[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1673 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1673

To provide for the continuation of agricultural programs through fiscal 
                               year 2011.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 9, 2001

 Mrs. Lincoln (for herself, Mr. Hutchinson, Mr. Helms, Mr. Miller, Ms. 
Landrieu, and Mr. Breaux) introduced the following bill; which was read 
  twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 A BILL


 
To provide for the continuation of agricultural programs through fiscal 
                               year 2011.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm Security Act 
of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--COMMODITY PROGRAMS

Sec. 100. Definitions.
   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

Sec. 101. Payments to eligible producers.
Sec. 102. Establishment of payment yield.
Sec. 103. Establishment of base acres and payment acres for a farm.
Sec. 104. Availability of fixed, decoupled payments.
Sec. 105. Availability of counter-cyclical payments.
Sec. 106. Producer agreement required as condition on provision of 
                            fixed, decoupled payments and counter-
                            cyclical payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining payment authority under production 
                            flexibility contracts.
Sec. 109. Payment limitations.
Sec. 110. Period of effectiveness.
  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 121. Availability of nonrecourse marketing assistance loans for 
                            covered commodities.
Sec. 122. Loan rates for nonrecourse marketing assistance loans.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed 
                            acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Availability of recourse loans for high moisture feed grains 
                            and seed cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for 
                            wool and mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for 
                            honey.
Sec. 132. Producer retention of erroneously paid loan deficiency 
                            payments and marketing loan gains.
                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Extension of dairy export incentive and dairy indemnity 
                            programs.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Study of national dairy policy.
                            Chapter 2--Sugar

Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 
                            regarding sugar.
Sec. 153. Storage facility loans.
                           Chapter 3--Peanuts

Sec. 161. Definitions.
Sec. 162. Establishment of payment yield, peanut acres, and payment 
                            acres for a farm.
Sec. 163. Availability of fixed, decoupled payments for peanuts.
Sec. 164. Availability of counter-cyclical payments for peanuts.
Sec. 165. Producer agreement required as condition on provision of 
                            fixed, decoupled payments and counter-
                            cyclical payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for 
                            peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of marketing quota programs for peanuts and 
                            compensation to peanut quota holders for 
                            loss of quota asset value.
                       Subtitle D--Administration

Sec. 181. Administration generally.
Sec. 182. Extension of suspension of permanent price support authority.
Sec. 183. Limitations.
Sec. 184. Adjustments of loans.
Sec. 185. Personal liability of producers for deficiencies.
Sec. 186. Extension of existing administrative authority regarding 
                            loans.
Sec. 187. Assignment of payments.
Sec. 188. Report on effect of certain farm program payments on economic 
                            viability of producers and farming 
                            infrastructure.
                         TITLE II--CONSERVATION

     Subtitle A--Environmental Conservation Acreage Reserve Program

Sec. 201. General provisions.
                Subtitle B--Conservation Reserve Program

Sec. 211. Reauthorization.
Sec. 212. Enrollment.
Sec. 213. Duties of owners and operators.
Sec. 214. Reference to conservation reserve payments.
Sec. 215. Expansion of pilot program to all States.
                  Subtitle C--Wetlands Reserve Program

Sec. 221. Enrollment.
Sec. 222. Easements and agreements.
Sec. 223. Duties of the Secretary.
Sec. 224. Changes in ownership; agreement modification; termination.
          Subtitle D--Environmental Quality Incentives Program

Sec. 231. Purposes.
Sec. 232. Definitions.
Sec. 233. Establishment and administration.
Sec. 234. Evaluation of offers and payments.
Sec. 235. Environmental Quality Incentives Program plan.
Sec. 236. Duties of the Secretary.
Sec. 237. Limitation on payments.
Sec. 238. Ground and surface water conservation.
                 Subtitle E--Funding and Administration

Sec. 241. Reauthorization.
Sec. 242. Funding.
Sec. 243. Allocation for livestock production.
Sec. 244. Administration and technical assistance.
                       Subtitle F--Other Programs

Sec. 251. Private grazing land and conservation assistance.
Sec. 252. Wildlife Habitat Incentives Program.
Sec. 253. Farmland Protection Program.
Sec. 254. Resource Conservation and Development Program.
Sec. 255. Grassland Reserve Program.
Sec. 256. Farmland Stewardship Program.
Sec. 257. Small Watershed Rehabilitation Program.
Sec. 258. Provision of assistance for Repaupo Creek Tide Gate and Dike 
                            Restoration Project, New Jersey.
Sec. 259. Grassroots source water protection program.
                          Subtitle G--Repeals

Sec. 261. Provisions of the Food Security Act of 1985.
Sec. 262. National Natural Resources Conservation Foundation Act.
                            TITLE III--TRADE

Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities for developing or friendly countries.
Sec. 304. Export Enhancement Program.
Sec. 305. Foreign Market Development Cooperator Program.
Sec. 306. Export Credit Guarantee Program.
Sec. 307. Food for Peace (Public Law 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian Trust.
Sec. 310. Technical assistance for specialty crops.
Sec. 311. Farmers to Africa and the Caribbean Basin.
Sec. 312. George McGovern-Robert Dole International Food for Education 
                            and Child Nutrition Program.
Sec. 313. Study on fee for services.
Sec. 314. National export strategy report.
                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 401. Simplified definition of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food stamps for families moving from welfare.
Sec. 404. Quality control systems.
Sec. 405. Simplified application and eligibility determination systems.
Sec. 406. Authorization of appropriations.
                   Subtitle B--Commodity Distribution

Sec. 441. Distribution of surplus commodities to special nutrition 
                            projects.
Sec. 442. Commodity supplemental food program.
Sec. 443. Emergency food assistance.
                  Subtitle C--Miscellaneous Provisions

Sec. 461. Hunger fellowship program.
Sec. 462. General effective date.
                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 501. Direct loans.
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or 
                            rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales program.
                      Subtitle B--Operating Loans

Sec. 511. Direct loans.
Sec. 512. Amount of guarantee of loans for tribal farm operations; 
                            waiver of limitations for tribal farm 
                            operations and other farm operations.
                 Subtitle C--Administrative Provisions

Sec. 521. Eligibility of limited liability companies for farm ownership 
                            loans, farm operating loans, and emergency 
                            loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority to enter into contracts; private 
                            collection agencies.
Sec. 524. Interest rate options for loans in servicing.
Sec. 525. Annual review of borrowers.
Sec. 526. Simplified loan applications.
Sec. 527. Inventory property.
Sec. 528. Definitions.
Sec. 529. Loan authorization levels.
Sec. 530. Interest rate reduction program.
Sec. 531. Options for satisfaction of obligation to pay recapture 
                            amount for shared appreciation agreements.
Sec. 532. Waiver of borrower training certification requirement.
Sec. 533. Annual review of borrowers.
                        Subtitle D--Farm Credit

Sec. 541. Repeal of burdensome approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage 
                            Corporation.
                     Subtitle E--General Provisions

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.
                      TITLE VI--RURAL DEVELOPMENT

Sec. 601. Funding for rural local television broadcast signal loan 
                            guarantees.
Sec. 602. Expanded eligibility for value-added agricultural product 
                            market development grants.
Sec. 603. Agriculture innovation center demonstration program.
Sec. 604. Funding of community water assistance grant program.
Sec. 605. Loan guarantees for the financing of the purchase of 
                            renewable energy systems.
Sec. 606. Loans and loan guarantees for renewable energy systems.
Sec. 607. Rural business opportunity grants.
Sec. 608. Grants for water systems for rural and native villages in 
                            Alaska.
Sec. 609. Rural cooperative development grants.
Sec. 610. National reserve account of Rural Development Trust Fund.
Sec. 611. Rural venture capital demonstration program.
Sec. 612. Increase in limit on certain loans for rural development.
Sec. 613. Pilot program for development and implementation of strategic 
                            regional development plans.
Sec. 614. Grants to nonprofit organizations to finance the 
                            construction, refurbishing, and servicing 
                            of individually-owned household water well 
                            systems in rural areas for individuals with 
                            low or moderate incomes.
Sec. 615. National Rural Development Partnership.
Sec. 616. Eligibility of rural empowerment zones, rural enterprise 
                            communities, and champion communities for 
                            direct and guaranteed loans for essential 
                            community facilities.
Sec. 617. Grants to train farm workers in new technologies and to train 
                            farm workers in specialized skills 
                            necessary for higher value crops.
Sec. 618. Loan guarantees for the purchase of stock in a farmer 
                            cooperative seeking to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to 
                            be considered in determining eligibility of 
                            farmer-owned cooperative for business and 
                            industry guaranteed loan.
Sec. 620. Ban on limiting eligibility of farmer cooperative for 
                            business and industry loan guarantee based 
                            on population of area in which cooperative 
                            is located; refinancing.
Sec. 621. Rural water and waste facility grants.
Sec. 622. Rural water circuit rider program.
Sec. 623. Rural water grassroots source water protection program.
Sec. 624. Delta regional authority.
Sec. 625. Predevelopment and small capitalization loan fund.
Sec. 626. Rural economic development loan and grant program.
                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

Sec. 700. Market expansion research.
Sec. 701. National Rural Information Center Clearinghouse.
Sec. 702. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 703. Policy research centers.
Sec. 704. Human nutrition intervention and health promotion research 
                            program.
Sec. 705. Pilot research program to combine medical and agricultural 
                            research.
Sec. 706. Nutrition education program.
Sec. 707. Continuing animal health and disease research programs.
Sec. 708. Appropriations for research on national or regional problems.
Sec. 709. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 710. National research and training centennial centers at 1890 
                            land-grant institutions.
Sec. 711. Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and 
                            education programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and alternative crops.
Sec. 716. Aquaculture research facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics resources program.
Sec. 719. High-priority research and extension initiatives.
Sec. 720. Nutrient management research and extension initiative.
Sec. 721. Agricultural telecommunications program.
Sec. 722. Alternative agricultural research and commercialization 
                            revolving fund.
Sec. 723. Assistive technology program for farmers with disabilities.
Sec. 724. Partnerships for high-value agricultural product quality 
                            research.
Sec. 725. Biobased products.
Sec. 726. Integrated research, education, and extension competitive 
                            grants program.
Sec. 727. Institutional capacity building grants.
Sec. 728. 1994 Institution research grants.
Sec. 729. Endowment for 1994 Institutions.
Sec. 730. Precision agriculture.
Sec. 731. Thomas Jefferson initiative for crop diversification.
Sec. 732. Support for research regarding diseases of wheat, triticale, 
                            and barley caused by Fusarium Graminearum 
                            or by Tilletia Indica.
Sec. 733. Office of Pest Management Policy.
Sec. 734. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols 
                            and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 736. Biomass research and development.
Sec. 737. Agricultural experiment stations research facilities.
Sec. 738. Competitive, special, and facilities research grants national 
                            research initiative.
Sec. 739. Federal agricultural research facilities authorization of 
                            appropriations.
Sec. 740. Cotton classification services.
Sec. 740A. Critical agricultural materials research.
Sec. 740B. Private nonindustrial hardwood research program.
                       Subtitle B--Modifications

Sec. 741. Equity in Educational Land-Grant Status Act of 1994.
Sec. 742. National Agricultural Research, Extension, and Teaching 
                            Policy Act of 1977.
Sec. 743. Agricultural Research, Extension, and Education Reform Act of 
                            1998.
Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural Research, Extension, and Teaching 
                            Policy Act of 1977.
Sec. 746. Biomass research and development.
Sec. 747. Biotechnology risk assessment research.
Sec. 748. Competitive, special, and facilities research grants.
Sec. 749. Matching funds requirement for research and extension 
                            activities of 1890 institutions.
Sec. 749A. Matching funds requirement for research and extension 
                            activities for the United States 
                            territories.
Sec. 750. Initiative for future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of food and agricultural sciences.
Sec. 753. Federal extension service.
Sec. 754. Policy research centers.
                      Subtitle C--Related Matters

Sec. 761. Resident instruction at land-grant colleges in United States 
                            territories.
Sec. 762. Declaration of extraordinary emergency and resulting 
                            authorities.
Sec. 763. Agricultural biotechnology research and development for the 
                            developing world.
        Subtitle D--Repeal of Certain Activities and Authorities

Sec. 771. Food Safety Research Information Office and National 
                            Conference.
Sec. 772. Reimbursement of expenses under Sheep Promotion, Research, 
                            and Information Act of 1994.
Sec. 773. National genetic resources program.
Sec. 774. National Advisory Board on Agricultural Weather.
Sec. 775. Agricultural information exchange with Ireland.
Sec. 776. Pesticide resistance study.
Sec. 777. Expansion of education study.
Sec. 778. Support for advisory board.
Sec. 779. Task force on 10-year strategic plan for agricultural 
                            research facilities.
              Subtitle E--Agriculture Facility Protection

Sec. 790. Additional protections for animal or agricultural 
                            enterprises, research facilities, and other 
                            entities.
                    TITLE VIII--FORESTRY INITIATIVES

Sec. 801. Repeal of forestry incentives program and Stewardship 
                            Incentive Program.
Sec. 802. Establishment of Forest Land Enhancement Program.
Sec. 803. Renewable resources extension activities.
Sec. 804. Enhanced community fire protection.
Sec. 805. International forestry program.
Sec. 806. Wildfire prevention and hazardous fuel purchase program.
Sec. 807. McIntire-Stennis cooperative forestry research program.
                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

Sec. 901. Eligibility.
Sec. 902. Assistance.
Sec. 903. Limitation on assistance.
Sec. 904. Definitions.
                       Subtitle B--Other Matters

Sec. 921. Bioenergy program.
Sec. 922. Availability of section 32 funds.
Sec. 923. Seniors farmers' market nutrition program.
Sec. 924. Department of Agriculture authorities regarding caneberries.
Sec. 925. National Appeals Division.
Sec. 926. Outreach and assistance for socially disadvantaged farmers 
                            and ranchers.
Sec. 927. Equal treatment of potatoes and sweet potatoes.
Sec. 928. Reference to sea grass and sea oats as crops covered by 
                            noninsured crop disaster assistance 
                            program.
Sec. 929. Operation of Graduate School of Department of Agriculture.
Sec. 930. Assistance for livestock producers.
Sec. 931. Compliance with Buy American Act and sense of Congress 
                            regarding purchase of American-made 
                            equipment, products, and services using 
                            funds provided under this Act.
Sec. 932. Report regarding genetically engineered foods.
Sec. 933. Market name for pangasius fish species.
Sec. 934. Program of public education regarding use of biotechnology in 
                            producing food for human consumption.
Sec. 935. GAO study.
Sec. 936. Interagency Task Force on Agricultural Competition.
Sec. 937. Authorization for additional staff and funding for the Grain 
                            Inspection, Packers and Stockyards 
                            Administration.
Sec. 938. Enforcement of the humane methods of Slaughter Act of 1958.
Sec. 939. Penalties and foreign commerce provisions of the Animal 
                            Welfare Act.
Sec. 940. Improve administration of Animal and Plant Health Inspection 
                            Service.
Sec. 941. Renewable energy resources.
Sec. 942. Use of amounts provided for fixed, decoupled payments to 
                            provide necessary funds for rural 
                            development programs.
Sec. 943. Unlawful stockyard practices involving nonambulatory 
                            livestock.
Sec. 944. Annual report on imports of beef and pork.

                      TITLE I--COMMODITY PROGRAMS

SEC. 100. DEFINITIONS.

    In this title (other than chapter 3 of subtitle C):
            (1) Agricultural act of 1949.--The term ``Agricultural Act 
        of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 et 
        seq.), as in effect prior to the suspensions under section 171 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7301).
            (2) Base acres.--The term ``base acres'', with respect to a 
        covered commodity on a farm, means the number of acres 
        established under section 103 with respect to the commodity 
        upon the election made by the producers on the farm under 
        subsection (a) of such section.
            (3) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers under section 105.
            (4) Covered commodity.--The term ``covered commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        rice, soybeans, and other oilseeds.
            (5) Effective price.--The term ``effective price'', with 
        respect to a covered commodity for a crop year, means the price 
        calculated by the Secretary under section 105 to determine 
        whether counter-cyclical payments are required to be made for 
        that crop year.
            (6) Eligible producer.--The term ``eligible producer'' 
        means a producer described in section 101(a).
            (7) Fixed, decoupled payment.--The term ``fixed, decoupled 
        payment'' means a payment made to producers under section 104.
            (8) Other oilseed.--The term ``other oilseed'' means a crop 
        of sunflower seed, rapeseed, canola, safflower, flaxseed, 
        mustard seed, or, if designated by the Secretary, another 
        oilseed.
            (9) Payment acres.--The term ``payment acres'' means 85 
        percent of the base acres of a covered commodity on a farm, as 
        established under section 103, upon which fixed, decoupled 
        payments and counter-cyclical payments are to be made.
            (10) Payment yield.--The term ``payment yield'' means the 
        yield established under section 102 for a farm for a covered 
        commodity.
            (11) Producer.--The term ``producer'' means an owner, 
        operator, landlord, tenant, or sharecropper who shares in the 
        risk of producing a crop and who is entitled to share in the 
        crop available for marketing from the farm, or would have 
        shared had the crop been produced. In determining whether a 
        grower of hybrid seed is a producer, the Secretary shall not 
        take into consideration the existence of a hybrid seed contract 
        and shall ensure that program requirements do not adversely 
        affect the ability of the grower to receive a payment under 
        this title.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (13) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (14) Target price.--The term ``target price'' means the 
        price per bushel (or other appropriate unit in the case of 
        upland cotton, rice, and other oilseeds) of a covered commodity 
        used to determine the payment rate for counter-cyclical 
        payments.
            (15) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.

    (a) Payments Required.--Beginning with the 2002 crop of covered 
commodities, the Secretary shall make fixed decoupled payments and 
counter-cyclical payments under this subtitle--
            (1) to producers on a farm that were parties to a 
        production flexibility contract under section 111 of the 
        Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7211) for fiscal year 2002; and
            (2) to other producers on farms in the United States as 
        described in section 103(a).
    (b) Tenants and Sharecroppers.--In carrying out this title, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (c) Sharing of Payments.--The Secretary shall provide for the 
sharing of fixed, decoupled payments and counter-cyclical payments 
among the eligible producers on a farm on a fair and equitable basis.

SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.

    (a) Establishment and Purpose.--For the purpose of making fixed 
decoupled payments and counter-cyclical payments under this subtitle, 
the Secretary shall provide for the establishment of a payment yield 
for each farm for each covered commodity in accordance with this 
section.
    (b) Use of Farm Program Payment Yield.--Except as otherwise 
provided in this section, the payment yield for each of the 2002 
through 2011 crops of a covered commodity for a farm shall be the farm 
program payment yield in effect for the 2002 crop of the covered 
commodity under section 505 of the Agricultural Act of 1949 (7 U.S.C. 
1465).
    (c) Farms Without Farm Program Payment Yield.--In the case of a 
farm for which a farm program payment yield is unavailable for a 
covered commodity (other than soybeans or other oilseeds), the 
Secretary shall establish an appropriate payment yield for the covered 
commodity on the farm taking in consideration the farm program payment 
yields applicable to the commodity under subsection (b) for similar 
farms in the area.
    (d) Payment Yields for Oilseeds.--
            (1) Determination of average yield.--In the case of 
        soybeans and each other oilseed, the Secretary shall determine 
        the average yield for the oilseed on a farm for the 1998 
        through 2001 crop years, excluding any crop year in which the 
        acreage planted to the oilseed was zero. If, for any of these 
        four crop years in which the oilseed was planted, the farm 
        would have satisfied the eligibility criteria established to 
        carry out section 1102 of the Agriculture, Rural Development, 
        Food and Drug Administration, and Related Agencies 
        Appropriations Act, 1999 (Public Law 105-277; 7 U.S.C. 1421 
        note), the Secretary shall assign a yield for that year equal 
        to 65 percent of the county yield.
            (2) Adjustment for payment yield.--The payment yield for a 
        farm for an oilseed shall be equal to the product of the 
        following:
                    (A) The average yield for the oilseed determined 
                under paragraph (1).
                    (B) The ratio resulting from dividing the national 
                average yield for the oilseed for the 1981 through 1985 
                crops by the national average yield for the oilseed for 
                the 1998 through 2001 crops.

SEC. 103. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.

    (a) Election by Producers of Base Acre Calculation Method.--For the 
purpose of making fixed decoupled payments and counter-cyclical 
payments with respect to a farm, the Secretary shall give producers on 
the farm an opportunity to elect one of the following as the method by 
which the base acres of all covered commodities on the farm are to be 
determined:
            (1) The four-year average of acreage actually planted on 
        the farm to a covered commodity for harvest, grazing, haying, 
        silage, or other similar purposes during crop years 1998, 1999, 
        2000, and 2001 and any acreage on the farm that the producers 
        were prevented from planting during such crop years to the 
        covered commodity because of drought, flood, or other natural 
        disaster, or other condition beyond the control of the 
        producer, as determined by the Secretary.
            (2) The sum of contract acreage (as defined in section 102 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7202)) used by the Secretary to calculate the fiscal 
        year 2002 payment that, subject to section 109, would be made 
        under section 114 of such Act (7 U.S.C. 7214) for the covered 
        commodity on the farm and the four-year average determined 
        under paragraph (1) for soybeans and each other oilseed 
        produced on the farm.
    (b) Single Election; Time for Election.--The opportunity to make 
the election described in subsection (a) shall be available to 
producers on a farm only once. The producers shall notify the Secretary 
of the election made by the producers under such subsection not later 
than 180 days after the date of the enactment of this Act.
    (c) Effect of Failure To Make Election.--If the producers on a farm 
fail to make the election under subsection (a), or fail to timely 
notify the Secretary of the selected option as required by subsection 
(b), the producers shall be deemed to have made the election described 
in subsection (a)(2) to determine base acres for all covered 
commodities on the farm.
    (d) Application of Election to All Covered Commodities.--The 
election made under subsection (a) or deemed to be made under 
subsection (c) with respect to a farm shall apply to all of the covered 
commodities on the farm. Producers may not make the election described 
in subsection (a)(1) for one covered commodity and the election 
described in subsection (a)(2) for other covered commodities on the 
farm.
    (e) Treatment of Conservation Reserve Contract Acreage.--
            (1) In general.--In the case of producers on a farm that 
        make the election described in subsection (a)(2), the Secretary 
        shall provide for an adjustment in the base acres for the farm 
        whenever either of the following circumstances occur:
                    (A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
            (2) Special payment rules.--For the fiscal year and crop 
        year in which a base acre adjustment under paragraph (1) is 
        first made, the producers on the farm shall elect to receive 
        either fixed decoupled payments and counter-cyclical payments 
        with respect to the acreage added to the farm under this 
        subsection or a prorated payment under the conservation reserve 
        contract, but not both.
    (f) Payment Acres.--The payment acres for a covered commodity on a 
farm shall be equal to 85 percent of the base acres for the commodity.
    (g) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base acres for a 
        farm, together with the acreage described in paragraph (2), 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the quantity of base acres for one or more covered 
        commodities for the farm or peanut acres for the farm as 
        necessary so that the sum of the base acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm. The Secretary shall give the producers on 
        the farm the opportunity to select the base acres or peanut 
        acres against which the reduction will be made.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    (A) Any peanut acres for the farm under chapter 3 
                of subtitle C.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled in a 
                conservation program for which payments are made in 
                exchange for not producing an agricultural commodity on 
                the acreage.
            (3) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.

SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.

    (a) Payment Required.--For each of the 2002 through 2011 crop years 
of each covered commodity, the Secretary shall make fixed, decoupled 
payments to eligible producers.
    (b) Payment Rate.--The payment rates used to make fixed, decoupled 
payments with respect to covered commodities for a crop year are as 
follows:
            (1) Wheat, $0.53 per bushel.
            (2) Corn, $0.30 per bushel.
            (3) Grain sorghum, $0.36 per bushel.
            (4) Barley, $0.25 per bushel.
            (5) Oats, $0.025 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Rice, $2.35 per hundredweight.
            (8) Soybeans, $0.42 per bushel.
            (9) Other oilseeds, $0.0074 per pound.
    (c) Payment Amount.--The amount of the fixed, decoupled payment to 
be paid to the eligible producers on a farm for a covered commodity for 
a crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (d) Time for Payment.--
            (1) General rule.--Fixed, decoupled payments shall be paid 
        not later than September 30 of each of fiscal years 2002 
        through 2011. In the case of the 2002 crop, payments may begin 
        to be made on or after December 1, 2001.
            (2) Advance payments.--At the option of an eligible 
        producer, 50 percent of the fixed, decoupled payment for a 
        fiscal year shall be paid on a date selected by the producer. 
        The selected date shall be on or after December 1 of that 
        fiscal year, and the producer may change the selected date for 
        a subsequent fiscal year by providing advance notice to the 
        Secretary.
            (3) Repayment of advance payments.--If a producer that 
        receives an advance fixed, decoupled payment for a fiscal year 
        ceases to be an eligible producer before the date the fixed, 
        decoupled payment would otherwise have been made by the 
        Secretary under paragraph (1), the producer shall be 
        responsible for repaying the Secretary the full amount of the 
        advance payment.

SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--The Secretary shall make counter-cyclical 
payments with respect to a covered commodity whenever the Secretary 
determines that the effective price for the commodity is less than the 
target price for the commodity.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for a covered commodity is equal to the sum of the following:
            (1) The higher of the following:
                    (A) The national average market price received by 
                producers during the 12-month marketing year for the 
                commodity, as determined by the Secretary.
                    (B) The national average loan rate for a marketing 
                assistance loan for the covered commodity in effect for 
                the same period under subtitle B.
            (2) The payment rate in effect for the covered commodity 
        under section 104 for the purpose of making fixed, decoupled 
        payments with respect to the commodity.
    (c) Target Price.--For purposes of subsection (a), the target 
prices for covered commodities are as follows:
            (1) Wheat, $4.04 per bushel.
            (2) Corn, $2.78 per bushel.
            (3) Grain sorghum, $2.64 per bushel.
            (4) Barley, $2.39 per bushel.
            (5) Oats, $1.47 per bushel.
            (6) Upland cotton, $0.736 per pound.
            (7) Rice, $10.82 per hundredweight.
            (8) Soybeans, $5.86 per bushel.
            (9) Other oilseeds, $0.1036 per pound.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to a covered commodity for a crop year shall be 
equal to the difference between--
            (1) the target price for the commodity; and
            (2) the effective price determined under subsection (b) for 
        the commodity.
    (e) Payment Amount.--The amount of the counter-cyclical payment to 
be paid to the eligible producers on a farm for a covered commodity for 
a crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (f) Time for Payments.--
            (1) General rule.--The Secretary shall make counter-
        cyclical payments under this section for a crop of a covered 
        commodity as soon as possible after determining under 
        subsection (a) that such payments are required for that crop 
        year.
            (2) Partial payment.--The Secretary may permit, and, if so 
        permitted, an eligible producer may elect to receive, up to 40 
        percent of the projected counter-cyclical payment, as 
        determined by the Secretary, to be made under this section for 
        a crop of a covered commodity upon completion of the first six 
        months of the marketing year for that crop. The producer shall 
        repay to the Secretary the amount, if any, by which the partial 
        payment exceeds the actual counter-cyclical payment to be made 
        for that marketing year.
    (g) Special Rule for Currently Undesignated Oilseed.--If the 
Secretary uses the authority under section 100(8) to designate another 
oilseed as an oilseed for which counter-cyclical payments may be made, 
the Secretary may modify the target price specified in subsection 
(c)(9) that would otherwise apply to that oilseed as the Secretary 
considers appropriate.
    (h) Special Rule for Barley Used Only for Feed Purposes.--For 
purposes of calculating the effective price for barley under subsection 
(b), the Secretary shall use the loan rate in effect for barley under 
section 122(b)(3), except, in the case of producers who received the 
higher loan rate provided under such section for barley used only for 
feed purposes, the Secretary shall use that higher loan rate.

SEC. 106. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
              FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive fixed, decoupled payments or counter-cyclical payments 
        with respect to the farm, the producers shall agree, in 
        exchange for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    (B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of the Act 
                (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 107; and
                    (D) to use the land on the farm, in an amount equal 
                to the base acres, for an agricultural or conserving 
                use, and not for a nonagricultural commercial or 
                industrial use, as determined by the Secretary.
            (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
    (b) Effect of Foreclosure.--A producer may not be required to make 
repayments to the Secretary of fixed, decoupled payments and counter-
cyclical payments if the farm has been foreclosed on and the Secretary 
determines that forgiving the repayments is appropriate to provide fair 
and equitable treatment. This subsection shall not void the 
responsibilities of the producer under subsection (a) if the producer 
continues or resumes operation, or control, of the farm. On the 
resumption of operation or control over the farm by the producer, the 
requirements of subsection (a) in effect on the date of the foreclosure 
shall apply.
    (c) Transfer or Change of Interest in Farm.--
            (1) Termination.--Except as provided in paragraph (4), a 
        transfer of (or change in) the interest of a producer in base 
        acres for which fixed, decoupled payments or counter-cyclical 
        payments are made shall result in the termination of the 
        payments with respect to the base acres, unless the transferee 
        or owner of the acreage agrees to assume all obligations under 
        subsection (a). The termination shall be effective on the date 
        of the transfer or change.
            (2) Transfer of payment base.--There is no restriction on 
        the transfer of a farm's base acres or payment yield as part of 
        a change in the producers on the farm.
            (3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of subsection 
        (a) if the modifications are consistent with the objectives of 
        such subsection, as determined by the Secretary.
            (4) Exception.--If a producer entitled to a fixed, 
        decoupled payment or counter-cyclical payment dies, becomes 
        incompetent, or is otherwise unable to receive the payment, the 
        Secretary shall make the payment, in accordance with 
        regulations prescribed by the Secretary.
    (d) Acreage Reports.--
            (1) In general.--As a condition on the receipt of any 
        benefits under this subtitle or subtitle B, the Secretary shall 
        require producers to submit to the Secretary acreage reports.
            (2) Conforming Amendment.--Section 15 of the Agricultural 
        Marketing Act (12 U.S.C. 1141j) is amended by striking 
        subsection (d).
    (e) Review.--A determination of the Secretary under this section 
shall be considered to be an adverse decision for purposes of the 
availability of administrative review of the determination.

SEC. 107. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm.
    (b) Limitations and Exceptions Regarding Certain Commodities.--
            (1) Limitations.--The planting of the following 
        agricultural commodities shall be prohibited on base acres:
                    (A) Fruits.
                    (B) Vegetables (other than lentils, mung beans, and 
                dry peas).
                    (C) Wild rice.
            (2) Exceptions.--Paragraph (1) shall not limit the planting 
        of an agricultural commodity specified in such paragraph--
                    (A) in any region in which there is a history of 
                double-cropping of covered commodities with 
                agricultural commodities specified in paragraph (1), as 
                determined by the Secretary, in which case the double-
                cropping shall be permitted;
                    (B) on a farm that the Secretary determines has a 
                history of planting agricultural commodities specified 
                in paragraph (1) on base acres, except that fixed, 
                decoupled payments and counter-cyclical payments shall 
                be reduced by an acre for each acre planted to such an 
                agricultural commodity; or
                    (C) by a producer who the Secretary determines has 
                an established planting history of a specific 
                agricultural commodity specified in paragraph (1), 
                except that--
                            (i) the quantity planted may not exceed the 
                        producer's average annual planting history of 
                        such agricultural commodity in the 1991 through 
                        1995 crop years (excluding any crop year in 
                        which no plantings were made), as determined by 
                        the Secretary; and
                            (ii) fixed, decoupled payments and counter-
                        cyclical payments shall be reduced by an acre 
                        for each acre planted to such agricultural 
                        commodity.

SEC. 108. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION 
              FLEXIBILITY CONTRACTS.

    (a) Termination of Superseded Payment Authority.--Notwithstanding 
section 113(a)(7) of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the 
Secretary shall not make payments for fiscal year 2002 after the date 
of the enactment of this Act under production flexibility contracts 
entered into under section 111 of such Act (7 U.S.C. 7211).
    (b) Contract Payments Made Before Enactment.--If, on or before the 
date of the enactment of this Act, a producer receives all or any 
portion of the payment authorized for fiscal year 2002 under a 
production flexibility contract, the Secretary shall reduce the amount 
of the fixed, decoupled payment otherwise due the producer for that 
same fiscal year by the amount of the fiscal year 2002 payment 
previously received by the producer.

SEC. 109. PAYMENT LIMITATIONS.

    Sections 1001 through 1001C of the Food Security Act of 1985 (7 
U.S.C. 1308 through 1308-3) shall apply to fixed, decoupled payments 
and counter-cyclical payments.

SEC. 110. PERIOD OF EFFECTIVENESS.

    This subtitle shall be effective beginning with the 2002 crop year 
of each covered commodity through the 2011 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 121. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              COVERED COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2002 through 2011 crops 
        of each covered commodity, the Secretary shall make available 
        to producers on a farm nonrecourse marketing assistance loans 
        for covered commodities produced on the farm. The loans shall 
        be made under terms and conditions that are prescribed by the 
        Secretary and at the loan rate established under section 122 
        for the covered commodity.
            (2) Inclusion of extra long staple cotton.--In this 
        subtitle, the term ``covered commodity'' includes extra long 
        staple cotton.
    (b) Eligible Production.--Any production of a covered commodity on 
a farm shall be eligible for a marketing assistance loan under 
subsection (a).
    (c) Treatment of Certain Commingled Commodities.--In carrying out 
this subtitle, the Secretary shall make loans to a producer that is 
otherwise eligible to obtain a marketing assistance loan, but for the 
fact the covered commodity owned by the producer is commingled with 
covered commodities of other producers in facilities unlicensed for the 
storage of agricultural commodities by the Secretary or a State 
licensing authority, if the producer obtaining the loan agrees to 
immediately redeem the loan collateral in accordance with section 166 
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7286).
    (d) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (e) Definition of Extra Long Staple Cotton.--In this subtitle, the 
term ``extra long staple cotton'' means cotton that--
            (1) is produced from pure strain varieties of the 
        Barbadense species or any hybrid thereof, or other similar 
        types of extra long staple cotton, designated by the Secretary, 
        having characteristics needed for various end uses for which 
        United States upland cotton is not suitable and grown in 
        irrigated cotton-growing regions of the United States 
        designated by the Secretary or other areas designated by the 
        Secretary as suitable for the production of the varieties or 
        types; and
            (2) is ginned on a roller-type gin or, if authorized by the 
        Secretary, ginned on another type gin for experimental 
        purposes.
    (f) Termination of Superseded Loan Authority.--Notwithstanding 
section 131 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not 
be made for the 2002 crop of covered commodities under subtitle C of 
title I of such Act.

SEC. 122. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Wheat.--
            (1) Loan rate.--Subject to paragraph (2), the loan rate for 
        a marketing assistance loan under section 121 for wheat shall 
        be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of wheat, as determined by 
                the Secretary, during the marketing years for the 
                immediately preceding five crops of wheat, excluding 
                the year in which the average price was the highest and 
                the year in which the average price was the lowest in 
                the period; but
                    (B) not more than $2.58 per bushel.
            (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending 
        stocks of wheat to total use for the marketing year will be--
                    (A) equal to or greater than 30 percent, the 
                Secretary may reduce the loan rate for wheat for the 
                corresponding crop by an amount not to exceed 10 
                percent in any year;
                    (B) less than 30 percent but not less than 15 
                percent, the Secretary may reduce the loan rate for 
                wheat for the corresponding crop by an amount not to 
                exceed 5 percent in any year; or
                    (C) less than 15 percent, the Secretary may not 
                reduce the loan rate for wheat for the corresponding 
                crop.
    (b) Feed Grains.--
            (1) Loan rate for corn and grain sorghum.--Subject to 
        paragraph (2), the loan rate for a marketing assistance loan 
        under section 121 for corn and grain sorghum shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of corn or grain sorghum, 
                respectively, as determined by the Secretary, during 
                the marketing years for the immediately preceding five 
                crops of the covered commodity, excluding the year in 
                which the average price was the highest and the year in 
                which the average price was the lowest in the period; 
                but
                    (B) not more than $1.89 per bushel.
            (2) Stocks to use ratio adjustment.--If the Secretary 
        estimates for any marketing year that the ratio of ending 
        stocks of corn or grain sorghum to total use for the marketing 
        year will be--
                    (A) equal to or greater than 25 percent, the 
                Secretary may reduce the loan rate for the covered 
                commodity for the corresponding crop by an amount not 
                to exceed 10 percent in any year;
                    (B) less than 25 percent but not less than 12.5 
                percent, the Secretary may reduce the loan rate for the 
                covered commodity for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                    (C) less than 12.5 percent, the Secretary may not 
                reduce the loan rate for the covered commodity for the 
                corresponding crop.
            (3) Other feed grains.--The loan rate for a marketing 
        assistance loan under section 121 for barley and oats shall 
        be--
                    (A) established at such level as the Secretary 
                determines is fair and reasonable in relation to the 
                rate that loans are made available for corn, taking 
                into consideration the feeding value of the commodity 
                in relation to corn; but
                    (B) not more than--
                            (i) $1.65 per bushel for barley, except not 
                        more than $1.70 per bushel for barley used only 
                        for feed purposes, as determined by the 
                        Secretary; and
                            (ii) $1.21 per bushel for oats.
    (c) Upland Cotton.--
            (1) Loan rate.--Subject to paragraph (2), the loan rate for 
        a marketing assistance loan under section 121 for upland cotton 
        shall be established by the Secretary at such loan rate, per 
        pound, as will reflect for the base quality of upland cotton, 
        as determined by the Secretary, at average locations in the 
        United States a rate that is not less than the smaller of--
                    (A) 85 percent of the average price (weighted by 
                market and month) of the base quality of cotton as 
                quoted in the designated United States spot markets 
                during 3 years of the 5-year period ending July 31 of 
                the year preceding the year in which the crop is 
                planted, excluding the year in which the average price 
                was the highest and the year in which the average price 
                was the lowest in the period; or
                    (B) 90 percent of the average, for the 15-week 
                period beginning July 1 of the year preceding the year 
                in which the crop is planted, of the five lowest-priced 
                growths of the growths quoted for Middling 1\3/32\-inch 
                cotton C.I.F. Northern Europe (adjusted downward by the 
                average difference during the period April 15 through 
                October 15 of the year preceding the year in which the 
                crop is planted between the average Northern European 
                price quotation of such quality of cotton and the 
                market quotations in the designated United States spot 
                markets for the base quality of upland cotton), as 
                determined by the Secretary.
            (2) Limitations.--The loan rate for a marketing assistance 
        loan for upland cotton shall not be less than $0.50 per pound 
        or more than $0.5192 per pound.
    (d) Extra Long Staple Cotton.--The loan rate for a marketing 
assistance loan under section 121 for extra long staple cotton shall be 
$0.7965 per pound.
    (e) Rice.--The loan rate for a marketing assistance loan under 
section 121 for rice shall be $6.50 per hundredweight.
    (f) Oilseeds.--
            (1) Soybeans.--The loan rate for a marketing assistance 
        loan under section 121 for soybeans shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of soybeans, as determined 
                by the Secretary, during the marketing years for the 
                immediately preceding five crops of soybeans, excluding 
                the year in which the average price was the highest and 
                the year in which the average price was the lowest in 
                the period; but
                    (B) not more than $4.92 per bushel.
            (2) Other oilseeds.--The loan rate for a marketing 
        assistance loan under section 121 for other oilseeds shall be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of the other oilseed, as 
                determined by the Secretary, during the marketing years 
                for the immediately preceding five crops of the other 
                oilseed, excluding the year in which the average price 
                was the highest and the year in which the average price 
                was the lowest in the period; but
                    (B) not more than $0.087 per pound.

SEC. 123. TERM OF LOANS.

    (a) Term of Loan.--In the case of each covered commodity (other 
than upland cotton or extra long staple cotton), a marketing assistance 
loan under section 121 shall have a term of nine months beginning on 
the first day of the first month after the month in which the loan is 
made.
    (b) Special Rule for Cotton.--A marketing assistance loan for 
upland cotton or extra long staple cotton shall have a term of 10 
months beginning on the first day of the month in which the loan is 
made.
    (c) Extensions Prohibited.--The Secretary may not extend the term 
of a marketing assistance loan for any covered commodity.

SEC. 124. REPAYMENT OF LOANS.

    (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The 
Secretary shall permit a producer to repay a marketing assistance loan 
under section 121 for wheat, corn, grain sorghum, barley, oats, and 
oilseeds at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 122, plus interest (as determined by the Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity; and
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.
    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary 
shall permit producers to repay a marketing assistance loan under 
section 121 for upland cotton and rice at a rate that is the lesser 
of--
            (1) the loan rate established for the commodity under 
        section 122, plus interest (as determined by the Secretary); or
            (2) the prevailing world market price for the commodity 
        (adjusted to United States quality and location), as determined 
        by the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 122, plus 
interest (as determined by the Secretary).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 127, the Secretary shall prescribe by regulation--
            (1) a formula to determine the prevailing world market 
        price for each covered commodity, adjusted to United States 
        quality and location; and
            (2) a mechanism by which the Secretary shall announce 
        periodically the prevailing world market price for each covered 
        commodity.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period beginning on the date of 
        the enactment of this Act and ending July 31, 2012, the 
        prevailing world market price for upland cotton (adjusted to 
        United States quality and location) established under 
        subsection (d) shall be further adjusted if--
                    (A) the adjusted prevailing world market price is 
                less than 115 percent of the loan rate for upland 
                cotton established under section 122, as determined by 
                the Secretary; and
                    (B) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth as 
                quoted for Middling (M) 1\3/32\-inch cotton delivered 
                C.I.F. Northern Europe is greater than the Friday 
                through Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for Middling (M) 
                1\3/32\-inch cotton, delivered C.I.F. Northern Europe 
                (referred to in this section as the ``Northern Europe 
                price'').
            (2) Further adjustment.--Except as provided in paragraph 
        (3), the adjusted prevailing world market price for upland 
        cotton shall be further adjusted on the basis of some or all of 
        the following data, as available:
                    (A) The United States share of world exports.
                    (B) The current level of cotton export sales and 
                cotton export shipments.
                    (C) Other data determined by the Secretary to be 
                relevant in establishing an accurate prevailing world 
                market price for upland cotton (adjusted to United 
                States quality and location).
            (3) Limitation on further adjustment.--The adjustment under 
        paragraph (2) may not exceed the difference between--
                    (A) the Friday through Thursday average price for 
                the lowest-priced United States growth as quoted for 
                Middling 1\3/32\-inch cotton delivered C.I.F. Northern 
                Europe; and
                    (B) the Northern Europe price.
    (f) Time for Fixing Repayment Rate.--In the case of a producer that 
marketed or otherwise lost beneficial interest in a covered commodity 
before repaying the marketing assistance loan made under section 121 
with respect to the commodity, the Secretary shall permit the producer 
to repay the loan at the lowest repayment rate that was in effect for 
that covered commodity under this section as of the date that the 
producer lost beneficial interest, as determined by the Secretary.

