113 HR 1727 IH: Beginning Farmer and Rancher Opportunity Act of 2013
U.S. House of Representatives
2013-04-25
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Beginning Farmer and Rancher Opportunity Act of
2013
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—CONSERVATION
Subtitle A—Conservation Reserve Program
Sec. 101. Extension of conservation reserve
program.
Sec. 102. Contracts.
Subtitle B—Farmland Protection Program
Sec. 111. Farmland protection program.
Subtitle C—Environmental Quality Incentives
Program
Sec. 121. Establishment and administration of environmental
quality incentives program.
Sec. 122. Conservation innovation grants and
payments.
Subtitle D—Funding and Administration
Sec. 131. Funding of conservation programs under Food Security
Act of 1985.
Sec. 132. Assistance to certain farmers or ranchers for
conservation access.
Sec. 133. Comprehensive conservation planning.
Title II—CREDIT
Subtitle A—Farm Ownership Loans
Sec. 201. Direct farm ownership experience
requirement.
Sec. 202. Conservation loan and loan guarantee
program.
Sec. 203. Indexing of direct farm ownership loans.
Sec. 204. Joint financing arrangement.
Sec. 205. Loan terms for down payment loan program.
Sec. 206. Limited resource loan rate.
Sec. 207. Definition of qualified beginning farmer or
rancher.
Subtitle B—Operating Loans
Sec. 211. Young beginning farmer or rancher
microloans.
Subtitle C—Administrative Provisions
Sec. 221. Beginning farmer and rancher individual development
accounts pilot program.
Sec. 222. Transition to private commercial or other sources of
credit.
Sec. 223. Direct loans for beginning farmers and
ranchers.
Title III—RURAL DEVELOPMENT
Sec. 301. Value-added producer grants.
Title IV—RESEARCH, EDUCATION, AND EXTENSION
Sec. 401. Beginning farmer and rancher development
program.
Sec. 402. Agriculture and Food Research Initiative.
Title V—CROP INSURANCE
Sec. 501. Risk management partnership programs.
Title VI—MISCELLANEOUS
Sec. 601. Military Veterans Agricultural Liaison.
Sec. 602. Budgetary effects.
Sec. 603. Effective date.
<enum>I</enum><header>CONSERVATION</header>
<subtitle id="H2A301E78C1A340E6B304182DE12A5EA2"><enum>A</enum><header>Conservation
Reserve Program</header>
<section id="H5FD8519F07504E1AB32E178DCDC1EFF1"><enum>101.</enum><header>Extension of
conservation reserve program</header>
<subsection id="H616C1B8591614D51BFED733B075E7C1A"><enum>(a)</enum><header>In
general</header><text>Section 1231(a) of the Food Security Act of 1985 (16
U.S.C. 3831(a)) is amended by striking <quote>2012</quote> and inserting
<quote>2018</quote>.</text>
</subsection><subsection id="H9643122EEFAC4842BFC9603CC2C3A135"><enum>(b)</enum><header>Land eligible
for enrollment in conservation reserve</header><text>Section 1231(b)(1)(B) of
the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3831">16 U.S.C. 3831(b)(1)(B)</external-xref>) is amended by striking
<quote>Food, Conservation, and Energy Act of 2008</quote> and inserting
<quote>Beginning Farmer and Rancher Opportunity Act of 2013</quote>.</text>
</subsection><subsection id="H9806782AD05E44189BF91131DB7CA16E"><enum>(c)</enum><header>Maximum
enrollment of acreage in conservation reserve</header><text>Section 1231(d) of
the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3831">16 U.S.C. 3831(d)</external-xref>) is amended—</text>
<paragraph id="H0D030257FBDF47629E7124736B21DDCB"><enum>(1)</enum><text>by striking the
first sentence; and</text>
</paragraph><paragraph id="H18F171726CAC47218D42434ED3F4A052"><enum>(2)</enum><text>in the second
sentence, by striking <quote>2010, 2011, and 2012</quote> and inserting
<quote>2010 through 2018</quote>.</text>
</paragraph></subsection><subsection id="H8AB929DE9B214DAA8D2D9E48465CB9EF"><enum>(d)</enum><header>Pilot program
for enrollment of wetland and buffer acreage in conservation
reserve</header><text>Section 1231B of the Food Security Act of 1985 (16 U.S.C.
3831b) is amended—</text>
<paragraph id="H172EBF638F8146A4812AAC5FC6821D94"><enum>(1)</enum><text>in subsection
(a)(1), by striking <quote>2012</quote> and inserting <quote>2018</quote>;
and</text>
</paragraph><paragraph id="HE2BFAF867ED94700AF4E8FA259615649"><enum>(2)</enum><text>in subsection
(b)(1)(C), by striking <quote>2002 through 2007</quote> and inserting
<quote>2008 through 2012</quote>.</text>
</paragraph></subsection></section><section id="HABE26BE97CB144EBABFD750BE84E9B4F"><enum>102.</enum><header>Contracts</header><text display-inline="no-display-inline">Section 1235 of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3835">16 U.S.C. 3835</external-xref>) is amended—</text>
<paragraph id="H5234D6333BD640D98E1E983FE13C5C88"><enum>(1)</enum><text>in subsection
(c)(1)(B), by striking clause (iii) and inserting the following:</text>
<quoted-block id="HB0C3478E62F441C9A04E46336888ADC9" style="OLC">
<clause id="H0A3F20560FFF47D8867B1619D88AD94C"><enum>(iii)</enum><text>to facilitate a
transition of land subject to the contract from a retired or retiring owner or
operator to a beginning farmer or rancher, socially disadvantaged farmer or
rancher, or limited resource farmer or rancher who is or will be actively
engaged in farming or ranching with respect to the land transferred under this
subsection for the purpose of returning some or all of the land into production
using sustainable grazing or crop production methods that meet or exceed the
resource management system quality criteria for erosion, soil quality, water
quality, and fish and wildlife; or</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8773060748204571AF6E93266E8DF139"><enum>(2)</enum><text>in subsection
(f)(1)—</text>
<subparagraph id="H4D1C945724DA4A5F928991CA7E5CE878"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>or socially disadvantaged farmer
or rancher</quote> and inserting <quote>socially disadvantaged farmer or
rancher, or limited resource farmer or rancher who is or will be actively
engaged in farming or ranching with respect to the land transferred under this
subsection</quote>; and</text>
</subparagraph><subparagraph id="H04AD6ABA3760426CA05CFFD775946F64"><enum>(B)</enum><text>by striking
subparagraphs (C), (D), and (E) and inserting the following:</text>
<quoted-block id="H865AC02AB450495AAE209FCDCF5B1933" style="OLC">
<subparagraph id="H9252B515BF6F47FBB66D3745FBAD55A2"><enum>(C)</enum><text>require the
covered farmer or rancher to develop and implement a comprehensive conservation
plan that addresses all resource concerns and meets such sustainability
criteria as the Secretary may establish;</text>
</subparagraph><subparagraph id="HFC1B81D2DFE44011A16909CF92916524"><enum>(D)</enum><text>provide to the
covered farmer or rancher an opportunity to enroll in the conservation
stewardship program or the environmental quality incentives program at any time
beginning on the date that is 1 year before the date of termination of the
contract, including technical and financial assistance in the development of a
comprehensive conservation plan;</text>
</subparagraph><subparagraph id="HD58289A95A2E44B9892EF6B9DA77C210"><enum>(E)</enum><text>if the land
transferred under this subsection remains in grass cover, provide to the
covered farmer or rancher an opportunity to enroll in a long-term or permanent
