Title 7 — Agriculture
Chapter 38 — Distribution and Marketing of Agricultural Products
§ 1632b. Agriculture Innovation Center Demonstration Program
Statutory text
Purpose
The purpose of this section is to direct the Secretary of Agriculture to establish a demonstration program under which agricultural producers are provided—
technical assistance, consisting of engineering services, applied research, scale production, and similar services, to enable the agricultural producers to establish businesses to produce value-added agricultural commodities or products;
assistance in marketing, market development, and business planning; and
organizational, outreach, and development assistance to increase the viability, growth, and sustainability of businesses that produce value-added agricultural commodities or products.
Definitions
In this section:
Program
The term “Program” means the Agriculture Innovation Center Demonstration Program established under subsection (c).
Secretary
The term “Secretary” means the Secretary of Agriculture.
Establishment of Program
The Secretary shall establish a demonstration program, to be known as the “Agriculture Innovation Center Demonstration Program” under which the Secretary shall—
make grants to assist eligible entities in establishing Agriculture Innovation Centers to enable agricultural producers to obtain the assistance described in subsection (a); and
provide assistance to eligible entities in establishing Agriculture Innovation Centers through the research and technical services of the Department of Agriculture.
Eligibility requirements
In general
An entity shall be eligible for a grant and assistance described in subsection (c) to establish an Agriculture Innovation Center if—
the entity—
has provided services similar to the services described in subsection (a); or
demonstrates the capability of providing such services;
the application of the entity for the grant and assistance includes a plan, in accordance with regulations promulgated by the Secretary, that outlines—
the support for the entity in the agricultural community;
the technical and other expertise of the entity; and
the goals of the entity for increasing and improving the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products;
the entity demonstrates that adequate resources (in cash or in kind) are available, or have been committed to be made available, to the entity, to increase and improve the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; and
the Agriculture Innovation Center of the entity has a board of directors established in accordance with paragraph (2).
Board of directors
Each Agriculture Innovation Center of an eligible entity shall have a board of directors composed of a diverse group of representatives of public and private entities, including the following:: 1
Two general agricultural organizations with the greatest number of members in the State in which the eligible entity is located.
The department of agriculture, or similar State department or agency, or a State legislator, of the State in which the eligible entity is located.
Four entities representing commodities produced in the State.
Grants and assistance
In general
Subject to subsection (g), under the Program, the Secretary shall make, on a competitive basis, annual grants to eligible entities.
Maximum amount of grants
A grant under paragraph (1) shall be in an amount that does not exceed the lesser of—
$1,000,000; or
twice the dollar amount of the resources (in cash or in kind) that the eligible entity demonstrates are available, or have been committed to be made available, to the eligible entity in accordance with subsection (d)(1)(C).
Maximum number of grants
First fiscal year of Program
In the first fiscal year of the Program, the Secretary shall make grants to not more than 5 eligible entities.
Second fiscal year of Program
In the second fiscal year of the Program, the Secretary may make grants to—
the eligible entities to which grants were made under subparagraph (A); and
not more than 10 additional eligible entities.
State limitation
In general
Subject to subparagraph (B), in the first 3 fiscal years of the Program, the Secretary shall not make a grant under the Program to more than 1 entity in any 1 State.
Collaboration
Nothing in subparagraph (A) precludes a recipient of a grant under the Program from collaborating with any other institution with respect to activities conducted using the grant.
Use of funds
An eligible entity to which a grant is made under the Program may use the grant only for the following purposes (but only to the extent that the use is not described in section 1627c(d)(5)(D) of this title 2:
Applied research.
Consulting services.
Hiring of employees, at the discretion of the board of directors of the Agriculture Innovation Center of the eligible entity.
The making of matching grants, each of which shall be in an amount not to exceed $5,000, to agricultural producers, except that the aggregate amount of all such matching grants made by the eligible entity shall be not more than $50,000.
Legal services.
Any other related cost, as determined by the Secretary.
Authorization of appropriations
There are authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2019 through 2023.