SEC. 125. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--Except as provided 
in subsection (d), the Secretary may make loan deficiency payments 
available to producers who, although eligible to obtain a marketing 
assistance loan under section 121 with respect to a covered commodity, 
agree to forgo obtaining the loan for the commodity in return for 
payments under this section.
    (b) Computation.--A loan deficiency payment under this section 
shall be computed by multiplying--
            (1) the loan payment rate determined under subsection (c) 
        for the covered commodity; by
            (2) the quantity of the covered commodity produced by the 
        eligible producers, excluding any quantity for which the 
        producers obtain a loan under section 121.
    (c) Loan Payment Rate.--For purposes of this section, the loan 
payment rate shall be the amount by which--
            (1) the loan rate established under section 122 for the 
        covered commodity; exceeds
            (2) the rate at which a loan for the commodity may be 
        repaid under section 124.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
    (e) Time for Payment.--The Secretary shall make a payment under 
this section to a producer with respect to a quantity of a covered 
commodity as of the earlier of the following:
            (1) The date on which the producer marketed or otherwise 
        lost beneficial interest in the commodity, as determined by the 
        Secretary.
            (2) The date the producer requests the payment.
    (f) Continuation of Special LDP Rule for 2001 Crop Year.--Section 
135(a)(2) of the Federal Agriculture Improvement and Reform Act of 1996 
(7 U.S.C. 7235(a)(2)) is amended by striking ``2000 crop year'' and 
inserting ``2000 and 2001 crop years''.

SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    (a) Eligible Producers.--Effective for the 2002 through 2011 crop 
years, in the case of a producer that would be eligible for a loan 
deficiency payment under section 125 for wheat, barley, or oats, but 
that elects to use acreage planted to the wheat, barley, or oats for 
the grazing of livestock, the Secretary shall make a payment to the 
producer under this section if the producer enters into an agreement 
with the Secretary to forgo any other harvesting of the wheat, barley, 
or oats on that acreage.
    (b) Payment Amount.--The amount of a payment made to a producer on 
a farm under this section shall be equal to the amount determined by 
multiplying--
            (1) the loan deficiency payment rate determined under 
        section 125(c) in effect, as of the date of the agreement, for 
        the county in which the farm is located; by
            (2) the payment quantity determined by multiplying--
                    (A) the quantity of the grazed acreage on the farm 
                with respect to which the producer elects to forgo 
                harvesting of wheat, barley, or oats; and
                    (B) the payment yield for that covered commodity on 
                the farm.
    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section shall be 
        made at the same time and in the same manner as loan deficiency 
        payments are made under section 125.
            (2) Availability.--The Secretary shall establish an 
        availability period for the payment authorized by this section 
        that is consistent with the availability period for wheat, 
        barley, and oats established by the Secretary for marketing 
        assistance loans authorized by this subtitle.
    (d) Prohibition on Crop Insurance or Noninsured Crop Assistance.--A 
2002 through 2011 crop of wheat, barley, or oats planted on acreage 
that a producer elects, in the agreement required by subsection (a), to 
use for the grazing of livestock in lieu of any other harvesting of the 
crop shall not be eligible for insurance under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance 
under section 196 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7333).

SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--During the period beginning on the date of 
        the enactment of this Act and ending July 31, 2012, the 
        Secretary shall issue marketing certificates or cash payments, 
        at the option of the recipient, to domestic users and exporters 
        for documented purchases by domestic users and sales for export 
        by exporters made in the week following a consecutive four-week 
        period in which--
                    (A) the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C.I.F. Northern Europe exceeds the Northern 
                Europe price; and
                    (B) the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                does not exceed 134 percent of the loan rate for upland 
                cotton established under section 122.
            (2) Value of certificates or payments.--The value of the 
        marketing certificates or cash payments shall be based on the 
        amount of the difference in the prices during the fourth week 
        of the consecutive four-week period multiplied by the quantity 
        of upland cotton included in the documented sales.
            (3) Administration of marketing certificates.--
                    (A) Redemption, marketing, or exchange.--The 
                Secretary shall establish procedures for redeeming 
                marketing certificates for cash or marketing or 
                exchange of the certificates for agricultural 
                commodities owned by the Commodity Credit Corporation 
                or pledged to the Commodity Credit Corporation as 
                collateral for a loan in such manner, and at such price 
                levels, as the Secretary determines will best 
                effectuate the purposes of cotton user marketing 
                certificates, including enhancing the competitiveness 
                and marketability of United States cotton. Any price 
                restrictions that would otherwise apply to the 
                disposition of agricultural commodities by the 
                Commodity Credit Corporation shall not apply to the 
                redemption of certificates under this subsection.
                    (B) Designation of commodities and products.--To 
                the extent practicable, the Secretary shall permit 
                owners of certificates to designate the commodities and 
                products, including storage sites, the owners would 
                prefer to receive in exchange for certificates.
                    (C) Transfers.--Marketing certificates issued to 
                domestic users and exporters of upland cotton may be 
                transferred to other persons in accordance with 
                regulations issued by the Secretary.
    (b) Special Import Quota.--
            (1) Establishment.--
                    (A) In general.--The President shall carry out an 
                import quota program during the period beginning on the 
                date of the enactment of this Act and ending July 31, 
                2012, as provided in this subsection.
                    (B) Program requirements.--Except as provided in 
                subparagraph (C), whenever the Secretary determines and 
                announces that for any consecutive four-week period, 
                the Friday through Thursday average price quotation for 
                the lowest-priced United States growth, as quoted for 
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
adjusted for the value of any certificate issued under subsection (a), 
exceeds the Northern Europe price there shall immediately be in effect 
a special import quota.
                    (C) Tight domestic supply.--During any month for 
                which the Secretary estimates the season-ending United 
                States upland cotton stocks-to-use ratio, as determined 
                under subparagraph (D), to be below 16 percent, the 
                Secretary, in making the determination under 
                subparagraph (B), shall not adjust the Friday through 
                Thursday average price quotation for the lowest-priced 
                United States growth, as quoted for Middling (M) 1\3/
                32\-inch cotton, delivered C.I.F. Northern Europe, for 
                the value of any certificates issued under subsection 
                (a).
                    (D) Season-ending united states stocks-to-use 
                ratio.--For the purposes of making estimates under 
                subparagraph (C), the Secretary shall, on a monthly 
                basis, estimate and report the season-ending United 
                States upland cotton stocks-to-use ratio, excluding 
                projected raw cotton imports but including the quantity 
                of raw cotton that has been imported into the United 
                States during the marketing year.
            (2) Quantity.--The quota shall be equal to one week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent three 
        months for which data are available.
            (3) Application.--The quota shall apply to upland cotton 
        purchased not later than 90 days after the date of the 
        Secretary's announcement under paragraph (1) and entered into 
        the United States not later than 180 days after the date.
            (4) Overlap.--A special quota period may be established 
        that overlaps any existing quota period if required by 
        paragraph (1), except that a special quota period may not be 
        established under this subsection if a quota period has been 
        established under subsection (c).
            (5) Preferential tariff treatment.--The quantity under a 
        special import quota shall be considered to be an in-quota 
        quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade Preference Act 
                (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 (19 
                U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized Tariff 
                Schedule.
            (6) Definition.--In this subsection, the term ``special 
        import quota'' means a quantity of imports that is not subject 
        to the over-quota tariff rate of a tariff-rate quota.
            (7) Limitation.--The quantity of cotton entered into the 
        United States during any marketing year under the special 
        import quota established under this subsection may not exceed 
        the equivalent of five week's consumption of upland cotton by 
        domestic mills at the seasonally adjusted average rate of the 
        three months immediately preceding the first special import 
        quota established in any marketing year.
    (c) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an import 
        quota program that provides that whenever the Secretary 
        determines and announces that the average price of the base 
        quality of upland cotton, as determined by the Secretary, in 
        the designated spot markets for a month exceeded 130 percent of 
        the average price of such quality of cotton in the markets for 
        the preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent three months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' means, 
                        using the latest official data of the Bureau of 
                        the Census, the Department of Agriculture, and 
                        the Department of the Treasury--
                                    (I) the carry-over of upland cotton 
                                at the beginning of the marketing year 
                                (adjusted to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the current 
                                crop; and
                                    (III) imports to the latest date 
                                available during the marketing year.
                            (ii) Demand.--The term ``demand'' means--
                                    (I) the average seasonally adjusted 
                                annual rate of domestic mill 
                                consumption during the most recent 
                                three months for which data are 
                                available; and
                                    (II) the larger of--
                                            (aa) average exports of 
                                        upland cotton during the 
                                        preceding six marketing years; 
                                        or
                                            (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                            (iii) Limited global import quota.--The 
                        term ``limited global import quota'' means a 
                        quantity of imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (b).

SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other provision 
of law, during the period beginning on the date of the enactment of 
this Act and ending on July 31, 2012, the Secretary shall carry out a 
program to maintain and expand the domestic use of extra long staple 
cotton produced in the United States, to increase exports of extra long 
staple cotton produced in the United States, and to ensure that extra 
long staple cotton produced in the United States remains competitive in 
world markets.
    (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
            (1) for a consecutive four-week period, the world market 
        price for the lowest priced competing growth of extra long 
        staple cotton (adjusted to United States quality and location 
        and for other factors affecting the competitiveness of such 
        cotton), as determined by the Secretary, is below the 
        prevailing United States price for a competing growth of extra 
        long staple cotton; and
            (2) the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is less than 134 percent of the 
        loan rate for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long staple 
cotton produced in the United States who enter into an agreement with 
the Commodity Credit Corporation to participate in the program under 
this section.
    (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive four-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive four-week period.
    (e) Form of Payment.--Payments under this section shall be made 
through the issuance of cash or marketing certificates, at the option 
of eligible recipients of the payments.

SEC. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
              AND SEED COTTON AND OTHER FIBERS.

    (a) High Moisture Feed Grains.--
            (1) Recourse loans available.--For each of the 2002 through 
        2011 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the Secretary, to 
        producers on a farm who--
                    (A) normally harvest all or a portion of their crop 
                of corn or grain sorghum in a high moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, feedlot, feed 
                        mill, distillery, or other similar entity 
                        approved by the Secretary, pursuant to 
                        regulations issued by the Secretary; or
                            (ii) field or other physical measurements 
                        of the standing or stored crop in regions of 
                        the United States, as determined by the 
                        Secretary, that do not have certified 
                        commercial scales from which certified scale 
                        tickets may be obtained within reasonable 
                        proximity of harvest operation;
                    (C) certify that they were the owners of the feed 
                grain at the time of delivery to, and that the quantity 
                to be placed under loan under this subsection was in 
                fact harvested on the farm and delivered to, a feedlot, 
                feed mill, or commercial or on-farm high-moisture 
                storage facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high moisture 
                state; and
                    (D) comply with deadlines established by the 
                Secretary for harvesting the corn or grain sorghum and 
                submit applications for loans under this subsection 
                within deadlines established by the Secretary.
            (2) Eligibility of acquired feed grains.--A loan under this 
        subsection shall be made on a quantity of corn or grain sorghum 
        of the same crop acquired by the producer equivalent to a 
        quantity determined by multiplying--
                    (A) the acreage of the corn or grain sorghum in a 
                high moisture state harvested on the producer's farm; 
                by
                    (B) the lower of the farm program payment yield or 
                the actual yield on a field, as determined by the 
                Secretary, that is similar to the field from which the 
                corn or grain sorghum was obtained.
            (3) High moisture state defined.--In this subsection, the 
        term ``high moisture state'' means corn or grain sorghum having 
        a moisture content in excess of Commodity Credit Corporation 
        standards for marketing assistance loans made by the Secretary 
        under section 121.
    (b) Recourse Loans Available for Seed Cotton.--For each of the 2002 
through 2011 crops of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, as 
determined by the Secretary, on any production.
    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (as determined by the Secretary).
    (d) Termination of Superseded Loan Authority.--Notwithstanding 
section 137 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002 
crop of corn, grain sorghum, and seed cotton under such section.

SEC. 130. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              WOOL AND MOHAIR.

    (a) Nonrecourse Loans Available.--During the 2002 through 2011 
marketing years for wool and mohair, the Secretary shall make available 
to producers on a farm nonrecourse marketing assistance loans for wool 
and mohair produced on the farm during that marketing year.
    (b) Loan Rate.--The loan rate for a loan under subsection (a) shall 
be not more than--
            (1) $1.00 per pound for graded wool;
            (2) $0.40 per pound for nongraded wool; and
            (3) $4.20 per pound for mohair.
    (c) Term of Loan.--A loan under subsection (a) shall have a term of 
1 year beginning on the first day of the first month after the month in 
which the loan is made.
    (d) Repayment Rates.--The Secretary shall permit a producer to 
repay a marketing assistance loan under subsection (a) for wool or 
mohair at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        subsection (b), plus interest (as determined by the Secretary); 
        or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity; and
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan deficiency 
        payments available to producers that, although eligible to 
        obtain a marketing assistance loan under this section, agree 
to forgo obtaining the loan in return for payments under this 
subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                    (A) the loan payment rate in effect under paragraph 
                (3) for the commodity; by
                    (B) the quantity of the commodity produced by the 
                eligible producers, excluding any quantity for which 
                the producers obtain a loan under this subsection.
            (3) Loan payment rate.--For purposes of this subsection, 
        the loan payment rate for wool or mohair shall be the amount by 
        which--
                    (A) the loan rate in effect for the commodity under 
                subsection (b); exceeds
                    (B) the rate at which a loan for the commodity may 
                be repaid under subsection (d).
            (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a producer with respect to a quantity 
        of a wool or mohair as of the earlier of the following:
                    (A) The date on which the producer marketed or 
                otherwise lost beneficial interest in the wool or 
                mohair, as determined by the Secretary.
                    (B) The date the producer requests the payment.
    (f) Limitations.--The marketing assistance loan gains and loan 
deficiency payments that a person may receive for wool and mohair under 
this section shall be subject to a separate payment limitation, but in 
the same dollar amount, as the payment limitation that applies to 
marketing assistance loans and loan deficiency payments received by 
producers of other agricultural commodities in the same marketing year.

SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              HONEY.

    (a) Nonrecourse Loans Available.--During the 2002 through 2011 crop 
years for honey, the Secretary shall make available to producers on a 
farm nonrecourse marketing assistance loans for honey produced on the 
farm during that crop year.
    (b) Loan Rate.--The loan rate for a marketing assistance loan for 
honey under subsection (a) shall be equal to $0.60 cents per pound.
    (c) Term of Loan.--A marketing assistance loan under subsection (a) 
shall have a term of 1 year beginning on the first day of the first 
month after the month in which the loan is made.
    (d) Repayment Rates.--The Secretary shall permit a producer to 
repay a marketing assistance loan for honey under subsection (a) at a 
rate that is the lesser of--
            (1) the loan rate for honey, plus interest (as determined 
        by the Secretary); or
            (2) the prevailing domestic market price for honey, as 
        determined by the Secretary.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan deficiency 
        payments available to any producer of honey that, although 
        eligible to obtain a marketing assistance loan under subsection 
        (a), agrees to forgo obtaining the loan in return for a payment 
        under this subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be determined by multiplying--
                    (A) the loan payment rate determined under 
                paragraph (3); by
                    (B) the quantity of honey that the producer is 
                eligible to place under loan, but for which the 
                producer forgoes obtaining the loan in return for a 
                payment under this subsection.
            (3) Loan payment rate.--For the purposes of this 
        subsection, the loan payment rate shall be the amount by 
        which--
                    (A) the loan rate established under subsection (b); 
                exceeds
                    (B) the rate at which a loan may be repaid under 
                subsection (d).
            (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a producer with respect to a quantity 
        of a honey as of the earlier of the following:
                    (A) The date on which the producer marketed or 
                otherwise lost beneficial interest in the honey, as 
                determined by the Secretary.
                    (B) The date the producer requests the payment.
    (f) Limitations.--The marketing assistance loan gains and loan 
deficiency payments that a person may receive for a crop of honey under 
this section shall be subject to a separate payment limitation, but in 
the same dollar amount, as the payment limitation that applies to 
marketing assistance loans and loan deficiency payments received by 
producers of other agricultural commodities in the same crop year.
    (g) Prevention of Forfeitures.--The Secretary shall carry out this 
section in such a manner as to minimize forfeitures of honey marketing 
assistance loans.

SEC. 132. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN DEFICIENCY 
              PAYMENTS AND MARKETING LOAN GAINS.

    Notwithstanding any other provision of law, the Secretary of 
Agriculture and the Commodity Credit Corporation shall not require 
producers in Erie County, Pennsylvania, to repay loan deficiency 
payments and marketing loan gains erroneously paid or determined to 
have been earned by the Commodity Credit Corporation for certain 1998 
and 1999 crops under subtitle C of title I of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7231 et seq.). In the case 
of a producer who has already made the repayment on or before the date 
of the enactment of this Act, the Commodity Credit Corporation shall 
reimburse the producer for the full amount of the repayment.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--During the period beginning on January 1, 
2002, and ending on December 31, 2011, the Secretary of Agriculture 
shall support the price of milk produced in the 48 contiguous States 
through the purchase of cheese, butter, and nonfat dry milk produced 
from the milk.
    (b) Rate.--During the period specified in subsection (a), the price 
of milk shall be supported at a rate equal to $9.90 per hundredweight 
for milk containing 3.67 percent butterfat.
    (c) Purchase Prices.--The support purchase prices under this 
section for each of the products of milk (butter, cheese, and nonfat 
dry milk) announced by the Secretary shall be the same for all of that 
product sold by persons offering to sell the product to the Secretary. 
The purchase prices shall be sufficient to enable plants of average 
efficiency to pay producers, on average, a price that is not less than 
the rate of price support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
            (1) Allocation of purchase prices.--The Secretary may 
        allocate the rate of price support between the purchase prices 
        for nonfat dry milk and butter in a manner that will result in 
        the lowest level of expenditures by the Commodity Credit 
        Corporation or achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after making or 
        changing an allocation, the Secretary shall notify the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate of the allocation. Section 553 of title 5, United States 
        Code, shall not apply with respect to the implementation of 
        this section.
            (2) Timing of purchase price adjustments.--The Secretary 
        may make any such adjustments in the purchase prices for nonfat 
        dry milk and butter the Secretary considers to be necessary not 
        more than twice in each calendar year.
    (e) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.

SEC. 142. REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS.

    Section 142 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7252) is repealed.

SEC. 143. EXTENSION OF DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY 
              PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking 
``2002'' and inserting ``2011''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``1995'' and inserting ``2011''.

SEC. 144. FLUID MILK PROMOTION.

    (a) Definition of Fluid Milk Product.--Section 1999C of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by striking 
paragraph (3) and inserting the following new paragraph:
            ``(3) Fluid milk product.--The term `fluid milk product' 
        has the meaning given such term--
                    ``(A) in section 1000.15 of title 7, Code of 
                Federal Regulations, subject to such amendments as may 
                be made from time to time; or
                    ``(B) in any successor regulation providing a 
                definition of such term that is promulgated pursuant to 
                the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
                reenacted with amendments by the Agricultural Marketing 
                Agreement Act of 1937.''.
    (b) Definition of Fluid Milk Processor.--Section 1999C(4) of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is amended by 
striking ``500,000'' and inserting ``3,000,000''.
    (c) Elimination of Order Termination Date.--Section 1999O of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.

SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.

    Section 273(b)(1)(B) of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1637b(b)(1)(B)) is amended--
            (1) by inserting ``and substantially identical products 
        designated by the Secretary'' after ``dairy products'' the 
        first place it appears; and
            (2) by inserting ``and such substantially identical 
        products'' after ``dairy products'' the second place it 
        appears.

SEC. 146. STUDY OF NATIONAL DAIRY POLICY.

    (a) Study Required.--Not later than April 30, 2002, the Secretary 
of Agriculture shall submit to Congress a comprehensive economic 
evaluation of the potential direct and indirect effects of the various 
elements of the national dairy policy, including an examination of the 
effect of the national dairy policy on--
            (1) farm price stability, farm profitability and viability, 
        and local rural economies in the United States;
            (2) child, senior, and low-income nutrition programs, 
        including impacts on schools and institutions participating in 
        the programs, on program recipients, and other factors; and
            (3) the wholesale and retail cost of fluid milk, dairy 
        farms, and milk utilization.
    (b) National Dairy Policy Defined.--In this section, the term 
``national dairy policy'' means the dairy policy of the United States 
as evidenced by the following policies and programs:
            (1) Federal Milk Marketing Orders.
            (2) Interstate dairy compacts (including proposed compacts 
        described in H.R. 1827 and S. 1157, as introduced in the 107th 
        Congress).
            (3) Over-order premiums and State pricing programs.
            (4) Direct payments to milk producers.
            (5) Federal milk price support program.
            (6) Export programs regarding milk and dairy products, such 
        as the Dairy Export Incentive Program.

                            CHAPTER 2--SUGAR

SEC. 151. SUGAR PROGRAM.

    (a) Continuation of Program.--Subsection (i) of section 156 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7251) 
is amended--
            (1) by striking ``(other than subsection (f))''; and
            (2) by striking ``2002 crops'' and inserting ``2011 
        crops''.
    (b) Termination of Marketing Assessment and Forfeiture Penalty.--
Effective as of October 1, 2001, subsections (f) and (g) of such 
section are repealed.
    (c) Loan Rate Adjustments.--Subsection (c) of such section is 
amended--
            (1) by striking ``Reduction in Loan Rates'' and inserting 
        ``Loan Rate Adjustments''; and
            (2) in paragraph (1)--
                    (A) by striking ``Reduction required'' and 
                inserting ``Possible reduction''; and
                    (B) by striking ``shall'' and inserting ``may''.
    (d) Notification.--Subsection (e) of such section is amended by 
adding at the end the following new paragraph:
            ``(3) Prevention of onerous notification requirements.--The 
        Secretary may not impose or enforce any prenotification or 
        similar administrative requirement that has the effect of 
        preventing a processor from choosing to forfeit the loan 
        collateral upon the maturity of the loan.''.
    (e) In Process Sugar.--Such section is further amended by inserting 
after subsection (e) the following new subsection (f):
    ``(f) Loans for In-Process Sugar.--
            ``(1) Availability; rate.--The Secretary shall make 
        nonrecourse loans available to processors of domestically grown 
        sugarcane and sugar beets for in-process sugars and syrups 
        derived from such crops. The loan rate shall be equal to 80 
        percent of the loan rate applicable to raw cane sugar or 
        refined beet sugar, depending on the source material for the 
        in-process sugars and syrups.
            ``(2) Further processing upon forfeiture.--As a condition 
        on the forfeiture of in-process sugars and syrups serving as 
        collateral for a loan under paragraph (1), the processor shall, 
        within such reasonable time period as the Secretary may 
        prescribe and at no cost to the Commodity Credit Corporation, 
        convert the in-process sugars and syrups into raw cane sugar or 
        refined beet sugar of acceptable grade and quality for sugars 
        eligible for loans under subsection (a) or (b). Once the in-
        process sugars and syrups are fully processed into raw cane 
        sugar or refined beet sugar, the processor shall transfer the 
        sugar to the Corporation, which shall make a payment to the 
        processor in an amount equal to the difference between the loan 
        rate for raw cane sugar or refined beet sugar, whichever 
        applies, and the loan rate the processor received under 
        paragraph (1).
            ``(3) Loan conversion.--If the processor does not forfeit 
        the collateral as described in paragraph (2), but instead 
        further processes the in-process sugars and syrups into raw 
        cane sugar or refined beet sugar and repays the loan on the in-
process sugars and syrups, the processor may then obtain a loan under 
subsection (a) or (b) on the raw cane sugar or refined beet sugar, as 
appropriate.
            ``(4) Definition.--In this subsection the term `in-process 
        sugars and syrups' does not include raw sugar, liquid sugar, 
        invert sugar, invert syrup, or other finished products that are 
        otherwise eligible for loans under subsection (a) or (b).''.
    (f) Administration of Program.--Such section is further amended by 
adding at the end the following new subsection:
    ``(j) Avoiding Forfeitures; Corporation Inventory Disposition.--
            ``(1) No cost.--To the maximum extent practicable, the 
        Secretary shall operate the sugar program established under 
        this section at no cost to the Federal Government by avoiding 
        the forfeiture of sugar to the Commodity Credit Corporation.
            ``(2) Inventory disposition.--In support of the objective 
        specified in paragraph (1), the Commodity Credit Corporation 
        may accept bids for commodities in the inventory of the 
        Corporation from (or otherwise make available such commodities, 
        on appropriate terms and conditions, to) processors of 
        sugarcane and processors of sugar beets (when the processors 
        are acting in conjunction with the producers of the sugarcane 
        or sugar beets processed by such processors) in return for the 
        reduction of production of raw cane sugar or refined beet 
        sugar, as appropriate. The authority provided under this 
        paragraph is in addition to any authority of the Corporation 
        under any other law.''.
    (g) Information Reporting.--Subsection (h) of such section is 
amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) Duty of producers to report.--
                    ``(A) Proportionate share states.--The Secretary 
                shall require a producer of sugarcane located in a 
                State (other than Puerto Rico) in which there are in 
                excess of 250 sugarcane producers to report, in the 
                manner prescribed by the Secretary, the producer's 
                sugarcane yields and acres planted to sugarcane.
                    ``(B) Other states.--The Secretary may require 
                producers of sugarcane or sugar beets not covered by 
                paragraph (1) to report, in the manner prescribed by 
                the Secretary, each producer's sugarcane or sugar beet 
                yields and acres planted to sugarcane or sugar beets, 
                respectively.
            ``(3) Duty of importers to report.--The Secretary shall 
        require an importer of sugars, syrups or molasses to be used 
        for human consumption or to be used for the extraction of sugar 
        for human consumption, except such sugars, syrups, or molasses 
        that are within the quantities of tariff-rate quotas that are 
        at the lower rate of duties, to report, in the manner 
        prescribed by the Secretary, the quantities of such products 
        imported and the sugar content or equivalent of such 
        products.''; and
            (3) in paragraph (5), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``this subsection''.
    (h) Interest Rate.--Section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended by adding 
at the end the following new sentence: ``For purposes of this section, 
raw cane sugar, refined beet sugar, and in process sugar eligible for a 
loan under section 156 shall not be considered an agricultural 
commodity.''.

SEC. 152. REAUTHORIZE PROVISIONS OF AGRICULTURAL ADJUSTMENT ACT OF 1938 
              REGARDING SUGAR.

    (a) Information Reporting.--Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is repealed.
    (b) Estimates.--Section 359b of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359bb) is amended:
            (1) in the section heading--
                    (A) by inserting ``flexible'' before ``marketing''; 
                and
                    (B) by striking ``and crystalline fructose'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``Before'' and inserting 
                        ``Not later than August 1 before'';
                            (ii) by striking ``1992 through 1998'' and 
                        inserting ``2002 through 2011'';
                            (iii) in subparagraph (A), by striking 
                        ``(other than sugar'' and all that follows 
                        through ``stocks'';
                            (iv) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (E), respectively;
                            (v) by inserting after subparagraph (A) the 
                        following:
                    ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;'';
                            (vi) in subparagraph (C), as so 
                        redesignated--
                                    (I) by striking ``or'' and all that 
                                follows through ``beets''; and
                                    (II) by striking the ``and'' 
                                following the semicolon;
                            (vii) by inserting after subparagraph (C), 
                        as so redesignated, the following:
                    ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane and sugar 
                beets; and''; and
                            (viii) in subparagraph (E), as so 
                        redesignated--
                                    (I) by striking ``quantity of 
                                sugar'' and inserting ``quantity of 
                                sugars, syrups, and molasses'';
                                    (II) by inserting ``human'' after 
                                ``imported for'' the first place it 
                                appears;
                                    (III) by inserting after 
                                ``consumption'' the first place it 
                                appears the following: ``or to be used 
for the extraction of sugar for human consumption'';
                                    (IV) by striking ``year'' and 
                                inserting ``year, whether such articles 
                                are under a tariff-rate quota or are in 
                                excess or outside of a tariff rate 
                                quota''; and
                                    (V) by striking ``(other than 
                                sugar'' and all that follows through 
                                ``carry-in stocks'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3);
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Exclusion.--The estimates in this section shall not 
        include sugar imported for the production of polyhydric alcohol 
        or to be refined and re-exported in refined form or in sugar 
        containing products.'';
                    (D) in paragraph (3), as so redesignated--
                            (i) by striking ``Quarterly reestimates'' 
                        and inserting ``Reestimates''; and
                            (ii) by inserting ``as necessary, but'' 
                        after ``a fiscal year'';
            (3) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) In general.--By the beginning of each fiscal year, 
        the Secretary shall establish for that fiscal year appropriate 
        allotments under section 359c for the marketing by processors 
        of sugar processed from sugar beets and from domestically-
        produced sugarcane at a level that the Secretary estimates will 
        result in no forfeitures of sugar to the Commodity Credit 
        Corporation under the loan program for sugar.''; and
                    (B) in paragraph (2), by striking ``or crystalline 
                fructose'';
            (4) by striking subsection (c);
            (5) by redesignating subsection (d) as subsection (c); and
            (6) in subsection (c), as so redesignated--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (2), as so redesignated--
                            (i) by striking ``or manufacturer'' and all 
                        that follows through ``(2)''; and
                            (ii) by striking ``or crystalline 
                        fructose''.
    (c) Establishment.--Section 359c of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359cc) is amended--
            (1) in the section heading by inserting ``flexible'' after 
        ``of'';
            (2) in subsection (a), by inserting ``flexible'' after 
        ``establish'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``1,250,000'' 
                and inserting ``1,532,000''; and
                    (B) in paragraph (2), by striking ``to the maximum 
                extent practicable'';
            (4) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Marketing Allotment for Sugar Derived From Sugar Beets and 
Marketing Allotment for Sugar Derived From Sugarcane.--The overall 
allotment quantity for the fiscal year shall be allotted among--
            ``(1) sugar derived from sugar beets by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by the percentage of 54.35; and
            ``(2) sugar derived from sugarcane by establishing a 
        marketing allotment for a fiscal year at a quantity equal to 
        the product of multiplying the overall allotment quantity for 
        the fiscal year by the percentage of 45.65.'';
            (5) by amending subsection (d) to read as follows:
    ``(d) Filling Cane Sugar and Beet Sugar Allotments.--Each marketing 
allotment for cane sugar established under this section may only be 
filled with sugar processed from domestically grown sugarcane, and each 
marketing allotment for beet sugar established under this section may 
only be filled with sugar domestically processed from sugar beets.'';
            (6) by striking subsection (e);
            (7) by redesignating subsection (f) as subsection (e);
            (8) in subsection (e), as so redesignated--
                    (A) by inserting ``(1) In general.--'' before ``The 
                allotment for sugar'' and indenting such paragraph 
                appropriately;
                    (B) in such paragraph (1)--
                            (i) by striking ``the 5'' and inserting 
                        ``the'';
                            (ii) by inserting after ``sugarcane is 
                        produced,'' the following: ``after a hearing, 
                        if requested by the affected sugar cane 
                        processors and growers, and on such notice as 
                        the Secretary by regulation may prescribe,'';
                            (iii) by striking ``on the basis of past 
                        marketings'' and all that follows through 
                        ``allotments'', and inserting ``as provided in 
                        this subsection and section 
                        359d(a)(2)(A)(iv)''; and
                    (C) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Offshore allotment.--
                    ``(A) Collectively.--Prior to the allotment of 
                sugar derived from sugarcane to any other State, 
                325,000 short tons, raw value shall be allotted to the 
                offshore States.
                    ``(B) Individually.--The collective offshore State 
                allotment provided for under subparagraph (A) shall be 
                further allotted among the offshore States in which 
                sugarcane is produced, after a hearing if requested by 
                the affected sugar cane processors and growers, and on 
                such notice as the Secretary by regulation may 
                prescribe, in a fair and equitable manner on the basis 
                of--
                            ``(i) past marketings of sugar, based on 
                        the average of the 2 highest years of 
                        production of raw cane sugar from the 1996 
                        through 2000 crops;
                            ``(ii) the ability of processors to market 
                        the sugar covered under the allotments for the 
                        crop year; and
                            ``(iii) past processings of sugar from 
                        sugarcane based on the 3 year average of the 
                        crop years 1998 through 2000.
            ``(3) Mainland allotment.--The allotment for sugar derived 
        from sugarcane, less the amount provided for under paragraph 
        (2), shall be allotted among the mainland States in the United 
        States in which sugarcane is produced, after a hearing if 
        requested by the affected sugar cane processors and growers, 
        and on such notice as the Secretary by regulation may 
        prescribe, in a fair and equitable manner on the basis of--
                    ``(A) past marketings of sugar, based on the 
                average of the 2 highest years of production of raw 
cane sugar from the 1996 through 2000 crops;
                    ``(B) the ability of processors to market the sugar 
                covered under the allotments for the crop year; and
                    ``(C) past processings of sugar from sugarcane, 
                based on the 3 crop years with the greatest processings 
                (in the mainland States collectively) during the 1991 
                through 2000 crop years.'';
            (9) by inserting after subsection (e), as so redesignated, 
        the following new subsection (f):
    ``(f) Filling Cane Sugar Allotments.--Except as otherwise provided 
in section 359e, a State cane sugar allotment established under 
subsection (e) for a fiscal year may be filled only with sugar 
processed from sugarcane grown in the State covered by the 
allotment.'';
            (10) in subsection (g)--
                    (A) in paragraph (1), by striking ``359b(a)(2)--'' 
                and all that follows through the comma at the end of 
                subparagraph (C) and inserting ``359b(a)(3), adjust 
                upward or downward marketing allotments in a fair and 
                equitable manner'';
                    (B) in paragraph (2) by striking ``359f(b)'' and 
                inserting ``359f(c)''; and
                    (C) in paragraph (3)--
                            (i) by striking ``Reductions'' and 
                        inserting ``Carry-over of reductions'';
                            (ii) by inserting after ``this subsection, 
                        if'' the following: ``at the time of the 
                        reduction'';
                            (iii) by striking ``price support'' and 
                        inserting ``nonrecourse'';
                            (iv) by striking ``206'' and all that 
                        follows through ``the allotment'' and inserting 
                        ``156 of the Agricultural Market Transition Act 
                        (7 U.S.C. 7272),''; and
                            (v) by striking ``, if any,''; and
            (11) by amending subsection (h) to read as follows:
    ``(h) Suspension of Allotments.--Whenever the Secretary estimates, 
or reestimates, under section 359b(a), or has reason to believe that 
imports of sugars, syrups or molasses for human consumption or to be 
used for the extraction of sugar for human consumption, whether under a 
tariff-rate quota or in excess or outside of a tariff-rate quota, will 
exceed 1.532 million short tons, raw value equivalent, and that such 
imports would lead to a reduction of the overall allotment quantity, 
the Secretary shall suspend the marketing allotments until such time as 
such imports have been restricted, eliminated, or otherwise reduced to 
or below the level of 1.532 million tons.''.
    (d) Allocation.--Section 359d of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359dd) is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by inserting ``(i) In general.--'' before ``The 
                Secretary shall'' and indenting such clause 
                appropriately;
                    (B) in clause (i), as so designated--
                            (i) by striking ``interested parties'' and 
                        inserting ``the affected sugar cane processors 
                        and growers'';
                            (ii) by striking ``by taking'' and all that 
                        follows through ``allotment allocated.'' and 
                        inserting ``with this subparagraph.''; and
                            (iii) by inserting at the end the following 
                        new sentence: ``Each such allocation shall be 
                        subject to adjustment under section 359c(g).'';
                    (C) by inserting after clause (i) the following new 
                clauses:
                            ``(ii) Multiple processor states.--Except 
                        as provided in clause (iii), the Secretary 
                        shall allocate the allotment for cane sugar 
                        among multiple cane sugar processors in a 
                        single State based upon--
                                    ``(I) past marketings of sugar, 
                                based on the average of the 2 highest 
                                years of production of raw cane sugar 
                                from among the 1996 through 2000 crops;
                                    ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotment allocated for the crop 
                                year;
                                    ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the 3 highest years from among crop 
                                years 1996 through 2000; and
                                    ``(IV) however, only with respect 
                                to allotments under subclauses (I), 
                                (II), and (III) attributable to the 
                                former operations of the Talisman 
                                processing facility, shall be allocated 
                                among processors in the State 
                                coincident with the provisions of the 
                                agreements of March 25 and March 26, 
                                1999, between the affected processors 
                                and the Department of the Interior.
                            ``(iii) Proportionate share states.--In the 
                        case of States subject to section 359f(c), the 
                        Secretary shall allocate the allotment for cane 
                        sugar among multiple cane sugar processors in a 
                        single state based upon--
                                    ``(I) past marketings of sugar, 
                                based on the average of the two highest 
                                years of production of raw cane sugar 
                                from among the 1997 through 2001 crop 
                                years;
                                    ``(II) the ability of processors to 
                                market sugar covered by that portion of 
                                the allotments allocated for the crop 
                                year; and
                                    ``(III) past processings of sugar 
                                from sugarcane, based on the average of 
                                the two highest crop years from the 
                                five crop years 1997 through 2001.
                            ``(iv) New entrants.--Notwithstanding 
                        clauses (ii) and (iii), the Secretary, on 
                        application of any processor that begins 
                        processing sugarcane on or after the date of 
                        enactment of this clause, and after a hearing 
                        if requested by the affected sugarcane 
                        processors and growers, and on such notice as 
                        the Secretary by regulation may prescribe, may 
                        provide such processor with an allocation which 
                        provides a fair, efficient and equitable 
                        distribution of the allocations from the 
                        allotment for the State in which the processor 
                        is located and, in the case of proportionate 
                        share States, shall establish proportionate 
                        shares in an amount sufficient to produce the 
                        sugarcane required to satisfy such allocations. 
                        However, the allotment for a new processor 
                        under this clause shall not exceed 50,000 short 
                        tons, raw value.
                            ``(v) Transfer of ownership.--Except as 
                        otherwise provided in section 359f(c)(8), in 
                        the event that a sugarcane processor is sold or 
                        otherwise transferred to another owner, or 
                        closed as part of an affiliated corporate group 
                        processing consolidation, the Secretary shall 
                        transfer the allotment allocation for the 
processor to the purchaser, new owner, or successor in interest, as 
applicable, of the processor.''; and
            (2) in subsection (a)(2)(B)--
                    (A) by striking ``interested parties'' and 
                inserting ``the affected sugar beet processors and 
                growers''; and
                    (B) by striking ``processing capacity'' and all 
                that follows through ``allotment allocated'' and 
                inserting the following: ``the marketings of sugar 
                processed from sugar beets of any or all of the 1996 
                through 2000 crops, and such other factors as the 
                Secretary may deem appropriate after consultation with 
                the affected sugar beet processors and growers. 
                However, in the case of any processor which has started 
                processing sugar beets after January 1, 1996, the 
                Secretary shall provide such processor with an 
                allocation which provides a fair, efficient and 
                equitable distribution of the allocations''.
    (e) Reassignment.--Section 359e(b) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B) by striking the ``and'' 
                after the semicolon;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) if after the reassignments, the deficit 
                cannot be completely eliminated, the Secretary shall 
                reassign the estimated quantity of the deficit to the 
                sale of any inventories of sugar held by the Commodity 
                Credit Corporation; and''; and
                    (D) in subparagraph (D), as so redesignated, by 
                inserting ``and sales'' after ``reassignments''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A) by striking the ``and'' 
                after the semicolon;
                    (B) in subparagraph (B), by striking ``reassign the 
                remainder to imports.'' and inserting ``use the 
                estimated quantity of the deficit for the sale of any 
                inventories of sugar held by the Commodity Credit 
                Corporation; and''; and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) if after such reassignments and sales, the 
                deficit cannot be completely eliminated, the Secretary 
                shall reassign the remainder to imports.''.
    (f) Producer Provisions.--Section 359f of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
            (1) in subsection (a)--
                    (A) by striking ``processor's allocation'' in the 
                second sentence and inserting ``allocation to the 
                processor''; and
                    (B) by inserting after ``request of either party'' 
                the following: ``, and such arbitration should be 
                completed within 45 days, but not more than 60 days, of 
                the request'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Sugar Beet Processing Facility Closures.-- In the event that 
a sugar beet processing facility is closed and the sugar beet growers 
who previously delivered beets to such facility desire to deliver their 
beets to another processing company:
            ``(1) Such growers may petition the Secretary to modify 
        existing allocations to accommodate such a transition; and
            ``(2) The Secretary may increase the allocation to the 
        processing company to which the growers desire to deliver their 
        sugar beets, and which the processing company agrees to accept, 
        not to exceed its processing capacity, to accommodate the 
        change in deliveries.
            ``(3) Such increased allocation shall be deducted from the 
        allocation to the company that owned the processing facility 
        that has been closed and the remaining allocation will be 
        unaffected.
            ``(4) The Secretary's determination on the issues raised by 
        the petition shall be made within 60 days of the filing of the 
        petition.'';
            (4) in subsection (c), as so redesignated--
                    (A) in paragraph (3)(A), by striking ``the 
                preceding five years'' and inserting ``the two highest 
                years from among the years 1999, 2000, and 2001'';
                    (B) in paragraph (4)(A), by striking ``each'' and 
                all that follows through ``in effect'' and inserting 
                ``the two highest of the three (3) crop years 1999, 
                2000, and 2001''; and
                    (C) by inserting after paragraph (7) the following 
                new paragraph:
            ``(8) Processing facility closures.--In the event that a 
        sugarcane processing facility subject to this subsection is 
        closed and the sugarcane growers who previously delivered 
        sugarcane to such facility desire to deliver their sugarcane to 
        another processing company--
                    ``(A) such growers may petition the Secretary to 
                modify existing allocations to accommodate such a 
                transition;
                    ``(B) the Secretary may increase the allocation to 
                the processing company to which the growers desire to 
                deliver the sugarcane, and which the processing company 
                agrees to accept, not to exceed its processing 
                capacity, to accommodate the change in deliveries;
                    ``(C) such increased allocation shall be deducted 
                from the allocation to the company that owned the 
                processing facility that has been closed and the 
                remaining allocation will be unaffected; and
                    ``(D) the Secretary's determination on the issues 
                raised by the petition shall be made within 60 days of 
                the filing of the petition.''.
    (g) Conforming Amendments.--(1) The heading of part VII of subtitle 
B of Title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
359aa et seq.) is amended to read as follows:

         ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR''.

    (2) Section 359g of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359gg) is amended--
            (A) by striking ``359f'' each place it appears and 
        inserting ``359f(c)'';
            (B) in subsection (b), by striking ``3 consecutive'' and 
        inserting ``5 consecutive''; and
            (C) in subsection (c), by inserting ``or adjusted'' after 
        ``share established''.
    (3) Section 359j(c) of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359jj) is amended--
            (A) by amending the subsection heading to read as follows: 
        ``Definitions.--'';
            (B) by striking ``Notwithstanding'' and inserting the 
        following:
            ``(1) United states and state.--Notwithstanding''; and
            (C) by inserting after such paragraph (1) the following new 
        paragraph:
            ``(2) Offshore states.--For purposes of this part, the term 
        `offshore States' means the sugarcane producing States located 
        outside of the continental United States.''.
    (h) Lifting of Suspension.--Section 171(a)(1)(E) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)(E)) 
is amended by inserting before the period at the end the following: ``, 
but only with respect to sugar marketings through fiscal year 2002''.