easement under the grassland reserve program or farmland protection program at
any time beginning on the date that is 1 year before the date of termination of
the contact; and</text>
</subparagraph><subparagraph id="H22ABBFB8A0CC4B1BB76E1D075060C21D"><enum>(F)</enum><text>continue to make
annual payments to the retired or retiring owner or operator for not more than
an additional 2 years after the date of termination of the contract, except
that, in the case of a retired or retiring owner or operator who is a family
member (as defined in section 1001) of the covered farmer or rancher, the
additional payments shall be made only if title to the land is sold or
transferred to the covered farmer or rancher on termination of the
contract.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section></subtitle><subtitle id="H23F3564ED0B64D00A61C545A00604431"><enum>B</enum><header>Farmland
Protection Program</header>
<section id="H9546A00BBF564B95AD67AD50D158AD07"><enum>111.</enum><header>Farmland
protection program</header><text display-inline="no-display-inline">Section
1238I of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3838i">16 U.S.C. 3838i</external-xref>) is amended—</text>
<paragraph id="H276BE8249A284F1497832CCB6E2F3975"><enum>(1)</enum><text>in subsection (b),
by inserting <quote>to promote farm viability for future generations</quote>
before the period at the end; and</text>
</paragraph><paragraph id="HAED8A7FEC2D24776AF869EB8CBB23844"><enum>(2)</enum><text>in subsection
(g)(4)—</text>
<subparagraph id="H07CE0521E638439E814A57CCDC949C10"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HAFA60B02DE8841B2A75D00E682A8A79E"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</subparagraph><subparagraph id="H88316E0E954941F498DF188891E0A3F4"><enum>(C)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block id="H2840F9E16A1F4EB2B8C9BE2F8CEC789D" style="OLC">
<subparagraph id="H2C03958EE9E44D3AA730C271F777FA00"><enum>(C)</enum><text>provide a funding
priority, to the maximum extent practicable, for—</text>
<clause id="HC4147E7C3FEC4724A217DF5A02661FD7"><enum>(i)</enum><text>eligible land for
which there exists a farm or ranch succession plan or similar plan established
to create opportunities for beginning farmers and ranchers and encourage farm
viability for future generations;</text>
</clause><clause id="H34FE1F9D7274498C83D7A15D5EAF29EE"><enum>(ii)</enum><text>easements that
exercise an option to purchase at a price that is equal to the agricultural use
value;</text>
</clause><clause id="H7C7BF791C713455CA8D479DD23CD36D1"><enum>(iii)</enum><text>qualified
beginning farmers or ranchers with contracts to purchase the land to be
protected;</text>
</clause><clause id="H1AE8B29F169F4130B05E6C728D50221D"><enum>(iv)</enum><text>land owned by a
nongovernmental organization that will be sold to a qualified beginning farmer
or rancher;</text>
</clause><clause id="H1880F24B8ED84872A64E6991A1CFA14A"><enum>(v)</enum><text>contemporaneous
farm transfers of eligible land to qualified beginning farmers and ranchers
that may not occur without the financial assistance of the program; and</text>
</clause><clause id="H6F49260182D240A194C4198EEAE5A80D"><enum>(vi)</enum><text>other similar
mechanisms to maintain the affordability of farm and ranch land for successive
generations of farmers and ranchers;
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section></subtitle><subtitle id="H8FCBE08C16A7403E9AB8E91753DA5F85"><enum>C</enum><header>Environmental
Quality Incentives Program</header>
<section id="HFB041ED881484FA1BB54A93D1CFC165B"><enum>121.</enum><header>Establishment
and administration of environmental quality incentives program</header><text display-inline="no-display-inline">Section 1240B of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-2">16 U.S.C. 3839aa–2</external-xref>) is amended—</text>
<paragraph id="HDE5279F801974E2CA9BB21D38CE8BEB2"><enum>(1)</enum><text>in subsection (a),
by striking <quote>2014</quote> and inserting <quote>2018</quote>;</text>
</paragraph><paragraph id="H25DD7384719C41C28240FBB2D4D7FF85"><enum>(2)</enum><text>in subsection
(d)(4)(B), by striking <quote>30 percent</quote> and inserting <quote>50
percent</quote>; and</text>
</paragraph><paragraph id="H405FA271D883487AB24D14E907F11C75"><enum>(3)</enum><text>in subsection (f),
by striking <quote>2012</quote> and inserting <quote>2018</quote>.</text>
</paragraph></section><section id="HE8CE3639A299408E981A2C0686E1EF38"><enum>122.</enum><header>Conservation
innovation grants and payments</header><text display-inline="no-display-inline">Section 1240H of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-8">16 U.S.C. 3839aa–8</external-xref>) is amended—</text>
<paragraph id="H02B60F0FFE3E4E25B707DE8BC40356D3"><enum>(1)</enum><text>in subsection
(a)(2)—</text>
<subparagraph id="H98F195D6A64243BFB65AC3C8F4C77E56"><enum>(A)</enum><text>in subparagraph
(C), by striking <quote>; and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="HC972248DCBE049FBBE3BCBB935F0E3D5"><enum>(B)</enum><text>in subparagraph
(D), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H903FBAEAB2F74699962AD42D2436C1AA"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HD07A4215F55E44C69B89B92D5C1E3708" style="OLC">
<subparagraph id="H16DE6140178F41E999D3083475E6F330"><enum>(E)</enum><text>provide
environmental and resource conservation benefits through increased
participation by beginning farmers and ranchers and socially disadvantaged
farmers and ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2F8310293A30418D96A0155B759A2DAC"><enum>(2)</enum><text>in subsection
(b)(2), by striking <quote>2012</quote> and inserting
<quote>2018</quote>.</text>
</paragraph></section></subtitle><subtitle id="H615D9C0C3C1249CA863894BAC89AB31C"><enum>D</enum><header>Funding and
Administration</header>
<section id="HB620A04F1D894813BF65E681A6DA182F"><enum>131.</enum><header>Funding of
conservation programs under Food Security Act of 1985</header><text display-inline="no-display-inline">Section 1241(a) of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3841">16 U.S.C. 3841(a)</external-xref>) is amended—</text>
<paragraph id="H44712DA3DEBF4A7587D2A71621A7E329"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by inserting <quote>and through fiscal year 2018 in
the case of the program described in paragraph (1)(B)</quote> after
<quote>(7)</quote>; and</text>
</paragraph><paragraph id="H84A1A271446C42F5A7A2D1ED99F21C06"><enum>(2)</enum><text>in paragraph (1),
by striking subparagraph (B) and inserting the following:</text>
<quoted-block id="HBEDAD7A235C74C13A0FDDEDAB1203C9F" style="OLC">
<subparagraph id="H550D8B2E9D7642FBA51C9028383217BE"><enum>(B)</enum><text>$50,000,000 for
the period of fiscal years 2014 through 2018 to carry out section 1235(f) to
facilitate the transfer of land subject to contracts from retired or retiring
owners and operators to beginning farmers or ranchers, socially disadvantaged
farmers or ranchers, or limited resource farmers or
ranchers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H1BFF1A9564D942C18DFB8865BCF54368"><enum>132.</enum><header>Assistance to
