[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 854 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 854

  To amend the Food Security Act of 1985 to improve the agricultural 
        resources conservation program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 25 (legislative day, May 15), 1995

 Mr. Lugar (for himself and Mr. Leahy) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Food Security Act of 1985 to improve the agricultural 
        resources conservation program, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agricultural Resources Conservation 
Act of 1995''.

SEC. 2. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is 
amended to read as follows:

``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2005 calendar 
        years, the Secretary shall establish an environmental 
        conservation acreage reserve program to be implemented through 
        contracts and the acquisition of easements to assist owners and 
        operators of farms and ranches to conserve and enhance soil, 
        water, and related natural resources, including grazing lands, 
        wetlands, and wildlife habitat.
            ``(2) Means.--The Secretary shall carry out the 
        environmental conservation acreage reserve program by--
                    ``(A) providing for the long-term protection of 
                environmentally sensitive lands; and
                    ``(B) providing technical and financial assistance 
                to farmers and ranchers to--
                            ``(i) improve the management of the 
                        operations of the farmers and ranchers; and
                            ``(ii) reconcile productivity and 
                        profitability with protection and enhancement 
                        of the environment.
            ``(3) Programs.--The environmental conservation acreage 
        reserve program shall consist of--
                    ``(A) the conservation reserve program established 
                under subchapter B;
                    ``(B) the wetlands reserve program established 
                under subchapter C; and
                    ``(C) the environmental quality incentives program 
                established under chapter 2.
    ``(b) Administration.--
            ``(1) In general.--In carrying out the environmental 
        conservation acreage reserve program, the Secretary shall enter 
        into contracts with owners and operators and acquire interests 
        in lands through easements from owners, as provided in this 
        chapter and chapter 2.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve program or wetlands reserve program prior 
        to the effective date of this paragraph shall be considered to 
        be placed in the environmental conservation acreage reserve 
        program.
    ``(c) Conservation Priority Areas.--
            ``(1) Designation.--
                    ``(A) In general.--The Secretary shall designate 
                watersheds or regions of special environmental 
                sensitivity, including the Chesapeake Bay region 
                (located in Pennsylvania, Maryland, and Virginia), the 
                Great Lakes region, and the Long Island Sound region, 
                as conservation priority areas that are eligible for 
                enhanced assistance through the programs established 
                under this chapter and chapter 2. A designation shall 
                be made under this subparagraph if an application is 
                made by a State agency and agricultural practices 
                within the watershed or region pose a significant 
                threat to soil, water, and related natural resources, 
                as determined by the Secretary.
                    ``(B) Assistance.--To the extent practicable, the 
                Secretary shall designate a watershed or region of 
                special environmental sensitivity as a conservation 
                priority area to assist agricultural producers within 
                the watershed or region to comply with nonpoint source 
                pollution requirements established under the Federal 
                Water Pollution Control Act (33 U.S.C. 1251 et seq.) 
                and other Federal and State environmental laws.
            ``(2) Applicability.--The Secretary shall, to the maximum 
        extent practicable, designate a watershed or region as a 
        conservation priority area that conforms to the functions and 
        purposes of the conservation reserve program established under 
        subchapter B, the wetlands reserve program established under 
        subchapter C, or the environmental quality incentives program 
        established under chapter 2, as applicable, if participation in 
        the program is likely to result in the resolution or 
        amelioration of significant soil, water, and related natural 
        resource problems related to agricultural production activities 
        within the watershed or region.
            ``(3) Expiration.--A conservation priority area designation 
        shall expire on the date that is 5 years after the date of the 
        designation, except that the Secretary may--
                    ``(A) redesignate the area as a conservation 
                priority area; or
                    ``(B) withdraw the designation of a watershed or 
                region as a conservation priority area if the Secretary 
                finds that the area is no longer affected by 
                significant soil, water, and related natural resource 
                problems related to agricultural production 
                activities.''.

SEC. 3. CONSERVATION RESERVE.

    Subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.) is amended to read as 
follows:
                  ``Subchapter B--Conservation Reserve

``SEC. 1231. CONSERVATION RESERVE.