SEC. 153. STORAGE FACILITY LOANS.

    (a) Storage Facility Loan Program.--Notwithstanding any other 
provision of law and as soon as practicable after the date of the 
enactment of this section, the Commodity Credit Corporation shall amend 
part 1436 of title 7, Code of Federal Regulations, to establish a sugar 
storage facility loan program to provide financing for processors of 
domestically-produced sugarcane and sugar beets to build or upgrade 
storage and handling facilities for raw sugars and refined sugars.
    (b) Eligible Processors.--Storage facility loans shall be made 
available to any processor of domestically produced sugarcane or sugar 
beets that has a satisfactory credit history, determines a need for 
increased storage capacity (taking into account the effects of 
marketing allotments), and demonstrates an ability to repay the loan.
    (c) Term of Loans.--Storage facility loans shall be for a minimum 
of seven years, and shall be in such amounts and on such terms and 
conditions (including down payment, security requirements, and eligible 
equipment) as are normal, customary, and appropriate for the size and 
commercial nature of the borrower.
    (d) Administration.--The sugar storage facility loan program shall 
be administered using the services, facilities, funds, and authorities 
of the Commodity Credit Corporation.

                           CHAPTER 3--PEANUTS

SEC. 161. DEFINITIONS.

    In this chapter:
            (1) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to peanut producers under 
        section 164.
            (2) Effective price.--The term ``effective price'' means 
        the price calculated by the Secretary under section 164 for 
        peanuts to determine whether counter-cyclical payments are 
        required to be made under such section for a crop year.
            (3) Historic peanut producer.--The term ``historic peanut 
        producer'' means a peanut producer on a farm in the United 
        States that produced or attempted to produce peanuts during any 
        or all of crop years 1998, 1999, 2000, and 2001.
            (4) Fixed, decoupled payment.--The term ``fixed, decoupled 
        payment'' means a payment made to peanut producers under 
        section 163.
            (5) Payment acres.--The term ``payment acres'' means 85 
        percent of the peanut acres on a farm, as established under 
        section 162, upon which fixed, decoupled payments and counter-
        cyclical payments are to be made.
            (6) Peanut acres.--The term ``peanut acres'' means the 
        number of acres assigned to a particular farm by historic 
        peanut producers pursuant to section 162(b).
            (7) Payment yield.--The term ``payment yield'' means the 
        yield assigned to a particular farm by historic peanut 
        producers pursuant to section 162(b).
            (8) Peanut producer.--The term ``peanut producer'' means an 
        owner, operator, landlord, tenant, or sharecropper who shares 
        in the risk of producing a crop of peanuts in the United States 
        and who is entitled to share in the crop available for 
        marketing from the farm, or would have shared had the crop been 
        produced.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (10) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (11) Target price.--The term ``target price'' means the 
        price per ton of peanuts used to determine the payment rate for 
        counter-cyclical payments.
            (12) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

SEC. 162. ESTABLISHMENT OF PAYMENT YIELD, PEANUT ACRES, AND PAYMENT 
              ACRES FOR A FARM.

    (a) Establishment of Payment Yield and Payment Acres.--
            (1) Determination of average yield.--The Secretary shall 
        determine, for each historic peanut producer, the average yield 
        for peanuts on each farm on which the historic peanut producer 
        produced peanuts for the 1998 through 2001 crop years, 
        excluding any crop year in which the producer did not produce 
        peanuts. If, for any of these four crop years in which peanuts 
were planted on a farm by the producer, the farm would have satisfied 
the eligibility criteria established to carry out section 1102 of the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public 
Law 105-277), the Secretary shall assign a yield for the producer for 
that year equal to 65 percent of the county yield, as determined by the 
Secretary.
            (2) Determination of acreage average.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall determine, for each historic 
                peanut producer, the four-year average of acreage 
                actually planted in peanuts by the historic peanut 
                producer for harvest on one or more farms during crop 
                years 1998, 1999, 2000, and 2001 and any acreage that 
                the producer was prevented from planting to peanuts 
                during such crop years because of drought, flood, or 
                other natural disaster, or other condition beyond the 
                control of the producer, as determined by the 
                Secretary. If more than one historic peanut producer 
                shared in the risk of producing the crop on the farm, 
                the historic peanut producers shall receive their 
                proportional share of the number of acres planted (or 
                prevented from being planted) to peanuts for harvest on 
                the farm based on the sharing arrangement that was in 
                effect among the producers for the crop.
                    (B) Selection by producer.--If a county in which a 
                historic peanut producer described in subparagraph (A) 
                is located is declared a disaster area during 1 or more 
                of the 4 crop years described in that subparagraph, for 
                purposes of determining the 4-year average acreage for 
                the historic peanut producer, the historic peanut 
                producer may elect to substitute, for not more than 1 
                of the crop years during which a disaster is declared--
                            (i) the State average of acreage actually 
                        planted in peanuts; for
                            (ii) the average of acreage for the 
                        historic peanut producer determined by the 
                        Secretary under subparagraph (A).
            (3) Time for determinations; considerations.--The Secretary 
        shall make the determinations required by this subsection not 
        later than 90 days after the date of the enactment of this Act. 
        In making such determinations, the Secretary shall take into 
        account changes in the number and identity of persons sharing 
        in the risk of producing a peanut crop since the 1998 crop 
        year, including providing a method for the assignment of 
        average acres and average yield to a farm when the historic 
        peanut producer is no longer living or an entity composed of 
        historic peanut producers has been dissolved.
    (b) Assignment of Payment Yield and Peanut Acres to Farms.--
            (1) Assignment by historic peanut producers.--The Secretary 
        shall give each historic peanut producer an opportunity to 
        assign the average peanut yield and average acreage determined 
        under subsection (a) for the producer to cropland on a farm.
            (2) Payment yield.--The average of all of the yields 
        assigned by historic peanut producers to a farm shall be deemed 
        to be the payment yield for that farm for the purpose of making 
        fixed decoupled payments and counter-cyclical payments under 
        this chapter.
            (3) Peanut acres.--Subject to subsection (e), the total 
        number of acres assigned by historic peanut producers to a farm 
        shall be deemed to be the peanut acres for a farm for the 
        purpose of making fixed decoupled payments and counter-cyclical 
        payments under this chapter.
    (c) Time for Assignment.--The opportunity to make the assignments 
described in subsection (b) shall be available to historic peanut 
producers only once. The historic peanut producers shall notify the 
Secretary of the assignments made by such producers under such 
subsections not later than 180 days after the date of the enactment of 
this Act.
    (d) Payment Acres.--The payment acres for peanuts on a farm shall 
be equal to 85 percent of the peanut acres assigned to the farm.
    (e) Prevention of Excess Peanut Acres.--
            (1) Required reduction.--If the sum of the peanut acres for 
        a farm, together with the acreage described in paragraph (2), 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the quantity of peanut acres for the farm or base 
        acres for one or more covered commodities for the farm as 
        necessary so that the sum of the peanut acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm. The Secretary shall give the peanut 
        producers on the farm the opportunity to select the peanut 
        acres or base acres against which the reduction will be made.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    (A) Any base acres for the farm under subtitle A.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled in a 
                conservation program for which payments are made in 
                exchange for not producing an agricultural commodity on 
                the acreage.
            (3) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.

SEC. 163. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS FOR PEANUTS.

    (a) Payment Required.--For each of the 2002 through 2011 crop 
years, the Secretary shall make fixed, decoupled payments to peanut 
producers on a farm.
    (b) Payment Rate.--The payment rate used to make fixed, decoupled 
payments with respect to peanuts for a crop year shall be equal to 
$0.018 per pound.
    (c) Payment Amount.--The amount of the fixed, decoupled payment to 
be paid to the peanut producers on a farm for a covered commodity for a 
crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (d) Time for Payment.--
            (1) General rule.--Fixed, decoupled payments shall be paid 
        not later than September 30 of each of fiscal years 2002 
        through 2011. In the case of the 2002 crop, payments may begin 
        to be made on or after December 1, 2001.
            (2) Advance payments.--At the option of a peanut producer, 
        50 percent of the fixed, decoupled payment for a fiscal year 
        shall be paid on a date selected by the peanut producer. The 
        selected date shall be on or after December 1 of that fiscal 
        year, and the peanut producer may change the selected date for 
        a subsequent fiscal year by providing advance notice to the 
        Secretary.
            (3) Repayment of advance payments.--If a peanut producer 
        that receives an advance fixed, decoupled payment for a fiscal 
        year ceases to be a peanut producer before the date the fixed, 
        decoupled payment would otherwise have been made by the 
        Secretary under paragraph (1), the peanut producer shall be 
        responsible for repaying the Secretary the full amount of the 
        advance payment.

SEC. 164. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    (a) Payment Required.--During the 2002 through 2011 crop years for 
peanuts, the Secretary shall make counter-cyclical payments with 
respect to peanuts whenever the Secretary determines that the effective 
price for peanuts is less than the target price.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for peanuts is equal to the sum of the following:
            (1) The higher of the following:
                    (A) The national average market price received by 
                peanut producers during the 12-month marketing year for 
                peanuts, as determined by the Secretary.
                    (B) The national average loan rate for a marketing 
                assistance loan for peanuts in effect for the same 
                period under this chapter.
            (2) The payment rate in effect under section 163 for the 
        purpose of making fixed, decoupled payments.
    (c) Target Price.--For purposes of subsection (a), the target price 
for peanuts shall be equal to $520 per ton.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments for a crop year shall be equal to the difference between--
            (1) the target price; and
            (2) the effective price determined under subsection (b).
    (e) Payment Amount.--The amount of the counter-cyclical payment to 
be paid to the peanut producers on a farm for a crop year shall be 
equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (f) Time for Payments.--
            (1) General rule.--The Secretary shall make counter-
        cyclical payments under this section for a peanut crop as soon 
        as possible after determining under subsection (a) that such 
        payments are required for that crop year.
            (2) Partial payment.--The Secretary may permit, and, if so 
        permitted, a peanut producer may elect to receive, up to 40 
        percent of the projected counter-cyclical payment, as 
        determined by the Secretary, to be made under this section for 
        a peanut crop upon completion of the first six months of the 
        marketing year for that crop. The peanut producer shall repay 
        to the Secretary the amount, if any, by which the partial 
        payment exceeds the actual counter-cyclical payment to be made 
        for that crop.

SEC. 165. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
              FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the peanut producers on a farm 
        may receive fixed, decoupled payments or counter-cyclical 
        payments with respect to the farm, the peanut producers shall 
        agree, in exchange for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    (B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of the Act 
                (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 166; and
                    (D) to use the land on the farm, in an amount equal 
                to the peanut acres, for an agricultural or conserving 
                use, and not for a nonagricultural commercial or 
                industrial use, as determined by the Secretary.
            (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure peanut producer 
        compliance with the requirements of paragraph (1).
    (b) Effect of Foreclosure.--A peanut producer may not be required 
to make repayments to the Secretary of fixed, decoupled payments and 
counter-cyclical payments if the farm has been foreclosed on and the 
Secretary determines that forgiving the repayments is appropriate to 
provide fair and equitable treatment. This subsection shall not void 
the responsibilities of the peanut producer under subsection (a) if the 
peanut producer continues or resumes operation, or control, of the 
farm. On the resumption of operation or control over the farm by the 
producer, the requirements of subsection (a) in effect on the date of 
the foreclosure shall apply.
    (c) Transfer or Change of Interest in Farm.--
            (1) Termination.--Except as provided in paragraph (4), a 
        transfer of (or change in) the interest of a peanut producer in 
        peanut acres for which fixed, decoupled payments or counter-
        cyclical payments are made shall result in the termination of 
        the payments with respect to the peanut acres, unless the 
        transferee or owner of the acreage agrees to assume all 
        obligations under subsection (a). The termination shall be 
        effective on the date of the transfer or change.
            (2) Transfer of payment base.--There is no restriction on 
        the transfer of a farm's peanut acres or payment yield as part 
        of a change in the peanut producers on the farm.
            (3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of subsection 
        (a) if the modifications are consistent with the objectives of 
        such subsection, as determined by the Secretary.
            (4) Exception.--If a peanut producer entitled to a fixed, 
        decoupled payment or counter-cyclical payment dies, becomes 
incompetent, or is otherwise unable to receive the payment, the 
Secretary shall make the payment, in accordance with regulations 
prescribed by the Secretary.
    (d) Acreage Reports.--As a condition on the receipt of any benefits 
under this chapter, the Secretary shall require peanut producers to 
submit to the Secretary acreage reports.
    (e) Tenants and Sharecroppers.--In carrying out this chapter, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (f) Sharing of Payments.--The Secretary shall provide for the 
sharing of fixed, decoupled payments and counter-cyclical payments 
among the peanut producers on a farm on a fair and equitable basis.

SEC. 166. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on peanut acres on a farm.
    (b) Limitations and Exceptions Regarding Certain Commodities.--
            (1) Limitations.--The planting of the following 
        agricultural commodities shall be prohibited on peanut acres:
                    (A) Fruits.
                    (B) Vegetables (other than lentils, mung beans, and 
                dry peas).
                    (C) Wild rice.
            (2) Exceptions.--Paragraph (1) shall not limit the planting 
        of an agricultural commodity specified in such paragraph--
                    (A) in any region in which there is a history of 
                double-cropping of peanuts with agricultural 
                commodities specified in paragraph (1), as determined 
                by the Secretary, in which case the double-cropping 
                shall be permitted;
                    (B) on a farm that the Secretary determines has a 
                history of planting agricultural commodities specified 
                in paragraph (1) on peanut acres, except that fixed, 
                decoupled payments and counter-cyclical payments shall 
                be reduced by an acre for each acre planted to such an 
                agricultural commodity; or
                    (C) by a peanut producer who the Secretary 
                determines has an established planting history of a 
                specific agricultural commodity specified in paragraph 
                (1), except that--
                            (i) the quantity planted may not exceed the 
                        peanut producer's average annual planting 
                        history of such agricultural commodity in the 
                        1991 through 1995 crop years (excluding any 
                        crop year in which no plantings were made), as 
                        determined by the Secretary; and
                            (ii) fixed, decoupled payments and counter-
                        cyclical payments shall be reduced by an acre 
                        for each acre planted to such agricultural 
                        commodity.

SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 
              PEANUTS.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2002 through 2011 crops 
        of peanuts, the Secretary shall make available to peanut 
        producers on a farm nonrecourse marketing assistance loans for 
        peanuts produced on the farm. The loans shall be made under 
        terms and conditions that are prescribed by the Secretary and 
        at the loan rate established under subsection (b).
            (2) Eligible production.--Any production of peanuts on a 
        farm shall be eligible for a marketing assistance loan under 
        this subsection.
            (3) Treatment of certain commingled commodities.--In 
        carrying out this subsection, the Secretary shall make loans to 
        a peanut producer that is otherwise eligible to obtain a 
        marketing assistance loan, but for the fact the peanuts owned 
        by the peanut producer are commingled with other peanuts in 
        facilities unlicensed for the storage of agricultural 
        commodities by the Secretary or a State licensing authority, if 
        the peanut producer obtaining the loan agrees to immediately 
        redeem the loan collateral in accordance with section 166 of 
        the Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7286).
            (4) Options for obtaining loan.--A marketing assistance 
        loan under this subsection, and loan deficiency payments under 
        subsection (e), may be obtained at the option of the peanut 
        producer through--
                    (A) a designated marketing association of peanut 
                producers that is approved by the Secretary;
                    (B) the Farm Service Agency; or
                    (C) a loan servicing agent approved by the 
                Secretary.
    (b) Loan Rate.--The loan rate for a marketing assistance loan under 
for peanuts subsection (a) shall be equal to $400 per ton.
    (c) Term of Loan.--
            (1) In general.--A marketing assistance loan for peanuts 
        under subsection (a) shall have a term of nine months beginning 
        on the first day of the first month after the month in which 
        the loan is made.
            (2) Extensions prohibited.--The Secretary may not extend 
        the term of a marketing assistance loan under subsection (a).
    (d) Repayment Rate.--The Secretary shall permit peanut producers to 
repay a marketing assistance loan for peanuts under subsection (a) at a 
rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        subsection (b), plus interest (as determined by the Secretary); 
        or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of peanuts 
                by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing peanuts; and
                    (D) allow peanuts produced in the United States to 
                be marketed freely and competitively, both domestically 
                and internationally.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan deficiency 
        payments available to peanut producers who, although eligible 
        to obtain a marketing assistance loan for peanuts under 
        subsection (a), agree to forgo obtaining the loan for the 
        peanuts in return for payments under this subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                    (A) the loan payment rate determined under 
                paragraph (3) for peanuts; by
                    (B) the quantity of the peanuts produced by the 
                peanut producers, excluding any quantity for which the 
                producers obtain a loan under subsection (a).
            (3) Loan payment rate.--For purposes of this subsection, 
        the loan payment rate shall be the amount by which--
                    (A) the loan rate established under subsection (b); 
                exceeds
                    (B) the rate at which a loan may be repaid under 
                subsection (d).
            (4) Time for payment.--The Secretary shall make a payment 
        under this subsection to a peanut producer with respect to a 
        quantity of peanuts as of the earlier of the following:
                    (A) The date on which the peanut producer marketed 
                or otherwise lost beneficial interest in the peanuts, 
                as determined by the Secretary.
                    (B) The date the peanut producer requests the 
                payment.
    (f) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the peanut producer shall comply with applicable 
conservation requirements under subtitle B of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 
protection requirements under subtitle C of title XII of the Act (16 
U.S.C. 3821 et seq.) during the term of the loan.
    (g) Reimbursable Agreements and Payment of Expenses.--To the extent 
practicable, the Secretary shall implement any reimbursable agreements 
or provide for the payment of expenses under this chapter in a manner 
that is consistent with such activities in regard to other commodities.
    (h) Termination of Superseded Price Support Authority.--
            (1) Repeal.--Section 155 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.
            (2) Conforming amendments.--The Agricultural Act of 1949 (7 
        U.S.C. 1441 et seq.) is amended--
                    (A) in section 101(b) (7 U.S.C. 1441(b)), by 
                striking ``and peanuts''; and
                    (B) in section 408(c) (7 U.S.C. 1428(c)), by 
                striking ``peanuts,''.

SEC. 168. QUALITY IMPROVEMENT.

    (a) Official Inspection.--
            (1) Mandatory inspection.--All peanuts placed under a 
        marketing assistance loan under section 167 shall be officially 
        inspected and graded by Federal or State inspectors.
            (2) Optional inspection.--Peanuts not placed under a 
        marketing assistance loan may be graded at the option of the 
        peanut producer.
    (b) Termination of Peanut Administrative Committee.--The Peanut 
Administrative Committee established under Marketing Agreement No. 
1436, which regulates the quality of domestically produced peanuts 
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted 
with amendments by the Agricultural Marketing Agreement Act of 1937, is 
terminated.
    (c) Establishment of Peanut Standards Board.--The Secretary shall 
establish a Peanut Standards Board for the purpose of assisting in the 
establishment of quality standards with respect to peanuts. The 
authority of the Board is limited to assisting in the establishment of 
quality standards for peanuts. The members of the Board should fairly 
reflect all regions and segments of the peanut industry.
    (d) Effective Date.--This section shall take effect with the 2002 
crop of peanuts.

SEC. 169. PAYMENT LIMITATIONS.

    For purposes of sections 1001 through 1001C of the Food Security 
Act of 1985 (7 U.S.C. 1308 through 1308-3), separate payment 
limitations shall apply to peanuts with respect to--
            (1) fixed, decoupled payments;
            (2) counter-cyclical payments, and
            (3) limitations on marketing loan gains and loan deficiency 
        payments.

SEC. 170. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND 
              COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF QUOTA 
              ASSET VALUE.

    (a) Repeal of Marketing Quota.--
            (1) Repeal.--Part VI of subtitle B of title III of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), 
        relating to peanuts, is repealed.
            (2) Treatment of 2001 crop.--Part VI of subtitle B of title 
        III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-
        1359a), as in effect on the day before the date of the 
        enactment of this Act, shall continue to apply with respect to 
        the 2001 crop of peanuts notwithstanding the amendment made by 
        paragraph (1).
    (b) Compensation Contract Required.--The Secretary shall offer to 
enter into a contract with eligible peanut quota holders for the 
purpose of providing compensation for the lost value of the quota on 
account of the repeal of the marketing quota program for peanuts under 
subsection (a). Under the contracts, the Secretary shall make payments 
to eligible peanut quota holders during fiscal years 2002 through 2006.
    (c) Time for Payment.--The payments required under the contracts 
shall be provided in five equal installments not later than September 
30 of each of fiscal years 2002 through 2006.
    (d) Payment Amount.--The amount of the payment for a fiscal year to 
a peanut quota holder under a contract shall be equal to the product 
obtained by multiplying--
            (1) $0.12 per pound; by
            (2) the actual farm poundage quota (excluding seed and 
        experimental peanuts) established for the peanut quota holder's 
        farm under section 358-1(b) of the Agricultural Adjustment Act 
        of 1938 (7 U.S.C. 1358-1(b)) for the 2001 marketing year.
    (e) Assignment of Payments.--The provisions of section 8(g) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
relating to assignment of payments, shall apply to the payments made to 
peanut quota holders under the contracts. The peanut quota holder 
making the assignment, or the assignee, shall provide the Secretary 
with notice, in such manner as the Secretary may require, of any 
assignment made under this subsection.
    (f) Peanut Quota Holder Defined.--In this section, the term 
``peanut quota holder'' means a person or enterprise that owns a farm 
that--
            (1) was eligible, immediately before the date of the 
        enactment of this Act, to have a peanut quota established upon 
        it;
            (2) if there are not quotas currently established, would be 
        eligible to have a quota established upon it for the succeeding 
        crop year, in the absence of the amendment made by subsection 
        (a); or
            (3) is otherwise a farm that was eligible for such a quota 
        at the time the general quota establishment authority was 
        repealed.
The Secretary shall apply this definition without regard to temporary 
leases or transfers or quotas for seed or experimental purposes.

                       Subtitle D--Administration

SEC. 181. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--The Secretary shall carry 
out this title through the Commodity Credit Corporation.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as are 
necessary to implement this title. The issuance of the regulations 
shall be made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804) relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        know as the ``Paperwork Reduction Act'').
    (d) Protection of Producers.--The protection afforded producers 
that elect the option to accelerate the receipt of any payment under a 
production flexibility contract payable under the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7212 note) shall also 
apply to the advance payment of fixed, decoupled payments and counter-
cyclical payments.
    (e) Adjustment Authority Related to Uruguay Round Compliance.--If 
the Secretary determines that expenditures under subtitles A, B, and C 
that are subject to the total allowable domestic support levels under 
the Uruguay Round Agreements (as defined in section 2(7) of the Uruguay 
Round Agreements Act (19 U.S.C. 3501(7))), as in effect on the date of 
the enactment of this Act, will exceed such allowable levels for any 
applicable reporting period, the Secretary may make adjustments in the 
amount of such expenditures during that period to ensure that such 
expenditures do not exceed, but in no case are less than, such 
allowable levels.

SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--Section 171(a)(1) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7301(a)(1)) is amended by striking ``2002'' both places it appears and 
inserting ``2011''.
    (b) Agricultural Act of 1949.--Section 171(b)(1) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(b)(1)) is 
amended by striking ``2002'' both places it appears and inserting 
``2011''.
    (c) Suspension of Certain Quota Provisions.--Section 171(c) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7301(c)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 183. LIMITATIONS.

    (a) Limitation on Amounts Received.--Section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``payments under production 
                flexibility contracts'' and inserting ``fixed, 
                decoupled payments'';
                    (B) by striking ``contract payments made under the 
                Agricultural Market Transition Act to a person under 1 
                or more production flexibility contracts'' and 
                inserting ``fixed, decoupled payments made to a 
                person''; and
                    (C) by striking ``4'' and inserting ``5'';
            (2) in paragraphs (2) and (3)--
                    (A) by striking ``payments specified'' and all that 
                follows through ``and oilseeds'' and inserting 
                ``following payments that a person shall be entitled to 
                receive'';
                    (B) by striking ``75'' and inserting ``150'';
                    (C) by striking the period at the end of paragraph 
                (2) and all that follows through ``the following'' in 
                paragraph (3);
                    (D) by striking ``section 131'' and all that 
                follows through ``section 132'' and inserting ``section 
                121 of the Farm Security Act of 2001 for a crop of any 
                covered commodity at a lower level than the original 
                loan rate established for the commodity under section 
                122''; and
                    (E) by striking ``section 135'' and inserting 
                ``section 125''; and
            (3) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) Limitation on counter-cyclical payments.--The total 
        amount of counter-cyclical payments that a person may receive 
        during any crop year shall not exceed the amount specified in 
        paragraph (2), as in effect on the day before the date of the 
        enactment of the Farm Security Act of 2001.''.
    (b) Definitions.--Paragraph (4) of section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended to read as follows:
            ``(4) Definitions.--In this title, the terms `covered 
        commodity', `counter-cyclical payment', and `fixed, decoupled 
        payment' have the meaning given those terms in section 100 of 
        the Farm Security Act of 2001.''.
    (c) Transition.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308), as in effect on the day before the date of the enactment 
of this Act, shall continue to apply with respect to fiscal year 2001 
and the 2001 crop of any covered commodity.

SEC. 184. ADJUSTMENTS OF LOANS.

    Section 162(b) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7282(b)) is amended by striking ``this title'' 
and inserting ``this title and title I of the Farm Security Act of 
2001''.

SEC. 185. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7284) is amended by striking ``this title'' each 
places it appears and inserting ``this title and title I of the Farm 
Security Act of 2001''.

SEC. 186. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
              LOANS.

    Section 166 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7286) is amended--
            (1) in subsection (a)--
                    (A) by striking ``In General.--'' and inserting 
                ``Specific Payments.--''; and
                    (B) by striking ``subtitle C'' and inserting 
                ``subtitle C of this title and title I of the Farm 
                Security Act of 2001''; and
            (2) in subsection (c)(1)--
                    (A) by striking ``producer'' the first two places 
                it appears and inserting ``person''; and
                    (B) by striking ``to producers under subtitle C'' 
                and inserting ``by the Commodity Credit Corporation''.

SEC. 187. ASSIGNMENT OF PAYMENTS.

    The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of 
payments, shall apply to payments made under the authority of this Act. 
The producer making the assignment, or the assignee, shall provide the 
Secretary with notice, in such manner as the Secretary may require, of 
any assignment made under this section.

SEC. 188. REPORT ON EFFECT OF CERTAIN FARM PROGRAM PAYMENTS ON ECONOMIC 
              VIABILITY OF PRODUCERS AND FARMING INFRASTRUCTURE.

    (a) Review Required.--The Secretary of Agriculture shall conduct a 
review of the effects that payments under production flexibility 
contracts and market loss assistance payments have had, and that fixed, 
decoupled payments and counter-cyclical payments are likely to have, on 
the economic viability of producers and the farming infrastructure, 
particularly in areas where climate, soil types, and other agronomic 
conditions severely limit the covered crops that producers can choose 
to successfully and profitably produce.
    (b) Case Study Related to Rice Production.--The review shall 
include a case study of the effects that the payments described in 
subsection (a), and the forecast effects of increasing these or other 
decoupled payments, are likely to have on rice producers (including 
tenant rice producers), the rice milling industry, and the economies of 
rice farming areas in Texas, where harvested rice acreage has fallen 
from 320,000 acres in 1995 to only 211,000 acres in 2001.
    (c) Report and Recommendations.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report describing the information collected for the review and the case 
study and any findings made on the basis of such information. The 
report shall include recommendations for minimizing the adverse effects 
on producers, with a special focus on producers who are tenants, on the 
agricultural economies in farming areas generally, on those particular 
areas described in subsection (a), and on the area that is the subject 
of the case study in subsection (b).

                         TITLE II--CONSERVATION

     Subtitle A--Environmental Conservation Acreage Reserve Program

SEC. 201. GENERAL PROVISIONS.

    Title XII of the Food Security Act of 1985 is amended--
            (1) in section 1230(a), by striking ``1996 through 2002'' 
        and inserting ``2002 through 2011'';
            (2) by striking subsection (c) of section 1230; and
            (3) in section 1230A (16 U.S.C. 3830a), by striking 
        ``chapter'' each place it appears and inserting ``title''.

                Subtitle B--Conservation Reserve Program

SEC. 211. REAUTHORIZATION.

    (a) In General.--Section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended in each of subsections (a) and (d) by striking 
``2002'' and inserting ``2011''.
    (b) Scope of Program.--Section 1231(a) of such Act (16 U.S.C. 
3831(a)) is amended by striking ``and water'' and inserting ``, water, 
and wildlife''.

SEC. 212. ENROLLMENT.

    (a) Eligibility.--Section 1231(b) of the Food Security Act of 1985 
(16 U.S.C. 3831(b)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) marginal pasturelands to be devoted to natural 
        vegetation in or near riparian areas or for similar water 
        quality purposes, including marginal pasturelands converted to 
        wetlands or established as wildlife habitat;'';
            (2) in paragraph (4)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) if the Secretary determines that--
                            ``(i) the lands contribute to the 
                        degradation of soil, water, or air quality, or 
                        would pose an on-site or off-site environmental 
                        threat to soil, water, or air quality if 
                        permitted to remain in agricultural production; 
                        and
                            ``(ii) soil, water, and air quality 
                        objectives with respect to the land cannot be 
                        achieved under the environmental quality 
                        incentives program established under chapter 
                        4;'';
                    (B) by striking ``or'' at the end of subparagraph 
                (C);
                    (C) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(E) if the Secretary determines that enrollment 
                of such lands would contribute to conservation of 
                ground or surface water.''; and
            (3) by adding after and below the end the following flush 
        sentence:
``Notwithstanding the preceding sentence (but subject to subsection 
(c)), the Secretary may not include in the program established under 
this subchapter any land that has not been in production for at least 4 
years, unless the land is in the program as of the effective date of 
this sentence.''.
    (b) Increase in Maximum Enrollment.--Section 1231(d) of such Act 
(16 U.S.C. 3831(d)) is amended by striking ``36,400,000'' and inserting 
``39,200,000''.
    (c) Eligibility on Contract Expiration.--Section 1231(f) of such 
Act (16 U.S.C. 3831(f)) is amended to read as follows:
    ``(f) Eligibility on Contract Expiration.--On the expiration of a 
contract entered into under this subchapter, the land subject to the 
contract shall be eligible to be considered for re-enrollment in the 
conservation reserve.''.
    (d) Balance of Natural Resource Purposes.--
            (1) In general.--Section 1231 of such Act (16 U.S.C. 3831) 
        is amended by adding at the end the following:
    ``(i) Balance of Natural Resource Purposes.--In determining the 
acceptability of contract offers under this subchapter, the Secretary 
shall ensure an equitable balance among the conservation purposes of 
soil erosion, water quality and wildlife habitat.''.
            (2) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Agriculture shall 
        issue final regulations implementing section 1231(i) of the 
        Food Security Act of 1985, as added by paragraph (1) of this 
        subsection.

SEC. 213. DUTIES OF OWNERS AND OPERATORS.

    Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by inserting ``as described 
                in section 1232(a)(7) or for other purposes'' before 
                ``as permitted'';
                    (B) in paragraph (4), by inserting ``where 
                practicable, or maintain existing cover'' before ``on 
                such land''; and
                    (C) in paragraph (7), by striking ``Secretary--'' 
                and all that follows and inserting ``Secretary may 
                permit, consistent with the conservation of soil, water 
                quality, and wildlife habitat--
                    ``(A) managed grazing and limited haying, in which 
                case the Secretary shall reduce the conservation 
                reserve payment otherwise payable under the contract by 
                an amount commensurate with the economic value of the 
                activity;
                    ``(B) wind turbines for the provision of wind 
                energy, whether or not commercial in nature; and
                    ``(C) land subject to the contract to be harvested 
                for recovery of biomass used in energy production, in 
                which case the Secretary shall reduce the conservation 
                reserve payment otherwise payable under the contract by 
                an amount commensurate with the economic value of such 
                activity;''; and
            (2) by striking subsections (c) and (d) and redesignating 
        subsection (e) as subsection (c).

SEC. 214. REFERENCE TO CONSERVATION RESERVE PAYMENTS.

    Subchapter B of chapter 1 of subtitle D of title XII of such Act 
(16 U.S.C. 3831-3836) is amended--
            (1) by striking ``rental payment'' each place it appears 
        and inserting ``conservation reserve payment'';
            (2) by striking ``rental payments'' each place it appears 
        and inserting ``conservation reserve payments''; and
            (3) in the paragraph heading for section 1235(e)(4), by 
        striking ``rental payment'' and inserting ``conservation 
        reserve payment''.

SEC. 215. EXPANSION OF PILOT PROGRAM TO ALL STATES.

    Section 1231(h) of the Food Security Act of 1985 (16 U.S.C. 
3831(h)) is amended--
            (1) in paragraph (1), by striking ``and 2002'' and all that 
        follows through ``South Dakota'' and inserting ``through 2011 
        calendar years, the Secretary shall carry out a program in each 
        State'';
            (2) in paragraph (3)(C), by striking ``--'' and all that 
        follows and inserting ``not more than 150,000 acres in any 1 
        State.''; and
            (3) by striking paragraph (2) and redesignating paragraphs 
        (3) through (5) as paragraphs (2) through (4), respectively.

                  Subtitle C--Wetlands Reserve Program

SEC. 221. ENROLLMENT.

    (a) Maximum.--Section 1237(b) of the Food Security Act of 1985 (16 
U.S.C. 3837(b)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) Annual enrollment.--In addition to any acres enrolled 
        in the wetlands reserve program as of the end of a calendar 
        year, the Secretary may in the succeeding calendar year enroll 
        in the program a number of additional acres equal to--
                    ``(A) if the succeeding calendar year is calendar 
                year 2002, 150,000; or
                    ``(B) if the succeeding calendar year is a calendar 
                year after calendar year 2002--
                            ``(i) 150,000; plus
                            ``(ii) the amount (if any) by which 
                        150,000, multiplied by the number of calendar 
                        years in the period that begins with calendar 
                        year 2002 and ends with the calendar year 
                        preceding such succeeding calendar year, 
                        exceeds the total number of acres added to the 
                        reserve during the period.''.
    (b) Methods.--Section 1237 of such Act (16 U.S.C. 3837(b)(2)) is 
amended--
            (1) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) Methods of enrollment.--The Secretary shall enroll 
        acreage into the wetlands reserve program through the use of 
        easements, restoration cost share agreements, or both.''; and
            (2) by striking subsection (g).
    (c) Extension.--Section 1237(c) of such Act (16 U.S.C. 3837(c)) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 222. EASEMENTS AND AGREEMENTS.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is 
amended--
            (1) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) prohibits the alteration of wildlife habitat and 
        other natural features of such land, unless specifically 
        permitted by the plan;'';
            (2) in subsection (e), by striking paragraph (2) and 
        inserting the following:
            ``(2) shall be consistent with applicable State law.'';
            (3) by striking subsection (h).

SEC. 223. DUTIES OF THE SECRETARY.

    Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is 
amended by striking subsection (d).

SEC. 224. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

    Section 1237E(a)(2) of the Food Security Act of 1985 (16 U.S.C. 
3837e(a)(2)) is amended to read as follows:
            ``(2) the ownership change occurred due to foreclosure on 
        the land and the owner of the land immediately before the 
        foreclosure exercises a right of redemption from the mortgage 
        holder in accordance with State law; or''.

          Subtitle D--Environmental Quality Incentives Program

SEC. 231. PURPOSES.

    Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is 
amended--
            (1) by striking ``to--'' and all that follows through 
        ``provides--'' and inserting ``to provide--'';
            (2) by striking ``that face the most serious threats to'' 
        and inserting ``to address environmental needs and provide 
        benefits to air,'';
            (3) by redesignating the subparagraphs (A) through (D) that 
        follow the matter amended by paragraph (2) of this section as 
        paragraphs (1) through (4), respectively;
            (4) by moving each of such redesignated provisions 2 ems to 
        the left; and
            (5) by striking ``farmers and ranchers'' each place it 
        appears and inserting ``producers''.

SEC. 232. DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) 
is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``non-industrial private forest 
                land,'' before ``and other land''; and
                    (B) by striking ``poses a serious threat'' and all 
                that follows and inserting ``provides increased 
                environmental benefits to air, soil, water, or related 
                resources.''; and
            (2) in paragraph (4), by inserting ``, including non-
        industrial private forestry'' before the period.

SEC. 233. ESTABLISHMENT AND ADMINISTRATION.

    (a) Reauthorization.--Section 1240B(a)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2002'' and 
inserting ``2011''.
    (b) Term of Contracts.--Section 1240B(b)(2) of such Act (16 U.S.C. 
3839aa-2(b)(2)) is amended by striking ``not less than 5, nor more than 
10, years'' and inserting ``not less than 1 year, nor more than 10 
years''.
    (c) Structural Practices.--Section 1240B(c)(1)(B) of such Act (16 
U.S.C. 3839aa-2(c)(1)(B)) is amended to read as follows:
                    ``(B) achieving the purposes established under this 
                subtitle.''.
    (d) Elimination of Certain Limitations on Eligibility for Cost-
Share Payments.--Section 1240B(e)(1) of such Act (16 U.S.C. 3839aa-
2(e)(1)) is amended--
            (1) by striking subparagraph (B) and redesignating 
        subparagraph (C) as subparagraph (B); and
            (2) in subparagraph (B) (as so redesignated), by striking 
        ``or 3''.
    (e) Incentive Payments.--Section 1240B of such Act (16 U.S.C. 
3839aa-2) is amended--
            (1) in subsection (e)--
                    (A) in the subsection heading, by striking ``, 
                Incentive Payments,''; and
                    (B) by striking paragraph (2); and
            (2) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively, and inserting after subsection (e) 
        the following:
    ``(f) Conservation Incentive Payments.--
            ``(1) In general.--The Secretary may make incentive 
        payments in an amount and at a rate determined by the Secretary 
        to be necessary to encourage a producer to perform multiple 
        land management practices and to promote the enhancement of 
        soil, water, wildlife habitat, air, and related resources.
            ``(2) Special rule.--In determining the amount and rate of 
        incentive payments, the Secretary may accord great weight to 
        those practices that include residue, nutrient, pest, invasive 
        species, and air quality management.''.

SEC. 234. EVALUATION OF OFFERS AND PAYMENTS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) 
is amended by striking paragraphs (1) through (3) and inserting the 
following:
            ``(1) aid producers in complying with this title and 
        Federal and State environmental laws, and encourage 
        environmental enhancement and conservation;
            ``(2) maximize the beneficial usage of animal manure and 
        other similar soil amendments which improve soil health, tilth, 
        and water-holding capacity; and
            ``(3) encourage the utilization of sustainable grazing 
        systems, such as year-round, rotational, or managed grazing.''.

SEC. 235. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    Section 1240E(a) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-5(a)) is amended by striking ``that incorporates such 
conservation practices'' and all that follows and inserting ``that 
provides or will continue to provide increased environmental benefits 
to air, soil, water, or related resources.''.

SEC. 236. DUTIES OF THE SECRETARY.

    Section 1240F(3) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-6(3)) is amended to read as follows:
            ``(3) providing technical assistance or cost-share payments 
        for developing and implementing 1 or more structural practices 
        or 1 or more land management practices, as appropriate;''.

SEC. 237. LIMITATION ON PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``$10,000'' and 
                inserting ``$50,000''; and
                    (B) in paragraph (2), by striking ``$50,000'' and 
                inserting ``$200,000'';
            (2) in subsection (b)(2), by striking ``the maximization of 
        environmental benefits per dollar expended and''; and
            (3) by striking subsection (c).

SEC. 238. GROUND AND SURFACE WATER CONSERVATION.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended to read as follows:

``SEC. 1240H. GROUND AND SURFACE WATER CONSERVATION.

    ``(a) Support for Conservation Measures.--The Secretary shall 
provide cost-share payments and low-interest loans to encourage ground 
and surface water conservation, including irrigation system 
improvement, and provide incentive payments for capping wells, reducing 
use of water for irrigation, and switching from irrigation to dryland 
farming.
    ``(b) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available the following amounts to carry out 
this section:
            ``(1) $30,000,000 for fiscal year 2002.
            ``(2) $45,000,000 for fiscal year 2003.
            ``(3) $60,000,000 for each of fiscal years 2004 through 
        2011.''.

                 Subtitle E--Funding and Administration

SEC. 241. REAUTHORIZATION.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 242. FUNDING.

    Section 1241(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3841(b)(1)) is amended--
            (1) by striking ``$130,000,000'' and all that follows 
        through ``2002, for'' and inserting ``the following amounts for 
        purposes of'';
            (2) by striking ``subtitle D.'' and inserting ``subtitle 
        D:''; and
            (3) by adding at the end the following:
                    ``(A) $200,000,000 for fiscal year 2001.
                    ``(B) $1,025,000,000 for each of fiscal years 2002 
                and 2003.
                    ``(C) $1,200,000,000 for each of fiscal years 2004, 
                2005, and 2006.
                    ``(D) $1,400,000,000 for each of fiscal years 2007, 
                2008, and 2009.
                    ``(E) $1,500,000,000 for each of fiscal years 2010 
                and 2011.''.

SEC. 243. ALLOCATION FOR LIVESTOCK PRODUCTION.

    Section 1241(b)(2) of the Food Security Act of 1985 (16 U.S.C. 
3841(b)(2)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 244. ADMINISTRATION AND TECHNICAL ASSISTANCE.