certain farmers or ranchers for conservation access</header><text display-inline="no-display-inline">Section 1241(g) of the Food Security Act of
1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3841">16 U.S.C. 3841(g)</external-xref>) is amended—</text>
<paragraph id="HD176D7BB3D21442AB18139B003DF4C40"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>2012</quote> and inserting <quote>2018</quote>; and</text>
</paragraph><paragraph id="HF06B4D09137441C18DCC604D1E1FF4C9"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>(but not earlier than 120 days after the date that funding
for the fiscal year is allocated to the States)</quote> after
<quote>Secretary</quote>;</text>
</paragraph><paragraph id="H59805B45BC234CBAB8313944880660D0"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>(but not earlier than 120 days after the date that acres
for the fiscal year are allocated to the States)</quote> after
<quote>Secretary</quote>; and</text>
</paragraph><paragraph id="H049C405FBC6A4A8799CD04E7597E6F40"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H8E5298D2CC8244FB8D37A8B5DE8021EB" style="OLC">
<paragraph id="H050E2A6C637A40D8AC73CD00F0BA4EEF"><enum>(4)</enum><header>Participation by
beginning and socially disadvantaged farmers and ranchers</header><text>Nothing
in this subsection prohibits beginning or socially disadvantaged farmers or
ranchers from participating in programs and receiving funding available under
this title that is not reserved under paragraph (1).</text>
</paragraph><paragraph id="H26A758DBCECC46CCB5C3CBD32E860E16"><enum>(5)</enum><header>Technical
assistance</header><text>Within the funds reserved under paragraph (1), the
Secretary shall allocate to the Natural Resources Conservation Service funding
for technical assistance at a rate that is not more than 10 percent higher than
the rate that would otherwise apply to allow the Service to provide additional
technical assistance to beginning farmers or ranchers and socially
disadvantaged farmers or ranchers to establish conservation
plans.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HABA847915CBB4617ADA3CD1D67E21B64"><enum>133.</enum><header>Comprehensive
conservation planning</header><text display-inline="no-display-inline">Section
1244(a) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3844">16 U.S.C. 3844(a)</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block id="HD54B7E8C2F0847CBBFC8DFAE7C4B90AF" style="OLC">
<paragraph id="H8F402DDDADCB45089D0836896A0B4381"><enum>(3)</enum><header>Comprehensive
conservation planning</header><text>In carrying out this subsection, the
Secretary shall provide technical and financial assistance using resources
available under the environmental quality incentives program, conservation
stewardship program, or such other programs as the Secretary may determine to
covered persons who request the assistance to develop a comprehensive
conservation plan for the farming or ranching operation of the covered person
that addresses all resource concerns and meets such sustainability criteria as
the Secretary may
establish.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>II</enum><header>CREDIT</header>
<subtitle id="H4FF38332ED8B400287C3741120651CB0"><enum>A</enum><header>Farm Ownership
Loans</header>
<section id="HF0A451FB51454303B13F5505F553EC30"><enum>201.</enum><header>Direct farm
ownership experience requirement</header><text display-inline="no-display-inline">Section 302(b)(1) of the Consolidated Farm
and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1922">7 U.S.C. 1922(b)(1)</external-xref>) is amended in the matter
preceding subparagraph (A) by inserting <quote>or has other acceptable
experience for a period of time, as determined by the Secretary,</quote> after
<quote>3 years</quote>.</text>
</section><section id="H0BEC0E0E9C814717AA6ABB6414D02983"><enum>202.</enum><header>Conservation
loan and loan guarantee program</header><text display-inline="no-display-inline">Section 304 of the Consolidated Farm and
Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1924">7 U.S.C. 1924</external-xref>) is amended—</text>
<paragraph id="H96C00713A7F14BB88961C354FCE5144A"><enum>(1)</enum><text>in subsection
(c)(2)—</text>
<subparagraph id="HD56DA87D99504297B5EC227109E5E427"><enum>(A)</enum><text>by striking
<quote>shall meet</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H09463969FC9A4A0AA14A7F9C797445DA" style="OLC">
<text>shall—</text><subparagraph id="H0FD234C6FD21424A8B10F0DAA795045C"><enum>(A)</enum><text display-inline="yes-display-inline">meet</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H11988D7D1E6F470F8829512F125C96ED"><enum>(B)</enum><text>in subparagraph
(A) (as so designated), by striking the period at the end and inserting
<quote>; and</quote>; and</text>
</subparagraph><subparagraph id="HA55AA92591FC4C46AB5FDF959DD58DAC"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H68D9DE1752914096AE2FBB8140175736" style="OLC">
<subparagraph id="HCA602E60730D4BBBAF50ACC6B4C254BA"><enum>(B)</enum><text>be the owner or
operator of not larger than a family
farm.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HDDD834B786E54A9F968F3AE465A55460"><enum>(2)</enum><text>in subsection
(e)—</text>
<subparagraph id="H60876C609E6D4F5FBA2B05AEA8F1E3A3"><enum>(A)</enum><text>by striking
<quote>The portion</quote> and inserting the following:</text>
<quoted-block id="H9BEDEF207F8C4E57810F8D07B5E5A324" style="OLC">
<paragraph id="H4A83A84F16EC46ABA50E52A0DDE888B2"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the
portion</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2A537DF49FBF4CEF9BC521E020B8F862"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HB2268C879C72429191314A8AF5C75ABE" style="OLC">
<paragraph id="H42642C1F187E4E34BAE8FECB079EE648"><enum>(2)</enum><header>Beginning and
socially disadvantaged farmers and ranchers</header><text>In the case of
beginning farmers or ranchers and socially disadvantaged farmers or ranchers,
the portion of the loan the Secretary may guarantee under this section shall be
95 percent of the principal amount of the
loan.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBF76BAE2057241F39768224803E786C9"><enum>(3)</enum><text>by striking
subsection (h) and inserting the following:</text>
<quoted-block id="H04057330740C4DBEAB8E6AC83BF56BC2" style="OLC">
<subsection id="H782BAEF35EE24C9CA2DE41B0D571EEB7"><enum>(h)</enum><header>Funding</header>
<paragraph id="HDF17C047A82A425DA492086AB2BA7ED0"><enum>(1)</enum><header>In
general</header><text>The Secretary may make or guarantee loans under this
section for not more than $250,000,000 for each of fiscal years 2013 through
2018, of which, for each fiscal year, not more than <fraction>1/2</fraction>
shall be used for direct loans and not more than <fraction>1/2</fraction> shall
be used for guaranteed loans.</text>
</paragraph><paragraph id="H56A0AE07463342A9A14455CE4F205822"><enum>(2)</enum><header>Qualified
beginning farmers and ranchers</header>
<subparagraph id="HAFED10353C044466A8D9F7AE7882E52F"><enum>(A)</enum><header>Direct
loans</header><text>Of the amount made available for direct loans for a fiscal
year under paragraph (1), the Secretary shall reserve for qualified beginning
