Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act

Bill Number

H.R. 4529

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-07-17: Referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, 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.

Last Updated

2025-09-12T16:56:29Z

AI-Generated Summary

Purpose of the Legislation

The Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act (H.R. 4529) aims to improve market access for Black farmers and other socially disadvantaged farmers and ranchers (defined as those who have been subjected to racial, ethnic, or gender prejudice) by supporting food hubs and providing incentives. It also seeks to strengthen civil rights protections within the U.S. Department of Agriculture (USDA) by enhancing accountability, equitable relief options, and support mechanisms for affected individuals.

Key Provisions

• Food Hub Grants Program (Section 2):

Establishes a competitive grant program administered by the USDA Secretary to fund new or expanding "food hubs" (businesses or organizations that aggregate, distribute, and market locally sourced food products). Grants prioritize hubs that serve socially disadvantaged farmers and ranchers, with funds usable for infrastructure (e.g., buildings, equipment), operations, marketing platforms, and related activities. No matching funds are required, and grants last up to 5 years. The USDA must prioritize purchasing food from these hubs for its domestic assistance programs (e.g., food distribution to schools or low-income communities), with possible waivers from standard federal procurement rules to reduce entry barriers. Annual reports on program progress are required, starting in 2026. Authorizes $100 million for fiscal year 2026.

• Agriculture Hub Tax Credit (Section 3):

Introduces a new tax credit under the Internal Revenue Code, allowing businesses to claim 25% of "qualified food hub expenses" (costs for buying agricultural products from certified food hubs developed under this act). The USDA Secretary, in consultation with the Treasury Secretary, must certify contracts to ensure they are fair and not between related parties. The credit applies to expenses after December 31, 2025, and ends when the grant program concludes.

• Civil Rights Accountability for USDA Employees (Section 4):

Requires the USDA Secretary to hold employees accountable for discriminatory, retaliatory, or harassing actions in program administration, such as failing to provide service receipts, delaying applications, or withholding program information. Accountability applies to findings from internal reviews, audits, settlements, or investigations. Corrective actions include policy changes to prevent future issues and disciplinary measures like suspension, pay reduction, or removal from federal service.

• Equitable Relief Provisions (Section 5):

Amends existing farm laws to empower the Assistant Secretary of Agriculture for Civil Rights (or a designee) to grant relief (e.g., restoring eligibility for loans or benefits) to individuals who file civil rights complaints, without needing prior approval from other USDA officials. This applies to cases of good-faith reliance on USDA advice or partial compliance with program rules due to barriers.

• Burden of Proof in Appeals (Section 6):

Changes the rules for the USDA's National Appeals Division hearings, requiring the agency (not the appellant) to prove by "substantial evidence" (a moderate level of proof stronger than rumor but less than full certainty) that an adverse decision against a farmer was valid.

• Office of the Civil Rights Ombudsperson (Section 7):

Creates an independent USDA office, led by a senior official with civil rights expertise, to help farmers navigate civil rights complaints and appeals. The office will raise equity concerns to the Secretary, access departmental records within 60 days, and issue annual reports to Congress on program access issues. Authorizes funding for fiscal years 2026–2028.

Significant Changes to Existing Law

• Introduces entirely new programs: A dedicated grant initiative for food hubs and a tax credit for purchases from them, which did not previously exist in federal agriculture law.
• Expands civil rights enforcement: Adds direct authority for the Assistant Secretary for Civil Rights to provide relief independently; shifts the burden of proof in appeals from the farmer to the agency; and mandates employee accountability tied to specific misconducts like improper handling of applications.
• Modifies procurement and relief processes: Allows waivers from full competition in USDA food purchases and broadens "equitable relief" (fair remedies for program errors) to include civil rights complaints, building on prior laws like the Farm Security and Rural Investment Act of 2002 and the Consolidated Farm and Rural Development Act.
• Establishes a new office: The Civil Rights Ombudsperson is a novel independent entity within USDA, separate from existing civil rights structures.

Potential Impacts

• On Government Agencies: The USDA will face increased administrative duties, including managing grants, certifying tax credit contracts, prioritizing purchases, enforcing employee accountability, and operating a new ombudsperson office. This could strain resources but improve program equity and reduce litigation from discrimination claims. Annual reporting to Congress adds oversight.
• On Citizens: Socially disadvantaged farmers and ranchers gain better access to markets, infrastructure support, and remedies for discrimination, potentially boosting their income and participation in federal programs. Businesses buying from food hubs benefit from tax credits, encouraging more local sourcing. Broader farmers may indirectly gain from expanded hubs, while USDA program participants (e.g., in food assistance) could see more diverse suppliers.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. agriculture and food systems.

Main Stakeholders Affected

• Socially Disadvantaged Farmers and Ranchers: Primary beneficiaries, including Black, ethnic minority, and women farmers, through market access, grants, and civil rights protections.
• USDA Employees and Officials: Subject to stricter accountability for misconduct, with potential disciplinary consequences.
• Eligible Entities and Partners: Non-profits, producer groups (at least half socially disadvantaged), Tribal organizations, universities, and state extensions that can apply for or partner on grants.
• Businesses and Taxpayers: Entities purchasing from food hubs qualify for tax credits; general taxpayers fund the grants and office.
• USDA Program Participants: Farmers, ranchers, and customers (e.g., in loan or food aid programs) affected by improved appeals, relief, and navigation support.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement of civil rights in agriculture programs by codifying accountability and relief mechanisms, potentially reducing lawsuits under laws like the Equal Credit Opportunity Act. The tax credit integrates with the Internal Revenue Code, requiring inter-agency coordination. Changes to burden of proof and waivers from procurement rules (e.g., under 31 U.S.C. § 3324) could streamline processes but invite challenges if seen as favoring certain groups.
• Constitutional: Aligns with equal protection principles under the 14th Amendment by addressing historical discrimination in USDA programs (e.g., past loan denials to minority farmers), promoting fair access without creating new entitlements.
• Political: Advances equity in farming, a politically sensitive area tied to historical injustices like the Pigford settlements (class-action lawsuits over USDA discrimination). It may foster bipartisan support in rural and minority communities but could spark debates over targeted aid versus broad agricultural policy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Scott, David [D-GA-13]

Cosponsors (22)

Rep. Jackson, Jonathan L. [D-IL-1], Rep. Adams, Alma S. [D-NC-12], Rep. Bishop, Sanford D. [D-GA-2], Rep. Brown, Shontel M. [D-OH-11], Rep. Carson, André [D-IN-7], Rep. Carter, Troy A. [D-LA-2], Rep. Cohen, Steve [D-TN-9], Rep. Fields, Cleo [D-LA-6], Rep. Figures, Shomari [D-AL-2], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Kelly, Robin L. [D-IL-2], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Sewell, Terri A. [D-AL-7], Rep. Soto, Darren [D-FL-9], Rep. Strickland, Marilyn [D-WA-10], Rep. Thanedar, Shri [D-MI-13], Rep. Tokuda, Jill N. [D-HI-2], Rep. Waters, Maxine [D-CA-43], Rep. Williams, Nikema [D-GA-5], Rep. Wilson, Frederica S. [D-FL-24], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Frost, Maxwell [D-FL-10]

Recent Actions

• 2025-07-17: Referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, 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.
• 2025-07-17: Referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, 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.
• 2025-07-17: Introduced in House
• 2025-07-17: Introduced in House

Bill Versions

• Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act — issued 2025-07-17 — PDF (24 pages)