    (a) Broadening of Exception to Acreage Limitation.--Section 
1243(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(2)) is 
amended by striking ``that--'' and all that follows and inserting 
``that the action would not adversely affect the local economy of the 
county.''.
    (b) Rules Governing Provision of Technical Assistance.--Section 
1243(d) of such Act (16 U.S.C. 3843(d)) is amended to read as follows:
    ``(d) Rules Governing Provision of Technical Assistance.--
            ``(1) In general.--The Secretary shall provide technical 
        assistance under this title to a producer eligible for such 
        assistance, by providing the assistance directly or, at the 
        option of the producer, through an approved third party if 
        available.
            ``(2) Reevaluation.--The Secretary shall reevaluate the 
        provision of, and the amount of, technical assistance made 
        available under subchapters B and C of chapter 1 and chapter 4 
        of subtitle D.
            ``(3) Certification of third-party providers.--
                    ``(A) In general.--Not later than 6 months after 
                the date of the enactment of this subsection, the 
                Secretary of Agriculture shall, by regulation, 
                establish a system for approving persons to provide 
                technical assistance pursuant to chapter 4 of subtitle 
                D. For purposes of this paragraph, a person shall be 
                considered approved if they have a memorandum of 
                understanding regarding the provision of technical 
                assistance in place with the Secretary.
                    ``(B) Expertise required.--In prescribing such 
                regulations, the Secretary shall ensure that persons 
                with expertise in the technical aspects of conservation 
                planning, watershed planning, environmental 
                engineering, including commercial entities, nonprofit 
                entities, State or local governments or agencies, and 
                other Federal agencies, are eligible to become approved 
                providers of such technical assistance.''.
    (c) Duty of Secretary.--
            (1) In general.--Section 1770(d) of such Act (7 U.S.C. 
        2276(d)) is amended--
                    (A) by striking ``or'' at the end of paragraph (9);
                    (B) by striking the period at the end of paragraph 
                (11) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(12) title XII of this Act.''.
            (2) Conforming amendments.--Section 1770(e) of such Act (7 
        U.S.C. 2276(e)) is amended--
                    (A) by striking the subsection heading and 
                inserting ``Exceptions''; and
                    (B) by inserting ``, or as necessary to carry out a 
                program under title XII of this Act as determined by 
                the Secretary'' before the period.

                       Subtitle F--Other Programs

SEC. 251. PRIVATE GRAZING LAND CONSERVATION ASSISTANCE.

    Section 386(d)(1) of the Federal Agriculture Improvement and Reform 
Act of 1996 (16 U.S.C. 2005b(d)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (G);
            (2) by striking the period at the end of subparagraph (H) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(I) encouraging the utilization of sustainable 
                grazing systems, such as year-round, rotational, or 
                managed grazing.''.

SEC. 252. WILDLIFE HABITAT INCENTIVES PROGRAM.

    Subsection (c) of section 387 of the Federal Agriculture 
Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is amended to read 
as follows:
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make available $25,000,000 for each 
of fiscal years 2002 through 2011 to carry out this section.''.

SEC. 253. FARMLAND PROTECTION PROGRAM.

    (a) Removal of Acreage Limitation; Expansion of Purposes.--
Subsection (a) of section 388 of the Federal Agriculture Improvement 
and Reform Act of 1996 (16 U.S.C. 3830 note) is amended--
            (1) by striking ``not less than 170,000, nor more than 
        340,000 acres of''; and
            (2) by inserting ``, or agricultural land that contains 
        historic or archaeological resources,'' after ``other 
        productive soil''.
    (b) Funding.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Funding.--The Secretary shall use not more than $25,000,000 
of the funds of the Commodity Credit Corporation in each of fiscal 
years 2002 through 2011 to carry out this section.''.
    (c) Eligible Entities.--Such section is further amended--
            (1) in subsection (a), by striking ``a State or local 
        government'' and inserting ``an eligible entity''; and
            (2) by adding at the end the following:
    ``(d) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means--
            ``(1) any agency of any State or local government, or 
        federally recognized Indian tribe, including farmland 
        protection boards and land resource councils established under 
        State law; and
            ``(2) any organization that--
                    ``(A) is organized for, and at all times since the 
                formation of the organization has been operated 
                principally for, one or more of the conservation 
                purposes specified in clause (i), (ii), or (iii) of 
                section 170(h)(4)(A) of the Internal Revenue Code of 
                1986;
                    ``(B) is an organization described in section 
                501(c)(3) of that Code that is exempt from taxation 
                under section 501(a) of that Code;
                    ``(C) is described in section 509(a)(2) of that 
                Code; or
                    ``(D) is described in section 509(a)(3) of that 
                Code and is controlled by an organization described in 
                section 509(a)(2) of that Code.''.

SEC. 254. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    (a) Purpose.--Section 1528 of the Agriculture and Food Act of 1981 
(16 U.S.C. 3451) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1528. It is the purpose'' and inserting the 
        following:

``SEC. 1528. STATEMENT OF PURPOSE.

    ``It is the purpose''; and
            (2) by inserting ``through designated RC&D councils'' 
        before ``in rural areas''.
    (b) Definitions.--Section 1529 of such Act (16 U.S.C. 3452) is 
amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1529. As used in this subtitle--'' and inserting 
        the following:

``SEC. 1529. DEFINITIONS.

    ``In this title:'';
            (2) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``RC&D council'' before ``area plan'';
                    (B) in subparagraph (B), by striking ``through 
                control of nonpoint sources of pollution'';
                    (C) in subparagraph (C)--
                            (i) by striking ``natural resources based'' 
                        and inserting ``resource-based'';
                            (ii) by striking ``development of 
                        aquaculture,'';
                            (iii) by striking ``and satisfaction'' and 
                        inserting ``satisfaction''; and
                            (iv) by inserting ``, food security, 
                        economic development, and education'' before 
                        the semicolon; and
                    (D) in subparagraph (D), by striking ``other'' the 
                1st place it appears and inserting ``land management'';
            (3) in paragraph (3), by striking ``any State, local unit 
        of government, or local nonprofit organization'' and inserting 
        ``the designated RC&D council'';
            (4) by striking paragraphs (4) through (6) and inserting 
        the following:
            ``(4)(A) The term `financial assistance' means the 
        Secretary may--
                    ``(i) provide funds directly to RC&D councils or 
                associations of RC&D councils through grants, 
                cooperative agreements, and interagency agreements that 
                directly implement RC&D area plans; and
                    ``(ii) may join with other federal agencies through 
                interagency agreements and other arrangements as needed 
                to carry out the program's purpose.
            ``(B) Funds may be used for such things as--
                    ``(i) technical assistance;
                    ``(ii) financial assistance in the form of grants 
                for planning, analysis and feasibility studies, and 
                business plans;
                    ``(iii) training and education; and
                    ``(iv) all costs associated with making such 
                services available to RC&D councils or RC&D 
                associations.
            ``(5) The term `RC&D council' means the responsible 
        leadership of the RC&D area. RC&D councils and associations are 
        non-profit entities whose members are volunteers and include 
        local civic and elected officials. Affiliations of RC&D 
        councils are formed in states and regions.'';
            (5) in paragraph (8), by inserting ``and federally 
        recognized Indian tribes'' before the period;
            (6) in paragraph (9), by striking ``works of improvement'' 
        and inserting ``projects'';
            (7) by redesignating paragraphs (7) through (9) as 
        paragraphs (6) through (8), respectively; and
            (8) by striking paragraph (10) and inserting the following:
            ``(9) The term `project' means any action taken by a 
        designated RC&D council that achieves any of the elements 
        identified under paragraph (1).''.
    (c) Establishment and Scope.--Section 1530 of such Act (16 U.S.C. 
3453) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1530. The Secretary'' and inserting the 
        following:

``SEC. 1530. ESTABLISHMENT AND SCOPE.

    ``The Secretary''; and
            (2) by striking ``the technical and financial assistance 
        necessary to permit such States, local units of government, and 
        local nonprofit organizations'' and inserting ``through 
        designated RC&D councils the technical and financial assistance 
        necessary to permit such RC&D Councils''.
    (d) Selection of Designated Areas.--Section 1531 of such Act (16 
U.S.C. 3454) is amended by striking the section heading and all that 
follows through ``Sec. 1531. The Secretary'' and inserting the 
following:

``SEC. 1531. SELECTION OF DESIGNATED AREAS.

    ``The Secretary''.
    (e) Authority of Secretary.--Section 1532 of such Act (16 U.S.C. 
3455) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1532. In carrying'' and inserting the following:

``SEC. 1532. AUTHORITY OF SECRETARY.

    ``In carrying'';
            (2) in each of paragraphs (1) and (3)--
                    (A) by striking ``State, local unit of government, 
                or local nonprofit organization'' and inserting ``RC&D 
                council''; and
                    (B) by inserting ``RC&D council'' before ``area 
                plan'';
            (3) in paragraph (2), by inserting ``RC&D council'' before 
        ``area plans''; and
            (4) in paragraph (4), by striking ``States, local units of 
        government, and local nonprofit organizations'' and inserting 
        ``RC&D councils or affiliations of RC&D councils''.
    (f) Technical and Financial Assistance.--Section 1533 of such Act 
(16 U.S.C. 3456) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1533. (a) Technical'' and inserting the 
        following:

``SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.

    ``(a) Technical'';
            (2) in subsection (a)--
                    (A) by striking ``State, local unit of government, 
                or local nonprofit organization to assist in carrying 
                out works of improvement specified in an'' and 
                inserting ``RC&D councils or affiliations of RC&D 
                councils to assist in carrying out a project specified 
                in a RC&D council'';
                    (B) in paragraph (1)--
                            (i) by striking ``State, local unit of 
                        government, or local nonprofit organization'' 
                        and inserting ``RC&D council or affiliate''; 
                        and
                            (ii) by striking ``works of improvement'' 
                        each place it appears and inserting 
                        ``project'';
                    (C) in paragraph (2)--
                            (i) by striking ``works of improvement'' 
                        and inserting ``project''; and
                            (ii) by striking ``State, local unit of 
                        government, or local nonprofit organization'' 
                        and inserting ``RC&D council'';
                    (D) in paragraph (3), by striking ``works of 
                improvement'' and all that follows and inserting 
                ``project concerned is necessary to accomplish and RC&D 
                council area plan objective;'';
                    (E) in paragraph (4), by striking ``the works of 
                improvement provided for in the'' and inserting ``the 
                project provided for in the RC&D council'';
                    (F) in paragraph (5), by inserting ``federally 
                recognized Indian tribe'' before ``or local'' each 
                place it appears; and
                    (G) in paragraph (6), by inserting ``RC&D council'' 
                before ``area plan'';
            (3) in subsection (b), by striking ``work of improvement'' 
        and inserting ``project''; and
            (4) in subsection (c), by striking ``any State, local unit 
        of government, or local nonprofit organization to carry out 
        any'' and inserting ``RC&D council to carry out any RC&D 
        council''.
    (g) Resource Conservation and Development Policy Board.--Section 
1534 of such Act (16 U.S.C. 3457) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1534. (a) The Secretary'' and inserting the 
        following:

``SEC. 1534. RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD.

    ``(a) The Secretary''; and
            (2) in subsection (b), by striking ``seven''.
    (h) Program Evaluation.--Section 1535 of such Act (16 U.S.C. 3458) 
is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1535. The Secretary'' and inserting the 
        following:

``SEC. 1535. PROGRAM EVALUATION.

    ``The Secretary'';
            (2) by inserting ``with assistance from RC&D councils'' 
        before ``provided'';
            (3) by inserting ``federally recognized Indian tribes,'' 
        before ``local units''; and
            (4) by striking ``1986'' and inserting ``2007''.
    (i) Limitation on Assistance.--Section 1536 of such Act (16 U.S.C. 
3458) is amended by striking the section heading and all that follows 
through ``Sec. 1536. The program'' and inserting the following:

``SEC. 1536. LIMITATION ON ASSISTANCE.

    ``The program''.
    (j) Supplemental Authority of the Secretary.--Section 1537 of such 
Act (16 U.S.C. 3460) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1537. The authority'' and inserting the 
        following:

``SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.

    ``The authority''; and
            (2) by striking ``States, local units of government, and 
        local nonprofit organizations'' and inserting ``RC&D 
        councils''.
    (i) Authorization of Appropriations.--Section 1538 of such Act (16 
U.S.C. 3461) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 1538. There are'' and inserting the following:

``SEC. 1538. AUTHORIZATION OF APPROPRIATIONS.

    ``There are''; and
            (2) by striking ``for each of the fiscal years 1996 through 
        2002''.

SEC. 255. GRASSLAND RESERVE PROGRAM.

    (a) In General.--Chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3830-3837f) is amended by adding at the 
end the following:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary, acting through the Natural 
Resource Conservation Service, shall establish a grassland reserve 
program (referred to in this subchapter as `the program') to assist 
owners in restoring and protecting eligible land described in 
subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) In general.--The Secretary shall enroll in the 
        program, from willing owners, not less than--
                    ``(A) 100 contiguous acres of land west of the 90th 
                meridian; or
                    ``(B) 50 contiguous acres of land east of the 90th 
                meridian.
            ``(2) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 1,000,000 acres.
            ``(3) Methods of enrollment.--The Secretary shall enroll 
        land in the program through--
                    ``(A) permanent easements or 30-year easements;
                    ``(B) in a State that imposes a maximum duration 
                for such an easement, an easement for the maximum 
                duration allowed under State law; or
                    ``(C) a 30-year rental agreement.
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that the land is--
            ``(1) natural grassland or shrubland;
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by natural grassland or 
                shrubland; and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is restored to natural grassland or shrubland; 
                or
            ``(3) land that is incidental to land described in 
        paragraph (1) or (2), if the incidental land is determined by 
        the Secretary to be necessary for the efficient administration 
        of the easement.

``SEC. 1238A. EASEMENTS AND AGREEMENTS.

    ``(a) In General.--To be eligible to enroll land in the program, 
the owner of the land shall enter into an agreement with the 
Secretary--
            ``(1) to grant an easement that runs with the land to the 
        Secretary;
            ``(2) to create and record an appropriate deed restriction 
        in accordance with applicable State law to reflect the 
        easement;
            ``(3) to provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(4) to provide proof of unencumbered title to the 
        underlying fee interest in the land that is the subject of the 
        easement; and
            ``(5) to comply with the terms of the easement and 
        restoration agreement.
    ``(b) Terms of Easement.--An easement under subsection (a) shall--
            ``(1) permit--
                    ``(A) grazing on the land in a manner that is 
                consistent with maintaining the viability of natural 
                grass and shrub species indigenous to that locality;
                    ``(B) haying (including haying for seed production) 
                or mowing, except during the nesting season for birds 
                in the area that are in significant decline, as 
                determined by the Natural Resources Conservation 
                Service State conservationist, or are protected Federal 
                or State law; and
                    ``(C) fire rehabilitation, construction of fire 
                breaks, and fences (including placement of the posts 
                necessary for fences);
            ``(2) prohibit--
                    ``(A) the production of row crops, fruit trees, 
                vineyards, or any other agricultural commodity that 
                requires breaking the soil surface; and
                    ``(B) except as permitted under paragraph (1)(C), 
                the conduct of any other activities that would disturb 
                the surface of the land covered by the easement, 
                including--
                            ``(i) plowing; and
                            ``(ii) disking; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out this subchapter or to 
        facilitate the administration of this subchapter.
    ``(c) Evaluation and Ranking of Easement Applications.--
            ``(1) In general.--The Secretary, in conjunction with State 
        technical committees, shall establish criteria to evaluate and 
        rank applications for easements under this subchapter.
            ``(2) Criteria.--In establishing the criteria, the 
        Secretary shall emphasize support for grazing operations, plant 
        and animal biodiversity, and grassland and shrubland under the 
        greatest threat of conversion.
    ``(d) Restoration Agreements.--
            ``(1) In general.--The Secretary shall prescribe the terms 
        by which grassland and shrubland subject to an easement under 
        an agreement entered into under the program shall be restored.
            ``(2) Requirements.--The restoration agreement shall 
        describe the respective duties of the owner and the Secretary 
        (including paying the Federal share of the cost of restoration 
        and the provision of technical assistance).
    ``(e) Violations.--
            ``(1) In general.--On the violation of the terms or 
        conditions of an easement or restoration agreement entered into 
        under this section--
                    ``(A) the easement shall remain in force; and
                    ``(B) the Secretary may require the owner to refund 
                all or part of any payments received by the owner under 
                this subchapter, with interest on the payments as 
                determined appropriate by the Secretary.
            ``(2) Periodic inspections.--
                    ``(A) In general.--After providing notice to the 
                owner, the Secretary shall conduct periodic inspections 
                of land subject to easements under this subchapter to 
                ensure that the terms of the easement and restoration 
                agreement are being met.
                    ``(B) Limitation.--The Secretary may not prohibit 
                the owner, or a representative of the owner, from being 
                present during a periodic inspection.

``SEC. 1238B. DUTIES OF SECRETARY.

    ``(a) In General.--In return for the granting of an easement by an 
owner under this subchapter, the Secretary shall, in accordance with 
this section--
            ``(1) make easement payments;
            ``(2) pay the Federal share of the cost of restoration; and
            ``(3) provide technical assistance to the owner.
    ``(b) Payment Schedule.--
            ``(1) Easement payments.--
                    ``(A) Amount.--In return for the granting of an 
                easement by an owner under this subchapter, the 
                Secretary shall make easement payments to the owner in 
                an amount equal to--
                            ``(i) in the case of a permanent easement, 
                        the fair market value of the land less the 
                        grazing value of the land encumbered by the 
                        easement; and
                            ``(ii) in the case of a 30-year easement or 
                        an easement for the maximum duration allowed 
                        under applicable State law, 30 percent of the 
                        fair market value of the land less the grazing 
                        value of the land for the period during which 
                        the land is encumbered by the easement.
                    ``(B) Schedule.--Easement payments may be provided 
                in not less than 1 payment nor more than 10 annual 
                payments of equal or unequal amount, as agreed to by 
                the Secretary and the owner.
            ``(2) Rental agreement payments.--
                    ``(A) Amount.--If an owner enters into a 30-year 
                rental agreement authorized under section 
                1238(b)(3)(C), the Secretary shall make 30 annual 
rental payments to the owner in an amount that equals, to the maximum 
extent practicable, the 30-year easement payment amount under paragraph 
(1)(A)(ii).
                    ``(B) Assessment.--Not less than once every 5 years 
                throughout the 30-year rental period, the Secretary 
                shall assess whether the value of the rental payments 
                under subparagraph (A) equals, to the maximum extent 
                practicable, the 30-year easement payments as of the 
                date of the assessment.
                    ``(C) Adjustment.--If on completion of the 
                assessment under subparagraph (B), the Secretary 
                determines that the rental payments do not equal, to 
                the maximum extent practicable, the value of payments 
                under a 30-year easement, the Secretary shall adjust 
                the amount of the remaining payments to equal, to the 
                maximum extent practicable, the value of a 30-year 
                easement over the entire 30-year rental period.
    ``(c) Federal Share of Cost of Restoration.--The Secretary shall 
make payments to the owner of not more than 75 percent of the cost of 
carrying out measures and practices necessary to restore grassland and 
shrubland functions and values.
    ``(d) Technical Assistance.--
            ``(1) In general.--The Secretary shall provide owners with 
        technical assistance to execute easement documents and restore 
        the grassland and shrubland.
            ``(2) Reimbursement by commodity credit corporation.--The 
        Commodity Credit Corporation shall reimburse the Secretary, 
        acting through the Natural Resources Conservation Service, for 
        not more than 10 percent of the cost of acquisition of the 
        easement and the Federal share of the cost of restoration 
        obligated for that fiscal year.
    ``(e) Payments to Others.--If an owner that is entitled to a 
payment 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 promulgated 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 the circumstances.
    ``(f) Other Payments.--Easement payments received by an owner under 
this subchapter shall be in addition to, and not affect, the total 
amount of payments that the owner is otherwise eligible to receive 
under other Federal laws.

``SEC. 1238C. ADMINISTRATION.

    ``(a) Delegation to Private Organizations.--
            ``(1) In general.--The Secretary shall permit a private 
        conservation or land trust organization or a State agency to 
        hold and enforce an easement under this subchapter, in lieu of 
        the Secretary, if--
                    ``(A) the Secretary determines that granting such 
                permission is likely to promote grassland and shrubland 
                protection; and
                    ``(B) the owner authorizes the private conservation 
                or land trust or a State agency to hold and enforce the 
                easement.
            ``(2) Application.--An organization that desires to hold an 
        easement under this subchapter shall apply to the Secretary for 
        approval.
            ``(3) Approval by secretary.--The Secretary shall approve 
        an organization under this subchapter that is constituted for 
        conservation or ranching purposes and is competent to 
        administer grassland and shrubland easements.
            ``(4) Reassignment.--If an organization holding an easement 
        on land under this subchapter terminates--
                    ``(A) the owner of the land shall reassign the 
                easement to another organization described in paragraph 
                (1) or to the Secretary; and
                    ``(B) the owner and the new organization shall 
                notify the Secretary in writing that a reassignment for 
                termination has been made.
    ``(b) Regulations.--Not later than 180 days after the date of 
enactment of this subchapter, the Secretary shall issue such 
regulations as are necessary to carry out this subchapter.''.
    (b) Funding.--Section 1241(a)(2) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)(2)) is amended by striking ``subchapter C'' and 
inserting ``subchapters C and D''.

SEC. 256. FARMLAND STEWARDSHIP PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3830-3839bb) is amended by inserting after chapter 1 (and the matter 
added by section 255 of this Act) the following:

               ``CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM

``SEC. 1238. DEFINITIONS.

    ``In this chapter:
            ``(1) Agreement.--The term `agreement' means a service 
        contract authorized by this chapter.
            ``(2) Biofuel.--
                    ``(A) In general.--The term `biofuel' means an 
                energy source derived from living organisms.
                    ``(B) Inclusions.--The term `biofuel' includes--
                            ``(i) plant residue that is harvested, 
                        dried, and burned, or further processed into a 
                        solid, liquid, or gaseous fuel;
                            ``(ii) agricultural waste (such as cereal 
                        straw, seed hulls, corn stalks and cobs);
                            ``(iii) native shrubs and herbaceous plants 
                        (such as some varieties of willows and prairie 
                        switchgrass); and
                            ``(iv) animal waste (including methane gas 
                        that is produced as a byproduct of animal 
                        waste).
            ``(3) Bioproduct.--The term `bioproduct' means a product 
        that is manufactured or produced--
                    ``(A) by using plant material and plant byproduct 
                (such as glucose, starch, and protein); and
                    ``(B) to replace a petroleum-based product, 
                additive, or activator used in the production of a 
solvent, paint, adhesive, chemical, or other product (such as tires or 
Styrofoam cups).
            ``(4) Carbon sequestration.--The term `carbon 
        sequestration' means the process of providing plant cover to 
        avoid contributing to the greenhouse effect by--
                    ``(A) removing carbon dioxide from the air; and
                    ``(B) developing a `carbon sink' to retain that 
                carbon dioxide.
            ``(5) Contracting agency.--The term `contracting agency' 
        means a local conservation district, resource conservation and 
        development council, extension service office, state-chartered 
        stewardship entity, nonprofit organization, local office of the 
        Department, or other participating government agency that is 
        authorized by the Secretary to enter into farmland stewardship 
        agreements on behalf of the Secretary.
            ``(6) Eligible agricultural land.--The term `eligible 
        agricultural land' means private land that is in primarily 
        native or natural condition, or that is classified by the 
        Secretary as cropland, pastureland, grazing land, timberland, 
        or another similar type of land, that--
                    ``(A) contains wildlife habitat, wetland, or other 
                natural resources; or
                    ``(B) provides 1 or more benefits to the public, 
                such as--
                            ``(i) conservation of soil, water, and 
                        related resources;
                            ``(ii) water quality protection or 
                        improvement;
                            ``(iii) control of invasive and exotic 
                        species;
                            ``(iv) wetland restoration, development, 
                        and protection;
                            ``(v) wildlife habitat development and 
                        protection;
                            ``(vi) survival and recovery of listed 
                        species or candidate species;
                            ``(vii) preservation of open spaces or 
                        prime, unique, or other productive farm land;
                            ``(viii) increased participation in Federal 
                        agricultural or forestry programs in an area or 
                        region that has traditional under-
                        representation in those programs;
                            ``(ix) provision of a structure for 
                        interstate cooperation to address ecosystem 
                        challenges that affect an area involving 1 or 
                        more States;
                            ``(x) improvements in the ecological 
                        integrity of the area, region or corridor;
                            ``(xi) carbon sequestration;
                            ``(xii) phytoremediation;
                            ``(xiii) improvements in the economic 
                        viability of agriculture;
                            ``(xiv) production of biofuels and 
                        bioproducts;
                            ``(xv) establishment of experimental or 
                        innovative crops;
                            ``(xvi) use of existing crops or crop 
                        byproducts in experimental or innovative ways;
                            ``(xvii) installation of equipment to 
                        produce materials that may be used for biofuels 
                        or other bioproducts;
                            ``(xviii) maintenance of experimental or 
                        innovative crops until the earlier of the date 
                        on which--
                                    ``(I) a viable market is 
                                established for those crops; or
                                    ``(II) an agreement terminates; and
                            ``(xix) other similar conservation purposes 
                        identified by the Secretary.
            ``(7) Germplasm.--The term `germplasm' means the genetic 
        material of a germ cell of any life form that is important for 
        food or agricultural production.
            ``(8) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(9) Program.--The term `program' means the farmland 
        stewardship program established by this chapter.
            ``(10) Pytoremediation.--The term `pytoremediation' means 
        the use of green living plant material (including plants that 
        may be harvested and used to produce biofuel or other 
        bioproduces) to remove contaminants from water and soil.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting--
                    ``(A) through the Natural Resources Conservation 
                Service; and
                    ``(B) in cooperation with any applicable 
                agricultural or other agencies of a State.
            ``(12) Service contract.--The term `service contract' means 
        a legally binding agreement between 2 parties under which--
                    ``(A) 1 party agrees to render 1 or more services 
                in accordance with the terms of the contract; and
                    ``(B) the second party agrees to pay the first 
                party for the each service rendered.

``SEC. 1238A. ESTABLISHMENT AND PURPOSE OF PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish within the 
        Department a program to be known as the `farmland stewardship 
        program'.
            ``(2) Purpose.--The purpose of the program shall be to 
        modify and more effectively target conservation programs 
        administered by the Secretary to the specific conservation 
        needs of, and opportunities presented by, individual parcels of 
        eligible agricultural land.
    ``(b) Relation to Other Conservation Programs.--Under the program, 
the Secretary may implement, alone or in combination, the features of--
            ``(1) any conservation program administered by the 
        Secretary; or
            ``(2) any conservation program administered by another 
        Federal agency or a State or local government, if 
        implementation by the Secretary--
                    ``(A) is feasible; and
                    ``(B) is carried out with the consent of the 
                applicable administering agency or government.
            ``(3) Conservation enhancement programs.--
                    ``(A) In general.--States, local governments, 
                Indian tribes, or any combination of those entities may 
                submit, and the Secretary may approve, a conservation 
                enhancement program that integrates 1 or more Federal 
                agriculture and forestry conservation programs and 1 or 
                more State, local, or private efforts to address, in 
                critical areas and corridors, in a manner that enhances 
                the conservation benefits of the individual programs 
                and modifies programs to more effectively address State 
                and local needs--
                            ``(i) water quality;
                            ``(ii) wildlife;
                            ``(iii) farm preservation; and
                            ``(iv) any other conservation need.
                    ``(B) Requirement.--
                            ``(i) In general.--A conservation 
                        enhancement program submitted under 
                        subparagraph (A) shall be designed to provide 
                        benefits greater than benefits that, by reason 
                        of any factor described in clause (ii), would 
                        be provided through the individual application 
                        of a conservation program administered by the 
                        Secretary.
                            ``(ii) Factors.--Factors referred to in 
                        clause (i) include--
                                    ``(I) conservation commitments of 
                                greater duration;
                                    ``(II) more intensive conservation 
                                benefits;
                                    ``(III) integrated treatment of 
                                special natural resource problems (such 
                                as preservation and enhancement of 
                                natural resource corridors); and
                                    ``(IV) improved economic viability 
                                for agriculture.
                    ``(C) Approval.--
                            ``(i) Definition of resources.--In this 
                        subparagraph, the term `resources' means, with 
                        respect to any conservation program 
                        administered by the Secretary--
                                    ``(I) acreage enrolled under the 
                                conservation program; and
                                    ``(II) funding made available to 
                                the Secretary to carry out the 
                                conservation program with respect to 
                                acreage described in subclause (I).
                            ``(ii) Determination.--If the Secretary 
                        determines that a plan submitted under 
                        subparagraph (A) meets the requirements of 
                        subparagraph (B), the Secretary, in accordance 
                        with an agreement, may use not more than 20 
                        percent of the resources of any conservation 
                        program administered by the Secretary to 
                        implement the plan.
                    ``(D) CRP acreage.--Acreage enrolled under an 
                approved conservation reserve enhancement program shall 
                be considered acreage of conservation reserve program 
                that is committed to conservation reserve enhancement 
                program.
    ``(c) Funding.--
            ``(1) In general.--The program and agreements shall be 
        funded by the Secretary using--
                    ``(A) the funding authorities of the conservation 
                programs that are implemented through the use of 
                Farmland Stewardship Agreements for the conservation 
                purposes listed in Sec. 1238(4)(A) and (B)(i through 
                x);
                    ``(B) technical assistance in accordance with Sec. 
                1243(d); and
                    ``(C) such other funds as are appropriated to carry 
                out the Farmland Stewardship Program.
            ``(2) Cost sharing.--It shall be a requirement of the 
        Farmland Stewardship Program that the majority of the funds to 
        carry out the Program must come from existing conservation 
        programs, which may be Federal, State, regional, local, or 
        private, that are combined into and made a part of an 
        agreement, with the balance made up from matching funding 
        contributions made by State, regional, or local agencies and 
        divisions of government or from private funding sources. Funds 
        from existing programs may be used only to carry out the 
        purposes and intents of those programs to the degree that those 
        programs are made a part of a Farmland Stewardship Agreement. 
        Funding for other purposes or intents must come from the funds 
        provided under paragraphs (1)(B) and (1)(C) of subsection (c) 
        or from the matching funding contributions made by State, 
        regional, or local agencies and divisions of government or from 
        private funding sources.
    ``(d) Personnel Costs.--The Secretary shall use the Natural 
Resources Conservation Service to carry out the Farmland Stewardship 
Program in cooperation with the state department of agriculture or 
other designated agency within the state. The role of the Natural 
Resources Conservation Services shall be limited to federal oversight 
of the program. The Natural Resources Conservation Service shall 
perform its normal functions with respect to the conservation programs 
that it administers. However, it shall play no role in the assembly of 
programs administered by other federal agencies into Farmland 
Stewardship Agreements.
    ``(e) State Level Administration.--The state departments of 
agriculture shall have primary responsibility for operating the 
Farmland Stewardship Program. A state department of agriculture may 
choose to operate the program on its own, may collaborate with another 
local, state or federal agency, conservation district or tribe in 
operating the program, or may delegate responsibility to another state 
agency, such as the state department of natural resources or the state 
conservation district agency. The state department of agriculture or 
designated state agency shall consult with the agencies with management 
authority and responsibility for the resources affected on properties 
on which Farmland Stewardship Agreements are negotiated and assembled.
            ``(1) A state department of agriculture shall submit an 
        application to the Secretary requesting designation as the 
        `designated state agency' to operate the Farmland Stewardship 
        Program. If the state department of agriculture chooses to 
        delegate responsibility to another state agency, the department 
        of agriculture shall ask the governor to designate another 
        agency for this purpose and that agency shall submit 
        application to the Secretary.
            ``(2) The Secretary shall approve the request for 
        designation as the `designated state agency' if the agency 
        demonstrates that it has the capability to implement the 
        Farmland Stewardship Program and attests that it shall conform 
        with the confidentiality requirements in Sec. 1238B(g). Upon 
        approval of the request, the Secretary shall enter into a 
        memorandum of understanding with the designated state agency 
        specifying the state's responsibilities in carrying out the 
        program and the amount of technical assistance funds that shall 
        be provided to the state on an annual basis to operate the 
        program, in accordance with paragraphs (1)(C), (1)(E) and 
        (1)(F) of subsection (g).
    ``(f) Annual Reports.--The designated state agency shall annually 
submit to the Secretary and make publicly available a report that 
describes--
            ``(1) The progress achieved, the funds expended, the 
        purposes for which funds were expended and monitoring and 
        evaluating results obtained by local contracting agencies, and
            ``(2) The plans and objectives of the State for future 
        activities under the program.
    ``(g) Technical Assistance.--
            ``(1) Of the funds used from other programs and of funds 
        made available to carry out the Farmland Stewardship Program 
        for a fiscal year, the Secretary shall reserve not more than 
        twenty-five percent for the provision of technical assistance 
        under the Program. Of the funds made available--
                    ``(A) not more than 1.5% shall be reserved for 
                administration, coordination and oversight through the 
                Natural Resources Conservation Service headquarters 
                office;
                    ``(B) not more than 1.5% shall be reserved for the 
                Farmland Stewardship Council to carry out its duties in 
                cooperation with the State Technical Committees, as 
                provided under section 1238E;
                    ``(C) not more than 2.0% shall be reserved for 
                administration and coordination through the designated 
                state agency in the state where the property is 
                located;
                    ``(D) not more than 1.0% shall be reserved for 
                administration and coordination through the Natural 
                Resources Conservation Service state office, in the 
                state where property is located;
                    ``(E) not more than 1.0% shall be reserved for 
                administration and coordination through the state 
                conservation district agency, unless such agency is the 
                designated state agency for administering this program, 
                in which case these funds shall be added to the funds 
                in the next paragraph; and
                    ``(F) not less than 18% shall be reserved for local 
                technical assistance, carried out through a designated 
                `contracting agency' and subcontractors chosen by and 
                working with the contracting agency for preparing and 
                executing agreements and monitoring, evaluating and 
                administering agreements for their full term.
            ``(2) An owner or operator who is receiving a benefit under 
        this chapter shall be eligible to receive technical assistance 
        in accordance with section 1243(d) to assist the owner or 
        operator in carrying out a contract entered into under this 
        chapter.
    ``(h) Ensuring Availability of Funds.--All amounts required for 
preparing, executing, carrying out, monitoring, evaluating and 
administering an agreement for its entire term shall be made available 
by the Federal, State, and local agencies and private sector entities 
involved in funding the agreement upon execution of the agreement.

``SEC. 1238B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

    ``(a) Agreements Authorized.--The Secretary shall carry out the 
Farmland Stewardship Program by entering into service contracts as 
determined by the Secretary, to be known as farmland stewardship 
agreements, with the owners or operators of eligible agricultural land 
to maintain and protect the natural and agricultural resources on the 
land.
    ``(b) Legal Basis.--An agreement shall operate in all respects as a 
service contract and, as such, provides the Secretary with the 
opportunity to hire the owner or operator of eligible agricultural land 
as a vendor to perform one or more specific services for an equitable 
fee for each service rendered. Any agency participating in the Farmland 
Stewardship Program that has the authority to enter into service 
contracts and to expend public funds under such contracts may enter 
into or participate in the funding of an agreement.
    ``(c) Basic Purposes.--An agreement with the owner or operator of 
eligible agricultural land shall be used--
            ``(1) to negotiate a mutually agreeable set of guidelines, 
        practices, and procedures under which conservation practices 
        will be provided by the owner or operator to protect, maintain, 
        and, where possible, improve, the natural resources on the land 
        covered by the agreement in return for annual payments to the 
        owner or operator;
            ``(2) to enable an owner or operator to participate in one 
        or more of the conservation programs offered through agencies 
        at all levels of government and the private sector and, where 
        possible and feasible, comply with permit requirements and 
        regulations, through a one-stop, one-application process.
            ``(3) to implement a conservation program or series of 
        programs where there is no such program or to implement 
conservation management activities where there is no such activity;
            ``(4) to expand or maintain conservation practices and 
        resource management activities to a property where it is not 
        possible at the present time to negotiate or reach agreement on 
        a public purchase of a fee-simple or less-than-fee interest in 
        the property for conservation purposes; and
            ``(5) to negotiate and develop agreements with private 
        owners and operators to expand or maintain their participation 
        in conservation activities and programs; to enable them to 
        install or maintain best management practices (BMPs) and other 
        recommended practices to improve the compatibility of 
        agriculture, horticulture, silviculture, aquaculture and equine 
        activities with the environment; and improve compliance with 
        public health, safety and environmental regulations.
    ``(d) Modification of Other Conservation Program Elements.--If 
most, but not all, of the limitations, conditions, policies and 
requirements of a conservation program that is implemented in whole, or 
in part, through the Farmland Stewardship Program are met with respect 
to a parcel of eligible agricultural land, and the purposes to be 
achieved by the agreement to be entered into for such land are 
consistent with the purposes of the conservation program, then the 
Secretary may waive any remaining limitations, conditions, policies or 
requirements of the conservation program that would otherwise prohibit 
or limit the agreement. The Secretary may also grant requests to--
            ``(1) establish different or automatic enrollment criteria 
        than otherwise established by regulation or policy;
            ``(2) establish different compensation rates to the extent 
        the parties to the agreement consider justified;
            ``(3) establish different conservation practice criteria if 
        doing so will achieve greater conservation benefits;
            ``(4) provide more streamlined and integrated paperwork 
        requirements;
            ``(5) provide for the transfer of conservation program 
        funds to states with flexible incentives accounts; and
            ``(6) provide funds for an adaptive management process to 
        monitor the effectiveness of the Program for wildlife, the 
        protection of natural resources, economic effectiveness and 
        sustaining the agricultural economy.
            ``(7) For a waiver or exception to be considered, a 
        contracting agency or the designated state agency must--
                    ``(A) Submit a request for a waiver to the 
                Secretary or Administrator who has responsibility for 
                the program for which a waiver or exception is being 
                requested. Requests for waivers or exceptions in 
                programs administered by the United States Department 
                of Agriculture shall be submitted to the Secretary of 
                Agriculture, while requests for waivers or exceptions 
                in programs administered by the United States 
                Department of Interior shall be submitted to the 
                Secretary of Interior and requests for waivers or 
                exceptions in programs administered by the United 
                States Environmental Protection Agency shall be 
                submitted to the Administrator of that Agency, and so 
                forth.
                    ``(B) The request shall--
                            ``(i) explain why the property qualifies 
                        for participation in the program;
                            ``(ii) explain why it is necessary or 
                        desirable to make an exception to or waive one 
                        or more program limitations, conditions, 
                        policies or requirements;
                            ``(iii) if possible, suggest alternative 
                        methods or approaches to satisfying these 
                        limitations, conditions, policies or 
                        requirements that are appropriate for the 
                        property in question;
                            ``(iv) request that the Secretary or 
                        Administrator grant the exception or waiver, 
                        based on the documentation submitted.
                    ``(C) The Secretary or Administrator may request 
                additional documentation, or may suggest alternative 
                methods of overcoming program limitations or obstacles 
                on the property in question, prior to deciding whether 
                or not to grant a request for an exception or waiver.
                    ``(D) Waivers and exceptions may be granted by a 
                Secretary or Administrator to allow additional 
                flexibility in tailoring conservation programs to the 
                specific needs, opportunities and challenges offered by 
                individual parcels of land, and to remove 
                administrative and regulatory obstacles that previously 
                may have limited the use of these programs on eligible 
                agricultural land, or would prevent these programs from 
                being combined together through a Farmland Stewardship 
                Agreement. Waivers and exceptions may be granted only 
                if the purposes to be achieved by the program after the 
                waiver or exception is granted remain consistent with 
                the purposes for which the program was established.
                    ``(E) The Secretaries and Administrators who 
                receive requests for waivers or exceptions under this 
                chapter shall respond to these requests within sixty 
                (60) days of receipt. Decisions on whether to grant a 
                request shall be rendered within one hundred eighty 
                (180) days of receipt.
    ``(e) Provisional Contracts.--Provisional contracts shall be used 
to provide payments to private landowners or operators, and to the 
organization or agency that will oversee the agreement, while baseline 
data is gathered, documents are prepared and the formal agreement is 
being negotiated. Provisional contracts shall pay for all technical 
services required to establish an agreement. Provisional contracts may 
be used to establish a Farmland Stewardship Agreement, or any other 
type of conservation program, permit or agreement on private land. 
Provisional contracts shall be used during a two-year planning period, 
which may be extended for up to two additional periods of six months 
each by mutual agreement between the Secretary, the contracting agency 
and the owner or operator.
    ``(f) Payments.--Payments to owners and operators shall be made as 
provided in the programs that are combined as part of a Farmland 
Stewardship Agreement. At the election of the owner or operator, 
payments may be collected and combined together by the designated state 
agency and issued to the owner or operator in equal annual payments 
over the term of the agreement. Payments for other services rendered by 
the owner or operator shall be made as follows--
            ``(1) In general.--Programs that contain term or permanent 
        easements may be combined into a Farmland Stewardship 
        Agreement. Except for portions of a property affected by 
        easements, Farmland Stewardship Agreements shall provide no 
        interest in property and shall be solely contracts for specific 
        services. The fees paid shall be based on the services 
        provided. Compensation shall include--
                    ``(A) Annual base payment.--All owners or operators 
                enrolled in a Farmland Stewardship Agreement shall 
                receive an annual base payment, at a rate to be 
                determined by the Secretary. The annual base payment 
                shall be considered by the Secretary to be satisfied if 
                the owner or operator receives annual payments from 
                another conservation program that has been incorporated 
                into the Farmland Stewardship Agreement. In addition, 
                owners and operators shall receive--
                    ``(B) Direct fees for services.--These fees shall 
                be based on the cost of providing each service. These 
                fees may be set by adopting private sector market 
                prices for the performance of similar services or by 
                competitive bidding. Or, alternatively--
                    ``(C) Annual per-acre stewardship fees.--These fees 
                shall be based on the services provided, or the 
                quantity of benefits provided, with higher fees for 
                greater benefits that can be quantified. Such values 
                shall be determined and set by the Secretary. Or, 
                alternatively--
                    ``(D) Other incentives.--Other forms of 
                compensation acceptable to an owner or operator also 
                may be considered. These other forms of compensation 
                may include federal, state or local tax waivers, 
                credits, reductions or exclusions; priority processing 
                of permits from state and local agencies; consolidation 
                of permits from state and local agencies into a single 
                operating plan; extended-duration permits from state 
                and local agencies; enhanced eligibility and priority 
                listing for participation in cost-share programs, loan 
                programs, conservation programs and permanent 
                conservation easement or public purchase programs; and 
                priority access to technical assistance services 
                provided by federal and, where possible, local, 
                regional and state agencies.
    ``(g) Confidentiality of Data.--All information or data provided 
to, obtained by or developed by the Secretary, or any contractor to the 
Secretary or the designated state agency, for the purpose of providing 
technical or financial assistance to owners or operators in connection 
with the United States Department of Agriculture's conservation 
programs, or in connection with the Farmland Stewardship Program, shall 
be--
            ``(1) Kept confidential by all officers and employees of 
        the Department and the designated state agency;
            ``(2) Not released, disclosed, made public or in any manner 
        communicated to any agency, state or person outside the 
        Department and the designated state agency; and
            ``(3) Not subject to any other law that would require the 
        information or data to be released, disclosed, made public or 
        in any way communicated to any agency, state or person outside 
        the Department and designated state agency.
            ``(4) Any information or data related to an individual farm 
        owner or operator may be reported only in an anonymous, 
        aggregated form as currently provided under the Department's 
        National Agricultural Statistic Services.
    ``(h) State and Local Conservation Priorities.--To the maximum 
extent practicable, agreements shall address the conservation 
priorities established by the State and locality in which the eligible 
agricultural land are located. The Secretary may adopt for this purpose 
a pre-existing state or regional conservation plan or strategy that 
maps economically and ecologically important land, including a plan 
developed pursuant to planning requirements under Title VIII of the 
2001 Interior Appropriations Act and Title IX of the 2001 Commerce, 
Justice, State Appropriations Act.
    ``(i) Watershed Enhancement.--To the extent practicable, the 
Secretary shall encourage the development of Farmland Stewardship 
Program applications on a watershed basis.