farmers and ranchers until April 1 of the fiscal year not less than 50 percent
of the amount.</text>
</subparagraph><subparagraph id="H97887EE7ED2543CD9B0BF0DD43F33EBA"><enum>(B)</enum><header>Guaranteed
loans</header><text>Of the amount made available for guaranteed loans for a
fiscal year under paragraph (1), the Secretary shall reserve for qualified
beginning farmers and ranchers until April 1 of the fiscal year not less than
50 percent of the
amount.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H294B791C3F8046C0ACDD86DC7B43D8EB"><enum>203.</enum><header>Indexing of
direct farm ownership loans</header><text display-inline="no-display-inline">Section 305(a) of the Consolidated Farm and
Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1925">7 U.S.C. 1925(a)</external-xref>) is amended by inserting
<quote>(increased, beginning with fiscal year 2014, by the inflation
percentage, as determined by the Secretary, applicable to the fiscal year in
which the loan is made)</quote> after <quote>$300,000</quote>.</text>
</section><section id="H3AD7166FFF9843CA97A5920BC4192AA4"><enum>204.</enum><header>Joint financing
arrangement</header><text display-inline="no-display-inline">Section
307(a)(3)(D) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1927(a)(3)(D)) is amended by striking <quote>4</quote> and inserting
<quote>1.5</quote>.</text>
</section><section id="HCB49F85242AC4D85B2C91F6EB9DCFC68"><enum>205.</enum><header>Loan terms for
down payment loan program</header><text display-inline="no-display-inline">Section 310E(b)(1)(C) of the Consolidated
Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1935">7 U.S.C. 1935(b)(1)(C)</external-xref>) is amended by striking
<quote>$500,000</quote> and inserting <quote>$667,000</quote>.</text>
</section><section id="H104A465E324C40AE983CE7927ED66705"><enum>206.</enum><header>Limited
resource loan rate</header><text display-inline="no-display-inline">Section
316(a)(2)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1946(a)(2)(B)) is amended by striking <quote>5</quote> and inserting
<quote>1.5</quote>.</text>
</section><section id="HB503CBD6CA26480EBCD6B6B06372DD61"><enum>207.</enum><header>Definition of
qualified beginning farmer or rancher</header><text display-inline="no-display-inline">Section 343(a)(11)(F) of the Consolidated
Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1991">7 U.S.C. 1991(a)(11)(F)</external-xref>) is amended by striking
<quote>median</quote> and inserting <quote>average</quote>.</text>
</section></subtitle><subtitle id="HB3898C1F13294C918542D0F74BCE40EA"><enum>B</enum><header>Operating
Loans</header>
<section id="H2A1231940C2D493AA91D1957A2264769"><enum>211.</enum><header>Young beginning
farmer or rancher microloans</header>
<subsection id="H1E2A93D9C3F048FCBBADB967E27653BF"><enum>(a)</enum><header>In
general</header><text>Section 311 of the Consolidated Farm and Rural
Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1941">7 U.S.C. 1941</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block id="HF16CE90992B24CAF88F7EC9720C39029" style="OLC">
<subsection id="HCC603E9043664E3A80AFC7E6554D7705"><enum>(d)</enum><header>Microloans</header>
<paragraph id="H24E9886BF9584CBAADED1581B0F1974A"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Secretary may establish a
program to make or guarantee microloans.</text>
</paragraph><paragraph id="H080E4B97373A4272A32840E8FDB1BA8B"><enum>(2)</enum><header>Limitation</header><text>The
Secretary shall not make or guarantee a microloan under this subsection
that—</text>
<subparagraph id="H4F14547CF6F44D8296F8E976E95AEFBD"><enum>(A)</enum><text>exceeds $35,000;
or</text>
</subparagraph><subparagraph id="H23B77C7260E3470A89D585F9EDFEC08E"><enum>(B)</enum><text>would cause the
total principal indebtedness outstanding at any time for microloans under this
subsection to any 1 borrower to exceed $70,000.</text>
</subparagraph></paragraph><paragraph id="HD5AEA854E2F6481EBB335E1647509AEA"><enum>(3)</enum><header>Applications</header><text>To
the maximum extent practicable, the Secretary shall limit the administrative
burdens and streamline the application and approval process for microloans
under this subsection.</text>
</paragraph><paragraph id="HADFF29C9B5BE4834A910028A39094F7B"><enum>(4)</enum><header>Cooperative
lending projects</header>
<subparagraph id="HA12EA801182D4168A5FD54F0AA5C030A"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the Secretary may enter into
a contract with one or more community-based and nongovernmental organizations,
State entities, or other intermediaries, as the Secretary determines
appropriate—</text>
<clause id="H13C9B1B7278747008378C5923E687E35"><enum>(i)</enum><text>to
make or guarantee a microloan under this subsection; and</text>
</clause><clause id="H93A379F8138841CEA72E7D49E184B0C5"><enum>(ii)</enum><text>to provide
business, financial, marketing, and credit management services to
borrowers.</text>
</clause></subparagraph><subparagraph id="HC95069B6B1E5480DAF7410FAAF434469"><enum>(B)</enum><header>Requirements</header><text>Before
entering into a contract with an entity described in subparagraph (A), the
Secretary—</text>
<clause id="H8A192564D5EE4FA5A572B422B0231B52"><enum>(i)</enum><text>shall review and
approve—</text>
<subclause id="H9E2620B876FE4062950A4CBD11BE8B90"><enum>(I)</enum><text>the loan loss
reserve fund for microloans established by the entity; and</text>
</subclause><subclause id="H9CCA695F14E24BD29C9215352BE1ADDB"><enum>(II)</enum><text>the underwriting
standards for microloans of the entity; and</text>
</subclause></clause><clause id="HD91BC1BBDC334651927C673A89111D62"><enum>(ii)</enum><text>establish such
other requirements for contracting with the entity as the Secretary determines
to be necessary.</text>
</clause></subparagraph><subparagraph id="H8D05E9BC82764B808EBE97A596760A98"><enum>(C)</enum><header>Revolving
fund</header><text>Under such conditions as the Secretary may require, an
entity described in subparagraph (A) that enters into a contract with the
Secretary under this paragraph may elect to convert the loan loss reserve fund
for microloans established by the entity into a revolving loan fund to carry
out the purposes of this
paragraph.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC8C0F30505234AA5A2CDEBD510C21DC8"><enum>(b)</enum><header>Exceptions for
direct loans</header><text>Section 311(c) of the Consolidated Farm and Rural
Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1941">7 U.S.C. 1941(c)</external-xref>) is amended by striking paragraph (2) and
inserting the following:</text>
<quoted-block id="H4362B533849C49088981B0267F17DC7B" style="OLC">
<paragraph id="H2B3A2791F5F04E49BC5875A699213011"><enum>(2)</enum><header>Exceptions</header><text>In
this subsection, the term <term>direct operating loan</term> shall not
include—</text>
<subparagraph id="H3315207832E14C748B6575B4123F1118"><enum>(A)</enum><text>a loan made to a
youth under subsection (b); or</text>
</subparagraph><subparagraph id="HB43F1C41388A44FBA09DDF82E362C6A2"><enum>(B)</enum><text>a microloan made
to a young beginning farmer or rancher or a military veteran farmer or rancher,
as defined by the