    ``(a) In General.--During the 1996 through 2005 calendar years, the 
Secretary shall carry out the enrollment of lands in a conservation 
reserve program through the use of contracts to assist owners and 
operators of lands specified in subsection (b) to conserve and improve 
soil, water, and related natural resources, by taking environmentally 
sensitive lands out of production.
    ``(b) Eligible Lands.--The Secretary may include in the program 
established under this subchapter--
            ``(1) highly erodible cropland that--
                    ``(A) if permitted to remain untreated could 
                substantially impair soil, water, or related natural 
                resources; and
                    ``(B) cannot be farmed in accordance with a 
                conservation plan implemented under section 1212;
            ``(2) marginal pasture land converted to a wetland or 
        established as wildlife habitat;
            ``(3) marginal pasture land in or near riparian areas that 
        could enhance water quality;
            ``(4) cropland or pasture land to be devoted to the 
        production of hardwood trees, windbreaks, shelterbelts, or 
        wildlife corridors; and
            ``(5) cropland that is otherwise not eligible for inclusion 
        in the program--
                    ``(A) if the Secretary determines that--
                            ``(i) the land contributes to the 
                        degradation of water quality or soil erosion, 
                        or would cause on-site or off-site 
                        environmental degradation if permitted to 
                        remain in agricultural production; and
                            ``(ii) water quality, soil erosion, or 
                        environmental objectives with respect to the 
                        land cannot be achieved under the environmental 
                        quality incentives program established under 
                        chapter 2;
                    ``(B) if the cropland is newly created, permanent 
                grass sod waterways, or are contour grass sod strips 
                established and maintained as part of an approved 
                conservation plan under this subchapter;
                    ``(C) if the cropland will be devoted to newly 
                established living snow fences, permanent wildlife 
                habitat, windbreaks, or shelterbelts;
                    ``(D) if the land will be devoted to filterstrips 
                that are contiguous to permanent bodies of water or 
                intermittent streams;
                    ``(E) if the Secretary determines that the land 
                poses an off-farm environmental threat, or pose a 
                threat of continued degradation of productivity due to 
                soil salinity, if permitted to remain in production; or
                    ``(F) if the land is highly erodible cropland that 
                will be used to restore wetlands and--
                            ``(i) the land is prior converted wetland;
                            ``(ii) the owners or operators of the land 
                        agree to provide the Secretary with a long-term 
                        or permanent easement under subchapter C;
                            ``(iii) there is a high probability that 
                        the prior converted wetland can be successfully 
                        restored to wetland status; and
                            ``(iv) the restoration of the areas 
                        otherwise meets the requirements of subchapter 
                        C.
    ``(c) Certain Land Affected by Secretarial Action.--For the purpose 
of determining the eligibility of land to be placed in the conservation 
reserve established under this subchapter, land shall be considered 
planted to an agricultural commodity during a crop year if an action of 
the Secretary prevented the land from being planted to the commodity 
during the crop year.
    ``(d) Enrollment.--
            ``(1) Limitation.--Not more than 36,400,000 acres 
        (including acreage subject to contracts extended by the 
        Secretary pursuant to section 1437 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (Public Law 101-624; 16 
        U.S.C. 3831 note)) may be enrolled in the conservation reserve 
        in any of the 1996 through 2005 calendar years.
            ``(2) Priorities.--The Secretary shall, to the maximum 
        extent practicable, with each periodic enrollment of acreage 
        (including acreage subject to contracts extended by the 
        Secretary pursuant to section 1437 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (Public Law 101-624; 16 
        U.S.C. 3831 note)), enroll acreage in the conservation reserve 
        that meets the priority criteria for water quality, soil 
        erosion, and wildlife habitat provided in subsection (e), and, 
        to the maximum extent practicable, maximize multiple 
        environmental benefits.
    ``(e) Priority Functions.--
            ``(1) In general.--During all periodic enrollments of 
        acreage (including acreage subject to contracts extended by the 
        Secretary pursuant to section 1437 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (Public Law 101-624; 16 
        U.S.C. 3831 note)), the Secretary shall evaluate all offers to 
        enter into contracts under this subchapter in light of the 
        priority criteria stated in paragraphs (2), (3), and (4), and 
        accept only the offers that meet the criteria stated in 
        paragraph (2) or (3), maximize the benefits stated in paragraph 
        (4), and maximize environmental benefits per dollar expended. 
        If an offer meets the criteria stated in paragraph (4) and 
        paragraph (2) or (3), the offer shall receive higher priority, 
        as determined by the Secretary.
            ``(2) Water quality.--
                    ``(A) Targeted lands.--Not later than December 31, 
                2000, the Secretary shall enroll in the conservation 
                reserve narrow strips of cropland or pasture, as 
                filterstrips that are contiguous to--
                            ``(i) permanent bodies of water;
                            ``(ii) tributaries or smaller streams; or
                            ``(iii) intermittent streams that the 
                        Secretary determines significantly contribute 
                        to downstream water quality degradation.
                    ``(B) Purposes.--The lands may be enrolled by the 
                Secretary in the conservation reserve to establish--
                            ``(i) contour grass strips;
                            ``(ii) grassed waterways; and
                            ``(iii) other equivalent conservation 
                        measures that have a high potential to 
                        ameliorate pollution from crop and livestock 
                        production.
                    ``(C) Required enrollment.--Not later than December 
                31, 2000, the Secretary shall enroll in the 
                conservation reserve at least 4,000,000 acres under 
                this paragraph.
                    ``(D) Partial and whole fields.--Enrollments under 
                this paragraph may include partial and whole fields, 
                except that the Secretary shall accord a higher 
                priority to partial field enrollments.
            ``(3) Soil erosion.--
                    ``(A) In general.--The Secretary shall accept 
                offers to enroll highly erodible land only on fields 
                that cannot be farmed by using the best economically 
                attainable conservation system without high potential 
                for degradation of soil or water quality, and such 
                potential degradation cannot be alleviated through 
                other Federal or State conservation assistance 
                programs.
                    ``(B) Best economically attainable conservation 
                system.--In this paragraph, the term `best economically 
                attainable conservation system' means a practice or 
                practices designed to significantly reduce soil erosion 
                on highly erodible fields in a cost-effective manner, 
                as specified by the Secretary.
                    ``(C) Partial field enrollments.--A portion of a 
                highly erodible field is eligible for enrollment if the 
                partial field segment would provide a significant 
                reduction in soil erosion.
            ``(4) Wildlife habitat benefits.--
                    ``(A) In general.--The Secretary shall, to the 
                maximum extent practicable, ensure that offers to 
                enroll acreage under paragraphs (2) and (3) are 
                accepted so as to maximize wildlife habitat benefits.
                    ``(B) Maximizing benefits.--An offer that satisfies 
                paragraph (2) or (3) shall be accepted by the Secretary 
                if the offer also maximizes wildlife habitat benefits, 
                as determined by the Secretary. For purposes of this 
                paragraph, the Secretary shall, to the maximum extent 
                practicable, maximize wildlife habitat benefits 
                through--
                            ``(i) consultation with State technical 
                        committees established under section 1261(a) as 
                        to the relative habitat benefits of each offer, 
                        and accepting the offers that maximize 
                        benefits; and
                            ``(ii) providing higher priority to offers 
                        that would be contiguous to--
                                    ``(I) other enrolled acreage;
                                    ``(II) a designated wildlife 
                                habitat; or
                                    ``(III) a wetland.
                    ``(C) Cover crop information.--The Secretary shall 
                provide information to owners or operators about cover 
                crops that are best suited for area wildlife.
    ``(f) Duration of Contract.--For the purpose of carrying out this 
subchapter, the Secretary shall enter into contracts of not less than 
10, nor more than 15, years.
    ``(g) Multiyear Grasses and Legumes.--For the purpose of this 
subchapter, alfalfa and other multiyear grasses and legumes planted in 
a rotation practice approved by the Secretary, shall be considered 
agricultural commodities.

``SEC. 1232. DUTIES OF OWNERS AND OPERATORS.

    ``(a) In General.--If required by the Secretary as a term of a 
contract under this chapter, an owner or operator of a farm or ranch 
shall agree--
            ``(1) to implement a conservation plan approved by the 
        local conservation district (or in an area not located within a 
        conservation district, a conservation plan approved by the 
        Secretary) for converting eligible lands normally devoted to 
        the production of an agricultural commodity on the farm or 
        ranch to a less intensive use (as defined by the Secretary), 
        such as pasture, permanent grass, legumes, forbs, shrubs, or 
        trees, substantially in accordance with a schedule outlined in 
        the conservation plan;
            ``(2) to place highly erodible cropland subject to the 
        contract in the conservation reserve established under this 
        subchapter;
            ``(3) not to use the land for agricultural purposes, except 
        as permitted by the Secretary;
            ``(4) to establish approved vegetative cover, or water 
        cover for the enhancement of wildlife, on the land, except that 
        the water cover shall not include ponds for the purpose of 
        watering livestock, irrigating crops, or raising fish for 
        commercial purposes;
            ``(5) in addition to the remedies provided under section 
        1236(d), on the violation of a term or condition of the 
        contract at any time the owner or operator has control of the 
        land--
                    ``(A) to forfeit all rights to receive rental 
                payments and cost-sharing payments under the contract 
                and to refund to the Secretary any rental payments and 
                cost-sharing payments received by the owner or operator 
                under the contract, together with interest on the 
                payments as determined by the Secretary, if the 
                Secretary determines that the violation is sufficient 
                to warrant termination of the contract; or
                    ``(B) to refund to the Secretary, or accept 
                adjustments to, the rental payments and cost-sharing 
                payments provided to the owner or operator, as the 
                Secretary considers appropriate, if the Secretary 
                determines that the violation does not warrant 
                termination of the contract;
            ``(6) on the transfer of the right and interest of the 
        owner or operator in land subject to the contract--
                    ``(A) to forfeit all rights to rental payments and 
                cost-sharing payments under the contract; and
                    ``(B) to refund to the United States all rental 
                payments and cost-sharing payments received by the 
                owner or operator, or accept such payment adjustments 
                or make such refunds as the Secretary considers 
                appropriate and consistent with the objectives of this 
                subchapter, unless--
                            ``(i) the transferee of the land agrees 
                        with the Secretary to assume all obligations of 
                        the contract; or
                            ``(ii) the land is purchased by or for the 
                        United States Fish and Wildlife Service, or the 
                        transferee and the Secretary agree to 
                        modifications to the contract, if the 
                        modifications are consistent with the 
                        objectives of this subchapter as determined by 
                        the Secretary;
            ``(7) not to conduct any harvesting or grazing, nor 
        otherwise make commercial use of the forage, on land that is 
        subject to the contract, nor adopt any similar practice 
        specified in the contract by the Secretary as a practice that 
        would tend to defeat the purposes of the contract, except that 
        the Secretary may permit--
                    ``(A) harvesting or grazing or other commercial use 
                of the forage on land that is subject to the contract 
                in response to a drought or other similar emergency; 
                and
                    ``(B) limited grazing on the land if the grazing is 
                incidental to the gleaning of crop residues on the 
                fields in which the land is located and occurs--
                            ``(i) during the 7-month period during 
                        which grazing of conserving use acreage is 
                        allowed in a State under the Agricultural Act 
                        of 1949 (7 U.S.C. 1421 et seq.); or
                            ``(ii) after the producer harvests the 
                        grain crop of the surrounding field for a 
                        reduction in rental payment commensurate with 
                        the limited economic value of the incidental 
                        grazing;
            ``(8) not to harvest or make commercial use of trees on 
        land that is subject to the contract unless expressly permitted 
        in the contract, except that no contract shall prohibit 
        activities consistent with customary forestry practice, such as 
        pruning, thinning, or stand improvement of trees, on land 
        converted to forestry use;
            ``(9) not to adopt any practice that would tend to defeat 
        the objectives of this subchapter;
            ``(10) with respect to any contract entered into after the 
        effective date of section 3 of the Agricultural Resources 
        Conservation Act of 1995, concerning highly erodible land in a 
        county that has not reached the limitation established by 
        section 1242(c)--
                    ``(A) not to produce an agricultural commodity for 
                the duration of the contract on any other highly 
                erodible land that the owner or operator has purchased 
                after the effective date of section 3 of the 
                Agricultural Resources Conservation Act of 1995, and 
                that does not have a history of being used to produce 
                an agricultural commodity other than forage crops; and
                    ``(B) on the violation of subparagraph (A), to be 
                subject to the sanctions described in paragraph (5); 
                and
            ``(11) to comply with such additional provisions as the 
        Secretary determines are necessary.
    ``(b) Conservation Plan.--The conservation plan required under 
subsection (a)(1)--
            ``(1) shall set forth--
                    ``(A) the conservation measures and practices to be 
                carried out by the owner or operator during the term of 
                the contract; and
                    ``(B) the commercial use, if any, to be permitted 
                on the land during the term; and
            ``(2) may provide for the permanent retirement of any 
        cropland base and allotment history for the land.
    ``(c) Environmental Use.--To the maximum extent practicable, not 
less than \1/8\ of land that is placed in the conservation reserve 
shall be devoted to hardwood trees.
    ``(d) Foreclosure.--
            ``(1) In general.--Notwithstanding any other law, an owner 
        or operator of land who is a party to a contract entered into 
        under this subchapter may not be required to make repayments to 
        the Secretary of amounts received under the contract if the 
        land that is subject to the contract has been foreclosed on and 
        the Secretary determines that forgiving the repayments is 
        appropriate to provide fair and equitable treatment.
            ``(2) Resumption of control.--This subsection shall not 
        void the responsibilities of the owner or operator under the 
        contract if the owner or operator resumes control over the land 
        that is subject to the contract within the term of the 
        contract. On the resumption of the control over the land by the 
        owner or operator, the provisions of the contract in effect on 
        the date of the foreclosure shall apply.

