Local Beef Marketing Incentive Act of 2026

This Act may be cited as the “Local Beef Marketing Incentive Act of 2026”.

(a) In general.— Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture, acting through the Administrator of the Farm Service Agency, (in this section referred to as the “Secretary”) shall establish a program under which the Secretary shall, with respect to each year determined to be a subsidy year under subsection (b), make payments to eligible producers for revenue losses associated with direct-to-market sales of beef.

(b) Determination of subsidy year.—

(1) In general.— Not later than March 1 of each calendar year, the Secretary shall determine the percent decrease, if any, in direct-to-market sales of beef for the preceding calendar year compared to the average direct-to-market sales of beef for the 5-year period preceding such calendar year, excluding the year with the highest and the year with the lowest direct-to-market sales of beef.

(2) Qualification for subsidy year.— If the percent determined under paragraph (1) with respect to a calendar year is greater than or equal to 25 percent for a calendar year, such calendar year shall be a subsidy year.

(c) Application.— To be eligible to receive a payment under this section for a subsidy year, an eligible producer shall, not later than 1 year after the last date of such subsidy year, submit to the Secretary an application, including—

(1) documentation demonstrating that such producer used a local processor during the subsidy year, including receipts or invoices;

(2) documentation of any direct-to-market sale completed by such producer during the subsidy year, including sale records, invoices, or such other documentation as the Secretary determines appropriate; and

(3) a certification by the producer that such producer meets each requirement required pursuant to subsection (g)(3).

(d) Payment amounts.—

(1) In general.— Subject to paragraph (2), not later than 90 days after receiving an application from an eligible producer with respect to a subsidy year under subsection (c), the Secretary shall, with respect to each head of cattle that such producer slaughters using a local processor and sells through direct-to-market sales in the subsidy year, make a payment to such producer in an amount that is equal to—

(A) 20 percent of the amount equal to—

(i) the average of the beef cattle price for the 5 years preceding the subsidy year, excluding the year with the highest and the year with the lowest average beef cattle price; minus

(ii) the beef cattle price for the subsidy year; multiplied by

(B) the average of the live weight (in hundredweight) for all such cattle.

(2) Limitations.—

(A) Maximum payment amount with respect to head of cattle.— The payment amount to a producer with respect to a head of cattle shall not exceed $500.

(B) Maximum total payment amount.— The total amount of payments received under paragraph (1) by a producer for a subsidy year shall not exceed $100,000.

(e) Rulemaking.— Not later than 180 days after the date of enactment of this Act, the Secretary shall issues such rules as may be necessary to carry out this section, including establishing procedures for verifying eligibility of a producer and preventing fraud.

(f) Authorization of appropriations.— There is authorized to be appropriated such sums as necessary to carry out this section for fiscal years 2027 through 2031.

(g) Definitions.— In this section:

(1) Beef cattle price.— The term beef cattle price means the annual average price received by producers for all beef cattle (in dollars per hundredweight), as determined by the Secretary using data reported by the National Agricultural Statistics Service of the Department of Agriculture.

(2) Direct-to-market sale.— The term direct-to-market sale means the sale of beef products—

(A) directly to consumers, restaurants, or retail stores;

(B) through farmers’ markets, on-farm sales, community-supported agriculture programs, or similar channels; and

(C) without using an intermediary, including a large-scale packer or distributor.

(3) Eligible producer.— The term eligible producer means a farmer or rancher that—

(A) raises and finishes steers or heifers for slaughter;

(B) uses a local processor for such slaughter; and

(C) engages in direct-to-market sales for at least 50 percent of their beef production in the subsidy year.

(4) Head of cattle.— The term head of cattle means an individual steer or heifer.

(5) Local processor.— The term local processor means a slaughter facility that is—

(A) inspected by the Food Safety and Inspection Service of the Department of Agriculture, or an equivalent State inspection program; and

(B) located—

(i) in the same State as the eligible producer using the services of such facility; or

(ii) within 200-miles of such producer.