act for 
the purpose or with the effect or manipulating or controlling 
prices, or of creating a monopoly in the acquisition of, 
buying, selling, or dealing in, any article, or of restraining 
commerce.
``(6) Conspire, combine, agree, or arrange with any other 
person--
``(A) to apportion territory for carrying on 
business;
``(B) to apportion purchases or sales of any 
article; or
``(C) to manipulate or control prices.
``(7) Use, in effectuating any sale of livestock, a forward 
contract that--
``(A) does not contain a firm base price that may 
be equated to a fixed dollar amount on the date on 
which the forward contract is entered into;
``(B) is not offered for bid in an open, public 
manner under which--
``(i) buyers and sellers have the 
opportunity to participate in the bid;
``(ii) more than 1 blind bid is solicited; 
and
``(iii) buyers and sellers may witness bids 
that are made and accepted;
``(C) is based on a formula price; or
``(D) provides for the sale of livestock in a 
quantity in excess of--
``(i) in the case of cattle, 40 cattle;
``(ii) in the case of swine, 30 swine; and
``(iii) in the case of another type of 
livestock, a comparable quantity of that type 
of livestock, as determined by the Secretary.
``(8) Own or feed livestock directly, through a subsidiary, 
or through an arrangement that gives a packer operational, 
managerial, or supervisory control over the livestock, or over 
the farming operation that produces the livestock, to such an 
extent that the producer of the livestock is not materially 
participating in the management of the operation with respect 
to the production of the livestock, except that this paragraph 
shall not apply to--
``(A) an arrangement entered into not more than 7 
business days before slaughter of the livestock by a 
packer, a person acting through the packer, or a person 
that directly or indirectly controls, or is controlled 
by or under common control with, the packer;
``(B) a cooperative or entity owned by a 
cooperative, if a majority of the ownership interest in 
the cooperative is held by active cooperative members 
that--
``(i) own, feed, or control the livestock; 
and
``(ii) provide the livestock to the 
cooperative for slaughter;
``(C) a packer that is not required to report to 
the Secretary on each reporting day (as defined in 
section 212 of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1635a)) information on the price and quantity 
of livestock purchased by the packer; or
``(D) a packer that owns only 1 livestock 
processing plant.
``(9) Take any action that adversely affects or is likely 
to adversely affect competition, regardless of whether there is 
a business justification for the action.
``(10) Conspire, combine, agree, or arrange with any other 
person to do, or aid or abet the doing of, any act made 
unlawful by paragraphs (1) through (9).
``(c) Unfair, Discriminatory, and Deceptive Practices and 
Devices.--Acts by a packer, swine contractor, or live poultry dealer 
that violate subsection (b)(1) include the following:
``(1) Refusal to provide, on the request of a livestock 
producer, swine production contract grower, or poultry grower 
with which the packer, swine contractor, or live poultry dealer 
has a marketing or delivery contract, the relevant statistical 
information and data used to determine the compensation paid to 
the livestock producer, swine production contract grower, or 
poultry grower, as applicable, under the contract, including--
``(A) feed conversion rates by house, lot, or pen;
``(B) feed analysis;
``(C) breeder history;
``(D) quality grade;
``(E) yield grade; and
``(F) delivery volume for any certified branding 
program (such as programs for angus beef or certified 
grassfed or Berkshire pork).
``(2) Conduct or action that limits or attempts to limit by 
contract the legal rights and remedies of a livestock producer, 
swine production contract grower, or poultry grower, including 
the right--
``(A) to a trial by jury, unless the livestock 
producer, swine production contract grower, or poultry 
grower, as applicable, is voluntarily bound by an 
arbitration provision in a contract;
``(B) to pursue all damages available under 
applicable law; and
``(C) to seek an award of attorneys' fees, if 
available under applicable law.
``(3) Termination of a poultry growing arrangement or swine 
production contract with no basis other than an allegation that 
the poultry grower or swine production contract grower failed 
to comply with an applicable law, rule, or regulation.
``(4) A representation, omission, or practice that is 
likely to mislead a livestock producer, swine production 
contract grower, or poultry grower regarding a material 