``SEC. 1233. DUTIES OF THE SECRETARY.

    ``In return for a contract entered into by an owner or operator 
under section 1232, the Secretary shall--
            ``(1) share the cost of carrying out the conservation 
        measures and practices set forth in the contract for which the 
        Secretary determines that cost sharing is appropriate and in 
        the public interest;
            ``(2) for a period of years not in excess of the term of 
        the contract, pay an annual rental payment in an amount 
        necessary to compensate for--
                    ``(A) the conversion of cropland normally devoted 
                to the production of an agricultural commodity on a 
                farm or ranch to a less intensive use, consistent with 
                section 1231(e); and
                    ``(B) the retirement of any cropland base and 
                allotment history that the owner or operator agrees to 
                retire permanently; and
            ``(3) provide conservation technical assistance, as 
        determined necessary by the Secretary, to assist the owner or 
        operator in carrying out the contract.

``SEC. 1234. PAYMENTS.

    ``(a) Time of Cost-Sharing and Annual Rental Payments.--The 
Secretary shall provide payment for obligations incurred by the 
Secretary under a contract entered into under this subchapter--
            ``(1) with respect to any cost-sharing payment obligation 
        incurred by the Secretary, as soon as practicable after the 
        obligation is incurred; and
            ``(2) with respect to any annual rental payment obligation 
        incurred by the Secretary--
                    ``(A) as soon as practicable after October 1 of 
                each calendar year; or
                    ``(B) at the discretion of the Secretary, at any 
                time prior to October 1 during the year that the 
                obligation is incurred.
    ``(b) Federal Percentage of Cost-Sharing Payments.--
            ``(1) In general.--In making cost-sharing payments to an 
        owner or operator under a contract entered into under this 
        subchapter, the Secretary shall pay 50 percent of the cost of 
        establishing water quality and conservation measures and 
        practices required under the contracts for which the Secretary 
        determines that cost sharing is appropriate and in the public 
        interest.
            ``(2) Limitation.--The Secretary shall not make any payment 
        to an owner or operator under this subchapter to the extent 
        that the total amount of cost-sharing payments provided to the 
        owner or operator from all sources would exceed 100 percent of 
        the total actual costs.
            ``(3) Hardwood trees.--The Secretary may permit an owner or 
        operator who contracts to devote at least 10 acres of land to 
        the production of hardwood trees under this subchapter to 
        extend the planting of the trees over a 3-year period if at 
        least \1/3\ of the trees are planted in each of the first 2 
        years.
            ``(4) Other federal cost-sharing assistance.--An owner or 
        operator shall not be eligible to receive or retain cost-
        sharing assistance under this subchapter if the owner or 
        operator receives any other Federal cost-sharing assistance 
        with respect to the land under any other law.
    ``(c) Annual Rental Payments.--
            ``(1) Encouraging participation.--In determining the amount 
        of annual rental payments to be paid to owners and operators 
        for converting eligible cropland normally devoted to the 
        production of an agricultural commodity to a less intensive 
        use, the Secretary may consider, among other factors, the 
        amount necessary to encourage owners or operators of eligible 
        cropland to participate in the program established by this 
        subchapter.
            ``(2) Amount.--
                    ``(A) In general.--The amounts payable to owners or 
                operators as rental payments under contracts entered 
                into under this subchapter shall be determined by the 
                Secretary through--
                            ``(i) the submission of offers for the 
                        contracts by owners and operators in such 
                        manner as the Secretary may prescribe; and
                            ``(ii) determination of the rental value of 
                        the land through a productivity adjustment 
                        formula determined by the Secretary.
                    ``(B) Limitation.--Rental payments shall not exceed 
                local rental rates, except that rental payments for 
                partial field enrollments may be made in an amount that 
                does not exceed 150 percent of local rental rates, 
                adjusted for the productivity of the land, as 
                determined by the Secretary.
            ``(3) Hardwood trees.--In the case of acreage enrolled in 
        the conservation reserve that is to be devoted to hardwood 
        trees, the Secretary may consider offers for contracts under 
        this subsection on a continuous basis.
    ``(d) Cash or In-Kind Payments.--
            ``(1) In general.--Except as otherwise provided in this 
        section, payments under this subchapter--
                    ``(A) shall be made in cash or in commodities in 
                such amount and on such time schedule as are agreed on 
                and specified in the contract; and
                    ``(B) may be made in advance of the determination 
                of performance.
            ``(2) In-kind payments.--If the payment is made in in-kind 
        commodities, the payment shall be made by the Commodity Credit 
        Corporation--
                    ``(A) by delivery of the commodity involved to the 
                owner or operator at a warehouse or other similar 
                facility located in the county in which the highly 
                erodible cropland is located or at such other location 
                as is agreed to by the Secretary and the owner or 
                operator;
                    ``(B) by the transfer of negotiable warehouse 
                receipts; or
                    ``(C) by such other method, including the sale of 
                the commodity in commercial markets, as is determined 
                by the Secretary to be appropriate to enable the owner 
                or operator to receive efficient and expeditious 
                possession of the commodity.
            ``(3) Insufficient stocks.--If stocks of a commodity 
        acquired by the Commodity Credit Corporation are not readily 
        available to make full payment in kind to an owner or operator, 
        the Secretary may substitute full or partial payment in cash 
        for payment in kind.
            ``(4) Special conservation reserve enhancement program.--
        Payments to a producer under a special conservation reserve 
        enhancement program described in subsection (f)(4) shall be in 
        the form of cash only.
    ``(e) Payment on Death, Disability, or Succession.--If an owner or 
operator who is entitled to a payment under a contract entered into 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive
 the payment, or is succeeded by another person who renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations prescribed by the Secretary and 
without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all of the 
circumstances.
    ``(f) Payment Limitation.--
            ``(1) In general.--The total amount of rental payments, 
        including the value of any rental payments in in-kind 
        commodities, made to a person under this subchapter for any 
        fiscal year may not exceed $50,000.
            ``(2) Regulations.--The Secretary shall issue regulations 
        that are consistent with section 1001 for the purpose of--
                    ``(A) defining the term `person' as used in 
                paragraph (1); and
                    ``(B) prescribing such rules as the Secretary 
                determines are necessary to ensure a fair and 
                reasonable application of the limitation contained in 
                paragraph (1).
            ``(3) Receipt of other payments not affected.--Rental 
        payments received by an owner or operator shall be in addition 
        to, and not affect, the total amount of payments that the owner 
        or operator is otherwise eligible to receive under this Act, 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624), or the Agricultural Act of 1949 (7 U.S.C. 
        1421 et seq.).
            ``(4) Special conservation reserve enhancement program.--
        The provisions of this subsection that limit payments to any 
        person, and section 1305(f) of the Agricultural Reconciliation 
        Act of 1987 (Public Law 100-203; 7 U.S.C. 1308 note), shall not 
        be applicable to payments received by a State or political 
        subdivision, or an agency of a State or political subdivision, 
        in connection with an agreement entered into under a special 
        conservation reserve enhancement program carried out by the 
        State, political subdivision, or agency that has been approved 
        by the Secretary. The Secretary may enter into an agreement for 
        payments to a State or political subdivision, or agency of a 
        State or political subdivision, that the Secretary determines 
        will advance the objectives of this subchapter.
    ``(g) Contracts Unaffected by Certain Presidential Orders.--
Notwithstanding any other law, no order issued for any fiscal year 
under section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 902) shall affect any payment under any contract 
entered into at any time that is subject to this subchapter, including 
contracts entered into prior to the effective date of section 3 of the 
Agricultural Resources Conservation Act of 1995.
    ``(h) Cost-Sharing Payments.--In addition to any payment under this 
subchapter, an owner or operator may receive cost-sharing payments, 
rental payments, or tax benefits from a State or political subdivision 
of a State for enrolling lands in the conservation reserve program.

