Food Donation Improvement Act of 2021 This bill expands liability protections for the donation of food and grocery products. Specifically, the bill expands the liability protections to include donations of an apparently fit grocery product or apparently wholesome food for which the recipient is charged a good Samaritan reduced price that is no greater than the cost of handling, administering, and distributing the food or product; or that is donated directly to a needy individual by a retail grocer, wholesaler, agricultural producer, restaurant, caterer, school food authority, or institution of higher education. The Department of Agriculture must issue regulations that clarify the quality and labeling standards that food products donated under the Bill Emerson Good Samaritan Food Donation Act must meet to be eligible for liability protection.