condition or term in a contract or business transaction.
``(d) Undue or Unreasonable Preferences, Advantages, Prejudices, 
and Disadvantages.--
``(1) In general.--Acts by a packer, swine contractor, or 
live poultry dealer that violate subsection (b)(2) include the 
following:
``(A) The execution, termination, extension, or 
renewal of a contract or agreement that materially 
disadvantages a livestock producer, swine production 
contract grower, or poultry grower unless the packer, 
swine contractor, or live poultry dealer can show, by a 
preponderance of the evidence, that the acts were 
predominantly motivated by--
``(i) compliance with applicable 
regulations;
``(ii) a distinct and materially 
disadvantageous change to the financial 
relationship with the livestock producer, swine 
production contract grower, or poultry grower; 
or
``(iii) the termination of operations in 
the geographic region by the packer, swine 
contractor, or live poultry dealer.
``(B) The failure to meet the requirements 
described in paragraph (2).
``(C) In the case of a poultry production contract 
that contains a performance-based incentive formula, 
the failure to meet the requirements described in 
paragraph (3).
``(2) Payment by square footage.--The requirements 
described in this paragraph are as follows:
``(A) Subject to subparagraph (B), a live poultry 
dealer shall structure any poultry production contract 
in a manner that provides for payment by the square 
footage of the barn or facility space in which the live 
birds that are subject to the contract are reared and 
raised.
``(B) In lieu of providing for payment by the 
square footage of the barn or facility space in which 
the live birds that are subject to the contract are 
reared and raised, a live poultry dealer may meet the 
requirement specified in subparagraph (A) if the dealer 
includes in the poultry production contract an 
alternative base price provision that was obtained 
through negotiations with a cooperative association of 
producers representing the individual independent 
contract producer.
``(3) Use of performance-based incentive formula.--The 
requirements described in this paragraph are as follows:
``(A) The poultry production contract shall 
guarantee a minimum price.
``(B) The expected performance standard in the 
poultry production contract shall be based on at least 
a 6-month rolling performance average of all producers 
in the complex of the independent contract producer.
``(C) The performance-based incentive formula shall 
not assess a premium or penalty percentage that exceeds 
the percentage difference between the performance of 
the independent contract producer and the expected 
performance average.
``(D) The expected performance standard in the 
poultry production contract shall be mathematically 
adjusted to account for expected performance with 
respect to expected mortality, weight, or feed 
conversion efficiency, with differences relative to--
``(i) layer flock age and health;
``(ii) predelivery health issues;
``(iii) flock breed;
``(iv) flock pick-up age;
``(v) feed type;
``(vi) feed disruption of 6 hours or more; 
and
``(vii) medical care protocols (such as an 
antibiotic-free protocol).
``(E) The poultry production contract shall include 
a procedure for settling payment outside of the 
performance-based payment formula, through a 
performance average of at least the last 5 flocks of 
the independent contract producer, in the case of the 
independent contract producer bringing an appeal 
related to input quality or provision issues.
``(e) Harm to Competition Not Required.--In determining whether an 
act, device, or conduct is a violation under paragraph (1) or (2) of 
subsection (b), a finding that the act, device, or conduct adversely 
affected or is likely to adversely affect competition is not 
required.''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), paragraph (8) of 
section 202(b) of the Packers and Stockyards Act, 1921 (7 
U.S.C. 192) (as designated by subsection (a)), shall take 
effect on the date of enactment of this Act.
(2) Transition rules.--In the case of a packer that, on the 
date of enactment of this Act, owns, feeds, or controls 
livestock intended for slaughter in violation of paragraph (8) 
of section 202(b) of the Packers and Stockyards Act, 1921 (7 
U.S.C. 192) (as designated by subsection (a)), that paragraph 
shall take effect--
(A) in the case of a packer of swine, beginning on 
the date that is 18 months after the date of enactment 
of this Act; and
(B) in the case of a packer of any other type of 
livestock, beginning not later than 180 days after the 
date of enactment of this Act, as determined by the 
Secretary.