``SEC. 1235. CONTRACTS.

    ``(a) Ownership or Operation Requirement.--
            ``(1) In general.--Subject to paragraph (2), no contract 
        shall be entered into under this subchapter concerning land 
        with respect to which the ownership has changed during the 3-
        year period preceding the date the contract is entered into 
        unless--
                    ``(A) the new ownership was acquired by will or 
                succession as a result of the death of the previous 
                owner;
                    ``(B) the Secretary determines that the land was 
                acquired under circumstances that give adequate 
                assurance that the land was not acquired for the 
                purpose of placing the land in the program established 
                by this subchapter; or
                    ``(C) the ownership change occurred due to 
                foreclosure on the land and the owner of the land 
                immediately before the foreclosure exercised a right of 
                redemption from the mortgage holder in accordance with 
                a State law.
            ``(2) Applicability.--Paragraph (1) shall not--
                    ``(A) prohibit the continuation of a contract by a 
                new owner after a contract has been entered into under 
                this subchapter; or
                    ``(B) require a person to own the land as a 
                condition of eligibility for entering into the contract 
                if the person--
                            ``(i) has operated the land to be covered 
                        by a contract under this subchapter for at 
                        least 3 years preceding the date of entering 
                        into the contract; and
                            ``(ii) controls the land during the 
                        contract period.
    ``(b) Sales or Transfers.--If, during the term of a contract 
entered into under this subchapter, an owner or operator of land 
subject to the contract sells or otherwise transfers the ownership or 
right of occupancy of the land, the new owner or operator of the land 
may--
            ``(1) continue the contract under the same terms and 
        conditions of the contract;
            ``(2) enter into a new contract in accordance with this 
        subchapter; or
            ``(3) elect not to participate in the program established 
        under this subchapter.
    ``(c) Modifications and Waivers.--
            ``(1) In general.--The Secretary may modify a contract 
        entered into by an owner or operator under this subchapter if--
                    ``(A) the owner or operator agrees to the 
                modification; and
                    ``(B) the Secretary determines that the 
                modification is desirable--
                            ``(i) to carry out this subchapter;
                            ``(ii) to facilitate the practical 
                        administration of this subchapter; or
                            ``(iii) to achieve such other goals as the 
                        Secretary determines are appropriate, 
                        consistent with this subchapter.
            ``(2) Production of agricultural commodities.--The 
        Secretary may modify or waive a term or condition of a contract 
        entered into under this subchapter to permit all or part of the 
        land subject to the contract to be devoted to the production of 
        an agricultural commodity during a crop year, subject to such 
        conditions as the Secretary determines are appropriate.
    ``(d) Termination.--The Secretary may terminate a contract entered 
into with an owner or operator under this subchapter if--
            ``(1) the owner or operator agrees to the termination; and
            ``(2) the Secretary determines that the termination is in 
        the public interest.

``SEC. 1236. BASE HISTORY.

    ``(a) Reductions.--A reduction, based on a ratio between the total 
cropland acreage on the farm and the acreage placed in the conservation 
reserve, as determined by the Secretary, shall be made during the 
period of a contract entered into under this subchapter, in the 
aggregate, in crop bases, quotas, and allotments on the farm with 
respect to crops for which there is a production adjustment program.
    ``(b) Base History as Basis for Participation in Other Federal 
Programs.--Notwithstanding sections 1211 and 1221, the Secretary, by 
appropriate regulation, may provide for preservation of cropland base 
and allotment history applicable to acreage converted from the 
production of agricultural commodities under this subchapter, for the 
purpose of any Federal program under which the history is used as a 
basis for participation in the program or for an allotment or other 
limitation of the program, unless the owner and operator of the farm or 
ranch agree under the contract to retire permanently that cropland base 
and allotment history.
    ``(c) Extension of Preservation of Cropland Base and Allotment 
History.--The Secretary shall offer the owner or operator of a farm or 
ranch an opportunity to extend the preservation of cropland base and 
allotment history pursuant to subsection (b) for such time as the 
Secretary determines to be appropriate after the expiration date of a 
contract under this subchapter at the request of the owner or operator. 
In return for the extension, the owner or operator shall agree to 
continue to abide by the terms and conditions of the original contract, 
except that--
            ``(1) the owner or operator shall receive no additional 
        cost-sharing, annual rental, or bonus payment; and
            ``(2) the Secretary may permit, subject to such terms and 
        conditions as the Secretary may impose, haying and grazing of 
        acreage subject to the agreement, except that--
                    ``(A) haying and grazing shall not be permitted 
                during any consecutive 5-month period that is 
                established by the State committee established under 
                section 8(b) of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h(b)) during the period 
                beginning April 1 and ending October 31 of a year; and
                    ``(B) in the case of a natural disaster, the 
                Secretary may permit unlimited haying and grazing on 
                the acreage.
    ``(d) Additional Remedies for Violations.--In addition to any other 
remedy prescribed by law, the Secretary may reduce or terminate the 
quantity of cropland base and allotment history preserved pursuant to 
subsection (c) for acreage with respect to which a violation of a term 
or condition of a contract occurs.''.