``SEC. 1238C. PARTNERSHIP APPROACH TO PROGRAM.

    ``(a) Authority of Secretary Exercised Through Partnerships.--The 
Secretary may administer agreements under the Farmland Stewardship 
Program in partnership with other Federal, State, and local agencies 
whose programs are incorporated into the Program under section 1238A, 
and in partnership with state departments of agriculture or other 
designated state agencies.
    ``(b) Designation and Use of Contracting Agencies.--Subject to 
subsection (c), the Secretary may authorize a local conservation 
district, resource conservation and development council, extension 
service office, state-chartered stewardship entity, nonprofit 
organization, local office of the Department of Agriculture, or other 
participating government agency to enter into and administer agreements 
under the Program as a contracting agency on behalf of the Secretary.
    ``(c) Conditions of Designation.--The Secretary may designate an 
eligible district or office as a contracting agency under subsection 
(b) only if the district or office--
            ``(1) submits a written request for such designation to the 
        Secretary;
            ``(2) affirms that it is willing to follow all guidelines 
        for executing and administering an agreement, as promulgated by 
        the Secretary;
            ``(3) demonstrates to the satisfaction of the Secretary 
        that it has established working relationships with owners and 
        operators of eligible agricultural land, and based on the 
        history of these working relationships, demonstrates that it 
        has the ability to work with owners and operators of eligible 
        agricultural land in a cooperative manner;
            ``(4) affirms its responsibility for preparing all 
        documentation for the agreement, negotiating its terms with an 
        owner or operator, monitoring compliance, making annual reports 
        to the Secretary, and administering the agreement throughout 
        its full term; and
            ``(5) demonstrates to the satisfaction of the Secretary 
        that it has or will have the necessary staff resources and 
        expertise to carry out its responsibilities under paragraphs 
        (3) and (4).
    ``(d) Delegation of Responsibility.--The Secretary may delegate 
responsibility for reviewing and approving applications from local 
contracting agencies to the state department of agriculture or other 
designated state agency in the state in which the property is located, 
provided that the designated agency follows the criteria for reviewing 
and approving applications as established by the Secretary and consults 
with the agencies with management authority and responsibility for the 
resources affected on properties on which Farmland Stewardship 
Agreements are negotiated and assembled.

``SEC. 1238D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE 
              AGRICULTURAL LAND.

    ``(a) Application and Approval Process.--To participate in the 
Farmland Stewardship Program, an owner or operator of eligible 
agricultural land shall--
            ``(1) submit to the Secretary an application indicating 
        interest in the Program and describing the owner's or 
        operator's property, its resources, and their ecological and 
        agricultural values;
            ``(2) submit to the Secretary the purpose and objectives of 
        the proposed agreement and a list of services to be provided, 
        or a management plan to be implemented, or both, under the 
        proposed agreement;
            ``(3) if the application and list are accepted by the 
        Secretary, enter into an agreement that details the purpose and 
        objectives of the agreement and the services to be provided, or 
        management plan to be implemented, or both, and requires 
        compliance with the other terms of the agreement.
    ``(b) Application on Behalf of an Owner or Operator.--A designated 
contracting agency may submit the application required by subsection 
(a) on behalf of an owner or operator if the contracting agency has 
secured the consent of the owner or operator to enter into an 
agreement.
    ``(c) Delegation of Responsibility.--The Secretary may delegate 
responsibility for reviewing and approving applications from or on 
behalf of an owner or operator to the state department of agriculture 
or other designated agency in the state in which the property is 
located, provided that the designated agency follows the criteria for 
reviewing and approving applications as established by the Secretary 
and consults with the agencies with management authority and 
responsibility for the resources affected on properties on which 
Farmland Stewardship Agreements are negotiated and assembled.

``SEC. 1238E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL REGARDING 
              PROGRAM.

    ``(a) Appointment.--The Secretary shall appoint an advisory 
committee to assist the Secretary in carrying out the Farmland 
Stewardship Program.
    ``(b) In General.--The Committee shall be known as the Farmland 
Stewardship Council and shall operate on the federal level in the same 
manner, with the same roles and responsibilities and the same 
membership requirements as provided in the policies and guidelines 
governing State Technical Committees in Subpart B of Part 501 of the 
United States Department of Agriculture's directives to the Natural 
Resources Conservation Service regarding Conservation Program Delivery.
    ``(c) Duties.--The Farmland Stewardship Council shall cooperate in 
all respects with the State Technical Committees and Resource Advisory 
Committees in each state. In addition to the roles and responsibilities 
set forth for these committees, the Farmland Stewardship Council shall 
assist the Secretary in--
            ``(1) drafting such regulations as are necessary to carry 
        out the Program;
            ``(2) developing the documents necessary for executing 
        farmland stewardship agreements;
            ``(3) developing procedures and guidelines to facilitate 
        partnerships with other levels of government and nonprofit 
        organizations and assist contracting agencies in gathering data 
        and negotiating agreements;
            ``(4) designing criteria to consider applications submitted 
        under sections 1238C and 1238D;
            ``(5) providing assistance and training to designated state 
        agencies, project partners and contracting agencies;
            ``(6) assisting designated state agencies, project partners 
        and contracting agencies in combining together other 
        conservation programs into agreements;
            ``(7) tailoring the agreements to each individual property;
            ``(8) developing agreements that are highly flexible and 
        can be used to respond to and fit in with the conservation 
        needs and opportunities on any property in the United States;
            ``(9) developing a methodology for determining a fair 
        market price in each state for each service rendered by a 
        private owner or operator under a Farmland Stewardship 
        Agreement;
            ``(10) developing guidelines for administering the Farmland 
        Stewardship Program on a national basis that respond to the 
        conservation needs and opportunities in each state and in each 
        rural community in which Farmland Stewardship Agreements may be 
        implemented;
            ``(11) monitoring progress under the agreements; and
            ``(12) reviewing and recommending possible modifications, 
        additions, adaptations, improvements, enhancements, or other 
        changes to the Program to improve the way in which the program 
        operates.
    ``(d) Membership.--The Farmland Stewardship Council shall have the 
same membership requirements as the State Technical Committees, except 
that C
            ``(1) All participating members must have offices located 
        in the Washington, D.C. metropolitan area;
            ``(2) The list of members representing `Federal Agencies 
        and Other Groups Required by Law' shall be expanded to include 
        all federal agencies whose programs might be included in 
        Farmland Stewardship Program;
            ``(3) State agency representation shall be provided by the 
        organizations located in the Washington, D.C. metropolitan area 
        representing state agencies and shall include individuals from 
        organizations representing wetland managers, environmental 
        councils, fish and wildlife agencies, counties, resource and 
        conservation development councils, state conservation agencies, 
        state departments of agriculture, state foresters, and 
        governors; and
            ``(4) Private Interest Membership shall be comprised of 21 
        members representing the principal agricultural commodity 
        groups, farm organizations, national forestry associations, 
        woodland owners, conservation districts, rural stewardship 
        organizations, and up to a maximum of six (6) conservation and 
        environment organizations, including organizations with an 
        emphasis on wildlife, rangeland management and soil and water 
        conservation.
            ``(5) The Secretary shall appoint one of the Private 
        Interest Members to serve as chair. The Private Interest 
        Members shall appoint another member to serve as co-chair.
            ``(6) The Secretary shall follow equal opportunity 
        practices in making appointments to the Farmland Stewardship 
        Council. To ensure that recommendations of the Council take 
        into account the needs of the diverse groups served by the 
        United States Department of Agriculture, membership will 
        include, to the extent practicable, individuals with 
        demonstrated ability to represent minorities, women, and 
        persons with disabilities.
    ``(e) Personnel Costs.--The technical assistance funds designated 
in Sec. 1238A(g)(1)(B) may be used to provide staff positions and 
support for the Farmland Stewardship Council to--
            ``(1) carry out its duties as provided in subsection (c);
            ``(2) ensure communication and coordination with all 
        federal agencies, state organizations and Private Interest 
        Members on the council, and the constituencies represented by 
        these agencies, organizations and members;
            ``(3) ensure communication and coordination with the State 
        Technical Committees and Resource Advisory Committees in each 
        state;
            ``(4) solicit input from agricultural producers and owners 
        and operators of private forestry operations and woodland 
        through the organizations represented on the council and other 
        organizations, as necessary; and
            ``(5) take into consideration the needs and interests of 
        producers of different agricultural commodities and forest 
        products in different regions of the nation.
            ``(6) Representatives of federal agencies and state 
        organizations shall serve without additional compensation, 
        except for reimbursement of travel expenses and per diem costs 
        which are incurred as a result of their Council 
        responsibilities and service.
            ``(7) Payments may be made to the organizations serving as 
        Private Interest Members for the purposes of providing staff 
        and support to carry out paragraphs (1) through (5). The 
        amounts and duration of these payments and the number of staff 
        positions to be created within Private Interest Member 
        organizations to carry out these duties shall be determined by 
        the Secretary.
    ``(f) Reports.--The Farmland Stewardship Council shall annually 
submit to the Secretary and make publicly available a report that 
describes--
            ``(1) The progress achieved, the funds expended, the 
        purposes for which funds were expended and results obtained by 
        the council; and
            ``(2) The plans and objectives for future activities.
    ``(g) Termination.--The Farmland Stewardship Council shall remain 
in force for as long as the Secretary administers the Farmland 
Stewardship Program, except that the council will terminate in 2011 
unless renewed by Congress in the next Farm Bill.

``SEC. 1238F. STATE BLOCK GRANT PROGRAM.

    ``(a) In General.--The Secretary of Agriculture may provide 
agricultural stewardship block grants on an annual basis to state 
departments of agriculture as a means of providing assistance and 
support, cost-share payments, incentive payments, technical assistance 
or education to agricultural producers and owners and operators of 
agriculture, silviculture, aquaculture, horticulture or equine 
operations for environmental enhancements, best management practices, 
or air and water quality improvements addressing resource concerns. 
Under the block grant program, states shall have maximum flexibility 
to--
            ``(1) Address threats to soil, air, water and related 
        natural resources including grazing land, wetland and wildlife 
        habitats;
            ``(2) Comply with state and federal environmental laws;
            ``(3) Make beneficial, cost-effective changes to cropping 
        systems; grazing management; nutrient, pest, or irrigation 
        management; land uses; or other measures needed to conserve and 
        improve soil, water, and related natural resources; and
            ``(4) Implement other practices or obtain other services to 
        benefit the public through Farmland Stewardship Agreements.
    ``(b) Program Application.--A state department of agriculture, in 
collaboration with other state and local agencies, conservation 
districts, tribes, partners or organizations, may submit an application 
to the Secretary requesting approval for an agricultural stewardship 
block grant program. The Secretary shall approve the grant request if 
the program proposed by the state maintains or improves the state's 
natural resources, and the state has the capability to implement the 
agricultural stewardship program. Upon approval of a stewardship 
program submitted by a state department of agriculture, the Secretary 
shall--
            ``(1) Allocate funds to the state for administration of the 
        program, and
            ``(2) Enter into a memorandum of understanding with the 
        state department of agriculture specifying the state's 
        responsibilities in carrying out the program and the amount of 
        the block grant that shall be provided to the state on an 
        annual basis.
    ``(c) Participation.--A state department of agriculture may choose 
to operate the block grant program, may collaborate with another local, 
state or federal agency, conservation district or tribe in operating 
the program, or may delegate responsibility for the program to another 
local, state or federal agency, such as the state office of the United 
States Department of Agriculture, Natural Resources Conservation 
Service, or the state conservation district agency.
    ``(d) Coordination.--A state department of agriculture may 
establish an agricultural stewardship planning committee, or other 
advisory body, or expand the authority of an existing body, to design, 
develop and implement the state's agricultural stewardship block grant 
program. Such planning committee or advisory committee shall cooperate 
fully with the Farmland Stewardship Council established in Sec. 1238E 
and the State Technical Committee and Resource Advisory Committee in 
the state.
    ``(e) Delivery.--The state department of agriculture, or other 
designated agency, shall administer the stewardship block grants 
through existing delivery systems, infrastructure or processes, 
including contracts, cooperative agreements, and grants with local, 
state and federal agencies that address resource concerns and were 
prioritized and developed in cooperation with locally-led advisory 
groups.
    ``(f) Strategic Plans.--The state department of agriculture may 
collaborate with a local advisory or planning committee to develop a 
state strategic plan for the enhancement and protection of land, air, 
water and wildlife through resource planning. The state strategic plan 
shall be submitted to the Secretary annually in a report on the 
implementation of projects, activities, and other measures under the 
block grant program. In general, state strategic plans shall include--
            ``(1) A description of goals and objectives, including 
        outcome-related goals for designated program activities;
            ``(2) A description of how the goals and objectives are to 
        be achieved, including a description of the operational 
        processes, skills and technologies, and the human capital, 
        information and other resources required to meet the goals and 
        objectives;
            ``(3) A description of performance indicators to be used in 
        measuring or assessing the relevant output service levels and 
        outcomes of the program activities; and
            ``(4) A description of the program evaluation to be used in 
        comparing actual results with established goals and objectives.
    ``(g) Annual Reports.--The state department of agriculture shall 
annually submit to the Secretary and make publicly available a report 
that describes--
            ``(1) The progress achieved, the funds expended, the 
        purposes for which funds were expended and monitoring results 
        obtained by the agricultural stewardship planning committee or 
        local advisory group, where applicable; and
            ``(2) The plans and objectives of the State for future 
        activities under the program.
    ``(h) Coordination With Federal Agencies.--To the maximum extent 
possible, the Secretary shall coordinate with other federal departments 
and agencies to acknowledge and ensure that the block grant program is 
consistent with and is meeting the needs and desired public benefits of 
other federal programs on a state-by-state basis.
    ``(i) Payments.--The agricultural stewardship program may be used 
as a means of providing compensation to owners and operators for 
implementing on-farm practices that enhance environmental goals. The 
type of financial assistance may be in the form of cost-share payments, 
incentive payments or Farmland Stewardship Agreements, as determined by 
guidelines established by the state department of agriculture and the 
agricultural stewardship planning committee.
    ``(j) Program Expenditures.--States shall have flexibility to 
target resources where needed, including the ability to allocate 
dollars between payments to owners and operators or technical 
assistance based upon needs and priorities.
    ``(k) Method of Payment.--A state department of agriculture may 
collaborate with the agricultural stewardship planning committee or 
other local advisory group to determine payment levels and methods for 
individual program activities and projects, including any conditions, 
limitations or restrictions. Payments may be made--
            ``(1) To compensate for a verifiable or measurable loss;
            ``(2) Under a binding agreement providing for payments to 
        carry out specific activities, measures, practices or services 
        prioritized by the state department of agriculture, the 
        agricultural stewardship planning committee or a local advisory 
        board; or
            ``(3) To fund portions of projects and measures to 
        complement other federal programs, including the Conservation 
        Reserve Program, the Environmental Quality Incentives Program, 
        the Wetlands Reserve Program, the Forestry Incentives Program, 
        the Farmland Protection Program, and the Wildlife Habitat 
        Incentives Program.''.

SEC. 257. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14(h) of the Watershed Protection and Flood Prevention Act 
(16 U.S.C. 1012(h)) is amended--
            (1) by adding ``and'' at the end of paragraph (1); and
            (2) by striking all that follows paragraph (1) and 
        inserting the following:
            ``(2) $15,000,000 for fiscal year 2002 and each succeeding 
        fiscal year.''.

SEC. 258. PROVISION OF ASSISTANCE FOR REPAUPO CREEK TIDE GATE AND DIKE 
              RESTORATION PROJECT, NEW JERSEY.

    Notwithstanding section 403 of the Agricultural Credit Act of 1978 
(16 U.S.C. 2203), the Secretary of Agriculture, acting through the 
Natural Resources Conservation Service, shall provide assistance for 
planning and implementation of the Repaupo Creek Tide Gate and Dike 
Restoration Project in the State of New Jersey.

SEC. 259. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    Section 1256 of the Food Security Act of 1985 (16 U.S.C. 2101 note) 
is amended to read as follows:

``SEC. 1256. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    ``(a) In General.--The Secretary shall establish a national 
grassroots water protection program to more effectively use onsite 
technical assistance capabilities of each State rural water association 
that, as of the date of enactment of the Farm Security Act of 2001, 
operates a wellhead or groundwater protection program in the State.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each fiscal 
year.''.

                          Subtitle G--Repeals

SEC. 261. PROVISIONS OF THE FOOD SECURITY ACT OF 1985.

    (a) Wetlands Mitigation Banking Program.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking subsection 
(k).
    (b) Conservation Reserve Program.--
            (1) Repeals.--(A) Section 1234(f) of such Act (16 U.S.C. 
        3834(f)) is amended by striking paragraph (3) and by 
        redesignating paragraph (4) as paragraph (3).
            (B) Section 1236 of such Act (16 U.S.C. 3836) is repealed.
            (2) Conforming amendments.--(A) Section 1232(a)(5) of such 
        Act (16 U.S.C. 3832(a)(5)) is amended by striking ``in addition 
        to the remedies provided under section 1236(d),''.
            (B) Section 1234(d)(4) of such Act (16 U.S.C. 3834(d)(4)) 
        is amended by striking ``subsection (f)(4)'' and inserting 
        ``subsection (f)(3)''.
    (c) Wetlands Reserve Program.--Section 1237D(c) of such Act (16 
U.S.C. 3837d(c)) is amended by striking paragraph (3).
    (d) Environmental Easement Program.--
            (1) Repeal.--Chapter 3 of subtitle D of title XII of such 
        Act (16 U.S.C. 3839-3839d) is repealed.
            (2) Conforming amendment.--Section 1243(b)(3) of such Act 
        (16 U.S.C. 3843(b)(3)) is amended by striking ``or 3''.
    (e) Conservation Farm Option.--Chapter 5 of subtitle D of title XII 
of such Act (16 U.S.C. 3839bb) is repealed.

SEC. 262. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION ACT.

    Subtitle F of title III of the Federal Agriculture Improvement and 
Reform Act of 1996 (16 U.S.C. 5801-5809) is repealed.

                            TITLE III--TRADE

SEC. 301. MARKET ACCESS PROGRAM.

    Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5641(c)(1)) is amended--
            (1) by striking ``and not more'' and inserting ``not 
        more'';
            (2) by inserting ``and not more than $180,000,000 for each 
        of fiscal years 2002 through 2011,'' after ``2002,''; and
            (3) by striking ``2002'' and inserting ``2001''.

SEC. 302. FOOD FOR PROGRESS.

    (a) In General.--Subsections (f)(3), (g), (k), and (l)(1) of 
section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) are each 
amended by striking ``2002'' and inserting ``2011''.
    (b) Increase in Funding.--Section 1110(l)(1) of the Food Security 
Act of 1985 (7 U.S.C. 1736o(l)(1)) is amended--
            (1) by striking ``2002'' and inserting ``2011''; and
            (2) by striking ``$10,000,000'' and inserting 
        ``$15,000,000.
    (c) Exclusion From Limitation.--Section 1110(e)(2) of the Food 
Security Act of 1985 (7 U.S.C. 1736o(e)(2)) is amended by inserting ``, 
and subsection (g) does not apply to such commodities furnished on a 
grant basis or on credit terms under title I of the Agricultural Trade 
Development Act of 1954'' before the final period.
    (d) Transportation Costs.--Section 1110(f)(3) of the Food Security 
Act of 1985 (7 U.S.C. 1736o(f)(3)) is amended by striking 
``$30,000,000'' and inserting ``$100,000,000''.
    (e) Amounts of Commodities.--Section 1110(g) of the Food Security 
Act of 1985 (7 U.S.C. 1736o(g)) is amended by striking ``500,000'' and 
inserting ``1,000,000''.
    (f) Multiyear Basis.--Section 1110(j) of the Food Security Act of 
1985 (7 U.S.C. 1736o(j)) is amended--
            (1) by striking ``may'' and inserting ``is encouraged''; 
        and
            (2) by inserting ``to'' before ``approve''.
    (g) Monetization.--Section 1110(l)(3) of the Food Security Act of 
1985 (7 U.S.C. 1736o(l)(3)) is amended by striking ``local currencies'' 
and inserting ``proceeds''.
    (h) New Provisions.--Section 1110 of the Food Security Act of 1985 
(7 U.S.C. 1736o) is amended by adding at the end the following:
    ``(p) The Secretary is encouraged to finalize program agreements 
and resource requests for programs under this section before the 
beginning of the relevant fiscal year. By November 1 of the relevant 
fiscal year, the Secretary shall provide to the Committee on 
Agriculture and the Committee on International Relations of the House 
of Representatives, and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a list of approved programs, countries, and 
commodities, and the total amounts of funds approved for transportation 
and administrative costs, under this section.''.

SEC. 303. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.

    (a) Use of Currencies.--Section 416(b)(7)(D) of the Agricultural 
Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
            (1) in clauses (i) and (iii), by striking ``foreign 
        currency'' each place it appears;
            (2) in clause (ii)--
                    (A) by striking ``Foreign currencies'' and 
                inserting ``Proceeds''; and
                    (B) by striking ``foreign currency''; and
            (3) in clause (iv)--
                    (A) by striking ``Foreign currency proceeds'' and 
                inserting ``Proceeds'';
                    (B) by striking ``country of origin'' the second 
                place it appears and all that follows through ``as 
                necessary to expedite'' and inserting ``country of 
                origin as necessary to expedite'';
                    (C) by striking ``; or'' and inserting a period; 
                and
                    (D) by striking subclause (II).
    (b) Implementation of Agreements.--Section 416(b)(8)(A) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)(A)) is amended--
            (1) by inserting ``(i)'' after ``(A)''; and
            (2) by adding at the end the following new clauses:
    ``(ii) The Secretary shall publish in the Federal Register, not 
later than October 31 of each fiscal year, an estimate of the 
commodities that shall be available under this section for that fiscal 
year.
    ``(iii) The Secretary is encouraged to finalize program agreements 
under this section not later than December 31 of each fiscal year.''.

SEC. 304. EXPORT ENHANCEMENT PROGRAM.

    Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5651(e)(1)(G)) is amended by inserting ``and for each fiscal 
year thereafter through fiscal year 2011'' after ``2002''.

SEC. 305. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) In General.--Section 703 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5723) is amended--
            (1) by inserting ``(a) Prior Years.--'' before ``There'';
            (2) by striking ``2002'' and inserting ``2001''; and
            (3) by adding at the end the following new subsection:
    ``(b) Fiscal 2002 and Later.--For each of fiscal years 2002 through 
2011 there are authorized to be appropriated such sums as may be 
necessary to carry out this title, and, in addition to any sums so 
appropriated, the Secretary shall use $37,000,000 of the funds of, or 
an equal value of the commodities of, the Commodity Credit Corporation 
to carry out this title.''.
    (b) Value Added Products.--
            (1) In general.--Section 702(a) of the Agricultural Trade 
        Act of 1978 (7 U.S.C. 5721 et seq.) is amended by inserting ``, 
        with a significant emphasis on the importance of the export of 
        value-added United States agricultural products into emerging 
        markets'' after ``products''.
            (2) Report to congress.--Section 702 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at the 
        end the following:
    ``(c) Report to Congress.--
            ``(1) In general.--The Secretary shall report annually to 
        appropriate congressional committees the amount of funding 
        provided, types of programs funded, the value added products 
        that have been targeted, and the foreign markets for those 
        products that have been developed.
            ``(2) Definition.--In this subsection, the term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Agriculture and the 
                Committee on International Relations of the House of 
                Representatives; and
                    ``(B) the Committee on Agriculture, Nutrition, and 
                Forestry and the Committee on Foreign Relations of the 
                Senate.''.

SEC. 306. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Reauthorization.--Section 211(b)(1) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking ``2002'' and 
inserting ``2011''.
    (b) Processed and High Value Products.--Section 202(k)(1) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is amended by 
striking ``, 2001, and 2002'' and inserting ``through 2011''.

SEC. 307. FOOD FOR PEACE (PUBLIC LAW 480).

    The Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1691 et seq.) is amended--
            (1) in section 2 (7 U.S.C. 1691), by striking paragraph (2) 
        and inserting the following:
            ``(2) promote broad-based, equitable, and sustainable 
        development, including agricultural development as well as 
        conflict prevention;'';
            (2) in section 202(e)(1) (7 U.S.C. 1722(e)(1)), by striking 
        ``not less than $10,000,000, and not more than $28,000,000'' 
        and inserting ``not less than 5 percent and not more than 10 
        percent of such funds'';
            (3) in section 203(a) (7 U.S.C. 1723(a)), by striking ``the 
        recipient country, or in a country'' and inserting ``one or 
        more recipient countries, or one or more countries'';
            (4) in section 203(c) (7 U.S.C. 1723(c))--
                    (A) by striking ``foreign currency''; and
                    (B) by striking ``the recipient country, or in a 
                country'' and inserting ``one or more recipient 
                countries, or one or more countries'';
            (5) in section 203(d) (7 U.S.C. 1723(d))--
                    (A) by striking ``Foreign currencies'' and 
                inserting ``Proceeds'';
                    (B) in paragraph (2)--
                            (i) by striking ``income generating'' and 
                        inserting ``income-generating''; and
                            (ii) by striking ``the recipient country or 
                        within a country'' and inserting ``one or more 
                        recipient countries, or one or more 
                        countries''; and
                    (C) in paragraph (3), by inserting a comma after 
                ``invested'' and ``used'';
            (6) in section 204(a) (7 U.S.C. 1724(a))--
                    (A) by striking ``1996 through 2002'' and inserting 
                ``2002 through 2011''; and
                    (B) by striking ``2,025,000'' and inserting 
                ``2,250,000'';
            (7) in section 205(f) (7 U.S.C. 1725(f)), by striking 
        ``2002'' and inserting ``2011'';
            (8) by striking section 206 (7 U.S.C. 1726);
            (9) in section 207(a) (7 U.S.C. 1726a(a))--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) Recipient countries.--A proposal to enter into a non-
        emergency food assistance agreement under this title shall 
        identify the recipient country or countries subject to the 
        agreement.
            ``(2) Time for decision.--Not later than 120 days after 
        receipt by the Administrator of a proposal submitted by an 
        eligible organization under this title, the Administrator shall 
        make a decision concerning such proposal.'';
            (10) in section 208(f), by striking ``2002'' and inserting 
        ``2011'';
            (11) in section 403 (7 U.S.C. 1733), by inserting after 
        subsection (k) the following:
    ``(l) Sales Procedures.--Subsections (b) and (h) shall apply to 
sales of commodities to generate proceeds for titles II and III of this 
Act, section 416(b) of the Agricultural Act of 1949, and section 1110 
of the Food and Security Act of 1985. Such sales transactions may be in 
United States dollars and other currencies.
    ``(m) Regulations and Guidance.--As soon as practicable after the 
date of enactment of this subsection, the Administrator of the Agency 
for International Development and the Secretary shall jointly modify 
regulations and guidance of the Administrator and Secretary relating to 
private voluntary organizations and cooperatives to--
            ``(1) reflect performance-based standards;
            ``(2) eliminate micromanagement; and
            ``(3) recognize institutional capabilities and best 
        practices.'';
            (12) in section 407(c)(4), by striking ``2001 and 2002'' 
        and inserting ``2001 through 2011'';
            (13) in section 407(c)(1) (7 U.S.C. 1736a(c)(1))--
                    (A) by striking ``The Administrator'' and inserting 
                ``(A) The Administrator''; and
                    (B) by adding at the end the following:
            ``(B) In the case of commodities made available for 
        nonemergency assistance under title II for least developed 
        countries that meet the poverty and other eligibility criteria 
        established by the International Bank for Reconstruction and 
        Development for financing under the International Development 
        Association, the Administrator may pay the transportation costs 
        incurred in moving the commodities from designated points of 
        entry or ports of entry abroad to storage and distribution 
        sites and associated storage and distribution costs.''.
            (14) in section 408, by striking ``2002'' and inserting 
        ``2011''; and
            (15) in section 501(c), by striking ``2002'' and inserting 
        ``2011''.

SEC. 308. EMERGING MARKETS.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note) is amended--
            (1) in subsections (a) and (d)(1)(A)(i), by striking 
        ``2002'' and inserting ``2011''; and
            (2) in subsection (d)(1)(H), by striking ``$10,000,000 in 
        any fiscal year'' and inserting ``$13,000,000 for each of 
        fiscal years 2002 through 2011''.

SEC. 309. BILL EMERSON HUMANITARIAN TRUST.

    Subsections (b)(2)(B)(i), (h)(1), and (h)(2) of section 302 of the 
Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) are each amended 
by striking ``2002'' and inserting ``2011''.

SEC. 310. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) Establishment.--The Secretary of Agriculture shall establish an 
export assistance program (referred to in this section as the 
``program'') to address unique barriers that prohibit or threaten the 
export of United States specialty crops.
    (b) Purpose.--The program shall provide direct assistance through 
public and private sector projects and technical assistance to remove, 
resolve, or mitigate sanitary and phytosanitary and related barriers to 
trade.
    (c) Priority.--The program shall address time sensitive and 
strategic market access projects based on--
            (1) trade effect on market retention, market access, and 
        market expansion; and
            (2) trade impact.
    (d) Funding.--The Secretary shall make available $3,000,000 for 
each of fiscal years 2002 through 2011 of the funds of, or an equal 
value of commodities owned by, the Commodity Credit Corporation.

SEC. 311. FARMERS FOR AFRICA AND CARIBBEAN BASIN PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) Many African farmers and farmers in Caribbean Basin 
        countries use antiquated techniques to produce their crops, 
        which result in poor crop quality and low crop yields.
            (2) Many of these farmers are losing business to farmers in 
        European and Asian countries who use advanced planting and 
        production techniques and are supplying agricultural produce to 
        restaurants, resorts, tourists, grocery stores, and other 
        consumers in Africa and Caribbean Basin countries.
            (3) A need exists for the training of African farmers and 
        farmers in Caribbean Basin countries and other developing 
        countries in farming techniques that are appropriate for the 
        majority of eligible farmers in African or Caribbean countries, 
        including standard growing practices, insecticide and 
        sanitation procedures, and other farming methods that 
will produce increased yields of more nutritious and healthful crops.
            (4) African-American and other American farmers, as well as 
        banking and insurance professionals, are a ready source of 
        agribusiness expertise that would be invaluable for African 
        farmers and farmers in Caribbean Basin countries.
            (5) A United States commitment is appropriate to support 
        the development of a comprehensive agricultural skills training 
        program for these farmers that focuses on--
                    (A) improving knowledge of insecticide and 
                sanitation procedures to prevent crop destruction;
                    (B) teaching modern farming techniques, including 
                the identification and development of standard growing 
                practices and the establishment of systems for 
                recordkeeping, that would facilitate a continual 
                analysis of crop production;
                    (C) the use and maintenance of farming equipment 
                that is appropriate for the majority of eligible 
                farmers in African or Caribbean Basin countries;
                    (D) expansion of small farming operations into 
                agribusiness enterprises through the development and 
                use of village banking systems and the use of 
                agricultural risk insurance pilot products, resulting 
                in increased access to credit for these farmers; and
                    (E) marketing crop yields to prospective purchasers 
                (businesses and individuals) for local needs and 
                export.
            (6) The participation of African-American and other 
        American farmers and American agricultural farming specialists 
        in such a training program promises the added benefit of 
        improving access to African and Caribbean Basin markets for 
        American farmers and United States farm equipment and products 
        and business linkages for United States insurance providers 
        offering technical assistance on, among other things, 
        agricultural risk insurance products.
            (7) Existing programs that promote the exchange of 
        agricultural knowledge and expertise through the exchange of 
        American and foreign farmers have been effective in promoting 
        improved agricultural techniques and food security, and, thus, 
        the extension of additional resources to such farmer-to- farmer 
        exchanges is warranted.
    (b) Definitions.--In this section:
            (1) Agricultural farming specialist.--The term 
        ``agricultural farming specialist'' means an individual trained 
        to transfer information and technical support relating to 
        agribusiness, food security, the mitigation and alleviation of 
        hunger, the mitigation of agricultural and farm risk, 
        maximization of crop yields, agricultural trade, and other 
        needs specific to a geographical location as determined by the 
        President.
            (2) Caribbean basin country.--The term ``Caribbean Basin 
        country'' means a country eligible for designation as a 
        beneficiary country under section 212 of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2702).
            (3) Eligible farmer.--The term ``eligible farmer'' means an 
        individual owning or working on farm land (as defined by a 
        particular country's laws relating to property) in the sub-
        Saharan region of the continent of Africa, in a Caribbean Basin 
        country, or in any other developing country in which the 
        President determines there is a need for farming expertise or 
        for information or technical support described in paragraph 
        (1).
            (4) Program.--The term ``Program'' means the Farmers for 
        Africa and Caribbean Basin Program established under this 
        section.
    (c) Establishment of Program.--The President shall establish a 
grant program, to be known as the ``Farmers for Africa and Caribbean 
Basin Program'', to assist eligible organizations in carrying out 
bilateral exchange programs whereby African-American and other American 
farmers and American agricultural farming specialists share technical 
knowledge with eligible farmers regarding--
            (1) maximization of crop yields;
            (2) use of agricultural risk insurance as financial tools 
        and a means of risk management (as allowed by Annex II of the 
        World Trade Organization rules);
            (3) expansion of trade in agricultural products;
            (4) enhancement of local food security;
            (5) the mitigation and alleviation of hunger;
            (6) marketing agricultural products in local, regional, and 
        international markets; and
            (7) other ways to improve farming in countries in which 
        there are eligible farmers.
    (d) Eligible Grantees.--The President may make a grant under the 
Program to--
            (1) a college or university, including a historically black 
        college or university, or a foundation maintained by a college 
        or university; and
            (2) a private organization or corporation, including 
        grassroots organizations, with an established and demonstrated 
        capacity to carry out such a bilateral exchange program.
    (e) Terms of Program.--(1) It is the goal of the Program that at 
least 1,000 farmers participate in the training program by December 31, 
2005, of which 80 percent of the total number of participating farmers 
will be African farmers or farmers in Caribbean Basin countries and 20 
percent of the total number of participating farmers will be American 
farmers.
    (2) Training under the Program will be provided to eligible farmers 
in groups to ensure that information is shared and passed on to other 
eligible farmers. Eligible farmers will be trained to be specialists in 
their home communities and will be encouraged not to retain enhanced 
farming technology for their own personal enrichment.
    (3) Through partnerships with American businesses, the Program will 
utilize the commercial industrial capability of businesses dealing in 
agriculture to train eligible farmers on farming equipment that is 
appropriate for the majority of eligible farmers in African or 
Caribbean Basin countries and to introduce eligible farmers to the use 
of insurance as a risk management tool.
    (f) Selection of Participants.--(1) The selection of eligible 
farmers, as well as African-American and other American farmers and 
agricultural farming specialists, to participate in the Program shall 
be made by grant recipients using an application process approved by 
the President.
    (2) Participating farmers must have sufficient farm or agribusiness 
experience and have obtained certain targets regarding the productivity 
of their farm or agribusiness.
    (g) Grant Period.--The President may make grants under the Program 
during a period of 5 years beginning on October 1 of the first fiscal 
year for which funds are made available to carry out the Program.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2002 through 2011.

SEC. 312. GEORGE MCGOVERN-ROBERT DOLE INTERNATIONAL FOOD FOR EDUCATION 
              AND CHILD NUTRITION PROGRAM.

    (a) In General.--The President may, subject to subsection (j), 
direct the procurement of commodities and the provision of financial 
and technical assistance to carry out--
            (1) preschool and school feeding programs in foreign 
        countries to improve food security, reduce the incidence of 
        hunger, and improve literacy and primary education, 
        particularly with respect to girls; and
            (2) maternal, infant, and child nutrition programs for 
        pregnant women, nursing mothers, infants, and children who are 
        5 years of age or younger.
    (b) Eligible Commodities and Cost Items.--Notwithstanding any other 
provision of law--
            (1) any agricultural commodity is eligible for distribution 
        under this section;
            (2) as necessary to achieve the purposes of this section--
                    (A) funds may be used to pay the transportation 
                costs incurred in moving commodities (including 
                prepositioned commodities) provided under this section 
                from the designated points of entry or ports of entry 
                of one or more recipient countries to storage and 
                distribution sites in these countries, and associated 
                storage and distribution costs;
                    (B) funds may be used to pay the costs of 
                activities conducted in the recipient countries by a 
                nonprofit voluntary organization, cooperative, or 
                intergovernmental agency or organization that would 
                enhance the effectiveness of the activities implemented 
                by such entities under this section; and
                    (C) funds may be provided to meet the allowable 
                administrative expenses of private voluntary 
                organizations, cooperatives, or intergovernmental 
                organizations which are implementing activities under 
                this section; and
            (3) for the purposes of this section, the term 
        ``agricultural commodities'' includes any agricultural 
        commodity, or the products thereof, produced in the United 
        States.
    (c) General Authorities.--The President shall designate one or more 
Federal agencies to--
            (1) implement the program established under this section;
            (2) ensure that the program established under this section 
        is consistent with the foreign policy and development 
        assistance objectives of the United States; and
            (3) consider, in determining whether a country should 
        receive assistance under this section, whether the government 
        of the country is taking concrete steps to improve the 
        preschool and school systems in its country.
    (d) Eligible Recipients.--Assistance may be provided under this 
section to private voluntary organizations, cooperatives, 
intergovernmental organizations, governments and their agencies, and 
other organizations.
    (e) Procedures.--
            (1) In general.--In carrying out subsection (a) the 
        President shall assure that procedures are established that--
                    (A) provide for the submission of proposals by 
                eligible recipients, each of which may include one or 
                more recipient countries, for commodities and other 
                assistance under this section;
                    (B) provide for eligible commodities and assistance 
                on a multi-year basis;
                    (C) ensure eligible recipients demonstrate the 
                organizational capacity and the ability to develop, 
                implement, monitor, report on, and provide 
                accountability for activities conducted under this 
                section;
                    (D) provide for the expedited development, review, 
                and approval of proposals submitted in accordance with 
                this section;
                    (E) ensure monitoring and reporting by eligible 
                recipients on the use of commodities and other 
                assistance provided under this section; and
                    (F) allow for the sale or barter of commodities by 
                eligible recipients to acquire funds to implement 
                activities that improve the food security of women and 
                children or otherwise enhance the effectiveness of 
                programs and activities authorized under this section.
            (2) Priorities for program funding.--In carrying out 
        paragraph (1) with respect to criteria for determining the use 
        of commodities and other assistance provided for programs and 
        activities authorized under this section, the implementing 
        agency may consider the ability of eligible recipients to--
                    (A) identify and assess the needs of beneficiaries, 
                especially malnourished or undernourished mothers and 
                their children who are 5 years of age or younger, and 
                school-age children who are malnourished, 
                undernourished, or do not regularly attend school;
                    (B)(i) in the case of preschool and school-age 
                children, target low-income areas where children's 
                enrollment and attendance in school is low or girls' 
                enrollment and participation in preschool or school is 
                low, and incorporate developmental objectives for 
                improving literacy and primary education, particularly 
                with respect to girls; and
                    (ii) in the case of programs to benefit mothers and 
                children who are 5 years of age or younger, coordinate 
                supplementary feeding and nutrition programs with 
                existing or newly-established maternal, infant, and 
                children programs that provide health-needs 
                interventions, and which may include maternal, 
                prenatal, and postnatal and newborn care;
                    (C) involve indigenous institutions as well as 
                local communities and governments in the development 
                and implementation to foster local capacity building 
                and leadership; and
                    (D) carry out multiyear programs that foster local 
                self-sufficiency and ensure the longevity of recipient 
                country programs.
    (f) Use of Food and Nutrition Service.--The Food and Nutrition 
Service of the Department of Agriculture may provide technical advice 
on the establishment of programs under subsection (a)(1) and on their 
implementation in the field in recipient countries.
    (g) Multilateral Involvement.--The President is urged to engage 
existing international food aid coordinating mechanisms to ensure 
multilateral commitments to, and participation in, programs like those 
supported under this section. The President shall report annually to 
the Committee on International Relations and the Committee on 
Agriculture of the United States House of Representatives and the 
Committee on Foreign Relations and the Committee on Agriculture, 
Nutrition, and Forestry of the United States Senate on the commitments 
and activities of governments, including the United States government, 
in the global effort to reduce child hunger and increase school 
attendance.
    (h) Private Sector Involvement.--The President is urged to 
encourage the support and active involvement of the private sector, 
foundations, and other individuals and organizations in programs 
assisted under this section.
    (i) Requirement To Safeguard Local Production and Usual 
Marketing.--The requirement of section 403(a) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1733(a) and 1733(h)) 
applies with respect to the availability of commodities under this 
section.
    (j) Funding.--
            (1) In general.--There are authorized to be appropriated 
        such sums as may be necessary to carry out this section for 
        each of fiscal years 2002 through 2011. Nothing in this section 
        shall be interpreted to preclude the use of authorities in 
        effect before the date of the enactment of this Act to carry 
        out the ongoing Global Food for Education Initiative.
            (2) Administrative expenses.--Funds made available to carry 
        out the purposes of this section may be used to pay the 
        administrative expenses of any agency of the Federal Government 
        implementing or assisting in the implementation of this 
        section.

SEC. 313. STUDY ON FEE FOR SERVICES.

    (a) Study.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall provide a report to the designated 
congressional committees on the feasibility of instituting a program 
which would charge and retain a fee to cover the costs for providing 
persons with commercial services performed abroad on matters within the 
authority of the Department of Agriculture administered through the 
Foreign Agriculture Service or any successor agency.
    (b) Definition.--In this section, the term ``designated 
congressional committees'' means the Committee on Agriculture and the 
Committee on International Relations of the House of Representatives 
and the Committee on Agriculture, Nutrition and Forestry of the Senate.

SEC. 314. NATIONAL EXPORT STRATEGY REPORT.