SEC. 205. SPOT MARKET PURCHASES OF LIVESTOCK BY PACKERS.

The Packers and Stockyards Act, 1921, is amended by inserting after 
section 202 (7 U.S.C. 192) the following:

``SEC. 202A. SPOT MARKET PURCHASES OF LIVESTOCK BY PACKERS.

``(a) Definitions.--In this section:
``(1) Covered packer.--
``(A) In general.--The term `covered packer' means 
a packer that is required under subtitle B of the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1635 et 
seq.) to report to the Secretary each reporting day (as 
defined in section 212 of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1635a)) information on the price 
and quantity of livestock purchased by the packer.
``(B) Exclusion.--The term `covered packer' does 
not include a packer that owns only 1 livestock 
processing plant.
``(2) Nonaffiliated producer.--The term `nonaffiliated 
producer' means a producer of livestock--
``(A) that sells livestock to a packer;
``(B) that has less than 1 percent equity interest 
in the packer;
``(C) that has no officers, directors, employees, 
or owners that are officers, directors, employees, or 
owners of the packer;
``(D) that has no fiduciary responsibility to the 
packer; and
``(E) in which the packer has no equity interest.
``(3) Spot market sale.--
``(A) In general.--The term `spot market sale' 
means a purchase and sale of livestock by a packer from 
a producer--
``(i) under an agreement that specifies a 
firm base price that may be equated with a 
fixed dollar amount on the date the agreement 
is entered into;
``(ii) under which the livestock are 
slaughtered not more than 7 days after the date 
on which the agreement is entered into; and
``(iii) under circumstances in which a 
reasonable competitive bidding opportunity 
exists on the date on which the agreement is 
entered into.
``(B) Reasonable competitive bidding opportunity.--
For the purposes of subparagraph (A)(iii), a reasonable 
competitive bidding opportunity shall be considered to 
exist if--
``(i) no written or oral agreement 
precludes the producer from soliciting or 
receiving bids from other packers; and
``(ii) no circumstance, custom, or practice 
exists that--
``(I) establishes the existence of 
an implied contract (as determined in 
accordance with the Uniform Commercial 
Code); and
``(II) precludes the producer from 
soliciting or receiving bids from other 
packers.
``(b) General Rule.--Of the quantity of livestock that is 
slaughtered by a covered packer during each reporting day (as defined 
in section 212 of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1635a)) in each plant, the covered packer shall slaughter not less than 
the applicable percentage specified in subsection (c) of the quantity 
through spot market sales from nonaffiliated producers.
``(c) Applicable Percentages.--
``(1) In general.--Except as provided in paragraph (2), the 
applicable percentage shall be 50 percent.
``(2) Exceptions.--In the case of a covered packer that 
reported to the Secretary in the 2020 annual report that more 
than 60 percent of the livestock of the covered packer were 
committed procurement livestock, the applicable percentage 
shall be the greater of--
``(A) the difference between the percentage of 
committed procurement livestock so reported and 100 
percent; and
``(B)(i) during each of calendar years 2024 and 
2025, 20 percent;
``(ii) during each of calendar years 2026 and 2027, 
30 percent; and
``(iii) during calendar year 2028 and each calendar 
year thereafter, 50 percent.
``(d) Nonpreemption.--This section does not preempt any requirement 
of a State or political subdivision of a State that requires a covered 
packer to purchase on the spot market a greater percentage of the 
livestock purchased by the covered packer than is required under this 
section.''.

SEC. 206. INVESTIGATION OF LIVE POULTRY DEALERS.

(a) Administrative Enforcement Authority Over Live Poultry 
Dealers.--Sections 203, 204, and 205 of the Packers and Stockyards Act, 
1921 (7 U.S.C. 193, 194, 195), are amended by inserting ``, live 
poultry dealer,'' after ``packer'' each place it appears.
(b) Authority To Request Temporary Injunction or Restraining 
Order.--Section 408 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
228a), is amended by inserting ``or poultry care'' after ``on account 
of poultry''.
(c) Violations by Live Poultry Dealers.--Section 411 of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 228b-2), is amended--
(1) in subsection (a), in the first sentence, by striking 
``any provision of section 207 or section 410 of''; and
(2) in subsection (b), in the first sentence, by striking 
``any provisions of section 207 or section 410'' and inserting 
``any provision''.

SEC. 207. ENSURING FAIR PRACTICES IN AGRICULTURE.

Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall implement, without amendment, the 
final rule titled ``Unfair Practices and Undue Preferences in Violation 
of the Packers and Stockyards Act'' and published in the Federal 
Register by the Department of Agriculture on December 20, 2016 (81 Fed. 
Reg. 92703).

SEC. 208. AWARD OF ATTORNEY FEES.

Section 204 of the Packers and Stockyards Act, 1921 (7 U.S.C. 194), 
is amended by adding at the end the following:
``(i) Attorney's fee.--The court shall 
award a reasonable attorney's fee as part of 
the costs to a prevailing plaintiff in a civil 
action under this section.''.