SEC. 4. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    Chapter 2 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3838 et seq.) is amended to read as follows:

         ``CHAPTER 2--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1238. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds that--
            ``(1) farmers and ranchers cumulatively manage more than 
        \1/2\ of the private lands in the continental United States;
            ``(2) because of the predominance of agriculture, the soil, 
        water, and related natural resources of the United States 
        cannot be protected without cooperative relationships between 
        the Federal Government and farmers and ranchers;
            ``(3) farmers and ranchers have made tremendous progress in 
        protecting the environment and the agricultural resource base 
        of the United States over the past decade because of not only 
        Federal Government programs but also their spirit of 
        stewardship and the adoption of effective technologies;
            ``(4) it is in the interest of the entire United States 
        that farmers and ranchers continue to strive to preserve soil 
        resources and make more efforts to protect water quality and 
        wildlife habitat, and address other broad environmental 
        concerns;
            ``(5) environmental strategies that stress the prudent 
        management of resources, as opposed to idling land, will permit 
        the maximum economic opportunities for farmers and ranchers in 
        the future;
            ``(6) unnecessary bureaucratic and paperwork barriers 
        associated with existing agricultural conservation assistance 
        programs decrease the potential effectiveness of the programs; 
        and
            ``(7) the recent trend of Federal spending on agricultural 
        conservation programs suggests that assistance to farmers and 
        ranchers in future years will, absent changes in policy, 
        dwindle to perilously low levels.
    ``(b) Purposes.--The purposes of the environmental quality 
incentives program established by this chapter are to--
            ``(1) combine into a single program the functions of--
                    ``(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil Conservation 
                and Domestic Allotment Act (16 U.S.C. 590g and 590h) 
                (as in effect before the amendments made by section 
                6(a)(1) of the Agricultural Resources Conservation Act 
                of 1995);
                    ``(B) the Great Plains conservation program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590p(b)) (as in effect before the amendment made by 
                section 6(b)(1) of the Agricultural Resources 
                Conservation Act of 1995);
                    ``(C) the water quality incentives program 
                established under this chapter (as in effect before the 
                amendment made by section 4 of the Agricultural 
                Resources Conservation Act of 1995); and
                    ``(D) the Colorado River Basin salinity control 
                program established under section 202(c) of the 
                Colorado River Basin Salinity Control Act (43 U.S.C. 
                1592(c)) (as in effect before the amendment made by 
                section 6(c)(1) of the Agricultural Resources 
                Conservation Act of 1995); and
            ``(2) carry out the single program in a manner that 
        maximizes environmental benefits per dollar expended, and that 
        provides--
                    ``(A) flexible technical and financial assistance 
                to farmers and ranchers that face the most serious 
                threats to soil, water, and related natural resources, 
                including grazing lands, wetlands, and wildlife 
                habitat;
                    ``(B) assistance to farmers and ranchers in 
                complying with this title and Federal and State 
                environmental laws, and to encourage environmental 
                enhancement;
                    ``(C) assistance to farmers and ranchers in making 
                beneficial, cost-effective changes to cropping systems, 
                grazing management, manure, nutrient, pest, or 
                irrigation management, land uses, or other measures 
                needed to conserve and improve soil, water, and related 
                natural resources; and
                    ``(D) for the consolidation and simplification of 
                the conservation planning process to reduce 
                administrative burdens on the owners and operators of 
                farms and ranches.

``SEC. 1238A. DEFINITIONS.

    ``In this chapter:
            ``(1) Land management practice.--The term `land management 
        practice' means nutrient or manure management, integrated pest 
        management, irrigation management, tillage or residue 
        management, grazing management, or another land management 
        practice the Secretary determines is needed to protect soil, 
        water, or related resources in the most cost effective manner.
            ``(2) Large confined livestock operation.--The term `large 
        confined livestock operation' means a farm or ranch that--
                    ``(A) is a confined animal feeding operation; and
                    ``(B) has more than--
                            ``(i) 700 mature dairy cattle;
                            ``(ii) 1,000 beef cattle;
                            ``(iii) 30,000 laying hens or broilers (if 
                        the facility has continuous overflow watering);
                            ``(iv) 100,000 laying hens or broilers (if 
                        the facility has a liquid manure system);
                            ``(v) 55,000 turkeys;
                            ``(vi) 2,500 swine; or
                            ``(vii) 10,000 sheep or lambs.
            ``(3) Livestock.--The term `livestock' means mature dairy 
        cows, beef cattle, laying hens, broilers, turkeys, swine, 
        sheep, or lambs.
            ``(4) Operator.--The term `operator' means a person who is 
        engaged in crop or livestock production (as defined by the 
        Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, 
        permanent wildlife habitat, or another structural practice that 
        the Secretary determines is needed to protect soil, water, or 
        related resources in the most cost effective manner.

``SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2005 fiscal 
        years, the Secretary shall provide technical assistance, cost-
        sharing payments, and incentive payments to operators, who 
        enter into contracts with the Secretary, through an 
        environmental quality incentives program in accordance with 
        this chapter.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--An operator who 
                implements a structural practice shall be eligible for 
                technical assistance or cost-sharing payments, or both.
                    ``(B) Land management practices.--An operator who 
                performs a land management practice shall be eligible 
                for technical assistance or incentive payments, or 
                both.
    ``(b) Application and Term.--A contract between an operator and the 
Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 or more 
        land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 10, 
        years, as determined appropriate by the Secretary, depending on 
        the practice or practices that are the basis of the contract.
    ``(c) Structural Practices.--
            ``(1) Competitive offer.--The Secretary shall administer a 
        competitive offer system for operators proposing to receive 
        cost-sharing payments in exchange for the implementation of 1 
        or more structural practices by the operator. The competitive 
        offer system shall consist of--
                    ``(A) the submission of a competitive offer by the 
                operator in such manner as the Secretary may prescribe; 
                and
                    ``(B) evaluation of the offer in light of the 
                priorities established in section 1238C and the 
                projected cost of the proposal, as determined by the 
                Secretary.
            ``(2) Concurrence of owner.--If the operator making an 
        offer to implement a structural practice is a tenant of the 
        land involved in agricultural production, for the offer to be 
        acceptable, the operator shall obtain the concurrence of the 
        owner of the land with respect to the offer.
    ``(d) Land Management Practices.--The Secretary shall establish an 
application and evaluation process for awarding technical assistance or 
incentive payments, or both, to an operator in exchange for the 
performance of 1 or more land management practices by the operator.
    ``(e) Cost-Sharing and Incentive Payments.--
            ``(1) Cost-sharing payments.--
                    ``(A) In general.--The Federal share of cost-
                sharing payments to an operator proposing to implement 
                1 or more structural practices shall not be less than 
                75 percent of the projected cost of the practice, as 
                determined by the Secretary, taking into consideration 
                any payment received by the operator from a State or 
                local government.
                    ``(B) Limitation.--An operator of a large confined 
                livestock operation shall not be eligible for cost-
                sharing payments to construct an animal waste 
                management facility.
                    ``(C) Other payments.--An operator shall not be 
                eligible for cost-sharing payments for structural 
                practices on eligible land under this chapter if the 
                operator receives cost-sharing payments or other 
                benefits for the same land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage an operator to perform 1 
        or more land management practices.
    ``(f) Technical Assistance.--
            ``(1) Funding.--The Secretary shall allocate funding under 
        this chapter for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided in a fiscal year. The 
        allocated amount may vary according to the type of expertise 
        required, quantity of time involved, and other factors as 
        determined appropriate by the Secretary. Funding shall not 
        exceed the projected cost to the Secretary of the technical 
        assistance provided in a fiscal year.
            ``(2) Other authorities.--The receipt of technical 
        assistance under this chapter shall not affect the eligibility 
        of the operator to receive technical assistance under other 
        authorities of law available to the Secretary.
    ``(g) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The Secretary 
        may modify or terminate a contract entered into with an 
        operator under this chapter if--
                    ``(A) the operator agrees to the modification or 
                termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public interest.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under this chapter if the Secretary determines that 
        the operator violated the contract.
    ``(h) Non-Federal Assistance.--
            ``(1) In general.--The Secretary may request the services 
        of a State water quality agency, State fish and wildlife 
        agency, State forestry agency, or any other governmental or 
        private resource considered appropriate to assist in providing 
        the technical assistance necessary for the development and 
        implementation of a structural practice or land management 
        practice.
            ``(2) Limitation on liability.--No person shall be 
        permitted to bring or pursue any claim or action against any 
        official or entity based on or resulting from any technical 
        assistance provided to an operator under this chapter to assist 
        in complying with a Federal or State environmental law.

``SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

    ``(a) Regional Priorities.--The Secretary shall provide technical 
assistance, cost-sharing payments, and incentive payments to operators 
in a region, watershed, or conservation priority area under this 
chapter based on the significance of the soil, water, and related 
natural resource problems in the region, watershed, or area, and the 
structural practices or land management practices that best address the 
problems, as determined by the Secretary.
    ``(b) Maximization of Environmental Benefits.--
            ``(1) In general.--In providing technical assistance, cost-
        sharing payments, and incentive payments to operators in 
        regions, watersheds, or conservation priority areas under this 
        chapter, the Secretary shall accord a higher priority to 
        assistance and payments that maximize environmental benefits 
        per dollar expended.
            ``(2) National and regional priority.--The prioritization 
        shall be done nationally as well as within the conservation 
        priority area, region, or watershed in which an agricultural 
        operation is located.
            ``(3) Criteria.--To carry out this subsection, the 
        Secretary shall establish criteria for implementing structural 
        practices and land management practices that best achieve 
        conservation goals for a region, watershed, or conservation 
        priority area, as determined by the Secretary.
    ``(c) State or Local Contributions.--The Secretary shall accord a 
higher priority to operators whose agricultural operations are located 
within watersheds, regions, or conservation priority areas in which 
State or local governments have provided, or will provide, financial or 
technical assistance to the operators for the same conservation or 
environmental purposes.
    ``(d) Priority Lands.--The Secretary shall accord a higher priority 
to structural practices or land management practices on lands on which 
agricultural production has been determined to contribute to, or 
create, the potential for failure to meet applicable water quality 
standards or other environmental objectives of a Federal or State law.

``SEC. 1238D. DUTIES OF OPERATORS.

    ``To receive technical assistance, cost-sharing payments, or 
incentives payments under this chapter, an operator shall agree--
            ``(1) to implement an environmental quality incentives 
        program plan that describes conservation and environmental 
        goals to be achieved through a structural practice or land 
        management practice, or both, that is approved by the 
        Secretary;
            ``(2) not to conduct any practices on the farm or ranch 
        that would tend to defeat the purposes of this chapter;
            ``(3) on the violation of a term or condition of the 
        contract at any time the operator has control of the land, to 
        refund any cost-sharing or incentive payment received with 
        interest, and forfeit any future payments under this chapter, 
        as determined by the Secretary;
            ``(4) on the transfer of the right and interest of the 
        operator in land subject to the contract, unless the transferee 
        of the right and interest agrees with the Secretary to assume 
        all obligations of the contract, to refund all cost-sharing 
        payments and incentive payments received under this chapter, as 
        determined by the Secretary;
            ``(5) to supply information as required by the Secretary to 
        determine compliance with the environmental quality incentives 
        program plan and requirements of the program; and
            ``(6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the 
        environmental quality incentives program plan.

``SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ``An environmental quality incentives program plan shall include 
(as determined by the Secretary)--
            ``(1) a description of the prevailing farm or ranch 
        enterprises, cropping patterns, grazing management, cultural 
        practices, or other information that may be relevant to 
        conserving and enhancing soil, water, and related natural 
        resources;
            ``(2) a description of relevant farm or ranch resources, 
        including soil characteristics, rangeland types and condition, 
        proximity to water bodies, wildlife habitat, or other relevant 
        characteristics of the farm or ranch related to the 
        conservation and environmental objectives set forth in the 
        plan;
            ``(3) a description of specific conservation and 
        environmental objectives to be achieved;
            ``(4) to the extent practicable, specific, quantitative 
        goals for achieving the conservation and environmental 
        objectives;
            ``(5) a description of 1 or more structural practices or 1 
        or more land management practices, or both, to be implemented 
        to achieve the conservation and environmental objectives;
            ``(6) a description of the timing and sequence for 
        implementing the structural practices or land management 
        practices, or both, that will assist the operator in complying 
        with Federal and State environmental laws; and
            ``(7) information that will enable evaluation of the 
        effectiveness of the plan in achieving the conservation and 
        environmental objectives, and that will enable evaluation of 
        the degree to which the plan has been implemented.

``SEC. 1238F. DUTIES OF THE SECRETARY.

    ``To the extent appropriate, the Secretary shall assist an operator 
in achieving the conservation and environmental goals of an 
environmental quality incentives program plan by--
            ``(1) providing an eligibility assessment of the farming or 
        ranching operation of the operator as a basis for developing 
        the plan;
            ``(2) providing technical assistance in developing and 
        implementing the plan;
            ``(3) providing technical assistance, cost-sharing 
        payments, or incentive payments for developing and implementing 
        1 or more structural practices or 1 or more land management 
        practices, as appropriate;
            ``(4) providing the operator with information, education, 
        and training to aid in implementation of the plan; and
            ``(5) encouraging the operator to obtain technical 
        assistance, cost-sharing payments, or grants from other 
        Federal, State, local, or private sources.

``SEC. 1238G. ELIGIBLE LANDS.

    ``Agricultural land on which a structural practice or land 
management practice, or both, shall be eligible for technical 
assistance, cost-sharing payments, or incentive payments under this 
chapter include--
            ``(1) agricultural land (including cropland, rangeland, 
        pasture, and other land on which crops or livestock are 
        produced) that the Secretary determines poses a serious threat 
        to soil, water, or related resources by reason of the soil 
        types, terrain, climatic, soil, topographic, flood, or saline 
        characteristics, or other factors or natural hazards;
            ``(2) an area that is considered to be critical 
        agricultural land on which either crop or livestock production 
        is carried out, as identified in a plan submitted by the State 
        under section 319 of the Federal Water Pollution Control Act 
        (33 U.S.C. 1329) as having priority problems that result from 
        an agricultural nonpoint source of pollution;
            ``(3) an area recommended by a State lead agency for 
        protection of soil, water, and related resources, as designated 
        by a Governor of a State; and
            ``(4) land that is not located within a designated or 
        approved area, but that if permitted to continue to be operated 
        under existing management practices, would defeat the purpose 
        of the environmental quality incentives program, as determined 
        by the Secretary. -

``SEC. 1238H. LIMITATIONS ON PAYMENTS.

    ``(a) Payments.--The total amount of cost-sharing and incentive 
payments paid to a person under this chapter may not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.
    ``(b) Regulations.--The Secretary shall issue regulations that are 
consistent with section 1001 for the purpose of--
            ``(1) defining the term `person' as used in subsection (a); 
        and
            ``(2) prescribing such rules as the Secretary determines 
        necessary to ensure a fair and reasonable application of the 
        limitations contained in subsection (a).

``SEC. 1238I. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Interim Administration.--
            ``(1) In general.--During the period beginning on the date 
        of enactment of this section and ending on the later of the 
        dates specified in paragraph (2), to ensure that technical 
        assistance, cost-sharing payments, and incentive payments 
        continue to be administered in an orderly manner until such 
        time as assistance can be provided through final regulations 
        issued to implement the environmental quality incentives 
        program established under this chapter, the Secretary shall 
        continue to provide technical assistance, cost-sharing 
        payments, and incentive payments under the terms and conditions 
        of the agricultural conservation program, the Great Plains 
        conservation program, the water quality incentives program, and 
        the Colorado River Basin salinity control program, to the 
        extent the terms and conditions of the programs are consistent 
        with the environmental quality incentives program.
            ``(2) Expiration of authority.--The authority of the 
        Secretary to carry out paragraph (1) shall terminate on the 
        later of--
                    ``(A) the date that is 180 days after the date of 
                enactment of this section; or
                    ``(B) March 31, 1996.
    ``(b) Permanent Administration.--Effective beginning on the later 
of the dates specified in subsection (a)(2), the Secretary shall 
provide technical assistance, cost-sharing payments, and incentive 
payments for structural practices and land management practices related 
to crop and livestock production in accordance with final regulations 
issued to carry out the environmental quality incentives program.''.

