§ 1632b — Agriculture Innovation Center Demonstration Program

(a) 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) In this section: (1) The term “Program” means the Agriculture Innovation Center Demonstration Program established under subsection (c). (2) The term “Secretary” means the Secretary of Agriculture. (c) 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. (1) 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) (A) Two 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, or a State legislator, of the State in which the eligible entity is located. (C) Four entities representing commodities produced in the State. (1) Subject to subsection (g), under the Program, the Secretary shall make, on a competitive basis, annual grants to eligible entities. (2) 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). (A) In the first fiscal year of the Program, the Secretary shall make grants to not more than 5 eligible entities. (B) 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. (A) 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) 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) : (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) There are authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2019 through 2023.