SEC. 209. REVIEW AND REPORT ON FRAGILITY AND NATIONAL SECURITY IN THE 
FOOD SYSTEM.

(a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall--
(1) conduct a review of the fragility of the food system in 
the United States with respect to meat, poultry, and dairy; and
(2) submit to Congress a report containing the results of 
such review.
(b) Requirements.--The report under subsection (a) shall include 
information on, and an analysis of--
(1) the reach of corporate consolidation and corporate 
control of the meat, poultry, and dairy supply chain, including 
animal feed, inputs for animal feed, processing, and 
distribution;
(2) the effects of corporate consolidation and corporate 
control of the meat, poultry, and dairy supply chain on--
(A) consumers, farmers, rural communities, and 
meat, poultry, and dairy processing workers;
(B) greenhouse gas emissions, climate change, and 
costs borne by communities to adapt to climate change;
(C) water quality, soil quality, air quality, and 
biodiversity; and
(D) politics and political lobbying;
(3)(A) the extent to which Department of Agriculture rules 
and regulations designed for large covered establishments are 
applied to small- and medium-sized covered establishments; and
(B) the need for the Secretary of Agriculture to adapt 
rules and regulations to benefit small- and medium-sized 
covered establishments;
(4) the effects of the COVID-19 pandemic on meat, poultry, 
and dairy exports; meat, poultry, and dairy cold storage 
inventories; processing rates of meat, poultry, and dairy; and 
the net profits earned by owners of covered establishments;
(5) the effect of the COVID-19 pandemic on meat, poultry, 
and dairy prices paid--
(A) to farmers; and
(B) by consumers;
(6) Federal support for the corporations that control the 
largest percentage of the meat, poultry, and dairy industry 
through contracts, procurement, subsidies, and other 
mechanisms;
(7) the risk of disruption caused by corporate 
consolidation among covered establishments, including an 
analysis of food supply chain issues resulting from the COVID-
19 pandemic; and
(8) the extent to which breaking up the meat packing 
oligopoly and the dairy processing oligopoly would increase 
food system resiliency for the next pandemic.
(c) Covered Establishment Defined.--In this section, the term 
``covered establishment'' means--
(1) an establishment that is subject to inspection under 
the Federal Meat Inspection Act (21 U.S.C. 601 et seq.);
(2) an establishment that is subject to inspection under 
the Poultry Products Inspection Act (21 U.S.C. 451 et seq.); 
and
(3) an establishment--
(A) that is a dairy operation (as defined in 
section 1401 of the Agricultural Act of 2014 (7 U.S.C. 
9051)); or
(B) that processes dairy.

SEC. 210. TECHNICAL AMENDMENTS.

(a) Section 203 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
193), is amended--
(1) in subsection (a), in the first sentence--
(A) by striking ``he shall cause'' and inserting 
``the Secretary shall cause'';
(B) by striking ``his charges'' and inserting ``the 
charges''; and
(C) by striking ``evidence introduced against him'' 
and inserting ``evidence introduced against the packer, 
live poultry dealer, or swine contractor'';
(2) in subsection (b), in the first sentence, by striking 
``he shall make a report in writing in which he shall state his 
findings'' and inserting ``the Secretary shall make a report in 
writing in which the Secretary shall state the findings of the 
Secretary''; and
(3) in subsection (c), by striking ``he'' and inserting 
``the Secretary''.
(b) Section 204 of the Packers and Stockyards Act, 1921 (7 U.S.C. 
194), is amended--
(1) in subsection (a), by striking ``he has his'' and 
inserting ``the packer, live poultry dealer, or swine 
contractor has its'';
(2) in subsection (c), by striking ``his officers, 
directors, agents, and employees'' and inserting ``the 
officers, directors, agents, and employees of the packer, live 
poultry dealer, or swine packer'';
(3) in subsection (f), in the second sentence--
(A) by striking ``his findings'' and inserting 
``the findings of the Secretary''; and
(B) by striking ``he'' and inserting ``the 
Secretary''; and
(4) in subsection (g), by striking ``his officers, 
directors, agents, and employees'' and inserting ``the 
officers, directors, agents, and employees of the packer, live 
poultry dealer, or swine packer''.

TITLE III--PROVIDING RESOURCES FOR BEGINNING, RETIRING, AND SOCIALLY 
DISADVANTAGED FARMERS AND RANCHERS

SEC. 301. REAUTHORIZATION AND INCREASED FUNDING FOR BEGINNING, 
RETIRING, AND SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS.