Secretary.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB9E9D014944B4F69A1E20EDD3887F327"><enum>(c)</enum><header>Purposes of
loans</header><text>Section 312(a) of the Consolidated Farm and Rural
Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1942">7 U.S.C. 1942(a)</external-xref>) is amended in the matter preceding paragraph
(1) by inserting <quote>(including a microloan, as defined by the
Secretary)</quote> after <quote>A direct loan</quote>.</text>
</subsection><subsection id="H2FE2AE170C5E4DDB94F500280C7912B8"><enum>(d)</enum><header>Determination of
interest rates</header><text>Section 316(a)(2) of the Consolidated Farm and
Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1946">7 U.S.C. 1946(a)(2)</external-xref>) is amended in the matter preceding
subparagraph (A) by inserting <quote>a microloan to a beginning farmer or
rancher or military veteran farmer or rancher or</quote> after <quote>The
interest rate on</quote>.</text>
</subsection></section></subtitle><subtitle id="H72F7E293850445BDBDFB890FA3532179"><enum>C</enum><header>Administrative
Provisions</header>
<section id="H31CBEE27469F46B383FFCF4FF588F85B"><enum>221.</enum><header>Beginning
farmer and rancher individual development accounts pilot program</header><text display-inline="no-display-inline">Section 333B of the Consolidated Farm and
Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1983b">7 U.S.C. 1983b</external-xref>) is amended by striking subsection (h)
and inserting the following:</text>
<quoted-block id="H87B9FF25156B4B3A9D5EC1E97C31AB09" style="OLC">
<subsection id="HD1D8EEFDF8C74C01BE85B603727A9A38"><enum>(h)</enum><header>Funding</header><text>On
October 1, 2013, and on each October 1 thereafter through October 1, 2017, of
the funds of the Commodity Credit Corporation, the Secretary shall use to carry
out this section $5,000,000, to remain available until
expended.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H83B18BD107714539ACBE563143969108"><enum>222.</enum><header>Transition to
private commercial or other sources of credit</header>
<subsection id="H349A0BAC39E3473B88D437F43B7192A3"><enum>(a)</enum><header>Conditions for
direct loans</header><text>Section 311(c) of the Consolidated Farm and Rural
Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1941">7 U.S.C. 1941(c)</external-xref>) is amended—</text>
<paragraph id="H7CB88F8B0D8F41C9AC4D52793281DFF4"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="H7C0B36A8853E4AC3AAFDA3C190343222"><enum>(A)</enum><text>in subparagraph
(A), by striking the semicolon at the end and inserting <quote>;
and</quote>;</text>
</subparagraph><subparagraph id="H7CDABD0626604D91973E23CA9238FCD2"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>; or</quote> at the end and inserting a period;
and</text>
</subparagraph><subparagraph id="H953CFF9A4055494F8FF6DE3DAA12FAA7"><enum>(C)</enum><text>by striking
subparagraph (C); and</text>
</subparagraph></paragraph><paragraph id="H70901BD92DB046D1BBDB1DD4F953169A"><enum>(2)</enum><text>by striking
paragraphs (3) and (4) and inserting the following:</text>
<quoted-block id="H72DB03BE311D40689511BCDEE3B5F5FE" style="OLC">
<paragraph id="H9060D84972DA463690CFC336D4FE7C92"><enum>(3)</enum><header>Term
limits</header><text>Subject to paragraph (4), if a farmer or rancher has
received a direct operating loan pursuant to this section in each of 9
consecutive years, the farmer or rancher may not receive a direct operating
loan from the Secretary under this section for the next year.</text>
</paragraph><paragraph id="HAD3AB70ECFE6487DB4F8448D021320A5"><enum>(4)</enum><header>Waivers for farm
and ranch operations on tribal land</header><text>The Secretary shall waive the
limitation under paragraph (3) for a direct loan made under this subtitle to a
farmer or rancher whose farm or ranch land is subject to the jurisdiction of an
Indian tribe and whose loan is secured by one or more security instruments that
are subject to the jurisdiction of an Indian tribe if the Secretary determines
that commercial credit is not generally available for the farm or ranch
operations.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBA685377A54A4959AFBDA4FE2B7936E4"><enum>(b)</enum><header>Limitation on
period borrowers are eligible for guaranteed assistance</header><text>Section
319 of the Consolidated Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1949">7 U.S.C. 1949</external-xref>) is
amended by striking subsection (b) and inserting the following:</text>
<quoted-block id="HADCB454B036348D49C79B3AF43040967" style="OLC">
<subsection id="H920935CFF8D441FF8D88E506D0DDC9C2"><enum>(b)</enum><header>Limitation on
period borrowers are eligible for guaranteed assistance</header><text>If a
borrower has received a guaranteed loan under this subtitle in each of 15
consecutive years, the borrower may not receive a loan guaranteed by the
Secretary for the next
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H6FF02D3FAE7B4A50BCD4D64B5453D906"><enum>223.</enum><header>Direct loans
for beginning farmers and ranchers</header><text display-inline="no-display-inline">Section 346(b)(2)(A) of the Consolidated
Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1994">7 U.S.C. 1994(b)(2)(A)</external-xref>) is amended—</text>
<paragraph id="H52E08C5ACC7F4B999A798BC51F1D23DA"><enum>(1)</enum><text>in clause (i), by
adding at the end the following:</text>
<quoted-block id="H2229992482244B43947EAC1D3CA68ABD" style="OLC">
<subclause id="H78CC1248529F45D2BFCD6654573D3600"><enum>(III)</enum><header>Priority</header><text>In
order to maximize the number of borrowers served under this clause, the
Secretary—</text>
<item id="H88EB9BBB7EA244D29C5B9A360476D5A8"><enum>(aa)</enum><text>shall give
priority to borrowers who apply under the down payment loan program under
section 310E or joint financing arrangements under section 307(a)(3)(D);
and</text>
</item><item id="H698CEDEDD039461FB569B6F11C4F4464"><enum>(bb)</enum><text>may
offer other financing options only if the Secretary determines that down
payment or other participation loan options are not a viable approach for a
particular borrower.</text>
</item></subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4BE3F282B69A4B79871E92B1812E9862"><enum>(2)</enum><text>in clause
(ii)(III), by striking <quote>each of fiscal years 2008 through 2012</quote>
and inserting <quote>fiscal year 2008 and each fiscal year
thereafter</quote>.</text>
</paragraph></section></subtitle><enum>III</enum><header>RURAL
DEVELOPMENT</header>
<section id="HCDFED23ED9744DAF9E1F52C34C30B5AA"><enum>301.</enum><header>Value-added
producer grants</header><text display-inline="no-display-inline">Section 231(b)
of the Agricultural Risk Protection Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/7/1632a">7 U.S.C. 1632a(b)</external-xref>) is
amended—</text>
<paragraph id="H20A9BB7407B749189FBBE9A1BBBDEEE3"><enum>(1)</enum><text>by striking
paragraph (6) and inserting the following:</text>
<quoted-block id="H23FA079151C143ADB8873F2DCC59887C" style="OLC">
<paragraph id="HCBEBF9F7069F4DB9A1BD6C078B36B478"><enum>(6)</enum><header>Priority</header><text>In
awarding grants under this subsection, the Secretary shall—</text>
<subparagraph id="H80C5258193C74492BAF66B9A642F77B0"><enum>(A)</enum><text>in the case of