Footnotes
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 107–171 title VI § 6402 · 116 Stat. 134
Enacted · 7 U.S.C. § 1632b
Pub. L. 107–171, title VI, § 6402, May 13, 2002, 116 Stat. 426
Source evidence
Code source credit
Pub. L. 107–171, title VI, § 6402, May 13, 2002, 116 Stat. 426Enacted provision · exact public law section
SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM. (a) Purpose.— The purpose of this section is to direct the Secretary of Agriculture to establish a demonstration program under which agricultural producers are provided— (1) technical assistance, consisting of engineering services, applied research, scale production, and similar services, to enable the agricultural producers to establish businesses to produce value-added agricultural commodities or products; (2) assistance in marketing, market development, and business planning; and (3) organizational, outreach, and development assistance to increase the viability, growth, and sustainability of businesses that produce value-added agricultural commodities or products. (b) Definitions.— In this section: (1) Program.— The term “Program” means the Agriculture Innovation Center Demonstration Program established under subsection (c). (2) Secretary.— The term “Secretary” means the Secretary of Agriculture. (c) Establishment of Program.— The Secretary shall establish a demonstration program, to be known as the “Agriculture Innovation Center Demonstration Program” under which the Secretary shall— (1) make grants to assist eligible entities in establishing Agriculture Innovation Centers to enable agricultural producers to obtain the assistance described in subsection (a); and (2) provide assistance to eligible entities in establishing Agriculture Innovation Centers through the research and technical services of the Department of Agriculture. (d) Eligibility Requirements.— (1) In general.— An entity shall be eligible for a grant and assistance described in subsection (c) to establish an Agriculture Innovation Center if— (A) the entity— (i) has provided services similar to the services described in subsection (a); or (ii) demonstrates the capability of providing such services; (B) the application of the entity for the grant and assistance includes a plan, in accordance with regulations promulgated by the Secretary, that outlines— (i) the support for the entity in the agricultural community; (ii) the technical and other expertise of the entity; and (iii) the goals of the entity for increasing and improving the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; (C) the entity demonstrates that adequate resources (in cash or in kind) are available, or have been committed to be made available, to the entity, to increase and improve the ability of local agricultural producers to develop markets and processes for value-added agricultural commodities or products; and (D) the Agriculture Innovation Center of the entity has a board of directors established in accordance with paragraph (2). (2) Board of directors.— Each Agriculture Innovation Establishment. Center of an eligible entity shall have a board of directors composed of representatives of each of the following groups: (A) The 2 general agricultural organizations with the greatest number of members in the State in which the eligible entity is located. (B) The department of agriculture, or similar State department or agency, of the State in which the eligible entity is located. (C) Entities representing the 4 highest grossing commodities produced in the State, determined on the basis of annual gross cash sales. (e) Grants and Assistance.— (1) In general.— Subject to subsection (i), under the Program, the Secretary shall make, on a competitive basis, annual grants to eligible entities. (2) Maximum amount of grants.— A grant under paragraph (1) shall be in an amount that does not exceed the lesser of— (A) $1,000,000; or (B) twice the dollar amount of the resources (in cash or in kind) that the eligible entity demonstrates are available, or have been committed to be made available, to the eligible entity in accordance with subsection (d)(1)(C). (3) Maximum number of grants.— (A) First fiscal year of program.— In the first fiscal year of the Program, the Secretary shall make grants to not more than 5 eligible entities. (B) Second fiscal year of program.— In the second fiscal year of the Program, the Secretary may make grants to— (i) the eligible entities to which grants were made under subparagraph (A); and (ii) not more than 10 additional eligible entities. (4) State limitation.— (A) In general.— Subject to subparagraph (B), in the first 3 fiscal years of the Program, the Secretary shall not make a grant under the Program to more than 1 entity in any 1 State. (B) Collaboration.— Nothing in subparagraph (A) precludes a recipient of a grant under the Program from collaborating with any other institution with respect to activities conducted using the grant. (f) Use of Funds.