(a) Mandatory Funding.--Section 2501(l)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(l)(1)) 
is amended--
(1) in subparagraph (C), by striking ``and'';
(2) in subparagraph (D), by striking ``2023 and each fiscal 
year thereafter.'' and inserting ``2023; and''; and
(3) by adding at the end the following:
``(E) $100,000,000 for each of fiscal years 2024 
through 2028.''.
(b) Authorization of Appropriations.--Section 2501(l)(2) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(l)(2)) is amended by striking ``$50,000,000 for each of fiscal 
years 2019 through 2023'' and inserting ``$100,000,000 for each of 
fiscal years 2024 through 2028''.

TITLE IV--LIVESTOCK, DAIRY, AND POULTRY SUPPLY CHAIN INFRASTRUCTURE

SEC. 401. LIVESTOCK, DAIRY, AND POULTRY SUPPLY CHAIN INFRASTRUCTURE 
GRANTS AND LOANS.

Subtitle D of title III of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981 et seq.) is amended by adding at the end 
the following new section:

``SEC. 379I. LIVESTOCK, DAIRY, AND POULTRY SUPPLY CHAIN INFRASTRUCTURE.

``(a) In General.--The Secretary is authorized to provide grants or 
make or insure loans under any of the programs authorized by this Act, 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.), or the 
Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), as the 
Secretary determines to be appropriate, to assist farmers and rural 
businesses and cooperatives to maintain or increase the production, 
aggregation, processing, distribution, and marketing of value-added, 
niche, or regionally marketed meat, dairy, and poultry products.
``(b) Priority.--In implementing subsection (a), the Secretary 
shall give priority to grants or loans that will help increase or 
enhance the availability and geographic distribution of small 
processing facilities.
``(c) Small Processing Facility Defined.--In this section, the term 
`small processing facility' means--
``(1) a selected establishment (as defined in section 
501(a) of the Federal Meat Inspection Act (21 U.S.C. 683(a)));
``(2) a selected establishment (as defined in section 31(a) 
of the Poultry Products Inspection Act (21 U.S.C. 472(a))); and
``(3) an establishment that--
``(A) specializes in processing milk, cream, or 
dairy products; and
``(B) processes fewer than 100,000 pounds of milk, 
cream, or dairy products per day.''.

SEC. 402. PILOT PROGRAM FOR INCREASED ACCESSIBILITY TO INSPECTION AND 
TECHNICAL ASSISTANCE FOR ELIGIBLE PROCESSING FACILITIES.

(a) In General.--The Secretary shall carry out a 5-year pilot 
program within the Food Safety and Inspection Service--
(1) to expand the availability of processing inspectors, 
technical assistance, and onsite inspection for eligible 
processing facilities, including no-cost overtime inspections; 
and
(2) to identify and train part-time inspectors and 
technical assistance providers.
(b) Professional Experience.--The Secretary shall determine the 
appropriate professional experience of inspectors and providers 
described in subsection (a)(2), which shall include individuals with 
expertise in veterinary medicine, public health, food service 
management, and animal science, as applicable.
(c) Definitions.--In this section:
(1) Eligible processing facility.--The term ``eligible 
processing facility'' means--
(A) an eligible facility described in section 764 
of division N of the Consolidated Appropriations Act, 
2021 (21 U.S.C. 473), that has a labor peace agreement 
in place; and
(B) a dairy processing facility that has a labor 
peace agreement in place.
(2) Labor peace agreement.--The term ``labor peace 
agreement'' means an agreement--
(A) between an employer and a labor organization 
that represents, or is actively seeking to represent, 
the employees of the employer; and
(B) under which such employer and labor 
organization agree that--
(i) the employer--
(I) will not hinder any effort of 
an employee to join a labor 
organization; and
(II) will not take any action 
that directly or indirectly indicates 
or implies any opposition to an 
employee joining a labor organization;
(ii) the labor organization agrees to 
refrain from picketing, work stoppages, or 
boycotts against the employer;
(iii) the employer provides the labor 
organization with employee contact information, 
and facilitates or permits labor organization 
access to employees at the workplace, 
including facilitating or permitting the labor 
organization to meet with employees to discuss 
joining the labor organization; and
(iv) the employer shall, upon the request 
of the labor organization, recognize the labor 
organization as the bargaining representative 
of the employees if a majority of the employees 
choose the labor organization as their 
bargaining representative.
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