grants awarded under paragraph (1)(A), give priority to—</text>
<clause id="HEA50DB9278AF4369806047E6439FE4EA"><enum>(i)</enum><text>operators of
small- and medium-sized farms and ranches that are structured as family farms;
or</text>
</clause><clause id="H828F7733BFDB439C8F448C7F564EB6A8"><enum>(ii)</enum><text>beginning farmers
or ranchers or socially disadvantaged farmers or ranchers; and</text>
</clause></subparagraph><subparagraph id="H960EF13F1511429DA54AE8D12F8A4EDD"><enum>(B)</enum><text>in the case of
grants awarded under paragraph (1)(B), give priority to projects that, as
determined through peer review, best contribute—</text>
<clause id="HEA7FA970B54449AB859ADEAA0753E806"><enum>(i)</enum><text>to
increasing opportunities for operators of small- and medium-sized farms and
ranches that are structured as family farms; or</text>
</clause><clause id="HE7AFB62510304E6D93A39961D8D46B04"><enum>(ii)</enum><text>to creating
opportunities for beginning farmers and ranchers or socially disadvantaged
farmers and ranchers.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCC1EFD1657F64580BD8B0DA4CFDDCB6A"><enum>(2)</enum><text>by redesignating
paragraph (7) as paragraph (8);</text>
</paragraph><paragraph id="H3925936B73534022944E96D567C29297"><enum>(3)</enum><text>by inserting after
paragraph (6) the following:</text>
<quoted-block id="H4825540B87254B2C9675878931ED8ACA" style="OLC">
<paragraph id="HF379EBD7EA0443CBA2A408D172FB6DFF"><enum>(7)</enum><header>Outreach and
technical assistance</header><text>The Secretary shall develop and implement an
outreach and technical assistance strategy to assist recipients of a grant
under this subsection reach and serve underserved States and communities (as
determined by the Secretary).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H17CE149BD19345E68586A275F1E88105"><enum>(4)</enum><text>in paragraph (8)
(as redesignated by paragraph (3))—</text>
<subparagraph id="HF2887EA9A34B41B89877F54A7F805EA3"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="H5775FAB5F92944F5B23ABBEFD230CB2F"><enum>(i)</enum><text>by
striking <quote>October 1, 2008</quote> and inserting <quote>October 1, 2012,
and each October 1 thereafter through October 1, 2017</quote>; and</text>
</clause><clause id="H716A22E4F165469196534675BB4C4A2A"><enum>(ii)</enum><text>by
striking <quote>$15,000,000</quote> and inserting
<quote>$20,000,000</quote>;</text>
</clause></subparagraph><subparagraph id="H3FA0BE1F7C164BE5909E436C76DCB5C2"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>2012</quote> and inserting <quote>2018</quote>;
and</text>
</subparagraph><subparagraph id="HC0A4B382246C4D3EAFCC3A2001890C1B"><enum>(C)</enum><text>by striking
subparagraph (C) and inserting the following:</text>
<quoted-block id="H4A2DCD2888CE4C1FB53FA1F643EFD078" style="OLC">
<subparagraph id="HCFF920D3192D4FE58FC9C40F922C740A"><enum>(C)</enum><header>Priority
funding</header>
<clause id="HCE116CF15CEF410E816D2FA96156D7F9"><enum>(i)</enum><header>In
general</header><text>In accordance with clause (ii), the Secretary shall, to
the maximum extent practicable, reserve not less than <fraction>2/3</fraction>
of the amounts made available for each fiscal year under this paragraph to
award grants with respect to which priority is given under paragraph
(6).</text>
</clause><clause id="H1315BEC58629403195105A8FCC60C5CF"><enum>(ii)</enum><header>Reservation of
funds</header>
<subclause id="H35053DB1440444AB9268C85B0EDBEF41"><enum>(I)</enum><header>In
general</header><text>Of the amounts reserved under clause (i) for each fiscal
year, the Secretary shall reserve a total of 10 percent to award grants to
recipients described in subparagraphs (A)(ii) and (B)(ii) of paragraph
(6).</text>
</subclause><subclause id="H1E5033D5E6234AA293638ABAACC1C5A6"><enum>(II)</enum><header>Mid-tier value
chains</header><text>Of the total amount of funds made available for each
fiscal year under this paragraph, the Secretary shall reserve 10 percent to
fund applications of eligible recipients described in paragraph (1) that
propose to develop mid-tier value chains.</text>
</subclause><subclause id="HD9225DB440F04BAFA077539F1F872DC3"><enum>(III)</enum><header>Unobligated
amounts</header><text>Any amounts reserved for a fiscal year under subclause
(I) or (II) that are not obligated by the date on which the Secretary completes
the review process for applications submitted under this section in that fiscal
year shall be available to the Secretary to make grants under this subsection
to eligible recipients in any State, as determined by the
Secretary.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><enum>IV</enum><header>RESEARCH,
EDUCATION, AND EXTENSION</header>
<section id="H499CE63384244DFCAE3902933FA53BAC"><enum>401.</enum><header>Beginning
farmer and rancher development program</header><text display-inline="no-display-inline">Section 7405 of the Farm Security and Rural
Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/3319f">7 U.S.C. 3319f</external-xref>) is amended—</text>
<paragraph id="H46A74C0DE65B4F2CB0BBDBA56446206E"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="HF3265963A00A4AA580F83D71564D6A95"><enum>(A)</enum><text>in paragraph (1),
by striking subparagraphs (A) through (R) and inserting the following;</text>
<quoted-block id="HADF1CC6B3F6D46289AFAAAC280365993" style="OLC">
<subparagraph id="H6CC85791D2E14D59B5B4F25C90DD6FAD"><enum>(A)</enum><text>basic livestock,
forest management, and crop farming practices;</text>
</subparagraph><subparagraph id="H72E1918DB5094BFD91B11855726916E4"><enum>(B)</enum><text>innovative farm,
ranch, and private nonindustrial forest land transfer strategies;</text>
</subparagraph><subparagraph id="H6A9BDB77FE0C4B29A716064CCB7CAA87"><enum>(C)</enum><text>entrepreneurship
and business training;</text>
</subparagraph><subparagraph id="H5D1AA223DCD243C486778FE851D4227F"><enum>(D)</enum><text>financial and risk
management training (including the acquisition and management of agricultural
credit);</text>
</subparagraph><subparagraph id="H3A915E0827DB470A97BF9D00EC6AC402"><enum>(E)</enum><text>natural resource
management and conservation planning;</text>
</subparagraph><subparagraph id="H64EE557A64684AE9B685B55EE7DE0791"><enum>(F)</enum><text>diversification
and marketing strategies;</text>
</subparagraph><subparagraph id="H05AB094C09E5462A8BC658638CC16B31"><enum>(G)</enum><text>curriculum
development;</text>
</subparagraph><subparagraph id="HB8E8A2F2CD1E42E3A07357860E988487"><enum>(H)</enum><text>mentoring,
apprenticeships, and internships;</text>
</subparagraph><subparagraph id="HF5D6CD67E5074C4EAF52164402EFA2CF"><enum>(I)</enum><text>assisting
beginning farmers or ranchers in acquiring land from retiring farmers and
ranchers;</text>
</subparagraph><subparagraph id="H94CFB43A17D640E19B254C73FDE8AFCB"><enum>(J)</enum><text>food safety
training;</text>
</subparagraph><subparagraph id="H12CD278E2D26497F979FE3D409736B6B"><enum>(K)</enum><text>agricultural
rehabilitation and vocational training for veterans; and</text>
</subparagraph><subparagraph id="H4633BFBF329F4C3E9C2F428D31A1A33B"><enum>(L)</enum><text>other similar
subject areas of use to beginning farmers or
