H.R. 4529 — Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act

This section establishes a competitive grant program under USDA to support new or expanding food hubs designed to increase market access for socially disadvantaged farmers and ranchers (i.e., members of groups subjected to racial or ethnic prejudice or discrimination, per 7 U.S.C. 2279(a)). Defines key terms, including eligible entities (producer groups with at least half socially disadvantaged members or nonprofits/Tribal organizations with relevant experience); eligible partners (e.g., nonprofits, extension services, universities, Tribal or government entities providing assistance); and food hubs (businesses or organizations managing aggregation, distribution, and marketing of source-identified U.S. agricultural food products for wholesale, retail, or institutional markets). Grants may fund (1) land/building/infrastructure purchase and development; (2) facility construction or equipping; (3) machinery/equipment purchases; (4) related operating expenses; (5) marketing services (e.g., online platforms); and (6) other food hub development activities. Requires applications to describe proposed activities, market access benefits for socially disadvantaged producers, entity competencies (or partnerships if lacking), and other Secretary-determined information; eligible nonprofits/Tribal organizations may serve as partners. Gives grant priority to food hubs benefiting underserved communities.

This section establishes a new general business tax credit under IRC §45U(a) equal to 25% of qualified food hub expenses paid or incurred in taxable years beginning after December 31, 2025. Qualified food hub expenses are amounts paid for agricultural food products from a food hub—defined in section 2 of the Black Farmers and Socially Disadvantaged Farmers Increased Market Share Act (food hubs aggregate, process, and distribute products from small producers, including socially disadvantaged farmers)—that was developed or expanded under that section's grant program, pursuant to a contract certified by the Secretary of Agriculture. The section directs the Secretary of Agriculture, in consultation with the Secretary of the Treasury, to issue regulations within one year of enactment establishing a certification process to ensure such contracts are arm's-length, between unrelated parties, and meet other requirements; terminates the credit after the section 2 grant program ends; and makes conforming amendments to IRC §§38(b) (adding as new paragraph (34)) and 280C (new subsection (i), reducing deductions or inventory costs to prevent double benefits).

This section requires the Secretary of Agriculture to hold Department officials and employees accountable for discriminatory actions, retaliatory actions, harassment, civil rights violations, or related misconduct while administering Department programs, including (1) failure to provide a receipt for service as required by section 2501A(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279-1(e)), (2) providing an inaccurate such receipt, (3) failure to provide requested information on relevant programs and services, and (4) failure to timely process applications or delaying program services. The Secretary must ensure appropriate corrective action—defined to include civil rights-enhancing policy or programmatic changes and potential disciplinary measures such as removal from federal service, suspension without pay, reduction in grade or pay, or letter of reprimand—in response to findings from Department administrative decisions (including by the Assistant Secretary for Civil Rights), administrative or judicial proceedings, civil rights settlements, Office of Inspector General audits or investigations, or Office of Special Counsel investigations.

This section amends the equitable relief provision for direct farm ownership, operating, or emergency loan borrowers under the Consolidated Farm and Rural Development Act (7 U.S.C. 2008a) to broaden eligibility criteria to include those who made a good faith effort to comply with loan requirements (previously, required the borrower to have acted in good faith and relied on the Secretary's action or advice to the operation's detriment), authorizes the Assistant Secretary of Agriculture for Civil Rights (or designee) to grant such relief to civil rights program complainants without prior departmental approval, and makes those decisions final and not subject to administrative appeal or judicial review. The section makes parallel changes authorizing such civil rights relief under the equitable relief provision from ineligibility for loans, payments, or other farm program benefits (7 U.S.C. 7996).

This section revises the burden of proof in National Appeals Division (NAD) hearings on USDA adverse decisions—typically affecting farmers, ranchers, and program participants—by placing it on the agency to prove by substantial evidence that the decision was valid (previously, on the appellant).

This section establishes an Office of the Civil Rights Ombudsperson within the Department of Agriculture, independent of other agencies and offices, to be set up not later than 120 days after enactment of this section. The Office, headed by a designated Civil Rights Ombudsperson (a senior official with a civil rights enforcement background), must (1) assist producers and other customers of Department programs in navigating the civil rights review process; (2) ensure participants are aware of the appeals process under subtitle H of title II, including informal hearings; (3) promote awareness of the Office among producers and other customers; and (4) raise issues and make recommendations to the Secretary on equitable access or implementation of Department programs. The section requires departmental records to be provided to the Office within 60 days of request, directs annual reports to the House Committee on Agriculture and Senate Committee on Agriculture, Nutrition, and Forestry beginning one year after enactment on Office activities and findings/recommendations, and authorizes appropriations as necessary for FY2026 through FY2028.