    (a) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Agriculture shall provide to the 
designated congressional committees a report on the policies and 
programs that the Department of Agriculture has undertaken to implement 
the National Export Strategy Report. The report shall contain a 
description of the effective coordination of these policies and 
programs through all other appropriate Federal agencies participating 
in the Trade Promotion Coordinating Committee and the steps the 
Department of Agriculture is taking to reduce the level of 
protectionism in agricultural trade, to foster market growth, and to 
improve the commercial potential of markets in both developed and 
developing countries for United States agricultural commodities.
    (b) Definition.--In this section, the term ``designated 
congressional committees'' means the Committee on Agriculture and the 
Committee on International Relations of the House of Representatives 
and the Committee on Agriculture, Nutrition and Forestry of the Senate.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

SEC. 401. SIMPLIFIED DEFINITION OF INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
            (1) in paragraph (3)--
                    (A) by striking ``and (C)'' and inserting ``(C)''; 
                and
                    (B) by inserting after ``premiums,'' the following:
``and (D) to the extent that any other educational loans on which 
payment is deferred, grants, scholarships, fellowships, veterans' 
educational benefits, and the like, are required to be excluded under 
title XIX of the Social Security Act, the state agency may exclude it 
under this subsection,'';
            (2) by striking ``and (15)'' and inserting ``(15)'';
            (3) by inserting before the period at the end the 
        following:
``, (16) any state complementary assistance program payments that are 
excluded pursuant to subsections (a) and (b) of section 1931 of title 
XIX of the Social Security Act, and (17) at the option of the State 
agency, any types of income that the State agency does not consider 
when determining eligibility for cash assistance under a program funded 
under part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.) or medical assistance under section 1931 of the Social Security 
Act (42 U.S.C. 1396u-1), except that this paragraph shall not authorize 
a State agency to exclude earned income, payments under title I, II, 
IV, X, XIV, or XVI of the Social Security Act, or such other types of 
income whose consideration the Secretary determines essential to 
equitable determinations of eligibility and benefit levels except to 
the extent that those types of income may be excluded under other 
paragraphs of this subsection''.

SEC. 402. STANDARD DEDUCTION.

    Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) 
is amended--
            (1) by striking ``of $134, $229, $189, $269, and $118'' and 
        inserting ``equal to 9.7 percent of the eligibility limit 
        established under section 5(c)(1) for fiscal year 2002 but not 
        more than 9.7 percent of the eligibility limit established 
        under section 5(c)(1) for a household of six for fiscal year 
        2002 nor less than $134, $229, $189, $269, and $118''; and
            (2) by inserting before the period at the end the 
        following:
        ``, except that the standard deduction for Guam shall be 
        determined with reference to 2 times the eligibility limits 
        under section 5(c)(1) for fiscal year 2002 for the 48 
        contiguous states and the District of Columbia''.

SEC. 403. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM WELFARE.

    (a) In General.--Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
2020) is amended by adding at the end the following:
    ``(s) Transitional Benefits Option.--
            ``(1) In general.--A State may provide transitional food 
        stamp benefits to a household that is no longer eligible to 
        receive cash assistance under a State program funded under part 
        A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.).
            ``(2) Transitional benefits period.--Under paragraph (1), a 
        household may continue to receive food stamp benefits for a 
        period of not more than 6 months after the date on which cash 
        assistance is terminated.
            ``(3) Amount.--During the transitional benefits period 
        under paragraph (2), a household shall receive an amount equal 
        to the allotment received in the month immediately preceding 
        the date on which cash assistance is terminated. A household 
        receiving benefits under this subsection may apply for 
        recertification at any time during the transitional benefit 
        period. If a household reapplies, its allotment shall be 
        determined without regard to this subsection for all subsequent 
        months.
            ``(4) Determination of future eligibility.--In the final 
        month of the transitional benefits period under paragraph (2), 
        the State agency may--
                    ``(A) require a household to cooperate in a 
                redetermination of eligibility to receive an 
                authorization card; and
                    ``(B) renew eligibility for a new certification 
                period for the household without regard to whether the 
                previous certification period has expired.
            ``(5) Limitation.--A household sanctioned under section 6, 
        or for a failure to perform an action required by Federal, 
        State, or local law relating to such cash assistance program, 
        shall not be eligible for transitional benefits under this 
        subsection.''.
    (b) Conforming Amendments.--(1) Section 3(c) of the Food Stamp Act 
of 1977 (7 U.S.C. 2012(c)) is amended by adding at the end the 
following: ``The limits in this section may be extended until the end 
of any transitional benefit period established under section 11(s).''.
    (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) 
is amended by striking ``No household'' and inserting ``Except in a 
case in which a household is receiving transitional benefits during the 
transitional benefits period under section 11(s), no household''.

SEC. 404. QUALITY CONTROL SYSTEMS.

    (a) Targeted Quality Control System.--Section 16(c) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
            (1) in paragraph (1)(C)--
                    (A) in the matter preceding clause (i), by 
                inserting ``the Secretary determines that a 95 percent 
                statistical probability exists that for the 3d 
                consecutive year'' after ``year in which''; and
                    (B) in clause (i)(II)(aa)(bbb) by striking ``the 
                national performance measure for the fiscal year'' and 
                inserting ``10 percent'';
            (2) in the 1st sentence of paragraph (4)--
                    (A) by striking ``or claim'' and inserting 
                ``claim''; and
                    (B) by inserting ``or performance under the 
                measures established under paragraph (10),'' after 
                ``for payment error,'';
            (3) in paragraph (5), by inserting ``to comply with 
        paragraph (10) and'' before ``to establish'';
            (4) in the 1st sentence of paragraph (6), by inserting 
        ``one percentage point more than'' after ``measure that shall 
        be''; and
            (5) by inserting at the end the following:
    ``(10)(A) In addition to the measures established under paragraph 
(1), the Secretary shall measure the performance of State agencies in 
each of the following regards--
            ``(i) compliance with the deadlines established under 
        paragraphs (3) and (9) of section 11(e); and
            ``(ii) the percentage of negative eligibility decisions 
        that are made correctly.
    ``(B) For each fiscal year, the Secretary shall make excellence 
bonus payments of $1,000,000 each to the 5 States with the highest 
combined performance in the 2 measures in subparagraph (A) and to the 5 
States whose combined performance under the 2 measures in subparagraph 
(A) most improved in such fiscal year.
    ``(C) For any fiscal year in which the Secretary determines that a 
95 percent statistical probability exists that a State agency's 
performance with respect to any of the 2 performance measures 
established in subparagraph (A) is substantially worse than a level the 
Secretary deems reasonable, other than for good cause shown, the 
Secretary shall investigate that State agency's administration of the 
food stamp program. If this investigation determines that the State's 
administration has been deficient, the Secretary shall require the 
State agency to take prompt corrective action.''.
    (b) Implementation.--The amendment made by subsection (a)(5) shall 
apply to all fiscal years beginning on or after October 1, 2001, and 
ending before October 1, 2007. All other amendments made by this 
section shall apply to all fiscal years beginning on or after October 
1, 1999.

SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS.

    Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended 
by inserting at the end the following:
    ``(l) Simplification of Systems.--The Secretary shall expend up to 
$9,500,000 million in each fiscal year to pay 100 percent of the costs 
of State agencies to develop and implement simple application and 
eligibility determination systems.''.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

    (a) Employment and Training Programs.--Section 16(h)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A)(vii) by striking ``fiscal year 
        2002'' and inserting ``each of the fiscal years 2003 through 
        2011''; and
            (2) in subparagraph (B) by striking ``2002'' and inserting 
        ``2011''.
    (b) Cost Allocation.--Section 16(k)(3) of the Food Stamp Act of 
1977 (7 U.S.C. 2025(k)(3)) is amended--
            (1) in subparagraph (A) by striking ``2002'' and inserting 
        ``2011''; and
            (2) in subparagraph (B)(ii) by striking ``2002'' and 
        inserting ``2011''.
    (c) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by 
striking ``2002'' and inserting ``2011''.
    (d) Outreach Demonstration Projects.--Section 17(i)(1)(A) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is amended by striking 
``1992 through 2002'' and inserting ``2003 through 2011''.
    (e) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1996 
through 2002'' and inserting ``2003 through 2011''.
    (f) Puerto Rico.--Section 19(a)(1) of the Food Stamp Act of 1977 (7 
U.S.C. 2028(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (ii) by striking ``and'' at the end;
                    (B) in clause (iii) by adding ``and'' at the end; 
                and
                    (C) by inserting after clause (iii) the following:
            ``(iv) for each of fiscal years 2003 through 2011, the 
        amount equal to the amount required to be paid under this 
        subparagraph for the preceding fiscal year, as adjusted by the 
        percentage by which the thrifty food plan is adjusted under 
        section 3(o)(4) for the current fiscal year for which the 
        amount is determined under this clause;''; and
            (2) in subparagraph (B)--
                    (A) by inserting ``(i)'' after ``(B)''; and
                    (B) by adding at the end the following:
    ``(ii) Notwithstanding subparagraph (A) and clause (i), the 
Commonwealth may spend up to $6,000,000 of the amount required under 
subparagraph (A) to be paid for fiscal year 2002 to pay 100 percent of 
the cost to upgrade and modernize the electronic data processing system 
used to provide such food assistance and to implement systems to 
simplify the determination of eligibility to receive such 
assistance.''.
    (g) Territory of American Samoa.--Section 24 of the Food Stamp Act 
of 1977 (7 U.S.C. 2033) is amended--
            (1) by striking ``Effective October 1, 1995, from'' and 
        inserting ``From''; and
            (2) by striking ``$5,300,000 for each of fiscal years 1996 
        through 2002'' and inserting ``$5,750,000 for fiscal year 2002 
        and $5,800,000 for each of fiscal years 2003 though 2011''.
    (h) Assistance for Community Food Projects.--Section 25(b)(2) of 
the Food Stamp Act of 1977 (7 U.S.C. 2034(b)(2)) is amended--
            (1) in subparagraph (A) by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``2002'' and inserting ``2001''; 
                and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) $7,500,000 for each of the fiscal years 2002 
                through 2011.''.
    (i) Availability of Commodities for the Emergency Food Assistance 
Program.--Section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``1997 through 2002'' and inserting 
                ``2002 through 2011''; and
                    (B) by striking ``$100,000,000'' and inserting 
                ``$140,000,000''; and
            (2) by adding at the end the following:
    ``(c) Use of Funds for Related Costs.--For each of the fiscal years 
2002 through 2011, the Secretary shall use $10,000,000 of the funds 
made available under subsection (a) to pay for the direct and indirect 
costs of the States related to the processing, storing, transporting, 
and distributing to eligible recipient agencies of commodities 
purchased by the Secretary under such subsection and commodities 
secured from other sources, including commodities secured by gleaning 
(as defined in section 111 of the Hunger Prevention Act of 1988 (7 
U.S.C. 612c note)).''.
    (j) Special Effective Date.--The amendments made by subsections 
(g), (h), and (i) shall take effect on October 1, 2001.

                   Subtitle B--Commodity Distribution

SEC. 441. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
              PROJECTS.

    Section 1114(a) of the Agriculture and Food Act of 1981 (7 U.S.C. 
1431e) is amended by striking ``2002'' and inserting ``2011''.

SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    The Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
note) is amended--
            (1) in section 4(a) by striking ``1991 through 2002'' and 
        inserting ``2003 through 2011''; and
            (2) in subsections (a)(2) and (d)(2) of section 5 by 
        striking ``1991 through 2002'' and inserting ``2003 through 
        2011''.

SEC. 443. EMERGENCY FOOD ASSISTANCE.

    The 1st sentence of section 204(a)(1) of the Emergency Food 
Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended--
            (1) by striking ``1991 through 2002'' and inserting ``2003 
        through 2011'';
            (2) by striking ``administrative''; and
            (3) by inserting ``storage,'' after ``processing,''.

                  Subtitle C--Miscellaneous Provisions

SEC. 461. HUNGER FELLOWSHIP PROGRAM.

    (a) Short Title; Findings.--
            (1) Short title.--This section may be cited as the 
        ``Congressional Hunger Fellows Act of 2001''.
            (2) Findings.--The Congress finds as follows:
                    (A) There is a critical need for compassionate 
                individuals who are committed to assisting people who 
                suffer from hunger as well as a need for such 
                individuals to initiate and administer solutions to the 
                hunger problem.
                    (B) Bill Emerson, the distinguished late 
                Representative from the 8th District of Missouri, 
                demonstrated his commitment to solving the problem of 
                hunger in a bipartisan manner, his commitment to public 
                service, and his great affection for the institution 
                and the ideals of the United States Congress.
                    (C) George T. (Mickey) Leland, the distinguished 
                late Representative from the 18th District of Texas, 
                demonstrated his compassion for those in need, his high 
                regard for public service, and his lively exercise of 
                political talents.
                    (D) The special concern that Mr. Emerson and Mr. 
                Leland demonstrated during their lives for the hungry 
                and poor was an inspiration for others to work toward 
                the goals of equality and justice for all.
                    (E) These two outstanding leaders maintained a 
                special bond of friendship regardless of political 
                affiliation and worked together to encourage future 
                leaders to recognize and provide service to others, and 
                therefore it is especially appropriate to honor the 
                memory of Mr. Emerson and Mr. Leland by creating a 
                fellowship program to develop and train the future 
                leaders of the United States to pursue careers in 
                humanitarian service.
    (b) Establishment.--There is established as an independent entity 
of the legislative branch of the United States Government the 
Congressional Hunger Fellows Program (hereinafter in this section 
referred to as the ``Program'').
    (c) Board of Trustees.--
            (1) In general.--The Program shall be subject to the 
        supervision and direction of a Board of Trustees.
            (2) Members of the board of trustees.--
                    (A) Appointment.--The Board shall be composed of 6 
                voting members appointed under clause (i) and one 
                nonvoting ex officio member designated in clause (ii) 
                as follows:
                            (i) Voting members.--(I) The Speaker of the 
                        House of Representatives shall appoint two 
                        members.
                            (II) The minority leader of the House of 
                        Representatives shall appoint one member.
                            (III) The majority leader of the Senate 
                        shall appoint two members.
                            (IV) The minority leader of the Senate 
                        shall appoint one member.
                            (ii) Nonvoting member.--The Executive 
                        Director of the program shall serve as a 
                        nonvoting ex officio member of the Board.
                    (B) Terms.--Members of the Board shall serve a term 
                of 4 years.
                    (C) Vacancy.--
                            (i) Authority of board.--A vacancy in the 
                        membership of the Board does not affect the 
                        power of the remaining members to carry out 
                        this section.
                            (ii) Appointment of successors.--A vacancy 
                        in the membership of the Board shall be filled 
                        in the same manner in which the original 
                        appointment was made.
                            (iii) Incomplete term.--If a member of the 
                        Board does not serve the full term applicable 
                        to the member, the individual appointed to fill 
                        the resulting vacancy shall be appointed for 
                        the remainder of the term of the predecessor of 
                        the individual.
                    (D) Chairperson.--As the first order of business of 
                the first meeting of the Board, the members shall elect 
                a Chairperson.
                    (E) Compensation.--
                            (i) In general.--Subject to clause (ii), 
                        members of the Board may not receive 
                        compensation for service on the Board.
                            (ii) Travel.--Members of the Board may be 
                        reimbursed for travel, subsistence, and other 
                        necessary expenses incurred in carrying out the 
                        duties of the program.
            (3) Duties.--
                    (A) Bylaws.--
                            (i) Establishment.--The Board shall 
                        establish such bylaws and other regulations as 
                        may be appropriate to enable the Board to carry 
                        out this section, including the duties 
                        described in this paragraph.
                            (ii) Contents.--Such bylaws and other 
                        regulations shall include provisions--
                                    (I) for appropriate fiscal control, 
                                funds accountability, and operating 
                                principles;
                                    (II) to prevent any conflict of 
                                interest, or the appearance of any 
                                conflict of interest, in the 
                                procurement and employment actions 
                                taken by the Board or by any officer or 
                                employee of the Board and in the 
                                selection and placement of individuals 
                                in the fellowships developed under the 
                                program;
                                    (III) for the resolution of a tie 
                                vote of the members of the Board; and
                                    (IV) for authorization of travel 
                                for members of the Board.
                            (iii) Transmittal to congress.--Not later 
                        than 90 days after the date of the first 
                        meeting of the Board, the Chairperson of the 
                        Board shall transmit to the appropriate 
                        congressional committees a copy of such bylaws.
                    (B) Budget.--For each fiscal year the program is in 
                operation, the Board shall determine a budget for the 
                program for that fiscal year. All spending by the 
                program shall be pursuant to such budget unless a 
                change is approved by the Board.
                    (C) Process for selection and placement of 
                fellows.--The Board shall review and approve the 
                process established by the Executive Director for the 
                selection and placement of individuals in the 
                fellowships developed under the program.
                    (D) Allocation of funds to fellowships.--The Board 
                of Trustees shall determine the priority of the 
                programs to be carried out under this section and the 
                amount of funds to be allocated for the Emerson and 
                Leland fellowships.
    (d) Purposes; Authority of Program.--
            (1) Purposes.--The purposes of the program are--
                    (A) to encourage future leaders of the United 
                States to pursue careers in humanitarian service, to 
                recognize the needs of people who are hungry and poor, 
                and to provide assistance and compassion for those in 
                need;
                    (B) to increase awareness of the importance of 
                public service; and
                    (C) to provide training and development 
                opportunities for such leaders through placement in 
                programs operated by appropriate organizations or 
                entities.
            (2) Authority.--The program is authorized to develop such 
        fellowships to carry out the purposes of this section, 
        including the fellowships described in paragraph (3).
            (3) Fellowships.--
                    (A) In general.--The program shall establish and 
                carry out the Bill Emerson Hunger Fellowship and the 
                Mickey Leland Hunger Fellowship.
                    (B) Curriculum.--
                            (i) In general.--The fellowships 
                        established under subparagraph (A) shall 
                        provide experience and training to develop the 
                        skills and understanding necessary to improve 
                        the humanitarian conditions and the lives of 
                        individuals who suffer from hunger, including--
                                    (I) training in direct service to 
                                the hungry in conjunction with 
                                community-based organizations through a 
                                program of field placement; and
                                    (II) experience in policy 
                                development through placement in a 
                                governmental entity or nonprofit 
                                organization.
                            (ii) Focus of bill emerson hunger 
                        fellowship.--The Bill Emerson Hunger Fellowship 
                        shall address hunger and other humanitarian 
                        needs in the United States.
                            (iii) Focus of mickey leland hunger 
                        fellowship.--The Mickey Leland Hunger 
                        Fellowship shall address international hunger 
                        and other humanitarian needs.
                            (iv) Workplan.--To carry out clause (i) and 
                        to assist in the evaluation of the fellowships 
                        under paragraph (4), the program shall, for 
                        each fellow, approve a work plan that 
                        identifies the target objectives for the fellow 
                        in the fellowship, including specific duties 
                        and responsibilities related to those 
                        objectives.
                    (C) Period of fellowship.--
                            (i) Emerson fellow.--A Bill Emerson Hunger 
                        Fellowship awarded under this paragraph shall 
                        be for no more than 1 year.
                            (ii) Leland fellow.--A Mickey Leland Hunger 
                        Fellowship awarded under this paragraph shall 
                        be for no more than 2 years. Not less than 1 
                        year of the fellowship shall be dedicated to 
                        fulfilling the requirement of subparagraph 
                        (B)(i)(I).
                    (D) Selection of fellows.--
                            (i) In general.--A fellowship shall be 
                        awarded pursuant to a nationwide competition 
                        established by the program.
                            (ii) Qualification.--A successful applicant 
                        shall be an individual who has demonstrated--
                                    (I) an intent to pursue a career in 
                                humanitarian service and outstanding 
                                potential for such a career;
                                    (II) a commitment to social change;
                                    (III) leadership potential or 
                                actual leadership experience;
                                    (IV) diverse life experience;
                                    (V) proficient writing and speaking 
                                skills;
                                    (VI) an ability to live in poor or 
                                diverse communities; and
                                    (VII) such other attributes as 
                                determined to be appropriate by the 
                                Board.
                            (iii) Amount of award.--
                                    (I) In general.--Each individual 
                                awarded a fellowship under this 
                                paragraph shall receive a living 
                                allowance and, subject to subclause 
                                (II), an end-of-service award as 
                                determined by the program.
                                    (II) Requirement for successful 
                                completion of fellowship.--Each 
                                individual awarded a fellowship under 
                                this paragraph shall be entitled to 
                                receive an end-of-service award at an 
                                appropriate rate for each month of 
                                satisfactory service as determined by 
                                the Executive Director.
                            (iv) Recognition of fellowship award.--
                                    (I) Emerson fellow.--An individual 
                                awarded a fellowship from the Bill 
                                Emerson Hunger Fellowship shall be 
                                known as an ``Emerson Fellow''.
                                    (II) Leland fellow.--An individual 
                                awarded a fellowship from the Mickey 
                                Leland Hunger Fellowship shall be known 
                                as a ``Leland Fellow''.
            (4) Evaluation.--The program shall conduct periodic 
        evaluations of the Bill Emerson and Mickey Leland Hunger 
        Fellowships. Such evaluations shall include the following:
                    (A) An assessment of the successful completion of 
                the work plan of the fellow.
                    (B) An assessment of the impact of the fellowship 
                on the fellows.
                    (C) An assessment of the accomplishment of the 
                purposes of the program.
                    (D) An assessment of the impact of the fellow on 
                the community.
    (e) Trust Fund.--
            (1) Establishment.--There is established the Congressional 
        Hunger Fellows Trust Fund (hereinafter in this section referred 
        to as the ``Fund'') in the Treasury of the United States, 
        consisting of amounts appropriated to the Fund under subsection 
        (i), amounts credited to it under paragraph (3), and amounts 
        received under subsection (g)(3)(A).
            (2) Investment of funds.--The Secretary of the Treasury 
        shall invest the full amount of the Fund. Each investment shall 
        be made in an interest bearing obligation of the United States 
        or an obligation guaranteed as to principal and interest by the 
        United States that, as determined by the Secretary in 
        consultation with the Board, has a maturity suitable for the 
        Fund.
            (3) Return on investment.--Except as provided in subsection 
        (f)(2), the Secretary of the Treasury shall credit to the Fund 
        the interest on, and the proceeds from the sale or redemption 
        of, obligations held in the Fund.
    (f) Expenditures; Audits.--
            (1) In general.--The Secretary of the Treasury shall 
        transfer to the program from the amounts described in 
        subsection (e)(3) and subsection (g)(3)(A) such sums as the 
        Board determines are necessary to enable the program to carry 
        out the provisions of this section.
            (2) Limitation.--The Secretary may not transfer to the 
        program the amounts appropriated to the Fund under subsection 
        (i).
            (3) Use of funds.--Funds transferred to the program under 
        paragraph (1) shall be used for the following purposes:
                    (A) Stipends for fellows.--To provide for a living 
                allowance for the fellows.
                    (B) Travel of fellows.--To defray the costs of 
                transportation of the fellows to the fellowship 
                placement sites.
                    (C) Insurance.--To defray the costs of appropriate 
                insurance of the fellows, the program, and the Board.
                    (D) Training of fellows.--To defray the costs of 
                preservice and midservice education and training of 
                fellows.
                    (E) Support staff.--Staff described in subsection 
                (g).
                    (F) Awards.--End-of-service awards under subsection 
                (d)(3)(D)(iii)(II).
                    (G) Additional approved uses.--For such other 
                purposes that the Board determines appropriate to carry 
                out the program.
            (4) Audit by gao.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct an annual audit of the 
                accounts of the program.
                    (B) Books.--The program shall make available to the 
                Comptroller General all books, accounts, financial 
                records, reports, files, and all other papers, things, 
                or property belonging to or in use by the program and 
                necessary to facilitate such audit.
                    (C) Report to congress.--The Comptroller General 
                shall submit a copy of the results of each such audit 
                to the appropriate congressional committees.
    (g) Staff; Powers of Program.--
            (1) Executive director.--
                    (A) In general.--The Board shall appoint an 
                Executive Director of the program who shall administer 
                the program. The Executive Director shall carry out 
                such other functions consistent with the provisions of 
                this section as the Board shall prescribe.
                    (B) Restriction.--The Executive Director may not 
                serve as Chairperson of the Board.
                    (C) Compensation.--The Executive Director shall be 
                paid at a rate not to exceed the rate of basic pay 
                payable for level V of the Executive Schedule under 
                section 5316 of title 5, United States Code.
            (2) Staff.--
                    (A) In general.--With the approval of a majority of 
                the Board, the Executive Director may appoint and fix 
                the pay of additional personnel as the Executive 
                Director considers necessary and appropriate to carry 
                out the functions of the provisions of this section.
                    (B) Compensation.--An individual appointed under 
                subparagraph (A) shall be paid at a rate not to exceed 
                the rate of basic pay payable for level GS-15 of the 
                General Schedule.
            (3) Powers.--In order to carry out the provisions of this 
        section, the program may perform the following functions:
                    (A) Gifts.--The program may solicit, accept, use, 
                and dispose of gifts, bequests, or devises of services 
                or property, both real and personal, for the purpose of 
                aiding or facilitating the work of the program. Gifts, 
                bequests, or devises of money and proceeds from sales 
                of other property received as gifts, bequests, or 
                devises shall be deposited in the Fund and shall be 
                available for disbursement upon order of the Board.
                    (B) Experts and consultants.--The program may 
                procure temporary and intermittent services under 
                section 3109 of title 5, United States Code, but at 
                rates for individuals not to exceed the daily 
                equivalent of the maximum annual rate of basic pay 
                payable for GS-15 of the General Schedule.
                    (C) Contract authority.--The program may contract, 
                with the approval of a majority of the members of the 
                Board, with and compensate Government and private 
                agencies or persons without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5).
                    (D) Other necessary expenditures.--The program 
                shall make such other expenditures which the program 
                considers necessary to carry out the provisions of this 
                section, but excluding project development.
    (h) Report.--Not later than December 31 of each year, the Board 
shall submit to the appropriate congressional committees a report on 
the activities of the program carried out during the previous fiscal 
year, and shall include the following:
            (1) An analysis of the evaluations conducted under 
        subsection (d)(4) (relating to evaluations of the Emerson and 
        Leland fellowships and accomplishment of the program purposes) 
        during that fiscal year.
            (2) A statement of the total amount of funds attributable 
        to gifts received by the program in that fiscal year (as 
        authorized under subsection (g)(3)(A)), and the total amount of 
        such funds that were expended to carry out the program that 
        fiscal year.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated $18,000,000 to carry out the provisions of this section.
    (j) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Agriculture and the Committee on 
        International Relations of the House of Representatives; and
            (2) the Committee on Agriculture, Nutrition and Forestry 
        and the Committee on Foreign Relations of the Senate.

SEC. 462. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this title, the amendments made by 
this title shall take effect on October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 501. DIRECT LOANS.

    Section 302(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922(b)(1)) is amended by striking ``operated'' and 
inserting ``participated in the business operations of''.

SEC. 502. FINANCING OF BRIDGE LOANS.

    Section 303(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1923(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) refinancing, during a fiscal year, a short-
                term, temporary bridge loan made by a commercial or 
                cooperative lender to a beginning farmer or rancher for 
                the acquisition of land for a farm or ranch, if--
                            ``(i) the Secretary approved an application 
                        for a direct farm ownership loan to the 
                        beginning farmer or rancher for acquisition of 
                        the land; and
                            ``(ii) funds for direct farm ownership 
                        loans under section 346(b) were not available 
                        at the time at which the application was 
                        approved.''.

SEC. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended by striking subsection (a) and inserting the 
following:
    ``(a) In General.--The Secretary shall not make or insure a loan 
under section 302, 303, 304, 310D, or 310E that would cause the unpaid 
indebtedness under those sections of any 1 borrower to exceed the 
lesser of--
            ``(1) the value of the farm or other security; or
            ``(2)(A) in the case of a loan made by the Secretary--
                    ``(i) to a beginning farmer or rancher, $250,000, 
                as adjusted (beginning with fiscal year 2003) by the 
                inflation percentage applicable to the fiscal year in 
                which the loan is made; or
                    ``(ii) to a borrower other than a beginning farmer 
                or rancher, $200,000; or
            ``(B) in the case of a loan guaranteed by the Secretary, 
        $700,000, as--
                    ``(i) adjusted (beginning with fiscal year 2000) by 
                the inflation percentage applicable to the fiscal year 
                in which the loan is guaranteed; and
                    ``(ii) reduced by the amount of any unpaid 
                indebtedness of the borrower on loans under subtitle B 
                that are guaranteed by the Secretary.''.

SEC. 504. JOINT FINANCING ARRANGEMENTS.

    Section 307(a)(3)(D) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)(3)(D)) is amended--
            (1) by striking ``If'' and inserting the following:
                            ``(i) In general.--Subject to clause (ii), 
                        if''; and
            (2) by adding at the end the following:
                            ``(ii) Beginning farmers and ranchers.--The 
                        interest rate charged a beginning farmer or 
                        rancher for a loan described in clause (i) 
                        shall be 50 basis points less than the rate 
                        charged farmers and ranchers that are not 
                        beginning farmers or ranchers.''.

SEC. 505. GUARANTEE PERCENTAGE FOR BEGINNING FARMERS AND RANCHERS.

    Section 309(h)(6) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1929(h)(6)) is amended by striking ``guaranteed up'' and 
all that follows through ``more than'' and inserting ``guaranteed at 95 
percent.--The Secretary shall guarantee''.

SEC. 506. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR 
              RANCHER PROGRAMS.

    Section 309 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929) is amended by adding at the end the following:
    ``(j) Guarantee of Loans Made Under State Beginning Farmer or 
Rancher Programs.--The Secretary may guarantee under this title a loan 
made under a State beginning farmer or rancher program, including a 
loan financed by the net proceeds of a qualified small issue 
agricultural bond for land or property described in section 
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.''.

SEC. 507. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1935) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``30 percent'' 
                and inserting ``40 percent''; and
                    (B) in paragraph (3), by striking ``10 years'' and 
                inserting ``20 years''; and
            (2) in subsection (c)(3)(B), by striking ``10-year'' and 
        inserting ``20-year''.

SEC. 508. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    (a) In General.--Subtitle A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end 
the following:

``SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--Not later than October 1, 2002, the Secretary 
shall carry out a pilot program in not fewer than 10 geographically 
dispersed States, as determined by the Secretary, to guarantee up to 5 
loans per State in each of fiscal years 2003 through 2006 made by a 
private seller of a farm or ranch to a qualified beginning farmer or 
rancher on a contract land sale basis, if the loan meets applicable 
underwriting criteria and a commercial lending institution agrees to 
serve as escrow agent.
    ``(b) Date of Commencement of Program.--The Secretary shall 
commence the pilot program on making a determination that guarantees of 
contract land sales present a risk that is comparable with the risk 
presented in the case of guarantees to commercial lenders.''.
    (b) Regulations.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary of Agriculture shall 
        promulgate such regulations as are necessary to implement the 
        amendment made by subsection (a).
            (2) Procedure.--The promulgation of the regulations and 
        administration of the amendment made by subsection (a) shall be 
        made without regard to--
                    (A) the notice and comment provisions of section 
                553 of title 5, United States Code;
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
                    (C) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'').
            (3) Congressional review of agency rulemaking.--In carrying 
        out the amendment made by subsection (a), the Secretary shall 
        use the authority provided under section 808 of title 5, United 
        States Code.

                      Subtitle B--Operating Loans

SEC. 511. DIRECT LOANS.

    Section 311(c)(1)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941(c)(1)(A)) is amended by striking ``who has not'' and 
all that follows through ``5 years''.

SEC. 512. AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL FARM OPERATIONS; 
              WAIVER OF LIMITATIONS FOR TRIBAL OPERATIONS AND OTHER 
              OPERATIONS.

    (a) Amount of Guarantee of Loans for Tribal Operations.--Section 
309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1929(h)) is amended--
            (1) in paragraph (4), by striking ``paragraphs (5) and 
        (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
            (2) by adding at the end the following:
            ``(7) Amount of guarantee of loans for tribal operations.--
        In the case of an operating loan made to a Native American 
        farmer or rancher whose farm or ranch is within an Indian 
        reservation (as defined in section 335(e)(1)(A)(ii)), the 
        Secretary shall guarantee 95 percent of the loan.''.
    (b) Waiver of Limitations.--Section 311(c) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1941(c)) is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraphs (3) and (4)''; and
            (2) by adding at the end the following:
            ``(4) Waivers.--
                    ``(A) Tribal farm and ranch operations.--The 
                Secretary shall waive the limitation under paragraph 
                (1)(C) for a direct loan made under this subtitle to a 
                Native American farmer or rancher whose farm or ranch 
                is within an Indian reservation (as defined in section 
                335(e)(1)(A)(ii)) if the Secretary determines that 
                commercial credit is not generally available for such 
                farm or ranch operations.
                    ``(B) Other farm and ranch operations.--On a case-
                by-case determination not subject to administrative 
                appeal, the Secretary may grant a borrower a waiver, 1 
                time only for a period of 2 years, of the limitation 
                under paragraph (1)(C) for a direct operating loan if 
                the borrower demonstrates to the satisfaction of the 
                Secretary that--
                            ``(i) the borrower has a viable farm or 
                        ranch operation;
                            ``(ii) the borrower applied for commercial 
                        credit from at least 2 commercial lenders;
                            ``(iii) the borrower was unable to obtain a 
                        commercial loan (including a loan guaranteed by 
                        the Secretary); and
                            ``(iv) the borrower successfully has 
                        completed, or will complete within 1 year, 
                        borrower training under section 359 (from which 
                        requirement the Secretary shall not grant a 
                        waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

SEC. 521. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP 
              LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS.

    (a) In General.--Sections 302(a), 311(a), and 321(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 1941(a), 
1961(a)) are amended by striking ``and joint operations'' each place it 
appears and inserting ``joint operations, and limited liability 
companies''.
    (b) Conforming Amendment.--Section 321(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking 
``or joint operations'' each place it appears and inserting ``joint 
operations, or limited liability companies''.

SEC. 522. DEBT SETTLEMENT.

    Section 331(b)(4) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981(b)(4)) is amended by striking ``carried out--'' and 
all that follows through ``(B) after'' and inserting ``carried out 
after''.

SEC. 523. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE 
              COLLECTION AGENCIES.

    (a) In General.--Section 331 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981) is amended by striking subsections (d) 
and (e).
    (b) Application.--The amendment made by subsection (a) shall not 
apply to a contract entered into before the effective date of this Act.

SEC. 524. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.

    Section 331B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981b) is amended--
            (1) by striking ``lower of (1) the'' and inserting the 
        following: ``lowest of--
            ``(1) the''; and
            (2) by striking ``original loan or (2) the'' and inserting 
        the following: ``original loan;
            ``(2) the rate being charged by the Secretary for loans, 
        other than guaranteed loans, of the same type at the time at 
        which the borrower applies for a deferral, consolidation, 
        rescheduling, or reamortization; or
            ``(3) the''.

SEC. 525. ANNUAL REVIEW OF BORROWERS.

    Section 333 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1983) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) except with respect to a loan under section 306, 
        310B, or 314--
                    ``(A) an annual review of the credit history and 
                business operation of the borrower; and
                    ``(B) an annual review of the continued eligibility 
                of the borrower for the loan;''.

SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

    Section 333A(g)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a(g)(1)) is amended by striking ``of loans the 
principal amount of which is $50,000 or less'' and inserting ``of 
farmer program loans the principal amount of which is $100,000 or 
less''.

SEC. 527. INVENTORY PROPERTY.

    Section 335(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1985(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in clause (i), by striking ``75 days'' 
                        and inserting ``135 days''; and
                            (ii) by adding at the end the following:
                            ``(iv) Combining and dividing of 
                        property.--To the maximum extent practicable, 
                        the Secretary shall maximize the opportunity 
                        for beginning farmers and ranchers to purchase 
                        real property acquired by the Secretary under 
                        this title by combining or dividing inventory 
                        parcels of the property in such manner as the 
                        Secretary determines to be appropriate.''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``75 days'' and inserting 
                        ``135 days''; and
                            (ii) by striking ``75-day period'' and 
                        inserting ``135-day period'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Previous lease.--In the case of real property 
        acquired before April 4, 1996, that the Secretary leased before 
        April 4, 1996, not later than 60 days after the lease expires, 
        the Secretary shall offer to sell the property in accordance 
        with paragraph (1).''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)''; and
                    (B) by adding at the end the following:
                    ``(C) Offer to sell or grant for farmland 
                preservation.--For the purpose of farmland 
                preservation, the Secretary shall--
                            ``(i) in consultation with the State 
                        Conservationist of each State in which 
                        inventory property is located, identify each 
                        parcel of inventory property in the State that 
                        should be preserved for agricultural use; and
                            ``(ii) offer to sell or grant an easement, 
                        restriction, development right, or similar 
                        legal right to each parcel identified under 
                        clause (i) to a State, a political subdivision 
                        of a State, or a private nonprofit organization 
                        separately from the underlying fee or other 
                        rights to the property owned by the United 
                        States.''.

SEC. 528. DEFINITIONS.

    (a) Qualified Beginning Farmer or Rancher.--Section 343(a)(11)(F) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1991(a)(11)(F)) is amended by striking ``25 percent'' and inserting 
``30 percent''.
    (b) Debt Forgiveness.--Section 343(a)(12) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)(12)) is amended by striking 
subparagraph (B) and inserting the following:
                    ``(B) Exceptions.--The term `debt forgiveness' does 
                not include--
                            ``(i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan; or
                            ``(ii) any write-down provided as part of a 
                        resolution of a discrimination complaint 
                        against the Secretary.''.

SEC. 529. LOAN AUTHORIZATION LEVELS.

    Section 346 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1994) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--The Secretary may make or guarantee 
        loans under subtitles A and B from the Agricultural Credit 
        Insurance Fund provided for in section 309 for not more than 
        $3,750,000,000 for each of fiscal years 2002 through 2006, of 
        which, for each fiscal year--
                    ``(A) $750,000,000 shall be for direct loans, of 
                which--
                            ``(i) $200,000,000 shall be for farm 
                        ownership loans under subtitle A; and
                            ``(ii) $550,000,000 shall be for operating 
                        loans under subtitle B; and
                    ``(B) $3,000,000,000 shall be for guaranteed loans, 
                of which--
                            ``(i) $1,000,000,000 shall be for 
                        guarantees of farm ownership loans under 
                        subtitle A; and
                            ``(ii) $2,000,000,000 shall be for 
                        guarantees of operating loans under subtitle 
                        B.''; and
                    (B) in paragraph (2)(A)(ii), by striking ``farmers 
                and ranchers'' and all that follows and inserting 
                ``farmers and ranchers 35 percent for each of fiscal 
                years 2002 through 2006.''; and
            (2) in subsection (c), by striking the last sentence.

SEC. 530. INTEREST RATE REDUCTION PROGRAM.

    Section 351 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1999) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Program.--'' and all that follows 
                through ``The Secretary'' and inserting ``Program.--The 
                Secretary''; and
                    (B) by striking paragraph (2);
            (2) by striking subsection (c) and inserting the following:
    ``(c) Amount of Interest Rate Reduction.--
            ``(1) In general.--In return for a contract entered into by 
        a lender under subsection (b) for the reduction of the interest 
        rate paid on a loan, the Secretary shall make payments to the 
        lender in an amount equal to not more than 100 percent of the 
        cost of reducing the annual rate of interest payable on the 
        loan, except that such payments shall not exceed the cost of 
        reducing the rate by more than--
                    ``(A) in the case of a borrower other than a 
                beginning farmer or rancher, 3 percent; and
                    ``(B) in the case of a beginning farmer or rancher, 
                4 percent.
            ``(2) Beginning farmers and ranchers.--The percentage 
        reduction of the interest rate for which payments are 
        authorized to be made for a beginning farmer or rancher under 
        paragraph (1) shall be 1 percent more than the percentage 
        reduction for farmers and ranchers that are not beginning 
        farmers or ranchers.''; and
            (3) in subsection (e), by striking paragraph (2) and 
        inserting the following:
            ``(2) Maximum amount of funds.--
                    ``(A) In general.--The total amount of funds used 
                by the Secretary to carry out this section for a fiscal 
                year shall not exceed $750,000,000.
                    ``(B) Beginning farmers and ranchers.--
                            ``(i) In general.--The Secretary shall 
                        reserve not less than 25 percent of the funds 
                        used by the Secretary under subparagraph (A) to 
                        make payments for guaranteed loans made to 
                        beginning farmers and ranchers.
                            ``(ii) Duration of reservation of funds.--
                        Funds reserved for beginning farmers or 
                        ranchers under clause (i) for a fiscal year 
                        shall be reserved only until April 1 of the 
                        fiscal year.''.

SEC. 531. OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY RECAPTURE 
              AMOUNT FOR SHARED APPRECIATION AGREEMENTS.

    (a) In General.--Section 353(e)(7) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2001(e)(7)) is amended--
            (1) in subparagraph (C), by redesignating clauses (i) and 
        (ii) as subclauses (I) and (II), respectively, and adjusting 
        the margins appropriately;
            (2) by redesignating subparagraphs (A) through (C) as 
        clauses (i) through (iii), respectively, and adjusting the 
        margins appropriately;
            (3) by striking the paragraph heading and inserting the 
        following:
            ``(7) Options for satisfaction of obligation to pay 
        recapture amount.--
                    ``(A) In general.--As an alternative to repaying 
                the full recapture amount at the end of the term of the 
                agreement (as determined by the Secretary in accordance 
                with this section), a borrower may satisfy the 
                obligation to pay the amount of recapture by--
                            ``(i) financing the recapture payment in 
                        accordance with subparagraph (B); or
                            ``(ii) granting the Secretary an 
                        agricultural use protection and conservation 
                        easement on the property subject to the shared 
                        appreciation agreement in accordance with 
                        subparagraph (C).
                    ``(B) Financing of recapture payment.--''; and
            (4) by adding at the end the following:
                    ``(C) Agricultural use protection and conservation 
                easement.--
                            ``(i) In general.--Subject to clause (iii), 
                        the Secretary shall accept an agricultural use 
                        protection and conservation easement from the 
                        borrower for all of the real security property 
                        subject to the shared appreciation agreement in 
                        lieu of payment of the recapture amount.
                            ``(ii) Term.--The term of an easement 
                        accepted by the Secretary under this 
                        subparagraph shall be 25 years.
                            ``(iii) Conditions.--The easement shall 
                        require that the property subject to the 
                        easement shall continue to be used or conserved 
                        for agricultural and conservation uses in 
                        accordance with sound farming and conservation 
                        practices, as determined by the Secretary.
                            ``(iv) Replacement of method of satisfying 
                        obligation.--A borrower that has begun 
                        financing of a recapture payment under 
                        subparagraph (B) may replace that financing 
                        with an agricultural use protection and 
                        conservation easement under this 
                        subparagraph.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to a shared appreciation agreement that--
            (1) matures on or after the date of enactment of this Act; 
        or
            (2) matured before the date of enactment of this Act, if--
                    (A) the recapture amount was reamortized under 
                section 353(e)(7) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2001(e)(7)) (as in effect on 
                the day before the date of enactment of this Act); or
                    (B)(i) the recapture amount had not been paid 
                before the date of enactment of this Act because of 
                circumstances beyond the control of the borrower; and
                    (ii) the borrower acted in good faith (as 
                determined by the Secretary) in attempting to repay the 
                recapture amount.

SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT.

    Section 359 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2006a) is amended by striking subsection (f) and inserting the 
following:
    ``(f) Waivers.--
            ``(1) In general.--The Secretary may waive the requirements 
        of this section for an individual borrower if the Secretary 
        determines that the borrower demonstrates adequate knowledge in 
        areas described in this section.
            ``(2) Criteria.--The Secretary shall establish criteria 
        providing for the application of paragraph (1) consistently in 
        all counties nationwide.''.

SEC. 533. ANNUAL REVIEW OF BORROWERS.