ranchers.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H82129AC66F0E463FBB8A2E03D194381A"><enum>(B)</enum><text>in paragraph
(4)—</text>
<clause id="H3566300DCBCF46C19D3607C2622B95A0"><enum>(i)</enum><text>by
striking <quote>To be eligible</quote> and inserting the following:</text>
<quoted-block id="HDB1AD11B89FE4903BFD273B3C7D3B89F" style="OLC">
<subparagraph id="H85AA4625D90A4AC2B009692C81E49D84"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), to be
eligible</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H4A754F9D3DF2461291DE22A88A1A6BAF"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block id="H24B57BB06B9D40C9A2C43D985615E694" style="OLC">
<subparagraph id="HDA69B8805B8A4740A20AF48D7665D3F2"><enum>(B)</enum><header>Exceptions</header><text>The
Secretary may waive or modify the matching requirement in subparagraph (A) if
the Secretary determines a waiver or modification is necessary to effectively
reach an underserved area or
population.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H4705989FE94149D596B645924930D474"><enum>(C)</enum><text>in paragraph
(8)—</text>
<clause id="H16F4227FF4E24121B0E2B47F2A8C9A06"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>and</quote> after the semicolon at the
end;</text>
</clause><clause id="H2048689CF9EB4194A34DC99DADFCA65C"><enum>(ii)</enum><text>in
subparagraph (C), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="HDAED8229C63F4DB7B4652F358CC64F0E"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block id="H69B70E2E9B8A46FE9EE8CB58BD27B77A" style="OLC">
<subparagraph id="H641DCFE8319E40F7925BDAFF1CF3913F"><enum>(D)</enum><text>military veteran
beginning farmers and ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="HAFF8FD1352354B44924EBE3B31FD556A"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H95A659855F0C4023B93C7CC44A3BFB4C" style="OLC">
<paragraph id="H21530D306DBD4B49AFDDBFCC16B1A5B1"><enum>(11)</enum><header>Indirect
costs</header><text>To help facilitate participation in the program under this
subsection by nongovernmental and community-based nonprofit organizations, the
Secretary shall provide for an optional 10 percent indirect cost option in lieu
of a higher negotiated rate.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H2A718CA924084B62B9EDBA3CBC0CDA3F"><enum>(2)</enum><text>in subsection
(h)—</text>
<subparagraph id="H10E5ABA7C3924AD59A25061243890BC1"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H8FF3CB1B53FE45F8AD7C415055143A96"><enum>(i)</enum><text>in
the paragraph heading, by striking <quote>FOR FISCAL YEARS 2009 THROUGH
2012</quote>; and</text>
</clause><clause id="H573B7203BEC44D9DB4A1BA5A938BC0F0"><enum>(ii)</enum><text>by
striking <quote>section—</quote> and all that follows through the period at the
end and inserting <quote>section $20,000,000 for each of fiscal years 2014
through 2018.</quote>;</text>
</clause></subparagraph><subparagraph id="HB832BD9245504128A5FA9509EEC0E844"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="HD81F55122DC6434EB39D59AF76FAB524"><enum>(i)</enum><text>in
the paragraph heading, by striking <quote>FOR FISCAL YEARS 2009 THROUGH
2012</quote>; and</text>
</clause><clause id="H88B0D31F6281465989A671DFF9C01637"><enum>(ii)</enum><text>by
striking <quote>2008 through 2012</quote> and inserting <quote>2013 through
2018</quote>; and</text>
</clause></subparagraph><subparagraph id="H4BEA1A23E44942F888265DCD85048166"><enum>(C)</enum><text>by striking
paragraph (3).</text>
</subparagraph></paragraph></section><section id="HA6FF38B12D2F48CAB20561831AFA0EDE"><enum>402.</enum><header>Agriculture and
Food Research Initiative</header><text display-inline="no-display-inline">Subsection (b) of the Competitive, Special,
and Facilities Research Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/7/450i">7 U.S.C. 450i(b)</external-xref>) is amended—</text>
<paragraph id="HB8264ED659034F04BFAF95982813C741"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>food
and agricultural sciences</quote> and all that follows through the period at
the end and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="H65EAA2B0823B4BBF92922A3512C33C52" style="OLC">
<text>food and
agricultural sciences (as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103))—</text><subparagraph id="H1E9127C6DF3B4DF3A092C8072A21692B"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of grant made under paragraph
(6), to an entity described in subparagraphs (A), (B), (C), or (D) of that
paragraph; and</text>
</subparagraph><subparagraph id="HCF620EC24A5B4E77A272651124A69D7E"><enum>(B)</enum><text>in the case of any
other grant made under this subsection, to any eligible entity described in
paragraph (7), including a grant made for—</text>
<clause id="H0C87C9D9B0C944F4830943C51B46DFA7"><enum>(i)</enum><text>fundamental
research (as defined in section 251(f)(1) of the Department of Agriculture
Reorganization Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/7/6971">7 U.S.C. 6971(f)(1)</external-xref>);</text>
</clause><clause id="HA65FF8D3824440E993B2F779E01B6A16"><enum>(ii)</enum><text>applied research
(as defined in that section);</text>
</clause><clause id="H7234B4B5B335467FB1746EC918E7CC15"><enum>(iii)</enum><text>integrated
research conducted pursuant to section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/7/7626">7 U.S.C. 7626</external-xref>); or</text>
</clause><clause id="H4D0720C593C44F09A6C43984E7C204DF"><enum>(iv)</enum><text>integrated
research described in clause (iii) that is applied or fundamental
research.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H56B2597EDCF34A5A8C3FF778B06147E3"><enum>(2)</enum><text>in paragraph
(2)(F)—</text>
<subparagraph id="H6FAB9C190DE7466B91EA276889B38D50"><enum>(A)</enum><text>by redesignating
clauses (iii) through (vi) as clauses (iv) through (vii), respectively;
and</text>
</subparagraph><subparagraph id="H643CBB374FCF460BA58C529EB1F8D902"><enum>(B)</enum><text>by inserting after
clause (ii) the following:</text>
<quoted-block id="H5EB945DD3C4F4A2C8CABEB4A5C9D4DD7" style="OLC">
<clause id="HC85545419D1D43E9B6B1D4E83948EC3A"><enum>(iii)</enum><text>new farming
opportunities, including young, beginning, socially disadvantaged, and
immigrant issues and farm transition, farm transfer, farm entry, and beginning
farmer profitability
issues;</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFB2F1223385E41D6AB656FBC5147A2EB"><enum>(3)</enum><text>in paragraph (7),
in the matter preceding subparagraph (A), by inserting <quote>projects
(including integrated projects)</quote> after <quote>education</quote>;
and</text>
</paragraph><paragraph id="H0251D376BE654F05A2E62AAF84C24E22"><enum>(4)</enum><text>in paragraph
(11)(A), in the matter preceding clause (i), by striking <quote>2008 through
2012</quote> and inserting <quote>2013 through 2018</quote>.</text>
</paragraph></section><enum>V</enum><header>CROP
INSURANCE</header>
<section id="HA60290E4F0AA464EB07C93B9266A6E27"><enum>501.</enum><header>Risk management
partnership programs</header><text display-inline="no-display-inline">Section
522(d) of the Federal Crop Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1522">7 U.S.C. 1522(d)</external-xref>) is amended—</text>