— An eligible entity to which a grant is made under the Program may use the grant only for the following purposes (but only to the extent that the use is not described in section 231(d) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106—224)): (1) Applied research. (2) Consulting services. (3) Hiring of employees, at the discretion of the board of directors of the Agriculture Innovation Center of the eligible entity. (4) The making of matching grants, each of which shall be in an amount not to exceed $5,000, to agricultural producers, except that the aggregate amount of all such matching grants made by the eligible entity shall be not more than $50,000. (5) Legal services. (6) Any other related cost, as determined by the Secretary. “(g) Research on Effects on the Agricultural Sector.— (1) In general.— Of the amount made available under subsection (i) for each fiscal year, the Secretary shall use $300,000 to support research at a university concerning the effects of projects for value-added agricultural commodities or products on agricultural producers and the commodity markets. (2) Research elements.— Research under paragraph (1) shall systematically examine, using linked, long-term, global projections of the agricultural sector, the potential effects of projects described in subparagraph (A) on— (A) demand for agricultural commodities; (B) market prices; (C) farm income; and (D) Federal outlays on commodity programs. (h) Report to Congress.— (1) In general.— Not later than 3 years after the date on which the last of the first 10 grants is made under the Program, 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 on— (A) the effectiveness of the Program in improving and expanding the production of value-added agricultural commodities or products; and (B) the effects of the Program on the economic viability of agricultural producers. (2) Required elements.— The report under paragraph (1) shall— (A) include a description of the best practices and innovations found at each of the Agriculture Innovation Centers established under the Program; and (B) specify the number and type of activities assisted, and the type of assistance provided, under the Program. (i) Funding.— Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) for each fiscal year, the Secretary shall use to carry out this section— (1) not less than $3,000,000 for fiscal year 2002; and (2) not less than $6,000,000 for each of fiscal years 2003 and 2004.Food, Conservation, and Energy Act of 2008
Pub. L. 110–246 § 6203 · 122 Stat. 1651
Added · 7 U.S.C. § 1632b(i)
Pub. L. 110–246, § 6203, added subsec. (i)
Struck · 7 U.S.C. § 1632b(i)
Pub. L. 110–246, § 6203, struck out former subsec. (i). Prior to amendment, text read as follows: “Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) for each fiscal year, the Secretary shall use to carry out this section—
Source evidence
Code amendment note
Subsec. (i). Pub. L. 110–246, § 6203, added subsec. (i) and struck out former subsec. (i). Prior to amendment, text read as follows: “Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) for each fiscal year, the Secretary shall use to carry out this section—“(1) not less than $3,000,000 for fiscal year 2002; and “(2) not less than $6,000,000 for each of fiscal years 2003 and 2004.”
Enacted provision · exact public law section
SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM. Section 6402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1621 note; Public Law 107–171) is amended by striking subsection (i) and inserting the following: “(i) Authorization of Appropriations.— There is authorized to be appropriated to the Secretary to carry out this section $6,000,000 for each of fiscal years 2008 through 2012.” .Effective date note
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.Agricultural Act of 2014
Pub. L. 113–79 title VI § 6204 · 128 Stat. 649
Substituted · 7 U.S.C. § 1632b(i)
Pub. L. 113–79 substituted “$1,000,000 for each of fiscal years 2014 through 2018” for “$6,000,000 for each of fiscal years 2008 through 2012”
Source evidence
Code amendment note
Subsec. (i). Pub. L. 113–79 substituted “$1,000,000 for each of fiscal years 2014 through 2018” for “$6,000,000 for each of fiscal years 2008 through 2012”.Enacted provision · exact public law section
SEC. 6204. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM. Section 6402(i) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1632b(i)) is amended by striking “$6,000,000 for each of fiscal years 2008 through 2012” and inserting “$1,000,000 for each of fiscal years 2014 through 2018”.Agriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(1)(A) · 132 Stat. 4490
Substituted · 7 U.S.C. § 1632b(d)(2)
Pub. L. 115–334, § 7608(1)(A), substituted “a diverse group of representatives of public and private entities, including the following:” for “representatives of each of the following groups” in introductory provisions
