Free GAP Audit Payments for Small Farms

Summary#

This bill would set up a U.S. Department of Agriculture (USDA) program to pay eligible small and new farmers for the full cost of Good Agricultural Practices (GAP) food-safety audits. The goal is to remove audit cost barriers and help these producers sell to grocery retailers that require GAP audits. The program would run for five years and use Commodity Credit Corporation (CCC) funds.

• USDA must pay “covered producers” 100% of the cost they incur to carry out a GAP audit (a food-safety audit under USDA’s Agricultural Marketing Service).
• Eligibility includes operators of small farms with average adjusted gross income under $350,000 per year, or beginning farmers or ranchers, plus any other requirements USDA sets.
• USDA must report yearly to Congress on who received payments and whether the payments increased access to retail food stores that require GAP audits.
• Funded through the CCC, with no spending cap stated in the bill.
• Program authority ends 5 years after enactment.

What it means for you#

• Small farms and beginning farmers/ranchers

  • You could get a payment covering the full cost of a GAP audit.
  • This could make it easier to sell to some grocery retailers that require a GAP audit.
  • You would still need to meet GAP standards and complete the audit.
  • What is unclear: The bill does not spell out which expenses count as the “cost of carrying out a GAP audit” (for example, auditor fees and travel are likely; it is unclear whether preparation time, trainings, or on-farm improvements are covered).
  • What is unclear: The bill does not state if payments are made up front or as reimbursement after you pay the audit costs.
  • USDA may add other requirements you must meet (application steps, documentation of income or beginning-farmer status, limits per producer, timing).

• Grocery retailers (retail food stores)

  • You may see more small or new farms able to complete GAP audits and qualify to sell to you if you require such audits.

• USDA and audit providers

  • USDA will need to set up and run the payment program and produce annual reports.
  • Audit volumes could rise, which may require more scheduling and administrative capacity.

• General public

  • No direct action is required. No tax changes are included.

Expenses#

No publicly available information.

• The bill directs USDA to use Commodity Credit Corporation funds; it sets no dollar amount or cap.
• Payments must equal 100% of each covered producer’s GAP audit cost; total spending would depend on participation and audit prices.
• USDA will have administrative costs to establish the program, verify eligibility, process payments, and report to Congress; no estimate is provided.

Proponents' View#

• The bill appears intended to remove a cost barrier that keeps small and beginning producers from getting GAP audits.
• Paying the full audit cost could make it easier for these producers to access grocery retailers that require a GAP audit.
• Using established USDA GAP audit programs could promote consistent food-safety practices across more farms.
• A time-limited (5-year) program and annual reports could help measure results and inform future policy.

Opponents' View#

• One concern is that the bill sets no spending cap and uses CCC funds, so total costs are uncertain.
• The bill does not clearly define which expenses count as the “cost of carrying out a GAP audit,” which may cause confusion or uneven coverage.
• It is unclear whether payments would be up front or reimbursement; if reimbursement, small farms might still face cash-flow hurdles.
• The program focuses on audit costs, not on the costs of making on-farm improvements to meet standards; this could limit its impact on market access or food safety.
• USDA may add “other requirements,” but the bill gives no detail on what they are, how burdensome they might be, or how consistently they would be applied.
• The 5-year sunset could make long-term planning harder for producers who rely on this support.