SEC. 5. ADMINISTRATION.

    Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended to read as follows:

                      ``Subtitle E--Administration

``SEC. 1241. FUNDING.

    ``(a) Mandatory Expenses.--Subject to subsection (f), the Secretary 
shall use the funds of the Commodity Credit Corporation for each of 
fiscal years 1996 through 2005 to carry out the programs authorized 
by--
            ``(1) subchapter B of chapter 1 of subtitle D (including 
        contracts extended by the Secretary pursuant to section 1437 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 16 U.S.C. 3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 2 of subtitle D.
    ``(b) Advance Appropriations to CCC.--The Secretary may use the 
funds of the Commodity Credit Corporation to carry out chapter 3 of 
subtitle D, except that the Secretary may not use the funds of the 
Corporation unless the Corporation has received funds to cover the 
expenditures from appropriations made to carry out chapter 3 of 
subtitle D.
    ``(c) Environmental Quality Incentives Program.--
            ``(1) Crop production.--Subject to subsection (f), funds of 
        the Commodity Credit Corporation for technical assistance, 
        cost-sharing payments, and incentive payments targeted at 
        practices relating to crop production under the environmental 
        quality incentives program--
                    ``(A) in the case of each of fiscal years 1996 and 
                1997, shall be allocated in the same proportion that 
                existed between practices relating to crop production 
                and livestock production in fiscal year 1995; and
                    ``(B) in the case of each of fiscal years 1998 
                through 2005, shall not be less than the total funding 
                level for the payments for fiscal year 1995.
            ``(2) Livestock production.--Subject to subsection (f) and 
        paragraph (3), for each of fiscal years 2000 through 2005, 50 
        percent of the funding available for technical assistance, 
        cost-sharing payments, and incentive payments under the 
        environmental quality incentives program shall be targeted at 
        practices relating to livestock production.
            ``(3) Limitation.--The Secretary is authorized to allocate 
        less than 50 percent of the total program funding level for a 
        fiscal year for practices relating to crop or livestock 
        production under paragraphs (1) and (2), if the Secretary 
        determines that the funding level is not justified by need or 
        demand.
    ``(d) Conservation Reserve Program.--Subject to subsection (f), 
funding for the conservation reserve program (including contracts 
extended by the Secretary pursuant to section 1437 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 
16 U.S.C. 3831 note)) shall be--
            ``(1) $1,805,000,000 for fiscal year 1996;
            ``(2) $1,804,000,000 for fiscal year 1997;
            ``(3) $1,485,000,000 for fiscal year 1998;
            ``(4) $1,345,000,000 for fiscal year 1999; and
            ``(5) $1,221,000,000 for each of fiscal years 2000 through 
        2005.
    ``(e) Wetlands Reserve Program.--Subject to subsection (f), funding 
to carry out the wetlands reserve program under subchapter C of chapter 
1 of subtitle D shall be $150,000,000 for each of fiscal years 1996 
through 2005.
    ``(f) Limitation on Use of CCC Funds.--Subject to subsection (c)(3) 
and notwithstanding any other law, the Secretary shall allocate 
$2,060,000,000, of funds of the Commodity Credit Corporation for each 
of fiscal years 1996 through 2005 to carry out the programs authorized 
by chapters 1 and 2 of subtitle D.
    ``(g) Proration of Payments.--If for any fiscal year the Secretary 
has incurred total contractual obligations to make payments under all 
programs authorized under subtitle D (other than chapter 3 of subtitle 
D) that would exceed an amount of $2,060,000,000, the Secretary shall 
prorate all payments owed under subtitle D (other than chapter 3 of 
subtitle D) for the fiscal year to ensure that actual payments for the 
fiscal year do not exceed that amount.

``SEC. 1242. ADMINISTRATION.

    ``(a) Plans.--The Secretary shall, to the extent practicable, avoid 
duplication in--
            ``(1) the conservation plans required for--
                    ``(A) highly erodible land conservation under 
                subtitle B;
                    ``(B) the conservation reserve program established 
                under subchapter B of chapter 1 of subtitle D; and
                    ``(C) the wetlands reserve program established 
                under subchapter C of chapter 1 of subtitle D; and
            ``(2) the environmental quality incentives program plan 
        required under chapter 2 of subtitle D.
    ``(b) Tenants and Sharecroppers.--In carrying out the programs 
established under subtitle D, the Secretary shall provide adequate 
safeguards to protect the interests of tenants and sharecroppers, 
including provision for sharing, on a fair and equitable basis, in 
payments under a program established by subtitle D.
    ``(c) Acreage Limitation.--
            ``(1) In general.--The Secretary shall not enroll more than 
        25 percent of the cropland in any county in the programs 
        administered under the conservation reserve and wetlands 
        reserve programs established under subchapters B and C, 
        respectively, of chapter 1 of subtitle D. Not more than 10 
        percent of the cropland in a county may be subject to an 
        easement acquired under the subchapters.
            ``(2) Exception.--The Secretary may exceed the limitations 
        in paragraph (1) if the Secretary determines that--
                    ``(A) the action would not adversely affect the 
                local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to cropland 
        that is subject to an easement under chapter 1 or 3 of subtitle 
        D that is used for the establishment of shelterbelts and 
        windbreaks.
    ``(d) Regulations.--
            ``(1) Conservation reserve and wetlands reserve programs.--
        Not later than 90 days after the effective date of this 
        section, the Secretary shall issue regulations to implement the 
        conservation reserve and wetlands reserve programs established 
        under chapter 1 of subtitle D.
            ``(2) Environmental quality incentives program.--Not later 
        than 180 days after the effective date of this section, the 
        Secretary shall issue regulations to implement the 
        environmental quality incentives program under chapter 2 of 
        subtitle D.

``SEC. 1243. CONSERVATION OPERATIONS.

    ``It is the sense of Congress that--
            ``(1) the functions performed by the Secretary pursuant to 
        the authority for Conservation Operations are valuable 
        conservation activities that should continue to be carried out 
        by the Secretary; and
            ``(2) the amount of funds made available to carry out the 
        functions of Conservation Operations for each fiscal year 
        should not be less than the amount of funds made available to 
        carry out those functions during fiscal year 1995.

``SEC. 1244. INFORMATION MANAGEMENT.

    ``It is the sense of Congress that the Secretary should develop 
information management techniques that are necessary to create--
            ``(1) individual farm or ranch natural resource databases 
        that would streamline the process by which owners or operators 
        apply to participate in a conservation program administered by 
        the Secretary; and
            ``(2) to the extent practicable, develop a common 
        application process for all conservation programs.''.
SEC. 6. CONFORMING AMENDMENTS.