    Section 360(d)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006b(d)(1)) is amended by striking ``biannual'' and 
inserting ``annual''.

                        Subtitle D--Farm Credit

SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

    (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm Credit 
Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
            (1) by striking clause (iii); and
            (2) by redesignating clause (iv) as clause (iii).
    (b) Other System Banks; Associations.--Section 4.18A of the Farm 
Credit Act of 1971 (12 U.S.C. 2206a) is amended--
            (1) in subsection (a)(1), by striking ``3.11(11)(B)(iv)'' 
        and inserting ``3.11(11)(B)(iii)''; and
            (2) by striking subsection (c).

SEC. 542. BANKS FOR COOPERATIVES.

    Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b)) 
is amended--
            (1) in paragraphs (1) and (2)(A)(i), by striking ``farm 
        supplies'' each place it appears and inserting ``agricultural 
        supplies''; and
            (2) by adding at the end the following:
            ``(4) Definition of agricultural supply.--In this 
        subsection, the term `agricultural supply' includes--
                    ``(A) a farm supply; and
                    ``(B)(i) agriculture-related processing equipment;
                    ``(ii) agriculture-related machinery; and
                    ``(iii) other capital-related goods related to the 
                storage or handling of agricultural commodities or 
                products.''.

SEC. 543. INSURANCE CORPORATION PREMIUMS.

    (a) Reduction in Premiums for GSE-Guaranteed Loans.--
            (1) In general.--Section 5.55 of the Farm Credit Act of 
        1971 (12 U.S.C. 2277a-4) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``government-guaranteed loans 
                                provided for in subparagraph (C)'' and 
                                inserting ``loans provided for in 
                                subparagraphs (C) and (D)'';
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (C), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(D) the annual average principal outstanding for 
                such year on the guaranteed portions of Government 
                Sponsored Enterprise-guaranteed loans made by the bank 
                that are in accrual status, multiplied by a factor, not 
                to exceed 0.0015, determined by the Corporation at the 
                sole discretion of the Corporation.''; and
                            (ii) by adding at the end the following:
            ``(4) Definition of government sponsored enterprise-
        guaranteed loan.--In this section and sections 1.12(b) and 
        5.56(a), the term `Government Sponsored Enterprise-guaranteed 
        loan' means a loan or credit, or portion of a loan or credit, 
        that is guaranteed by an entity that is chartered by Congress 
        to serve a public purpose and the debt obligations of which are 
        not explicitly guaranteed by the United States, including the 
        Federal National Mortgage Association, the Federal Home Loan 
        Mortgage Corporation, the Federal Home Loan Bank System, and 
        the Federal Agricultural Mortgage Corporation, but not 
        including any other institution of the Farm Credit System.''; 
        and
                    (B) in subsection (e)(4)(B), by striking 
                ``government-guaranteed loans described in subsection 
                (a)(1)(C)'' and inserting ``loans described in 
                subparagraph (C) or (D) of subsection (a)(1)''.
            (2) Conforming amendments.--
                    (A) Section 1.12(b) of the Farm Credit Act of 1971 
                (12 U.S.C. 2020(b)) is amended--
                            (i) in paragraph (1), by inserting ``and 
                        Government Sponsored Enterprise-guaranteed 
                        loans (as defined in section 5.55(a)(4)) 
                        provided for in paragraph (4)'' after 
                        ``government-guaranteed loans (as defined in 
                        section 5.55(a)(3)) provided for in paragraph 
                        (3)'';
                            (ii) in paragraph (2), by striking ``and'' 
                        at the end;
                            (iii) in paragraph (3), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(4) the annual average principal outstanding for such 
        year on the guaranteed portions of Government Sponsored 
        Enterprise-guaranteed loans (as so defined) made by the 
        association, or by the other financing institution and funded 
        by or discounted with the Farm Credit Bank, that are in accrual 
        status, multiplied by the factor, not to exceed 0.0015, 
        determined by the Corporation for the purpose of setting the 
        premium for such guaranteed portions of loans under section 
        5.55(a)(1)(D).''.
                    (B) Section 5.56(a) of the Farm Credit Act of 1971 
                (12 U.S.C. 2277a-5(a)) is amended--
                            (i) in paragraph (1), by inserting ``and 
                        Government Sponsored Enterprise-guaranteed 
                        loans (as defined in section 5.55(a)(4))'' 
                        after ``government-guaranteed loans'';
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraphs (5) and (6), respectively; 
                        and
                            (iii) by inserting after paragraph (3) the 
                        following:
            ``(4) the annual average principal outstanding on the 
        guaranteed portions of Government Sponsored Enterprise-
        guaranteed loans (as defined in section 5.55(a)(4)) that are in 
        accrual status;''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date on which Farm Credit System Insurance Corporation 
premiums are due from insured Farm Credit System banks under section 
5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) for calendar 
year 2001.

SEC. 544. BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL MORTGAGE 
              CORPORATION.

    Section 8.2(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa-
2(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``15'' and inserting ``17'';
                    (B) in subparagraph (A), by striking ``common 
                stock'' and all that follows and inserting ``Class A 
                voting common stock;'';
                    (C) in subparagraph (B), by striking ``common 
                stock'' and all that follows and inserting ``Class B 
                voting common stock;'';
                    (D) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (E) by inserting after subparagraph (B) the 
                following:
                    ``(C) 2 members shall be elected by holders of 
                Class A voting common stock and Class B voting common 
                stock, 1 of whom shall be the chief executive officer 
                of the Corporation and 1 of whom shall be another 
                executive officer of the Corporation; and'';
            (2) in paragraph (3), by striking ``(2)(C)'' and inserting 
        ``(2)(D)'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``(A) or (B)'' 
                and inserting ``(A), (B), or (C)''; and
                    (B) in subparagraph (B), by striking ``(2)(C)'' and 
                inserting ``(2)(D)'';
            (4) in paragraph (5)(A)--
                    (A) by inserting ``executive officers of the 
                Corporation or'' after ``from among persons who are''; 
                and
                    (B) by striking ``such a representative'' and 
                inserting ``such an executive officer or 
                representative'';
            (5) in paragraph (6)(B), by striking ``(A) and (B)'' and 
        inserting ``(A), (B), and (C)'';
            (6) in paragraph (7), by striking ``8 members'' and 
        inserting ``Nine members'';
            (7) in paragraph (8)--
                    (A) in the paragraph heading, by inserting ``or 
                executive officers of the corporation'' after 
                ``employees''; and
                    (B) by inserting ``or executive officers of the 
                Corporation'' after ``United States''; and
            (8) by striking paragraph (9) and inserting the following:
            ``(9) Chairperson.--
                    ``(A) Election.--The permanent board shall annually 
                elect a chairperson from among the members of the 
                permanent board.
                    ``(B) Term.--The term of the chairperson shall 
                coincide with the term served by elected members of the 
                permanent board under paragraph (6)(B).''.

                     Subtitle E--General Provisions

SEC. 551. INAPPLICABILITY OF FINALITY RULE.

    Section 281(a)(1) of the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
            (1) by striking ``This subsection'' and inserting the 
        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection''; and
            (2) by adding at the end the following:
                    ``(B) Agricultural credit decisions.--This 
                subsection shall not apply with respect to an 
                agricultural credit decision made by such a State, 
                county, or area committee, or employee of such a 
                committee, under the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1921 et seq.).''.

SEC. 552. TECHNICAL AMENDMENTS.

    (a) Section 321(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)) is amended by striking ``Disaster Relief and 
Emergency Assistance Act'' each place it appears and inserting ``Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.)''.
    (b) Section 336(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1986(b)) is amended in the second sentence by striking 
``provided for in section 332 of this title''.
    (c) Section 359(c)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking 
``established pursuant to section 332,''.
    (d) Section 360(a) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006b(a)) is amended by striking ``established pursuant 
to section 332''.

SEC. 553. EFFECT OF AMENDMENTS.

    (a) In General.--Except as otherwise specifically provided in this 
title and notwithstanding any other provision of law, this title and 
the amendments made by this title shall not affect the authority of the 
Secretary of Agriculture to carry out a farm credit program for any of 
the 1996 through 2001 fiscal years under a provision of law in effect 
immediately before the enactment of this Act.
    (b) Liability.--A provision of this title or an amendment made by 
this title shall not affect the liability of any person under any 
provision of law as in effect immediately before the enactment of this 
Act.

SEC. 554. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b) and section 
543(b), this title and the amendments made by this title take effect on 
October 1, 2001.
    (b) Board of Directors of the Federal Agricultural Mortgage 
Corporation.--The amendments made by section 544 take effect on the 
date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

SEC. 601. FUNDING FOR RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN 
              GUARANTEES.

    Section 1011(a) of the Launching Our Communities' Access to Local 
Television Act of 2000 (title X of H.R. 5548, as enacted by section 
1(a)(2) of Public Law 106-553) is amended by adding at the end the 
following: ``In addition, a total of $200,000,000 of the funds of the 
Commodity Credit Corporation shall be available during fiscal years 
2002 through 2006, without fiscal year limitation, for loan guarantees 
under this title.''.

SEC. 602. EXPANDED ELIGIBILITY FOR VALUE-ADDED AGRICULTURAL PRODUCT 
              MARKET DEVELOPMENT GRANTS.

    Section 231(a) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1621 note) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Establishment and purposes.--In each of fiscal years 
        2002 through 2011, the Secretary shall use $50,000,000 of the 
        funds of the Commodity Credit Corporation to award competitive 
        grants--
                    ``(A) to eligible independent producers (as 
                determined by the Secretary) of value-added 
                agricultural commodities and products of agricultural 
                commodities to assist an eligible producer--
                            ``(i) to develop a business plan for viable 
                        marketing opportunities for a value-added 
                        agricultural commodity or product of an 
                        agricultural commodity; or
                            ``(ii) to develop strategies for the 
                        ventures that are intended to create marketing 
                        opportunities for the producers; and
                    ``(B) to public bodies, institutions of higher 
                learning, and trade associations to assist such 
                entities--
                            ``(i) to develop a business plan for viable 
                        marketing opportunities in emerging markets for 
                        a value-added agricultural commodity or product 
                        of an agricultural commodity; or
                            ``(ii) to develop strategies for the 
                        ventures that are intended to create marketing 
                        opportunities in emerging markets for the 
                        producers.'';
            (2) by striking ``producer'' each place it appears 
        thereafter and inserting ``grantee''; and
            (3) in the heading for paragraph (3), by striking 
        ``Producer'' and inserting ``Grantee''.

SEC. 603. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    (a) Purposes.--The purposes of this section are to carry out a 
demonstration program under which agricultural producers are provided--
            (1) technical assistance, including engineering services, 
        applied research, scale production, and similar services to 
        enable the producers to establish businesses for further 
        processing of agricultural products;
            (2) marketing, market development, and business planning; 
        and
            (3) overall organizational, outreach, and development 
        assistance to increase the viability, growth, and 
        sustainability of value-added agricultural businesses.
    (b) Nature of Program.--The Secretary of Agriculture (in this 
section referred to as the ``Secretary'') shall--
            (1) make grants to eligible applicants for the purposes of 
        enabling the applicants to obtain the assistance described in 
        subsection (a); and
            (2) provide assistance to eligible applicants through the 
        research and technical services of the Department of 
        Agriculture.
    (c) Eligibility Requirements.--
            (1) In general.--An applicant shall be eligible for a grant 
        and assistance described in subsection (b) to establish an 
        Agriculture Innovation Center if--
                    (A) the applicant--
                            (i) has provided services similar to those 
                        described in subsection (a); or
                            (ii) shows the capability of providing the 
                        services;
                    (B) the application of the applicant for the grant 
                and assistance sets forth a plan, in accordance with 
                regulations which shall be prescribed by the Secretary, 
                outlining support of the applicant in the agricultural 
                community, the technical and other expertise of the 
                applicant, and the goals of the applicant for 
                increasing and improving the ability of local producers 
                to develop markets and processes for value-added 
                agricultural products;
                    (C) the applicant demonstrates that resources (in 
                cash or in kind) of definite value are available, or 
                have been committed to be made available, to the 
                applicant, to increase and improve the ability of local 
                producers to develop markets and processes for value-
                added agricultural products; and
                    (D) the applicant meets the requirement of 
                paragraph (2).
            (2) Board of directors.--The requirement of this paragraph 
        is that the applicant shall have a board of directors comprised 
        of representatives of the following groups:
                    (A) The 2 general agricultural organizations with 
                the greatest number of members in the State in which 
                the applicant is located.
                    (B) The Department of Agriculture or similar State 
                organization or department, for the State.
                    (C) Organizations representing the 4 highest 
                grossing commodities produced in the State, according 
                to annual gross cash sales.
    (d) Grants and Assistance.--
            (1) In general.--Subject to subsection (g), the Secretary 
        shall make annual grants to eligible applicants under this 
        section, each of which grants shall not exceed the lesser of--
                    (A) $1,000,000; or
                    (B) twice the dollar value of the resources (in 
                cash or in kind) that the applicant has demonstrated 
                are available, or have been committed to be made 
                available, to the applicant in accordance with 
                subsection (c)(1)(C).
            (2) Initial limitation.--In the first year of the 
        demonstration program under this section, the Secretary shall 
        make grants under this section, on a competitive basis, to not 
        more than 5 eligible applicants.
            (3) Expansion of demonstration program.--In the second year 
        of the demonstration program under this section, the Secretary 
        may make grants under this section to not more than 10 eligible 
        applicants, in addition to any entities to which grants are 
        made under paragraph (2) for such year.
            (4) State limitation.--In the first 3 years of the 
        demonstration program under this section, the Secretary shall 
        not make an Agricultural Innovation Center Demonstration 
        Program grant under this section to more than 1 entity in a 
        single State.
    (e) Use of Funds.--An entity to which a grant is made under this 
section may use the grant only for the following purposes, but only to 
the extent that the use is not described in section 231(d) of the 
Agricultural Risk Protection Act of 2000:
            (1) Applied research.
            (2) Consulting services.
            (3) Hiring of employees, at the discretion of the board of 
        directors of the entity.
            (4) The making of matching grants, each of which shall be 
        not more than $5,000, to agricultural producers, so long as the 
        aggregate amount of all such matching grants shall be not more 
        than $50,000.
            (5) Legal services.
    (f) Rule of Interpretation.--This section shall not be construed to 
prevent a recipient of a grant under this section from collaborating 
with any other institution with respect to activities conducted using 
the grant.
    (g) Availability of Funds.--Of the amount made available under 
section 231(a)(1) of the Agricultural Risk Protection Act of 2000 
(Public Law 106-224; 7 U.S.C. 1621 note), the Secretary shall use to 
carry out this section--
            (1) not less than $5,000,000 for fiscal year 2002; and
            (2) not less than $10,000,000 for each of the fiscal years 
        2003 and 2004.
    (h) Report on Best Practices.--
            (1) Effects on the agricultural sector.--The Secretary 
        shall utilize $300,000 per year of the funds made available 
        pursuant to this section to support research at any university 
        into the effects of value-added projects on agricultural 
        producers and the commodity markets. The research should 
        systematically examine possible effects on demand for 
        agricultural commodities, market prices, farm income, and 
        Federal outlays on commodity programs using linked, long-term, 
        global projections of the agricultural sector.
            (2) Department of agriculture.--Not later than 3 years 
        after the first 10 grants are made under this section, the 
        Secretary shall prepare and submit to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and to the 
        Committee on Agriculture of the House of Representatives a 
        written report on the effectiveness of the demonstration 
        program conducted under this section at improving the 
        production of value-added agricultural products and on the 
        effects of the program on the economic viability of the 
        producers, which shall include the best practices and 
        innovations found at each of the Agriculture Innovation Centers 
        established under the demonstration program under this section, 
        and detail the number and type of agricultural projects 
        assisted, and the type of assistance provided, under this 
        section.

SEC. 604. FUNDING OF COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

    (a) Funding.--In each of fiscal years 2002 through 2011, the 
Secretary of Agriculture shall use $30,000,000 of the funds of the 
Commodity Credit Corporation to carry out section 306A of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1926a).
    (b) Extension of Program.--Section 306A(i) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926a(i)) is amended by striking 
``2002'' and inserting ``2011''.
    (c) Miscellaneous Amendments.--Section 306A of such Act (7 U.S.C. 
1926a) is amended--
            (1) in the heading by striking ``emergency'';
            (2) in subsection (a)(1)--
                    (A) by striking ``after'' and inserting ``when''; 
                and
                    (B) by inserting ``is imminent'' after 
                ``communities''; and
            (3) in subsection (c), by striking ``shall--'' and all that 
        follows and inserting ``shall be a public or private nonprofit 
        entity.''.

SEC. 605. LOAN GUARANTEES FOR THE FINANCING OF THE PURCHASE OF 
              RENEWABLE ENERGY SYSTEMS.

    Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) 
is amended--
            (1) by inserting ``(a)'' before ``The Secretary''; and
            (2) by adding after and below the end the following:
    ``(b) Loan Guarantees for the Financing of the Purchase of 
Renewable Energy Systems.--The Secretary may provide a loan guarantee, 
on such terms and conditions as the Secretary deems appropriate, for 
the purpose of financing the purchase of a renewable energy system, 
including a wind energy system and anaerobic digestors for the purpose 
of energy generation, by any person or individual who is a farmer, a 
rancher, or an owner of a small business (as defined by the Secretary) 
that is located in a rural area (as defined by the Secretary). In 
providing guarantees under this subsection, the Secretary shall give 
priority to loans used primarily for power generation on a farm, ranch, 
or small business (as so defined).''.

SEC. 606. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.

    Section 310B(a)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(a)(3)) is amended by inserting ``and other renewable 
energy systems including wind energy systems and anaerobic digestors 
for the purpose of energy generation'' after ``solar energy systems''.

SEC. 607. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 608. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
              ALASKA.

    Section 306D(d)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926d(d)(1)) is amended by striking ``and 2002'' and 
inserting ``through 2011''.

SEC. 609. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    Section 310B(e)(9) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(e)(9)) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 610. NATIONAL RESERVE ACCOUNT OF RURAL DEVELOPMENT TRUST FUND.

    Section 381E(e)(3)(F) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009d(e)(3)(F)) is amended by striking 
``fiscal year 2002'' and inserting ``each of the fiscal years 2002 
through 2011''.

SEC. 611. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

    Section 381O(b)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009n(b)(3)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 612. INCREASE IN LIMIT ON CERTAIN LOANS FOR RURAL DEVELOPMENT.

    Section 310B(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(a)) is amended by striking ``$25,000,000'' and inserting 
``$100,000,000''.

SEC. 613. PILOT PROGRAM FOR DEVELOPMENT AND IMPLEMENTATION OF STRATEGIC 
              REGIONAL DEVELOPMENT PLANS.

    (a) Development.--
            (1) Selection of states.--The Secretary of Agriculture (in 
        this section referred to as the ``Secretary'') shall, on a 
        competitive basis, select States in which to implement 
        strategic regional development plans developed under this 
        subsection.
            (2) Grants.--
                    (A) Authority.--
                            (i) In general.--From the funds made 
                        available to carry out this subsection, the 
                        Secretary shall make a matching grant to 1 or 
                        more entities in each State selected under 
                        subsection (a), to develop a strategic regional 
                        development plan that provides for rural 
                        economic development in a region in the State 
                        in which the entity is located.
                            (ii) Priority.--In making grants under this 
                        subsection, the Secretary shall give priority 
                        to entities that represent a regional coalition 
                        of community-based planning, development, 
                        governmental, and business organizations.
                    (B) Terms of match.--In order for an entity to be 
                eligible for a matching grant under this subsection, 
                the entity shall make a commitment to the Secretary to 
                provide funds for the development of a strategic 
                regional development plan of the kind referred to in 
                subparagraph (A) in an amount that is not less than the 
                amount of the matching grant.
                    (C) Limitation.--The Secretary shall not make a 
                grant under this subsection in an amount that exceeds 
                $150,000.
            (3) Funding.--
                    (A) In general.--The Secretary shall use $2,000,000 
                of the funds of the Commodity Credit Corporation, plus 
                \2/13\ of the amounts made available by section 943 of 
                the Farm Security Act of 2001 for grants under this 
                section, in each of fiscal years 2002 through 2011 to 
                carry out this subsection.
                    (B) Availability.--Funds made available pursuant to 
                subparagraph (A) shall remain available without fiscal 
                year limitation.
    (b) Strategic Planning Implementation.--
            (1) The Secretary shall use the authorities provided in the 
        provisions of law specified in section 793(c)(1)(A)(ii) of the 
        Federal Agriculture Improvement and Reform Act of 1996 to 
        implement the strategic regional development plans developed 
        pursuant to subsection (a) of this section.
            (2) Funding.--
                    (A) In general.--The Secretary shall use 
                $13,000,000 of the funds of the Commodity Credit 
                Corporation, plus \11/13\ of the amounts made available 
                by section 943 of the Farm Security Act of 2001 for 
                grants under this section, in each of fiscal years 2002 
                through 2011 to carry out this subsection.
                    (B) Availability.--Funds made available pursuant to 
                subparagraph (A) shall remain available without fiscal 
                year limitation.
    (c) Use of Funds.--The amounts made available under subsections (a) 
and (b) may be used as the Secretary deems appropriate to carry out any 
provision of this section.

SEC. 614. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    (a) In General.--Subtitle A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922-1949) is amended by inserting after 
section 306D the following:

``SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    ``(a) Definition of Eligible Individual.--In this section, the term 
`eligible individual' means an individual who is a member of a 
household, the combined income of whose members for the most recent 12-
month period for which the information is available, is not more than 
100 percent of the median nonmetropolitan household income for the 
State or territory in which the individual resides, according to the 
most recent decennial census of the United States.
    ``(b) Grants.--The Secretary may make grants to private nonprofit 
organizations for the purpose of assisting eligible individuals in 
obtaining financing for the construction, refurbishing, and servicing 
of individual household water well systems in rural areas that are 
owned (or to be owned) by the eligible individuals.
    ``(c) Use of Funds.--A grant made under this section may be--
            ``(1) used, or invested to provide income to be used, to 
        carry out subsection (b); and
            ``(2) used to pay administrative expenses associated with 
        providing the assistance described in subsection (b).
    ``(d) Priority in Awarding Grants.--In awarding grants under this 
section, the Secretary shall give priority to an applicant that has 
substantial expertise and experience in promoting the safe and 
productive use of individually-owned household water well systems and 
ground water.''.
    (b) Effective Date.--The amendment made by this section takes 
effect on October 1, 2001.

SEC. 615. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Subtitle E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009-2009n) is amended by adding at the end the following:

``SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ``(a) Rural Area Defined.--In this section, the term `rural area' 
means such areas as the Secretary may determine.
    ``(b) Establishment.--There is established a National Rural 
Development Partnership (in this section referred to as the 
`Partnership'), which shall be composed of--
            ``(1) the National Rural Development Coordinating Committee 
        established in accordance with subsection (c); and
            ``(2) State rural development councils established in 
        accordance with subsection (d).
    ``(c) National Rural Development Coordinating Committee.--
            ``(1) Composition.--The National Rural Development 
        Coordinating Committee (in this section referred to as the 
        `Coordinating Committee') may be composed of--
                    ``(A) representatives of all Federal departments 
                and agencies with policies and programs that affect or 
                benefit rural areas;
                    ``(B) representatives of national associations of 
                State, regional, local, and tribal governments and 
                intergovernmental and multi-jurisdictional agencies and 
                organizations;
                    ``(C) national public interest groups; and
                    ``(D) other national nonprofit organizations that 
                elect to participate in the activities of the 
                Coordinating Committee.
            ``(2) Functions.--The Coordinating Committee may--
                    ``(A) provide support for the work of the State 
                rural development councils established in accordance 
                with subsection (d); and
                    ``(B) develop and facilitate strategies to reduce 
                or eliminate conflicting or duplicative administrative 
                and regulatory impediments confronting rural areas.
    ``(d) State Rural Development Councils.--
            ``(1) Composition.--A State rural development council may--
                    ``(A) be composed of representatives of Federal, 
                State, local, and tribal governments, and nonprofit 
                organizations, the private sector, and other entities 
                committed to rural advancement; and
                    ``(B) have a nonpartisan and nondiscriminatory 
                membership that is broad and representative of the 
                economic, social, and political diversity of the State.
            ``(2) Functions.--A State rural development council may--
                    ``(A) facilitate collaboration among Federal, 
                State, local, and tribal governments and the private 
                and non-profit sectors in the planning and 
                implementation of programs and policies that affect the 
                rural areas of the State, and to do so in such a way 
                that provides the greatest degree of flexibility and 
                innovation in responding to the unique needs of the 
                State and the rural areas; and
                    ``(B) in conjunction with the Coordinating 
                Committee, develop and facilitate strategies to reduce 
                or eliminate conflicting or duplicative administrative 
                and regulatory impediments confronting the rural areas 
                of the State.
    ``(e) Administration of the Partnership.--The Secretary may provide 
for any additional support staff to the Partnership as the Secretary 
determines to be necessary to carry out the duties of the Partnership.
    ``(f) Termination.--The authority provided by this section shall 
terminate on the date that is 5 years after the date of the enactment 
of this section.''.

SEC. 616. ELIGIBILITY OF RURAL EMPOWERMENT ZONES, RURAL ENTERPRISE 
              COMMUNITIES, AND CHAMPION COMMUNITIES FOR DIRECT AND 
              GUARANTEED LOANS FOR ESSENTIAL COMMUNITY FACILITIES.

    Section 306(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(1)) is amended by inserting after the 1st 
sentence the following: ``The Secretary may also make or insure loans 
to communities that have been designated as rural empowerment zones or 
rural enterprise communities pursuant to part I of subchapter U of 
chapter 1 of the Internal Revenue Code of 1986, as rural enterprise 
communities pursuant to section 766 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999, or as champion communities (as determined by 
the Secretary), to provide for the installation or improvement of 
essential community facilities including necessary related equipment, 
and to furnish financial assistance or other aid in planning projects 
for such purposes.''.

SEC. 617. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO TRAIN 
              FARM WORKERS IN SPECIALIZED SKILLS NECESSARY FOR HIGHER 
              VALUE CROPS.

    (a) In General.--The Secretary of Agriculture may make a grant to a 
nonprofit organization with the capacity to train farm workers, or to a 
consortium of non-profit organizations, agribusinesses, State and local 
governments, agricultural labor organizations, and community-based 
organizations with that capacity.
    (b) Use of Funds.--An entity to which a grant is made under this 
section shall use the grant to train farm workers to use new 
technologies and develop specialized skills for agricultural 
development.
    (c) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary of Agriculture not more than $10,000,000 for each of fiscal 
years 2002 through 2011.

SEC. 618. LOAN GUARANTEES FOR THE PURCHASE OF STOCK IN A FARMER 
              COOPERATIVE SEEKING TO MODERNIZE OR EXPAND.

    Section 310B(g)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(g)(2)) is amended by striking ``start-up'' and all 
that follows and inserting ``capital stock of a farmer cooperative 
established for an agricultural purpose.''.

SEC. 619. INTANGIBLE ASSETS AND SUBORDINATED UNSECURED DEBT REQUIRED TO 
              BE CONSIDERED IN DETERMINING ELIGIBILITY OF FARMER-OWNED 
              COOPERATIVE FOR BUSINESS AND INDUSTRY GUARANTEED LOAN.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by adding at the end the following:
    ``(h) Intangible Assets and Subordinated Unsecured Debt Required To 
Be Considered in Determining Eligibility of Farmer-Owned Cooperative 
for Business and Industry Guaranteed Loan.--In determining whether a 
cooperative organization owned by farmers is eligible for a guaranteed 
loan under subsection (a)(1), the Secretary may consider the value of 
the intangible assets and subordinated unsecured debt of the 
cooperative organization.''.

SEC. 620. BAN ON LIMITING ELIGIBILITY OF FARMER COOPERATIVE FOR 
              BUSINESS AND INDUSTRY LOAN GUARANTEE BASED ON POPULATION 
              OF AREA IN WHICH COOPERATIVE IS LOCATED; REFINANCING.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is further amended by adding at the end of the following:
    ``(i) Special Rules Applicable to Farmer Cooperatives Under the 
Business and Industry Loan Program.--In determining whether a 
cooperative organization owned by farmers is eligible for a guaranteed 
loan under subsection (a)(1), the Secretary shall not apply any lending 
restriction based on population to the area in which the cooperative 
organization is located.
    ``(j) Refinancing.--A cooperative organization owned by farmers 
that is eligible to receive a business or industry guaranteed loan 
under subsection (a) shall be eligible to refinance an existing loan 
with the same lender or a new lender if--
            ``(1) the original loan--
                    ``(A) is current and performing; and
                    ``(B) is not in default; and
            ``(2) the cooperative organization has adequate security or 
        collateral (including tangible and intangible assets).''.

SEC. 621. RURAL WATER AND WASTE FACILITY GRANTS.

    Section 306(a)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(2)) is amended by striking ``aggregating not to 
exceed $590,000,000 in any fiscal year''.

SEC. 622. RURAL WATER CIRCUIT RIDER PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
national rural water and wastewater circuit rider grant program that 
shall be modeled after the National Rural Water Association Rural Water 
Circuit Rider Program that receives funding from the Rural Utilities 
Service.
    (b) Limitations on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary of Agriculture $15,000,000 for each fiscal year.

SEC. 623. RURAL WATER GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
national grassroots source water protection program that will utilize 
the on-site technical assistance capabilities of State rural water 
associations that are operating wellhead or ground water protection 
programs in each State.
    (b) Limitations on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary of Agriculture $5,000,000 for each fiscal year.

SEC. 624. DELTA REGIONAL AUTHORITY.

    Section 382N of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009aa-13) is amended by striking ``2002'' and inserting 
``2011''.

SEC. 625. PREDEVELOPMENT AND SMALL CAPITALIZATION LOAN FUND.

    The Secretary of Agriculture may make grants to private, nonprofit, 
multi-State rural community assistance programs to capitalize revolving 
funds for the purpose of financing eligible projects of predevelopment, 
repair, and improvement costs of existing water and wastewater systems. 
Financing provided using funds appropriated to carry out this program 
may not exceed $300,000.

SEC. 626. RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM.

    The Secretary of Agriculture may use an additional source of 
funding for economic development programs administered by the 
Department of Agriculture through guaranteeing fees on guarantees of 
bonds and notes issued by cooperative lenders for electricity and 
telecommunications purposes.

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

SEC. 700. MARKET EXPANSION RESEARCH.

    Section 1436(b)(3)(C) of the Food Security Act of 1985 (7 U.S.C. 
1632(b)(3)(C)) is amended by striking ``1990'' and inserting ``2011''.

SEC. 701. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 702. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    Section 1417(l) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 703. POLICY RESEARCH CENTERS.

    Section 1419A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 704. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 705. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
              RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 706. NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 707. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 708. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 709. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
              AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
              UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 710. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS AT 1890 
              LAND-GRANT INSTITUTIONS.

    Sections 1448(a)(1) and (f) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c(a)(1) and 
(f)) are amended by striking ``2002'' each place it appears and 
inserting ``2011''.

SEC. 711. HISPANIC-SERVING INSTITUTIONS.

    Section 1455(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 712. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND 
              EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 713. UNIVERSITY RESEARCH.

    Subsections (a) and (b) of section 1463 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3311(a) and (b)) are amended by striking ``2002'' each place it 
appears and inserting ``2011''.

SEC. 714. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 715. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 716. AGRICULTURE RESEARCH FACILITIES.

    The first sentence of section 1477 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 717. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 718. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 719. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 720. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A(g) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925a(g)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 721. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
              REVOLVING FUND.

    (a) Authorization of Appropriations.--Section 1664(g)(1) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5908(g)(1)) is amended by striking ``2002'' and inserting ``2011''.
    (b) Capitalization.--Section 1664(g)(2) of such Act (7 U.S.C. 
5908(g)(2)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 723. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2002'' 
and inserting ``2011''.

SEC. 724. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
              RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 725. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is 
amended by striking ``2001'' and inserting ``2011''.
    (b) Authorization of Appropriations.--Section 404(h) of such Act (7 
U.S.C. 7624(h)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 726. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
              GRANTS PROGRAM.

    Section 406(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(e)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 727. INSTITUTIONAL CAPACITY BUILDING GRANTS.

    (a) Generally.--Section 535(b)(1) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
striking ``2000'' and inserting ``2011''.
    (b) Authorization of Appropriations.--Section 535(c) of such Act is 
amended by striking ``2000'' and inserting ``2011''.

SEC. 728. 1994 INSTITUTION RESEARCH GRANTS.

    Section 536(c) of the Equity in Educational Land-Grant Status Act 
of 1994 (7 U.S.C. 301 note) is amended by striking ``2002'' and 
inserting ``2011''.

SEC. 729. ENDOWMENT FOR 1994 INSTITUTIONS.

    The first sentence of section 533(b) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note) is amended by 
striking ``$4,600,000'' and all that follows through the period and 
inserting ``such sums as are necessary to carry out this section for 
each of fiscal years 1996 through 2011.''.

SEC. 730. PRECISION AGRICULTURE.

    Section 403(i) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 731. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 732. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, 
              AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA 
              INDICA.

    Section 408(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 733. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 734. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

    Section 1408(h) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 735. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
              AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES 
              AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 736. BIOMASS RESEARCH AND DEVELOPMENT.

    Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
7624 note) is amended--
            (1) in section 307(f), by striking ``2005'' and inserting 
        ``2011''; and
            (2) in section 310, by striking ``2005'' and inserting 
        ``2011''.

SEC. 737. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2002'' and inserting ``2011''.

SEC. 738. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS NATIONAL 
              RESEARCH INITIATIVE.

    Section 2(b)(10) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i(b)(10)) is amended by striking 
``2002'' and inserting ``2011''.

SEC. 739. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended by striking ``2002'' and inserting ``2011''.

SEC. 740. COTTON CLASSIFICATION SERVICES.

    The first sentence of section 3a of the Act of March 3, 1927 
(commonly known as the ``Cotton Statistics and Estimates Act''; 7 
U.S.C. 473a) is amended by striking ``2002'' and inserting ``2011''.

SEC. 740A. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``2002'' and inserting ``2011''.

SEC. 740B. PRIVATE NONINDUSTRIAL HARDWOOD RESEARCH PROGRAM.

    (a) In General.--The Secretary shall establish a program to provide 
competitive grants to producers to be used for basic hardwood research 
projects directed at--
            (1) improving timber management techniques;
            (2) increasing timber production;
            (3) expanding genetic research; and
            (4) addressing invasive and endangered species.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2002 through 2011.

                       Subtitle B--Modifications

SEC. 741. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Authorization of Appropriations.--Section 534(a)(1)(A) of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
is amended by striking ``$50,000'' and inserting ``$100,000''.
    (b) Withdrawals and Expenditures.--Section 533(c)(4)(A) of such Act 
is amended by striking ``section 390(3)'' and all that follows through 
``1998)'' and inserting ``section 2(a)(7) of the Tribally Controlled 
College or University Assistance Act of 1978)''.
    (c) Accreditation.--Section 533(a)(3) of such Act is amended by 
striking ``under sections 534 and 535'' and inserting ``under sections 
534, 535, and 536''.
    (d) 1994 Institutions.--Section 532 of such Act is amended by 
striking paragraphs (1) through (30) and inserting the following:
            ``(1) Bay Mills Community College.
            ``(2) Blackfeet Community College.
            ``(3) Cankdeska Cikana Community College.
            ``(4) College of Menominee Nation.
            ``(5) Crownpoint Institute of Technology.
            ``(6) D-Q University.
            ``(7) Dine College.
            ``(8) Dull Knife Memorial College.
            ``(9) Fond du Lac Tribal and Community College.
            ``(10) Fort Belknap College.
            ``(11) Fort Berthold Community College.
            ``(12) Fort Peck Community College.
            ``(13) Haskell Indian Nations University.
            ``(14) Institute of American Indian and Alaska Native 
        Culture and Arts Development.
            ``(15) Lac Courte Oreilles Ojibwa Community College.
            ``(16) Leech Lake Tribal College.
            ``(17) Little Big Horn College.
            ``(18) Little Priest Tribal College.
            ``(19) Nebraska Indian Community College.
            ``(20) Northwest Indian College.
            ``(21) Oglala Lakota College.
            ``(22) Salish Kootenai College.
            ``(23) Sinte Gleska University.
            ``(24) Sisseton Wahpeton Community College.
            ``(25) Si Tanka/Huron University.
            ``(26) Sitting Bull College.
            ``(27) Southwestern Indian Polytechnic Institute.
            ``(28) Stone Child College.
            ``(29) Turtle Mountain Community College.
            ``(30) United Tribes Technical College.''.

SEC. 742. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT OF 1977.

    Section 1404(4) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103(4)) is amended--
            (1) by striking the period at the end of subparagraph (E) 
        and inserting ``, or''; and
            (2) by adding at the end the following: ``(F) is one of the 
        1994 Institutions (as defined in section 532 of the Equity in 
        Educational Land-Grant Status Act of 1994).''.

SEC. 743. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF 
              1998.

    (a) Priority Mission Areas.--Section 401(c)(2) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7621(c)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(G) alternative fuels and renewable energy 
                sources.''.
    (b) Precision Agriculture.--Section 403 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7623) 
is amended--
            (1) in subsection (a)(5)(F), by inserting ``(including 
        improved use of energy inputs)'' after ``farm production 
        efficiencies''; and
            (2) in subsection (d)--
                    (A) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (B) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Improve on farm energy use efficiencies.''.
    (c) Thomas Jefferson Initiative for Crop Diversification.--Section 
405(a) of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7625(a)) is amended by striking ``and marketing'' 
and inserting ``, marketing, and efficient use''.
    (d) Coordinated Program of Research, Extension, and Education To 
Improve Viability of Small- and Medium-Size Dairy, Livestock, and 
Poultry Operations.--Section 407(b)(3) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(b)(3)) is 
amended by inserting ``(including improved use of energy inputs)'' 
after ``poultry systems that increase efficiencies''.
    (e) Support for Research Regarding Diseases of Wheat, Triticale, 
and Barley Caused by Fusarium Graminearum or By Tilletia Indica.--
            (1) Research grant authorized.--Section 408(a) of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7628(a)) is amended to read as follows:
    ``(a) Research Grant Authorized.--The Secretary of Agriculture may 
make grants to consortia of land-grant colleges and universities to 
enhance the ability of the consortia to carry out multi-State research 
projects aimed at understanding and combating diseases of wheat, 
triticale, and barley caused by Fusarium graminearum and related fungi 
(referred to in this section as `wheat scab') or by Tilletia indica and 
related fungi (referred to in this section as `Karnal bunt').''.
            (2) Research components.--Section 408(b) of such Act (7 
        U.S.C. 7628(b)) is amended--
                    (A) in paragraph (1), by inserting ``or of Karnal 
                bunt,'' after ``epidemiology of wheat scab'';
                    (B) in paragraph (1), by inserting ``, triticale,'' 
                after ``occurring in wheat'';
                    (C) in paragraph (2), by inserting ``or Karnal 
                bunt'' after ``wheat scab'';
                    (D) in paragraph (3)(A), by striking ``and barley 
                for the presence of'' and inserting ``, triticale, and 
                barley for the presence of Karnal bunt or of'';
                    (E) in paragraph (3)(B), by striking ``and barley 
                infected with wheat scab'' and inserting ``, triticale, 
                and barley infected with wheat scab or with Karnal 
                bunt'';
                    (F) in paragraph (3)(C), by inserting ``wheat 
                scab'' after ``to render'';
                    (G) in paragraph (4), by striking ``and barley to 
                wheat scab'' and inserting ``, triticale, and barley to 
                wheat scab and to Karnal bunt''; and
                    (H) in paragraph (5)--
                            (i) by inserting ``and Karnal bunt'' after 
                        ``wheat scab''; and
                            (ii) by inserting ``, triticale,'' after 
                        ``resistant wheat''.
            (3) Communications networks.--Section 408(c) of such Act (7 
        U.S.C. 7628(c)) is amended by inserting ``or Karnal bunt'' 
        after ``wheat scab''.
            (4) Technical amendments.--(A) The section heading for 
        section 408 of such Act is amended by striking ``and barley 
        caused by fusarium graminearum'' and inserting ``, triticale, 
        and barley caused by fusarium graminearum or by tilletia 
        indica''.
            (B) The table of sections for such Act is amended by 
        striking ``and barley caused by fusarium graminearum'' in the 
        item relating to section 408 and inserting ``, triticale, and 
        barley caused by Fusarium graminearum or by Tilletia indica''.
    (f) Program To Control Johne's Disease.--Title IV of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7621 et seq.) is amended by adding at the end the following new 
section:

``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    ``(a) Establishment.--The Secretary of Agriculture, in coordination 
with State veterinarians and other appropriate State animal health 
professionals, may establish a program to conduct research, testing, 
and evaluation of programs for the control and management of Johne's 
disease in livestock.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section for each of fiscal years 2003 through 2011.''.

SEC. 744. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.

    (a) Agricultural Genome Initiative.--Section 1671(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5924(b)) is 
amended--
            (1) in paragraph (3), by inserting ``pathogens and'' before 
        ``diseases causing economic hardship'';
            (2) in paragraph (6), by striking ``and'' at the end;
            (3) by redesignating paragraph (7) as paragraph (8); and
            (4) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) reducing the economic impact of plant pathogens on 
        commercially important crop plants; and''.
    (b) High-Priority Research and Extension Initiatives.--Section 
1672(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(7 U.S.C. 5925) is amended by adding at the end the following new 
paragraphs:
            ``(25) Research to protect the united states food supply 
        and agriculture from bioterrorism.--Research grants may be made 
        under this section for the purpose of developing technologies, 
        which support the capability to deal with the threat of 
        agricultural bioterrorism.
            ``(26) Wind erosion research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of validating wind erosion models.
            ``(27) Crop loss research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of validating crop loss models.
            ``(28) Land use management research and extension.--
        Research and extension grants may be made under this section 
        for the purposes of evaluating the environmental benefits of 
        land use management tools such as those provided in the 
        Farmland Protection Program.
            ``(29) Water and air quality research and extension.--
        Research and extension grants may be made under this section 
        for the purpose of better understanding agricultural impacts to 
        air and water quality and means to address them.
            ``(30) Revenue and insurance tools research and 
        extension.--Research and extension grants may be made under 
        this section for the purposes of better understanding the 
        impact of revenue and insurance tools on farm income.
            ``(31) Agrotourism research and extension.--Research and 
        extension grants may be made under this section for the purpose 
        of better understanding the economic, environmental, and food 
        systems impacts on agrotourism.
            ``(32) Harvesting productivity for fruits and vegetables.--
        Research and extension grants may be made under this section 
        for the purpose of improving harvesting productivity for fruits 
        and vegetables (including citrus), including the development of 
        mechanical harvesting technologies and effective, economical, 
        and safe abscission compounds.
            ``(33) Nitrogen-fixation by plants.--Research and extension 
        grants may be made under this section for the purpose of 
        enhancing the nitrogen-fixing ability and efficiency of 
        legumes, developing new varieties of legumes that fix nitrogen 
        more efficiently, and developing new varieties of other 
        commercially important crops that potentially are able to fix 
        nitrogen.
            ``(34) Agricultural marketing.--Extension grants may be 
        made under this section for the purpose of providing education 
        materials, information, and outreach programs regarding 
        commodity and livestock marketing strategies for agricultural 
        producers and for cooperatives and other marketers of any 
        agricultural commodity, including livestock.
            ``(35) Environment and private lands research and 
        extension.--Research and extension grants may be made under 
        this section for the purpose of researching the use of computer 
        models to aid in assessment of best management practices on a 
        watershed basis, working with government, industry, and private 
        landowners to help craft industry-led solutions to identified 
        environmental issues, researching and monitoring water, air, or 
        soil environmental quality to aid in the development of new 
        approaches to local environmental concerns, and working with 
        local, State, and federal officials to help craft effective 
        environmental solutions that respect private property rights 
        and agricultural production realities.
            ``(36) Livestock disease research and extension.--Research 
        and extension grants may be made under this section for the 
        purpose of identifying possible livestock disease threats, 
        educating the public regarding livestock disease threats, 
        training persons to deal with such threats, and conducting 
        related research.
            ``(37) Plant gene expression.--Research and development 
        grants may be made under this section for the purpose of plant 
        gene expression research to accelerate the application of basic 
        plant genomic science to the development and testing of new 
        varieties of enhanced food crops, crops that can be used as 
        renewable energy sources, and other alternative uses of 
        agricultural crops.''.

