Local Beef Marketing Incentive

Full Title:
Local Beef Marketing Incentive Act of 2026

Summary#

This bill directs the Secretary of Agriculture (through the Farm Service Agency) to set up a program to pay cattle producers for certain revenue losses tied to direct-to-market beef sales. The Secretary must create the program within one year of enactment and must decide each year whether the prior year qualifies as a "subsidy year." A subsidy year is one in which direct-to-market sales of beef fall by 25% or more compared to a 5-year average (the average excludes the single highest and single lowest year).

If a year is a subsidy year, eligible producers may apply within one year after the end of that year. To apply they must show they used a local processor, provide records of direct-to-market sales, and certify they meet program rules. The Secretary must issue rules within 180 days after enactment and must pay eligible producers within 90 days after receiving an application.

Payments are calculated per head of cattle slaughtered at a local processor and sold direct-to-market. The payment equals 20% of the difference between a 5-year average beef cattle price (excluding the high and low years) and the beef cattle price for the subsidy year, multiplied by the average live weight in hundredweight. Payments per head cannot exceed $500, and a producer cannot receive more than $100,000 total in a subsidy year. The bill authorizes "such sums as necessary" to be appropriated for fiscal years 2027 through 2031.

The bill defines key terms. "Direct-to-market sale" includes sales directly to consumers, restaurants, retail stores, farmers' markets, on-farm sales, and similar channels without using a large-scale packer or distributor. A "local processor" must be inspected by USDA FSIS or an equivalent state program and be located in the same State as the producer or within 200 miles of the producer.

What it means for you#

  • Who may be eligible: a farmer or rancher who raises and finishes steers or heifers, uses a local processor, and sells at least 50% of their beef production through direct-to-market channels.
  • When payments happen: only in years the Secretary finds direct-to-market sales dropped by at least 25% versus the adjusted 5-year average. Producers must apply within one year after that subsidy year.
  • Paperwork: applications must include proof of using a local processor (receipts or invoices), records of direct-to-market sales, and a producer certification.
  • Payment limits: up to $500 per head and up to $100,000 per producer for a subsidy year.
  • Program setup: the agency must write rules within 180 days and create the program within one year of enactment.

Expenses#

  • The bill authorizes appropriations of "such sums as necessary" to run the program for fiscal years 2027 through 2031.
  • Payment limits set in the bill: maximum $500 per head and maximum $100,000 per producer per subsidy year.
  • No publicly available information on total expected program cost or official budget estimates in the bill text.

Proponents' View#

No publicly available information in the bill text describing proponents' statements or arguments.

Opponents' View#

No publicly available information in the bill text describing opponents' statements or arguments.