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 115–334, § 7608(1)(A), substituted “a diverse group of representatives of public and private entities, including the following:” for “representatives of each of the following groups” in introductory provisions.Enacted provision · exact public law section
(A) in the matter preceding subparagraph (A), by striking “representatives of each of the following groups” and inserting “a diverse group of representatives of public and private entities, including the following:”;Agriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(1)(B) · 132 Stat. 4490
Substituted · 7 U.S.C. § 1632b(d)(2)(A)
Pub. L. 115–334, § 7608(1)(B), substituted “Two” for “The 2”
Source evidence
Code amendment note
Subsec. (d)(2)(A). Pub. L. 115–334, § 7608(1)(B), substituted “Two” for “The 2”.Enacted provision · exact public law section
(B) in subparagraph (A), by striking “The 2” and inserting “Two”;Agriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(1)(C) · 132 Stat. 4490
Inserted · 7 U.S.C. § 1632b(d)(2)(B)
Pub. L. 115–334, § 7608(1)(C), inserted “or a State legislator,” after “agency,”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 115–334, § 7608(1)(C), inserted “or a State legislator,” after “agency,”.Enacted provision · exact public law section
(C) in subparagraph (B), by inserting “or a State legislator,” after “agency,”; andAgriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(1)(D) · 132 Stat. 4490
Amended · 7 U.S.C. § 1632b(d)(2)(C)
Pub. L. 115–334, § 7608(1)(D), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “Entities representing the 4 highest grossing commodities produced in the State, determined on the basis of annual gross cash sales.”
Source evidence
Code amendment note
Subsec. (d)(2)(C). Pub. L. 115–334, § 7608(1)(D), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “Entities representing the 4 highest grossing commodities produced in the State, determined on the basis of annual gross cash sales.”Enacted provision · exact public law section
(D) by amending subparagraph (C) to read as follows: “(C) Four entities representing commodities produced in the State.” ;Agriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(2) · 132 Stat. 4490
Substituted · 7 U.S.C. § 1632b(e)(1)
Pub. L. 115–334, § 7608(2), substituted “subsection (g)” for “subsection (i)”
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 115–334, § 7608(2), substituted “subsection (g)” for “subsection (i)”.Enacted provision · exact public law section
(2) in subsection (e)(1), by striking “subsection (i)” and inserting “subsection (g)”; andAgriculture Improvement Act of 2018
Pub. L. 115–334 § 10102(c)(2) · 132 Stat. 4490
Substituted · 7 U.S.C. § 1632b(f)
Pub. L. 115–334, § 10102(c)(2), substituted “section 1627c(d)(2) of this title” for “section 1632a(d) of this title)” in introductory provisions
Source evidence
Code amendment note
Subsec. (f). Pub. L. 115–334, § 10102(c)(2), substituted “section 1627c(d)(2) of this title” for “section 1632a(d) of this title)” in introductory provisions.Enacted provision · exact public law section
(2) Agriculture innovation center demonstration program.— Section 6402(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1632b(f)) is amended in the matter preceding paragraph (1) by striking “section 231(d) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224))” and inserting “section 210A(d)(2) of the Agricultural Marketing Act of 1946”.Agriculture Improvement Act of 2018
Pub. L. 115–334 § 7608(3) · 132 Stat. 4490
Added · 7 U.S.C. § 1632b(g)(i)
Pub. L. 115–334, § 7608(3), added subsec. (g)
Struck · 7 U.S.C. § 1632b(g)(i)
Pub. L. 115–334, § 7608(3), struck out former subsecs. (g) to (i) which related to research on effects on the agricultural sector, report to Congress, and authorization of appropriations, respectively
Source evidence
Code amendment note
Subsecs. (g) to (i). Pub. L. 115–334, § 7608(3), added subsec. (g) and struck out former subsecs. (g) to (i) which related to research on effects on the agricultural sector, report to Congress, and authorization of appropriations, respectively.Enacted provision · exact public law section
(3) by striking subsections (g), (h), and (i) and inserting the following new subsection: “(g) Authorization of Appropriations.— There are authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2019 through 2023.” .Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2022
Pub. L. 117–103 div. A title VII § 777 · 136 Stat. 49
Substituted · 7 U.S.C. § 1632b(f)
Pub. L. 117–103 substituted “section 1627c(d)(5)(D) of this title” for “section 1627c(d)(2) of this title” in introductory provisions
Source evidence
Code amendment note
Subsec. (f). Pub. L. 117–103 substituted “section 1627c(d)(5)(D) of this title” for “section 1627c(d)(2) of this title” in introductory provisions.Enacted provision · exact public law section
Sec. 777. Section 6402(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1632b(f)) is amended in the matter preceding paragraph (1) by striking “section 210A(d)(2)” and inserting “section 210A(d)(5)(D)”.