<paragraph id="HB75E18D3E48140048B196BDBD4699FFF"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HA3D65FB3B8234773A62C5B9AF164A7A5"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>priority given to
risk</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="HDACA14E6247C4695805A8E8DE1F63F63" style="OLC">
<text>priority given
to—</text><subparagraph id="H4ABDE24C537444D0A3009917A778A862"><enum>(A)</enum><text>risk</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H180CF7B5AC9C44E5974F3806107E495C"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="H26BF48F0745845DF90B23D6E9462676F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H2C5ED5FF7F0E42E8852B71B1DEF13D6D" style="OLC">
<subparagraph id="HB36741D547864CD583A3521FFDEC800C"><enum>(B)</enum><text>underserved
producers, including beginning farmers and ranchers and socially disadvantaged
farmers and
ranchers.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0565365D1E5B462F9CDD7AF3A8C800E0"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H92EF2F8B4301485B91F82F4E67A870A2"><enum>(A)</enum><text>by striking
<quote>options for producers</quote> and inserting “options for—</text>
<quoted-block id="H28D5F39F994743D7879D075FBED32D6D" style="OLC">
<subparagraph id="H484F7BDF184349A88CB0C53EE24C96AD"><enum>(A)</enum><text>producers</text>
</subparagraph><subparagraph id="H98052933740E432FB4371E2123F9B4F3"><enum>(B)</enum><text>by striking the
period at the end and inserting</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD3E1A89F745C4A26BB2413F45407C0E6"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H7CB5470C13DD4D68A12E7EC5568F7B23" style="OLC">
<subparagraph id="HAB30D52CEF4A4B8D8380AAC1D06C302C"><enum>(B)</enum><text>underserved
producers, including beginning farmers and ranchers and socially disadvantaged
farmers and ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0746DC0EA2F944A6BA8AF442C6C9F7AB"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HD20B04D9381C41FB85BD6B29BA29E766" style="OLC">
<paragraph id="H471946F7AA474FE084121DF8051B1845"><enum>(4)</enum><header>Requirements</header><text>In
carrying out the programs established under paragraphs (2) and (3), the
Secretary shall place special emphasis on risk management techniques, tools,
and programs that are specifically targeted at—</text>
<subparagraph id="H1CB9EC5025C14A9594D7F546AEFEF5EC"><enum>(A)</enum><text>beginning farmers
or ranchers;</text>
</subparagraph><subparagraph id="HE4A58A0E4A2A40BA8ABE4226A10BE33A"><enum>(B)</enum><text>legal immigrant
farmers or ranchers that are attempting to become established agricultural
producers in the United States;</text>
</subparagraph><subparagraph id="HB0412BF4058B4F2D8A3D4E50A54762FB"><enum>(C)</enum><text>socially
disadvantaged farmers or ranchers;</text>
</subparagraph><subparagraph id="HDD5B5F58AA9845148AC70AA19E087BC0"><enum>(D)</enum><text>farmers or
ranchers that—</text>
<clause id="HD01E8E6A5E8045CAB210983714E62F8B"><enum>(i)</enum><text>are preparing to
retire; and</text>
</clause><clause id="H274B20629D0D41189C059D6D0C411666"><enum>(ii)</enum><text>are using
transition strategies to help new farmers or ranchers get started; and</text>
</clause></subparagraph><subparagraph id="H00F6C56E15D84594ADDC5114AC171BAD"><enum>(E)</enum><text>new or established
farmers or ranchers that are converting production and marketing systems to
pursue new
markets.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>VI</enum><header>MISCELLANEOUS</header>
<section id="HE6C9CF26EEE646DDAF2F08F96EE41791"><enum>601.</enum><header>Military
Veterans Agricultural Liaison</header>
<subsection id="HBA51A67223154E09A9BD0803F7FA20E9"><enum>(a)</enum><header>In
general</header><text>Subtitle A of the Department of Agriculture
Reorganization Act of 1994 is amended by inserting after section 218 (7 U.S.C.
6918) the following:</text>
<quoted-block id="H17312ECBDF114CD7A6D8D3A17707B22A" style="OLC">
<section id="H6D3EF3C525CC4EE7999620D3B959EF0F"><enum>219.</enum><header>Military
veterans agricultural liaison</header>
<subsection id="HF9BE7B7E93824D1AA728F45C74D4082B"><enum>(a)</enum><header>Authorization</header><text>The
Secretary shall establish in the Department the position of Military Veterans
Agricultural Liaison.</text>
</subsection><subsection id="HA5D3311ABC6943E79349B85E449F2C81"><enum>(b)</enum><header>Duties</header><text>The
Military Veterans Agricultural Liaison shall—</text>
<paragraph id="H59C4DD0B273C4971B15CCDDFED32FFF3"><enum>(1)</enum><text>provide
information to returning veterans about, and connect returning veterans with,
beginning farmer training and agricultural vocational and rehabilitation
programs appropriate to the needs and interests of returning veterans,
including assisting veterans in using Federal veterans educational benefits for
purposes relating to beginning a farming or ranching career;</text>
</paragraph><paragraph id="HC30324E6EB714351820E83A10FA09AD6"><enum>(2)</enum><text>provide
information to veterans concerning the availability of and eligibility
requirements for participation in agricultural programs, with particular
emphasis on beginning farmer and rancher programs;</text>
</paragraph><paragraph id="H07AAA2D5825E43FBB60A0489EEF6A0FC"><enum>(3)</enum><text>serving as a
resource for assisting veteran farmers and ranchers, and potential farmers and
ranchers, in applying for participation in agricultural programs; and</text>
</paragraph><paragraph id="HF8DFB8B396874E7F96DAE08DF61BA971"><enum>(4)</enum><text>advocating on
behalf of veterans in interactions with employees of the
Department.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9599140347774BF5B74632597710DE43"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/7/7014">7 U.S.C. 7014(b)</external-xref>) is amended—</text>
<paragraph id="H3815ED4E5C734C2D85BF1770EC228156"><enum>(1)</enum><text>in paragraph (6),
by striking <quote>or</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="H942EF3D514BD48B2804CE6FAA2AF28B6"><enum>(2)</enum><text>in paragraph (7),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="HE8E0BFFB0DCF4330BC3FCA65BFE94256"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H423A49C90ED543D2B946D18E6AEC93C5" style="OLC">
<paragraph id="H3C68926342554782B957C776130FD296"><enum>(8)</enum><text>the authority of
the Secretary to establish in the Department the position of Military Veterans
Agricultural Liaison in accordance with section
219.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HE3B506096A6B4417939DF69441DB6A5E"><enum>602.</enum><header>Budgetary
effects</header><text display-inline="no-display-inline">The budgetary effects
of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act
of 2010, shall be determined by reference to the latest statement titled
<quote>Budgetary Effects of PAYGO Legislation</quote> for this Act, submitted
for printing in the Congressional Record by the Chairman of the House Budget
Committee, provided that such statement has been submitted prior to the vote on
passage.</text>
</section><section id="H3D80864571564FA4A173DE4C18F0EEF9"><enum>603.</enum><header>Effective
date</header><text display-inline="no-display-inline">This Act and the
amendments made by this Act take effect on October 1, 2013.</text>
</section>