    (a) Agricultural Conservation Program.--
            (1) Elimination.--
                    (A) Section 8 of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h) is amended--
                            (i) in subsection (b)--
                                    (I) by striking paragraphs (1) 
                                through (4) and inserting the 
                                following:
            ``(1) Environmental quality incentives program.--The 
        Secretary shall provide technical assistance, cost share 
        payments, and incentive payments to operators through the 
        environmental quality incentives program in accordance with 
        chapter 2 of subtitle D of the Food Security Act of 1985 (16 
        U.S.C. 3838 et seq.).''; and
                                    (II) by striking paragraphs (6) 
                                through (8); and
                            (ii) by striking subsections (d), (e), and 
                        (f).
                    (B) The first sentence of section 11 of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590k) is amended by striking ``performance: Provided 
                further,'' and all that follows through ``or other 
                law'' and inserting ``performance''.
                    (C) Section 14 of the Act (16 U.S.C. 590n) is 
                amended--
                            (i) in the first sentence, by striking ``or 
                        8''; and
                            (ii) by striking the second sentence.
                    (D) Section 15 of the Act (16 U.S.C. 590o) is 
                amended--
                            (i) in the first undesignated paragraph--
                                    (I) in the first sentence, by 
                                striking ``sections 7 and 8'' and 
                                inserting ``section 7''; and
                                    (II) by striking the third 
                                sentence; and
                            (ii) by striking the second undesignated 
                        paragraph.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of the last proviso of the matter 
                under the heading ``conservation reserve program'' 
                under the heading ``Soil Bank Programs'' of title I of 
                the Department of Agriculture and Farm Credit 
                Administration Appropriation Act, 1959 (72 Stat. 195; 7 
                U.S.C. 1831a) is amended by striking ``Agricultural 
                Conservation Program'' and inserting ``environmental 
                quality incentives program established under chapter 2 
                of subtitle D of the Food Security Act of 1985 (16 
                U.S.C. 3838 et seq.)''.
                    (B) Section 4 of the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103) is amended by 
                striking ``as added by the Agriculture and Consumer 
                Protection Act of 1973'' each place it appears in 
                subsections (d) and (i) and inserting ``as in effect 
                before the amendment made by section 6(a)(1)(F) of the 
                Agricultural Resources Conservation Act of 1995''.
                    (C) Section 226(b)(4) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6932(b)(4)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (D) Section 246(b)(8) of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6962(b)(8)) is amended by striking ``and the 
                agricultural conservation program under the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 590g 
                et seq.)''.
                    (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (16 U.S.C. 
                2106a(c)(3)(C)) is amended by striking ``Agricultural 
                Conservation Program established under section 16(b) of 
                the Soil Conservation and Domestic Allotment Act (16 
                U.S.C. 590h, 590l, or 590p)'' and inserting 
                ``environmental quality incentives program established 
                under chapter 2 of subtitle D of the Food Security Act 
                of 1985 (16 U.S.C. 3838 et seq.)''.
                    (F) Section 126(a)(5) of the Internal Revenue Code 
                of 1986 is amended to read as follows:
            ``(5) The environmental quality incentives program 
        established under chapter 2 of subtitle D of the Food Security 
        Act of 1985 (16 U.S.C. 3838 et seq.).''.
                    (G) Section 304(a) of the Lake Champlain Special 
                Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 
                1270 note) is amended--
                            (i) in the subsection heading, by striking 
                        ``Special Project Area Under the Agricultural 
                        Conservation Program'' and inserting ``A 
                        Priority Area Under the Environmental Quality 
                        Incentives Program''; and
                            (ii) in paragraph (1), by striking 
                        ``special project area under the Agricultural 
                        Conservation Program established under section 
                        8(b) of the Soil Conservation and Domestic 
                        Allotment Act (16 U.S.C. 590h(b))'' and 
                        inserting ``priority area under the 
                        environmental quality incentives program 
                        established under chapter 2 of subtitle D of 
                        the Food Security Act of 1985 (16 U.S.C. 3838 
                        et seq.)''.
                    (H) Section 6 of the Department of Agriculture 
                Organic Act of 1956 (70 Stat. 1033) is amended by 
                striking subsection (b).
    (b) Great Plains Conservation Program.--
            (1) Elimination.--Section 16 of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590p) is repealed.
            (2) Conforming amendments.--
                    (A) The Agricultural Adjustment Act of 1938 is 
                amended by striking ``Great Plains program'' each place 
                it appears in sections 344(f)(8) and 377 (7 U.S.C. 
                1344(f)(8) and 1377) and inserting ``environmental 
                quality incentives program established under chapter 2 
                of subtitle D of the Food Security Act of 1985 (16 
                U.S.C. 3838 et seq.)''.
                    (B) Section 246(b) of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6962(b)) is 
                amended by striking paragraph (2).
                    (C) Section 126(a) of the Internal Revenue Code of 
                1986 is amended--
                            (i) by striking paragraph (6); and
                            (ii) by redesignating paragraphs (7) 
                        through (10) as paragraphs (6) through (9), 
                        respectively.
    (c) Colorado River Basin Salinity Control Program.--
            (1) Elimination.--Section 202 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1592) is amended by striking 
        subsection (c).
            (2) Conforming amendment.--Section 246(b) of the Department 
        of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) is 
        amended by striking paragraph (6).
    (d) Rural Environmental Conservation Program.--
            (1) Elimination.--Title X of the Agricultural Act of 1970 
        (16 U.S.C. 1501 et seq.) is repealed.
            (2) Conforming amendments.--Section 246(b) of the 
        Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6962(b)) (as amended by subsections (a)(2)(D), (b)(2)(B), and 
        (c)(2)) is further amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (3), (4), (5), (7), 
                and (8) as paragraphs (1), (2), (3), (4), and (5), 
                respectively.
    (e) Highly Erodible Land Conservation.--Section 1212(e) of the Food 
Security Act of 1985 (16 U.S.C. 3812(e)) is amended by inserting after 
the first sentence the following: ``Ineligibility under section 1211 of 
a tenant or sharecropper for benefits under section 1211 shall not 
cause a landlord to be ineligible for the benefits for which the 
landlord would otherwise be eligible with respect to a commodity 
produced on lands other than the land operated by the tenant or 
sharecropper.''.
    (f) Other Conservation Provisions.--Subtitle F of title XII of the 
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
    (g) Commodity Credit Corporation Charter Act.--
            (1) The first sentence of section 4(g) of the Commodity 
        Credit Corporation Charter Act (15 U.S.C. 714b(g)) is amended 
        by inserting before the period at the end the following: ``, 
        except that the total contractual obligations incurred under 
        the functions and programs established under subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et 
        seq.) shall not exceed $2,060,000,000 for any fiscal year''.
            (2) Section 5(g) of the Commodity Credit Corporation 
        Charter Act (15 U.S.C. 714c(g)) is amended to read as follows:
    ``(g) Carry out the functions and programs established under 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.) at a funding level, notwithstanding any other provision 
of law, that does not exceed a total of $2,060,000,000 in any fiscal 
year for all functions and programs combined.''.
    (h) Resource Conservation.--
            (1) Elimination.--Subtitles A, B, D, E, F, G, and J of 
        title XV of the Agriculture and Food Act of 1981 (95 Stat. 
        1328; 16 U.S.C. 3401 et seq.) are repealed.
            (2) Conforming amendment.--Section 739 of the Agriculture, 
        Rural Development, Food and Drug Administration, and Related 
        Agencies Appropriations Act, 1982 (7 U.S.C. 2272a) is repealed.
    (i) Wetlands Reserve Program.--Section 1237(c) of the Food Security 
Act of 1985 (16 U.S.C. 3837(c)) is amended by striking ``1991 through 
2000'' and inserting ``1996 through 2005''.
    (j) Environmental Easement Program.--Section 1239(a) of the Food 
Security Act of 1985 (16 U.S.C. 3839(a)) is amended by striking ``1991 
through 1995'' and inserting ``1996 through 2005''.

SEC. 7. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall become effective on the later 
of--
            (1) the date of enactment of this Act; or
            (2) October 1, 1995.
    (b) Transition Provisions.--
            (1) In general.--Section 1238I and 1242(d) of the Food 
        Security Act of 1985 (as added by sections 4 and 5, 
        respectively, of this Act) shall become effective on the date 
        of enactment of this Act.
            (2) 1991 through 1995 calendar years.--Notwithstanding any 
        other provision of law, this Act and the amendments made by 
        this Act shall not affect the authority of the Secretary of 
        Agriculture to carry out a program for any of the 1991 through 
        1995 calendar years under a provision of law in effect 
        immediately before the effective dates prescribed by this 
        section.
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