13 of 13 references resolved to an enrolled provision
Editorial Notes
Codification
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Section was enacted as part of the Farm Security and Rural Investment Act of 2002, and not as part of the Agricultural Marketing Act of 1946 which comprises this chapter.
Section was formerly set out as a note under section 1621 of this title.
Amendments2008–2022 · 4 rounds
2022
Subsec. (f). Pub. L. 117–103 substituted “section 1627c(d)(5)(D) of this title” for “section 1627c(d)(2) of this title” in introductory provisions.
2018
Subsec. (d)(2). Pub. L. 115–334, § 7608(1)(A), substituted “a diverse group of representatives of public and private entities, including the following:” for “representatives of each of the following groups” in introductory provisions.
Subsec. (d)(2)(A). Pub. L. 115–334, § 7608(1)(B), substituted “Two” for “The 2”.
Subsec. (d)(2)(B). Pub. L. 115–334, § 7608(1)(C), inserted “or a State legislator,” after “agency,”.
Subsec. (d)(2)(C). Pub. L. 115–334, § 7608(1)(D), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “Entities representing the 4 highest grossing commodities produced in the State, determined on the basis of annual gross cash sales.”
Subsec. (e)(1). Pub. L. 115–334, § 7608(2), substituted “subsection (g)” for “subsection (i)”.
Subsec. (f). Pub. L. 115–334, § 10102(c)(2), substituted “section 1627c(d)(2) of this title” for “section 1632a(d) of this title)” in introductory provisions.
Subsecs. (g) to (i). Pub. L. 115–334, § 7608(3), added subsec. (g) and struck out former subsecs. (g) to (i) which related to research on effects on the agricultural sector, report to Congress, and authorization of appropriations, respectively.
2014
Subsec. (i). Pub. L. 113–79 substituted “$1,000,000 for each of fiscal years 2014 through 2018” for “$6,000,000 for each of fiscal years 2008 through 2012”.
2008
Subsec. (i). Pub. L. 110–246, § 6203, added subsec. (i) and struck out former subsec. (i). Prior to amendment, text read as follows: “Of the amount made available under section 231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) for each fiscal year, the Secretary shall use to carry out this section—
“(1) not less than $3,000,000 for fiscal year 2002; and
“(2) not less than $6,000,000 for each of fiscal years 2003 and 2004.”
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective , the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.
Credits
2002–2022 · 6 acts
- 2002Pub. L. 107–171, title VI, § 6402, , 116 Stat. 426
- 2008Pub. L. 110–234, title VI, § 6203, , 122 Stat. 1207
- 2008Pub. L. 110–246, § 4(a), title VI, § 6203, , 122 Stat. 1664, 1969
- 2014Pub. L. 113–79, title VI, § 6204, , 128 Stat. 857
- 2018Pub. L. 115–334, title VII, § 7608, title X, § 10102(c)(2), , 132 Stat. 4829, 4898
- 2022Pub. L. 117–103, div. A, title VII, § 777, , 136 Stat. 99.
Show as published
(Pub. L. 107–171, title VI, § 6402, , 116 Stat. 426; Pub. L. 110–234, title VI, § 6203, , 122 Stat. 1207; Pub. L. 110–246, § 4(a), title VI, § 6203, , 122 Stat. 1664, 1969; Pub. L. 113–79, title VI, § 6204, , 128 Stat. 857; Pub. L. 115–334, title VII, § 7608, title X, § 10102(c)(2), , 132 Stat. 4829, 4898; Pub. L. 117–103, div. A, title VII, § 777, , 136 Stat. 99.)