SEC. 745. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT OF 1977.

    (a) National Agricultural Research, Extension, Education, and 
Economic Advisory Board.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
amended--
            (1) in subsection (b)(3)--
                    (A) by redesignating subparagraphs (R) through (DD) 
                as subparagraphs (S) through (EE), respectively; and
                    (B) by inserting after subparagraph (Q) the 
                following new subparagraph:
                    ``(R) 1 member representing a nonland grant college 
                or university with a historic commitment to research in 
                the food and agricultural sciences.'';
            (2) in subsection (c)(1), by striking ``and land-grant 
        colleges and universities'' and inserting ``, land-grant 
        colleges and universities, and the Committee on Agriculture of 
        the House of Representatives, the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate, the Subcommittee on 
        Agriculture, Rural Development, Food and Drug Administration 
        and Related Agencies of the Committee on Appropriations of the 
        House of Representatives, and the Subcommittee on Agriculture, 
        Rural Development and Related Agencies of the Committee on 
        Appropriations of the Senate'';
            (3) in subsection (d)(1), inserting ``consult with any 
        appropriate agencies of the Department of Agriculture and'' 
        after ``the Advisory Board shall''; and
            (4) in subsection (b)(1), by striking ``30 members'' and 
        inserting ``31 members''.
    (b) Grants for Research on Production and Marketing of Alcohols and 
Industrial Hydrocarbons From Agricultural Commodities and Forest 
Products.--Section 1419 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is amended--
            (1) in subsection (a)(2), by inserting ``and animal fats 
        and oils'' after ``industrial oilseed crops''; and
            (2) in subsection (a)(4), by inserting ``or triglycerides'' 
        after ``other industrial hydrocarbons''.
    (c) FAS Overseas Intern Program.--Section 1458(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3291(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (8);
            (2) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(10) establish a program, to be coordinated by the 
        Cooperative State Research, Education, and Extension Service 
        and the Foreign Agricultural Service, to place interns from 
        United States colleges and universities at Foreign Agricultural 
        Service field offices overseas.''.

SEC. 746. BIOMASS RESEARCH AND DEVELOPMENT.

    Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 
7624 note) is amended--
            (1) in section 302(3), by inserting ``or biodiesel'' after 
        ``such as ethanol'';
            (2) in section 303(3), by inserting ``animal byproducts,'' 
        after ``fibers,''; and
            (3) in section 306(b)(1)--
                    (A) by redesignating subparagraphs (E) through (J) 
                as subparagraphs (F) through (K), respectively; and
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) an individual affiliated with a livestock 
                trade association;''.

SEC. 747. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    Section 1668 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5921) is amended to read as follows:

``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to authorize and support environmental assessment 
        research to help identify and analyze environmental effects of 
        biotechnology; and
            ``(2) to authorize research to help regulators develop 
        long-term policies concerning the introduction of such 
        technology.
    ``(b) Grant Program.--The Secretary of Agriculture shall establish 
a grant program within the Cooperative State Research, Education, and 
Extension Service and the Agricultural Research Service to provide the 
necessary funding for environmental assessment research concerning the 
introduction of genetically engineered plants and animals into the 
environment.
    ``(c) Types of Research.--Types of research for which grants may be 
made under this section shall include the following:
            ``(1) Research designed to identify and develop appropriate 
        management practices to minimize physical and biological risks 
        associated with genetically engineered animals and plants once 
        they are introduced into the environment.
            ``(2) Research designed to develop methods to monitor the 
        dispersal of genetically engineered animals and plants.
            ``(3) Research designed to further existing knowledge with 
        respect to the characteristics, rates and methods of gene 
        transfer that may occur between genetically engineered plants 
        and animals and related wild and agricultural organisms.
            ``(4) Environmental assessment research designed to provide 
        analysis, which compares the relative impacts of plants and 
        animals modified through genetic engineering to other types of 
        production systems.
            ``(5) Other areas of research designed to further the 
        purposes of this section.
    ``(d) Eligibility Requirements.--Grants under this section shall 
be--
            ``(1) made on the basis of the quality of the proposed 
        research project; and
            ``(2) available to any public or private research or 
        educational institution or organization.
    ``(e) Consultation.--In considering specific areas of research for 
funding under this section, the Secretary of Agriculture shall consult 
with the Administrator of the Animal and Plant Health Inspection 
Service and the National Agricultural Research, Extension, Education, 
and Economics Advisory Board.
    ``(f) Program Coordination.--The Secretary of Agriculture shall 
coordinate research funded under this section with the Office of 
Research and Development of the Environmental Protection Agency in 
order to avoid duplication of research activities.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as necessary to carry out this section.
            ``(2) Withholdings from biotechnology outlays.--The 
        Secretary of Agriculture shall withhold from outlays of the 
        Department of Agriculture for research on biotechnology, as 
        defined and determined by the Secretary, at least 3 percent of 
        such amount for the purpose of making grants under this section 
        for research on biotechnology risk assessment. Except that, 
        funding from this authorization should be collected and applied 
        to the maximum extent practicable to risk assessment research 
        on all categories identified as biotechnology by the 
        Secretary.''.

SEC. 748. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

    Section 2(a) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(a)) is amended by adding at the end the 
following new paragraph:
            ``(3) Determination of high priority research.--Research 
        priorities shall be determined by the Secretary on an annual 
        basis, taking into account input as gathered by the Secretary 
        through the National Agricultural Research, Extension, 
        Education, and Economics Advisory Board.''.

SEC. 749. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222d) is amended--
            (1) by amending subsection (c) to read as follows:
    ``(c) Matching Formula.--For each of fiscal years 2003 through 
2011, the State shall provide matching funds from non-Federal sources. 
Such matching funds shall be for an amount equal to not less than 60 
percent of the formula funds to be distributed to the eligible 
institution, and shall increase by 10 percent each fiscal year 
thereafter until fiscal year 2007.''; and
            (2) by amending subsection (d) to read as follows:
    ``(d) Waiver Authority.--Notwithstanding subsection (f), the 
Secretary may waive the matching funds requirement under subsection (c) 
above the 50 percent level for fiscal years 2003 through 2011 for an 
eligible institution of a State if the Secretary determines that the 
State will be unlikely to satisfy the matching requirement.''.

SEC. 749A. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES FOR THE UNITED STATES TERRITORIES.

    (a) Research Matching Requirement.--Section 3(d)(4) of the Hatch 
Act of 1887 (7 U.S.C. 361c(d)(4)) is amended by striking ``the same 
matching funds'' and all that follows through the end of the sentence 
and inserting ``matching funds requirements from non-Federal sources 
for fiscal years 2003 through 2011 in an amount equal to not less than 
50 percent of the formula funds to be distributed to the Territory. The 
Secretary may waive the matching funds requirements for a Territory for 
any of the fiscal years 2003 through 2011 if the Secretary determines 
that the Territory will be unlikely to satisfy the matching funds 
requirement for that fiscal year.''.
    (b) Extension Matching Requirement.--Section 3(e)(4) of the Smith-
Lever Act (7 U.S.C. 343(e)(4)) is amended by striking ``the same 
matching funds'' and all that follows through the end of the sentence 
and inserting ``matching funds requirements from non-Federal sources 
for fiscal years 2003 through 2011 in an amount equal to not less than 
50 percent of the formula funds to be distributed to the Territory. The 
Secretary may waive the matching funds requirements for a Territory for 
any of the fiscal years 2003 through 2011 if the Secretary determines 
that the Territory will be unlikely to satisfy the matching funds 
requirement for that fiscal year.''.

SEC. 750. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

    (a) Funding.--Section 401(b)(1) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) is 
amended to read as follows:
            ``(1) In general.--
                    ``(A) Total amount to be transferred.--On October 
                1, 2003, and each October 1 thereafter through 
                September 30, 2011, the Secretary of Agriculture shall 
                deposit funds of the Commodity Credit Corporation into 
                the Account. The total amount of Commodity Credit 
                Corporation funds deposited into the Account under this 
                subparagraph shall equal $1,160,000,000.
                    ``(B) Equal amounts.--To the maximum extent 
                practicable, the amounts deposited into the Account 
                pursuant to subparagraph (A) shall be deposited in 
                equal amounts for each fiscal year.
                    ``(C) Availability of funds.--Amounts deposited 
                into the Account pursuant to subparagraph (A) shall 
                remain available until expended.''.
    (b) Availability of Funds.--Section 401(f)(6) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7621(f)(6)) is amended to read as follows:
            ``(6) Availability of funds.--Funds made available under 
        this section to the Secretary prior to October 1, 2003, for 
        grants under this section shall be available to the Secretary 
        for a 2-year period.''.

SEC. 751. CARBON CYCLE RESEARCH.

    Section 221 of the Agricultural Risk Protection Act of 2000 (Public 
Law 106-224; 114 Stat. 407) is amended--
            (1) in subsection (a), by striking ``Of the amount'' and 
        all that follows through ``to provide'' and inserting ``To the 
        extent funds are made available for this purpose, the Secretary 
        shall provide'';
            (2) in subsection (d), by striking ``under subsection (a)'' 
        and inserting ``for this section''; and
            (3) by adding at the end the following new subsection:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 2002 through 2011 such sums as may be 
necessary to carry out this section.''.

SEC. 752. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

    Section 2(3) of the Research Facilities Act (7 U.S.C. 390(2)(3)) is 
amended to read as follows:
            ``(3) Food and agricultural sciences.--The term `food and 
        agricultural sciences' has the meaning given that term in 
        section 1404(8) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(8)).''.

SEC. 753. FEDERAL EXTENSION SERVICE.

    Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) is 
amended by striking ``$5,000,000'' and inserting ``such sums as are 
necessary''.

SEC. 754. POLICY RESEARCH CENTERS.

    Section 1419A(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155(c)(3)) is 
amended by striking ``collect and analyze data'' and inserting 
``collect, analyze, and disseminate data''.

                      Subtitle C--Related Matters

SEC. 761. RESIDENT INSTRUCTION AT LAND-GRANT COLLEGES IN UNITED STATES 
              TERRITORIES.

    (a) Purpose.--It is the purpose of this section to promote and 
strengthen higher education in the food and agricultural sciences at 
agricultural and mechanical colleges located in the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, the Federated 
States of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau (hereinafter referred to in this section as 
``eligible institutions'') by formulating and administering programs to 
enhance teaching programs in agriculture, natural resources, forestry, 
veterinary medicine, home economics, and disciplines closely allied to 
the food and agriculture production and delivery system.
    (b) Grants.--The Secretary of Agriculture shall make competitive 
grants to those eligible institutions having a demonstrable capacity to 
carry out the teaching of food and agricultural sciences.
    (c) Use of Grant Funds.--Grants made under subsection (b) shall be 
used to--
            (1) strengthen institutional educational capacities, 
        including libraries, curriculum, faculty, scientific 
        instrumentation, instruction delivery systems, and student 
        recruitment and retention, in order to respond to identified 
        State, regional, national, or international education needs in 
        the food and agricultural sciences;
            (2) attract and support undergraduate and graduate students 
        in order to educate them in identified areas of national need 
        to the food and agriculture sciences;
            (3) facilitate cooperative initiatives between two or more 
        eligible institutions or between eligible institutions and 
        units of State Government, organizational in the private 
        sector, to maximize the development and use of resources such 
        as faculty, facilities, and equipment to improve food and 
        agricultural sciences teaching programs; and
            (4) conduct undergraduate scholarship programs to assist in 
        meeting national needs for training food and agricultural 
        scientists.
    (d) Grant Requirements.--
            (1) The Secretary of Agriculture shall ensure that each 
        eligible institution, prior to receiving grant funds under 
        subsection (b), shall have a significant demonstrable 
        commitment to higher education programs in the food and 
        agricultural sciences and to each specific subject area for 
        which grant funds under this subsection are to be used.
            (2) The Secretary of Agriculture may require that any grant 
        awarded under this section contain provisions that require 
        funds to be targeted to meet the needs identified in section 
        1402 of the National Agriculture Research, Extension, and 
        Teaching Policy Act of 1977.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for each of the fiscal years 
2002 through 2011 to carry out this section.

SEC. 762. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
              AUTHORITIES.

    (a) Review of Payment of Compensation.--Section 415(e) of the Plant 
Protection Act (7 U.S.C. 7715(e)) is amended by inserting before the 
final period the following: ``or review by any officer of the 
Government other than the Secretary or the designee of the Secretary''.
    (b) Review of Certain Decisions.--
            (1) Plant protection act.--Section 442 of the Plant 
        Protection Act (7 U.S.C. 7772) is amended by adding at the end 
        following new subsection:
    ``(f) Secretarial Discretion.--The action of any officer, employee, 
or agent of the Secretary in carrying out this section, including 
determining the amount of and making any payment authorized to be made 
under this section, shall not be subject to review by any officer of 
the Government other than the Secretary or the designee of the 
Secretary.''.
            (2) Other plant and animal pest and disease laws.--Section 
        11 of the Act of May 29, 1884 (21 U.S.C. 114a; commonly known 
        as the ``Animal Industry Act'') and the first section of the 
        Act of September 25, 1981 (7 U.S.C. 147b), are each amended by 
        adding at the end the following new sentence: ``The action of 
        any officer, employee, or agent of the Secretary in carrying 
        out this section, including determining the amount of and 
        making any payment authorized to be made under this section, 
        shall not be subject to review by any officer of the Government 
        other than the Secretary or the designee of the Secretary.''.
    (c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 7701 et 
seq.) is amended by inserting after section 418 the following new 
section:

``SEC. 419. METHYL BROMIDE.

    ``(a) In General.--The Secretary, upon request of State, local, or 
tribal authorities, shall determine whether methyl bromide treatments 
or applications required by State, local, or tribal authorities to 
prevent the introduction, establishment, or spread of plant pests 
(including diseases) or noxious weeds should be authorized as an 
official control or official requirement.
    ``(b) Administration.--
            ``(1) Timeline for determination.--The Secretary shall make 
        the determination required by subsection (a) not later than 90 
        days after receiving the request for such a determination.
            ``(2) Regulations.--The promulgation of regulations for and 
        the administration of this section shall be made without regard 
        to--
                    ``(A) the notice and comment provisions of section 
                553 of title 5, United States Code;
                    ``(B) the Statement of Policy of the Secretary of 
                Agriculture, effective July 24, 1971 (36 Fed. Reg. 
                13804; relating to notices of proposed rulemaking and 
                public participation in rulemaking); and
                    ``(C) chapter 35 of title 44, United States Code 
                (commonly known as the `Paperwork Reduction Act').
    ``(c) Registry.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall publish, and thereafter 
maintain, a registry of State, local, and tribal requirements 
authorized by the Secretary under this section.''.

SEC. 763. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR THE 
              DEVELOPING WORLD.

    (a) Grant Program.--The Secretary of Agriculture shall establish a 
program to award grants to entities described in subsection (b) for the 
development of agricultural biotechnology with respect to the 
developing world. The Secretary shall administer and oversee the 
program through the Foreign Agricultural Service of the Department of 
Agriculture.
    (b) Partnerships.--(1) In order to be eligible to receive a grant 
under this section, the grantee must be a participating institution of 
higher education, a nonprofit organization, or consortium of for profit 
institutions with in-country agricultural research institutions.
    (2) A participating institution of higher education shall be an 
historically black or land-grant college or university, an Hispanic 
serving institution, or a tribal college or university that has 
agriculture or the biosciences in its curricula.
    (c) Competitive Award.--Grants shall be awarded under this section 
on a merit-reviewed competitive basis.
    (d) Use of Funds.--The activities for which the grant funds may be 
expended include the following:
            (1) Enhancing the nutritional content of agricultural 
        products that can be grown in the developing world to address 
        malnutrition through biotechnology.
            (2) Increasing the yield and safety of agricultural 
        products that can be grown in the developing world through 
        biotechnology.
            (3) Increasing through biotechnology the yield of 
        agricultural products that can be grown in the developing world 
        that are drought and stress-resistant.
            (4) Extending the growing range of crops that can be grown 
        in the developing world through biotechnology.
            (5) Enhancing the shelf-life of fruits and vegetables grown 
        in the developing world through biotechnology.
            (6) Developing environmentally sustainable agricultural 
        products through biotechnology.
            (7) Developing vaccines to immunize against life-
        threatening illnesses and other medications that can be 
        administered by consuming genetically engineered agricultural 
        products.
    (e) Funding Source.--Of the funds deposited in the Treasury account 
known as the Initiative for Future Agriculture and Food Systems on 
October 1, 2003, and each October 1 thereafter through October 1, 2007, 
the Secretary of Agriculture shall use $5,000,000 during each of fiscal 
years 2004 through 2008 to carry out this section.

        Subtitle D--Repeal of Certain Activities and Authorities

SEC. 771. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL 
              CONFERENCE.

    (a) Repeal.--Subsections (b) and (c) of section 615 of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7654(b) and (c)) are repealed.
    (b) Conforming Amendments.--
            (1) Generally.--Section 615 of such Act is amended--
                    (A) in the section heading, by striking ``and 
                national conference'';
                    (B) by striking ``(a) Food Safety Research 
                Information Office.--'';
                    (C) by redesignating paragraphs (1), (2), and (3) 
                as subsections (a), (b), and (c), respectively, and 
                moving the margins 2 ems to the left;
                    (D) in subsection (b) (as so redesignated), by 
                redesignating subparagraphs (A) and (B) as paragraphs 
                (1) and (2), respectively, and moving the margins 2 ems 
                to the left; and
                    (E) in subsection (c) (as so redesignated), by 
                striking ``this subsection'' and inserting ``this 
                section''.
            (2) Table of sections.--The table of sections for such Act 
        is amended by striking ``and National Conference'' in the item 
        relating to section 615.

SEC. 772. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH, 
              AND INFORMATION ACT OF 1994.

    Section 617 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (Public Law 105-185; 112 Stat. 607) is repealed.

SEC. 773. NATIONAL GENETIC RESOURCES PROGRAM.

    Section 1634 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5843) is repealed.

SEC. 774. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

    (a) Repeal.--Section 1639 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5853) is repealed.
    (b) Conforming Amendment.--Section 1640(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5854(b)) is 
amended by striking ``take into'' and all that follows through 
``Weather and''.

SEC. 775. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

    Section 1420 of the National Agricultural Research, Extension and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1551) is repealed.

SEC. 776. PESTICIDE RESISTANCE STUDY.

    Section 1437 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1558) is repealed.

SEC. 777. EXPANSION OF EDUCATION STUDY.

    Section 1438 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1559) is repealed.

SEC. 778. SUPPORT FOR ADVISORY BOARD.

    (a) Repeal.--Section 1412 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3127) is repealed.
    (b) Conforming Amendment.--Section 1413(c) of such Act (7 U.S.C. 
3128(c)) is amended by striking ``section 1412 of this title and''.

SEC. 779. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
              RESEARCH FACILITIES.

    (a) Repeal.--Section 4 of the Research Facilities Act (7 U.S.C. 
390b) is repealed.
    (b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 390) is 
amended by striking paragraph (5).

              Subtitle E--Agriculture Facility Protection

SEC. 790. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
              ENTERPRISES, RESEARCH FACILITIES, AND OTHER ENTITIES.

    (a) Definitions.--The Research Facilities Act (7 U.S.C. 390 et 
seq.) is amended--
            (1) by redesignating section 6 as section 7; and
            (2) by inserting after section 5 the following new section:

``SEC. 6. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
              ENTERPRISES, RESEARCH FACILITIES, AND OTHER ENTITIES 
              AGAINST DISRUPTION.

    ``(a) Definitions.--For the purposes of this section, the following 
definitions apply:
            ``(1) Animal or agricultural enterprise.--The term `animal 
        or agricultural enterprise' means any of the following:
                    ``(A) A commercial, governmental, or academic 
                enterprise that uses animals, plants, or other 
                biological materials for food or fiber production, 
                breeding, processing, research, or testing.
                    ``(B) A zoo, aquarium, circus, rodeo, or other 
                entity that exhibits or uses animals, plants, or other 
                biological materials for educational or entertainment 
                purposes.
                    ``(C) A fair or similar event intended to advance 
                agricultural arts and sciences.
                    ``(D) A facility managed or occupied by an 
                association, federation, foundation, council, or other 
                group or entity of food or fiber producers, processors, 
                or agricultural or biomedical researchers intended to 
                advance agricultural or biomedical arts and sciences.
            ``(2) Economic damage.--The term `economic damage' means 
        the replacement of the following:
                    ``(A) The cost of lost or damaged property 
                (including all real and personal property) of an animal 
                or agricultural enterprise.
                    ``(B) The cost of repeating an interrupted or 
                invalidated experiment.
                    ``(C) The loss of revenue (including costs related 
                to business recovery) directly related to the 
                disruption of an animal or agricultural enterprise.
                    ``(D) The cost of the tuition and expenses of any 
                student to complete an academic program that was 
                disrupted, or to complete a replacement program, when 
                the tuition and expenses are incurred as a result of 
                the damage or loss of the property of an animal or 
                agricultural enterprise.
            ``(3) Property of an animal or agricultural enterprise.--
        The term `property of an animal or agricultural enterprise' 
        means real and personal property of or used by any of the 
        following:
                    ``(A) An animal or agricultural enterprise.
                    ``(B) An employee of an animal or agricultural 
                enterprise.
                    ``(C) A student attending an academic animal or 
                agricultural enterprise.
            ``(4) Disruption.--The term `disruption' does not include 
        any lawful disruption that results from lawful public, 
        governmental, or animal or agricultural enterprise employee 
        reaction to the disclosure of information about an animal or 
        agricultural enterprise.
    ``(b) Violation.--A person may not recklessly, knowingly, or 
intentionally cause, or contribute to, the disruption of the 
functioning of an animal or agricultural enterprise by damaging or 
causing the loss of any property of the animal or agricultural 
enterprise that results in economic damage, as determined by the 
Secretary.
    ``(c) Assessment of Civil Penalty.--
            ``(1) In general.--The Secretary may impose on any person 
        that the Secretary determines violates subsection (b) a civil 
        penalty in an amount determined under paragraphs (2) and (3). 
        The civil penalty may be assessed only on the record after an 
        opportunity for a hearing.
            ``(2) Recovery of department costs.--The civil penalty 
        assessed by the Secretary against a person for a violation of 
        subsection (b) shall be not less than the total cost incurred 
        by the Secretary for investigation of the violation, conducting 
        any hearing regarding the violation, and assessing the civil 
        penalty.
            ``(3) Recovery of economic damage.--In addition to the 
        amount determined under paragraph (2), the amount of the civil 
        penalty shall include an amount not less than the total cost 
        (or, in the case of knowing or intentional disruption, not less 
        than 150 percent of the total cost) of the economic damage 
        incurred by the animal or agricultural enterprise, any employee 
        of the animal or agricultural enterprise, or any student 
        attending an academic animal or agricultural enterprise as a 
        result of the damage or loss of the property of an animal or 
        agricultural enterprise.
    ``(d) Identification.--The Secretary shall identify for each civil 
penalty assessed under subsection (c), the portion of the amount of the 
civil penalty that represents the recovery of Department costs and the 
portion that represents the recovery of economic losses.
    ``(e) Other Factors in Determining Penalty.-- In determining the 
amount of a civil penalty under subsection (c), the Secretary shall 
consider the following:
            ``(1) The nature, circumstance, extent, and gravity of the 
        violation or violations.
            ``(2) The ability of the injured animal or agricultural 
        enterprise to continue to operate, costs incurred by the animal 
        or agricultural enterprise to recover lost business, and the 
        effect of the violation on earnings of employees of the animal 
        or agricultural enterprise.
            ``(3) The interruptions experienced by students attending 
        an academic animal or agricultural enterprise.
            ``(4) Whether the violator has previously violated 
        subsection (a).
            ``(5) The violator's degree of culpability.
    ``(f) Fund to Assist Victims of Disruption.--
            ``(1) Fund established.--There is established in the 
        Treasury a fund which shall consist of that portion of each 
        civil penalty collected under subsection (c) that represents 
        the recovery of economic damages.
            ``(2) Use of amounts in fund.--The Secretary of Agriculture 
        shall use amounts in the fund to compensate animal or 
        agricultural enterprises, employees of an animal or 
        agricultural enterprise, and student attending an academic 
        animal or agricultural enterprise for economic losses incurred 
        as a result of the disruption of the functioning of an animal 
        or agricultural enterprise in violation of subsection (b).''.

                    TITLE VIII--FORESTRY INITIATIVES

SEC. 801. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP 
              INCENTIVE PROGRAM.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
striking section 4 (16 U.S.C. 2103) and section 6 (16 U.S.C. 2103b).

SEC. 802. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) There is a growing dependence on private nonindustrial 
        forest lands to supply the necessary market commodities and 
        nonmarket values, such as habitat for fish and wildlife, 
        aesthetics, outdoor recreation opportunities, and other forest 
        resources, required by a growing population.
            (2) There is a strong demand for expanded assistance 
        programs for owners of nonindustrial private forest land since 
        the majority of the wood supply of the United States comes from 
        nonindustrial private forest land.
            (3) The soil, carbon stores, water and air quality of the 
        United States can be maintained and improved through good 
        stewardship of nonindustrial private forest lands.
            (4) The products and services resulting from stewardship of 
        nonindustrial private forest lands provide income and 
        employment that contribute to the economic health and diversity 
        of rural communities.
            (5) Wildfires threaten human lives, property, forests, and 
        other resources, and Federal and State cooperation in forest 
        fire prevention and control has proven effective and valuable, 
        in that properly managed forest stands are less susceptible to 
        catastrophic fire, as dramatized by the catastrophic fire 
        seasons of 1998 and 2000.
            (6) Owners of private nonindustrial forest lands are being 
        faced with increased pressure to convert their forestland to 
        development and other uses.
            (7) Complex, long-rotation forest investments, including 
        sustainable hardwood management, are often the most difficult 
        commitment for small, nonindustrial private forest landowners 
        and, thus, should receive equal consideration under cost-share 
        programs.
            (8) The investment of one Federal dollar in State and 
        private forestry programs is estimated to leverage $9 on 
        average from State, local, and private sources.
    (b) Purpose.--It is the purpose of this section to strengthen the 
commitment of the Department of Agriculture to sustainable forestry and 
to establish a coordinated and cooperative Federal, State, and local 
sustainable forest program for the establishment, management, 
maintenance, enhancement, and restoration of forests on nonindustrial 
private forest lands in the United States.
    (c) Forest Land Enhancement Program.--The Cooperative Forestry 
Assistance Act of 1978 is amended by inserting after section 3 (16 
U.S.C. 2102) the following new section 4:

``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

    ``(a) Establishment.--
            ``(1) Establishment; purpose.--The Secretary shall 
        establish a Forest Land Enhancement Program (in this section 
        referred to as the `Program') for the purpose of providing 
        financial, technical, educational, and related assistance to 
        State foresters to encourage the long-term sustainability of 
        nonindustrial private forest lands in the United States by 
        assisting the owners of such lands in more actively managing 
        their forest and related resources by utilizing existing State, 
        Federal, and private sector resource management expertise, 
        financial assistance, and educational programs.
            ``(2) Administration.--The Secretary shall carry out the 
        Program within, and administer the Program through, the Natural 
        Resources Conservation Service.
            ``(3) Coordination.--The Secretary shall implement the 
        Program in coordination with State foresters.
    ``(b) Program Objectives.--In implementing the Program, the 
Secretary shall target resources to achieve the following objectives:
            ``(1) Investment in practices to establish, restore, 
        protect, manage, maintain, and enhance the health and 
        productivity of the nonindustrial private forest lands in the 
        United States for timber, habitat for flora and fauna, water 
        quality, and wetlands.
            ``(2) Ensuring that afforestation, reforestation, 
        improvement of poorly stocked stands, timber stand improvement, 
        practices necessary to improve seedling growth and survival, 
        and growth enhancement practices occur where needed to enhance 
        and sustain the long-term productivity of timber and nontimber 
        forest resources to help meet future public demand for all 
        forest resources and provide environmental benefits.
            ``(3) Reduce the risks and help restore, recover, and 
        mitigate the damage to forests caused by fire, insects, 
        invasive species, disease, and damaging weather.
            ``(4) Increase and enhance carbon sequestration 
        opportunities.
            ``(5) Enhance implementation of agroforestry practices.
            ``(6) Maintain and enhance the forest landbase and leverage 
        State and local financial and technical assistance to owners 
        that promote the same conservation and environmental values.
    ``(c) Eligibility.--
            ``(1) In general.--An owner of nonindustrial private forest 
        land is eligible for cost-sharing assistance under the Program 
        if the owner--
                    ``(A) agrees to develop and implement an individual 
                stewardship, forest, or stand management plan 
                addressing site specific activities and practices in 
                cooperation with, and approved by, the State forester, 
                state official, or private sector program in 
                consultation with the State forester;
                    ``(B) agrees to implement approved activities in 
                accordance with the plan for a period of not less than 
                10 years, unless the State forester approves a 
                modification to such plan; and
                    ``(C) meets the acreage restrictions as determined 
                by the State forester in conjunction with the State 
                Forest Stewardship Coordinating Committee established 
                under section 19.
            ``(2) State priorities.--The Secretary, in consultation 
        with the State forester and the State Forest Stewardship 
        Coordinating Committee may develop State priorities for cost 
        sharing under the Program that will promote forest management 
        objectives in that State.
            ``(3) Development of plan.--An owner shall be eligible for 
        cost-share assistance for the development of the individual 
        stewardship, forest, or stand management plan required by 
        paragraph (1).
    ``(d) Approved Activities.--
            ``(1) Development.--The Secretary, in consultation with the 
        State forester and the State Forest Stewardship Coordinating 
        Committee, shall develop a list of approved forest activities 
        and practices that will be eligible for cost-share assistance 
        under the Program within each State.
            ``(2) Type of activities.--In developing a list of approved 
        activities and practices under paragraph (1), the Secretary 
        shall attempt to achieve the establishment, restoration, 
        management, maintenance, and enhancement of forests and trees 
        for the following:
                    ``(A) The sustainable growth and management of 
                forests for timber production.
                    ``(B) The restoration, use, and enhancement of 
                forest wetlands and riparian areas.
                    ``(C) The protection of water quality and 
                watersheds through the application of State-developed 
                forestry best management practices.
                    ``(D) Energy conservation and carbon sequestration 
                purposes.
                    ``(E) Habitat for flora and fauna.
                    ``(F) The control, detection, and monitoring of 
                invasive species on forestlands as well as preventing 
                the spread and providing for the restoration of lands 
                affected by invasive species.
                    ``(G) Hazardous fuels reduction and other 
                management activities that reduce the risks and help 
                restore, recover, and mitigate the damage to forests 
                caused by fire.
                    ``(H) The development of forest or stand management 
                plans.
                    ``(I) Other activities approved by the Secretary, 
                in coordination with the State forester and the State 
                Forest Stewardship Coordinating Committee.
    ``(e) Cooperation.--In implementing the Program, the Secretary 
shall cooperate with other Federal, State, and local natural resource 
management agencies, institutions of higher education, and the private 
sector.
    ``(f) Reimbursement of Eligible Activities.--
            ``(1) In general.--The Secretary shall share the cost of 
        implementing the approved activities that the Secretary 
        determines are appropriate, in the case of an owner that has 
        entered into an agreement to place nonindustrial private forest 
        lands of the owner in the Program.
            ``(2) Rate.--The Secretary shall determine the appropriate 
        reimbursement rate for cost-share payments under paragraph (1) 
        and the schedule for making such payments.
            ``(3) Maximum.--The Secretary shall not make cost-share 
        payments under this subsection to an owner in an amount in 
        excess of 75 percent of the total cost, or a lower percentage 
        as determined by the State forester, to such owner for 
        implementing the practices under an approved plan. The maximum 
        payments to any one owner shall be determined by the Secretary.
            ``(4) Consultation.--The Secretary shall make 
        determinations under this subsection in consultation with the 
        State forester.
    ``(g) Recapture.--
            ``(1) In general.--The Secretary shall establish and 
        implement a mechanism to recapture payments made to an owner in 
        the event that the owner fails to implement any approved 
        activity specified in the individual stewardship, forest, or 
        stand management plan for which such owner received cost-share 
        payments.
            ``(2) Additional remedy.--The remedy provided in paragraph 
        (1) is in addition to any other remedy available to the 
        Secretary.
    ``(h) Distribution.--The Secretary shall distribute funds available 
for cost sharing under the Program among the States only after giving 
appropriate consideration to--
            ``(1) the total acreage of nonindustrial private forest 
        land in each State;
            ``(2) the potential productivity of such land;
            ``(3) the number of owners eligible for cost sharing in 
        each State;
            ``(4) the opportunities to enhance non-timber resources on 
        such forest lands;
            ``(5) the anticipated demand for timber and nontimber 
        resources in each State;
            ``(6) the need to improve forest health to minimize the 
        damaging effects of catastrophic fire, insects, disease, or 
        weather; and
            ``(7) the need and demand for agroforestry practices in 
        each State.
    ``(i) Definitions.--In this section:
            ``(1) Nonindustrial private forest lands.--The term 
        `nonindustrial private forest lands' means rural lands, as 
        determined by the Secretary, that--
                    ``(A) have existing tree cover or are suitable for 
                growing trees; and
                    ``(B) are owned or controlled by any nonindustrial 
                private individual, group, association, corporation, 
                Indian tribe, or other private legal entity (other than 
                a nonprofit private legal entity) so long as the 
                individual, group, association, corporation, tribe, or 
                entity has definitive decision-making authority over 
                the lands, including through long-term leases and other 
                land tenure systems, for a period of time long enough 
                to ensure compliance with the Program.
            ``(2) Owner.--The term `owner' includes a private 
        individual, group, association, corporation, Indian tribe, or 
        other private legal entity (other than a nonprofit private 
        legal entity) that has definitive decision-making authority 
        over nonindustrial private forest lands through a long-term 
        lease or other land tenure systems.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(4) State forester.--The term `State forester' means the 
        director or other head of a State Forestry Agency or equivalent 
        State official.
    ``(j) Availability of Funds.--The Secretary shall use $200,000,000 
of funds of the Commodity Credit Corporation to carry out the Program 
during the period beginning on October 1, 2001, and ending on September 
30, 2011.''.
    (d) Conforming Amendment.--Section 246(b)(2) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended 
by striking ``forestry incentive program'' and inserting ``Forest Land 
Enhancement Program''.

SEC. 803. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

    (a) Extension and Authorization Increase.--Section 6 of the 
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is amended--
            (1) by striking ``$15,000,000'' and inserting 
        ``$30,000,000''; and
            (2) by striking ``2002'' and inserting ``2011''.
    (b) Sustainable Forestry Outreach Initiative.--The Renewable 
Resources Extension Act of 1978 is amended by inserting after section 
5A (16 U.S.C. 1674a) the following new section:

``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

    ``The Secretary shall establish a program to be known as the 
`Sustainable Forestry Outreach Initiative' for the purpose of educating 
landowners regarding the following:
            ``(1) The value and benefits of practicing sustainable 
        forestry.
            ``(2) The importance of professional forestry advice in 
        achieving their sustainable forestry objectives.
            ``(3) The variety of public and private sector resources 
        available to assist them in planning for and practicing 
        sustainable forestry.''.

SEC. 804. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) Findings.--Congress finds the following:
            (1) The severity and intensity of wildland fires has 
        increased dramatically over the past few decades as a result of 
        past fire and land management policies.
            (2) The record 2000 fire season is a prime example of what 
        can be expected if action is not taken.
            (3) These wildfires threaten not only the nation's forested 
        resources, but the thousands of communities intermingled with 
        the wildlands in the wildland-urban interface.
            (4) The National Fire Plan developed in response to the 
        2000 fire season is the proper, coordinated, and most effective 
        means to address this wildfire issue.
            (5) Whereas adequate authorities exist to tackle the 
        wildfire issues at the landscape level on Federal lands, there 
        is limited authority to take action on most private lands where 
        the largest threat to life and property lies.
            (6) There is a significant Federal interest in enhancing 
        community protection from wildfire.
    (b) Enhanced Protection.--The Cooperative Forestry Assistance Act 
of 1978 is amended by inserting after section 10 (16 U.S.C. 2106) the 
following new section:

``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

    ``(a) Cooperative Management Related to Wildfire Threats.--The 
Secretary may cooperate with State foresters and equivalent State 
officials in the management of lands in the United States for the 
following purposes:
            ``(1) Aid in wildfire prevention and control.
            ``(2) Protect communities from wildfire threats.
            ``(3) Enhance the growth and maintenance of trees and 
        forests that promote overall forest health.
            ``(4) Ensure the continued production of all forest 
        resources, including timber, outdoor recreation opportunities, 
        wildlife habitat, and clean water, through conservation of 
        forest cover on watersheds, shelterbelts, and windbreaks.
    ``(b) Community and Private Land Fire Assistance Program.--
            ``(1) Establishment; purpose.--The Secretary shall 
        establish a Community and Private Land Fire Assistance program 
        (in this section referred to as the `Program')--
                    ``(A) to focus the Federal role in promoting 
                optimal firefighting efficiency at the Federal, State, 
                and local levels;
                    ``(B) to augment Federal projects that establish 
                landscape level protection from wildfires;
                    ``(C) to expand outreach and education programs to 
                homeowners and communities about fire prevention; and
                    ``(D) to establish defensible space around private 
                landowners homes and property against wildfires.
            ``(2) Administration and implementation.--The Program shall 
        be administered by the Forest Service and implemented through 
        the State forester or equivalent State official.
            ``(3) Components.--In coordination with existing 
        authorities under this Act, the Secretary may undertake on both 
        Federal and non-Federal lands--
                    ``(A) fuel hazard mitigation and prevention;
                    ``(B) invasive species management;
                    ``(C) multi-resource wildfire planning;
                    ``(D) community protection planning;
                    ``(E) community and landowner education 
                enterprises, including the program known as FIREWISE;
                    ``(F) market development and expansion;
                    ``(G) improved wood utilization;
                    ``(H) special restoration projects.
            ``(4) Considerations.--The Secretary shall use local 
        contract personnel wherever possible to carry out projects 
        under the Program.
    ``(c) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary $35,000,000 for each of fiscal 
years 2002 through 2011, and such sums as may be necessary thereafter, 
to carry out this section.''.

SEC. 805. INTERNATIONAL FORESTRY PROGRAM.

    Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(title XXIV of Public Law 101-624; 7 U.S.C. 6704(d)) is amended by 
striking ``2002'' and inserting ``2011''.

SEC. 806. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the damage caused by wildfire disasters has been 
        equivalent in magnitude to the damage resulting from the 
        Northridge earthquake, Hurricane Andrew, and the recent 
        flooding of the Mississippi River and the Red River;
            (2) more than 20,000 communities in the United States are 
        at risk from wildfire and approximately 11,000 of those 
        communities are located near Federal land;
            (3) the accumulation of heavy forest fuel loads continues 
        to increase as a result of disease, insect infestations, and 
        drought, further increasing the risk of fire each year;
            (4) modification of forest fuel load conditions through the 
        removal of hazardous fuels would--
                    (A) minimize catastrophic damage from wildfires;
                    (B) reduce the need for emergency funding to 
                respond to wildfires; and
                    (C) protect lives, communities, watersheds, and 
                wildlife habitat;
            (5) the hazardous fuels removed from forest land represent 
        an abundant renewable resource, as well as a significant supply 
        of biomass for biomass-to-energy facilities;
            (6) the United States should invest in technologies that 
        promote economic and entrepreneurial opportunities in 
        processing forest products removed through hazardous fuel 
        reduction activities; and
            (7) the United States should--
                    (A) develop and expand markets for traditionally 
                underused wood and other biomass as a value-added 
                outlet for excessive forest fuels; and
                    (B) commit resources to support planning, 
                assessments, and project reviews to ensure that 
                hazardous fuels management is accomplished 
                expeditiously and in an environmentally sound manner.
    (b) Definitions.--In this section:
            (1) Biomass-to-energy facility.--The term ``biomass-to-
        energy facility'' means a facility that uses biomass as a raw 
        material to produce electric energy, useful heat, or a 
        transportation fuel.
            (2) Eligible community.--The term ``eligible community'' 
        means--
                    (A) any town, township, municipality, or other 
                similar unit of local government (as determined by the 
                Secretary), or any area represented by a nonprofit 
                corporation or institution organized under Federal or 
                State law to promote broad-based economic development, 
                that--
                            (i) has a population of not more than 
                        10,000 individuals;
                            (ii) is located within a county in which at 
                        least 15 percent of the total primary and 
                        secondary labor and proprietor income is 
                        derived from forestry, wood products, and 
                        forest-related industries, such as recreation, 
                        forage production, and tourism; and
                            (iii) is located near forest land, the 
                        condition of which land the Secretary 
                        determines poses a substantial present or 
                        potential hazard to the safety of--
                                    (I) a forest ecosystem;
                                    (II) wildlife; or
                                    (III) in the case of a wildfire, 
                                human, community, or firefighter 
                                safety, in a year in which drought 
                                conditions are present; and
                    (B) any county that is not contained within a 
                metropolitan statistical area that meets the conditions 
                described in clauses (ii) and (iii) of subparagraph 
                (A).
            (3) Forest biomass.--The term ``forest biomass'' means fuel 
        and biomass accumulation from precommercial thinnings, slash, 
        and brush on forest land of the United States.
            (4) Hazardous fuel.--
                    (A) In general.--The term ``hazardous fuel'' means 
                any excessive accumulation of organic material on 
                public and private forest land (especially land in an 
                urban-wildland interface area or in an area that is 
                located near an eligible community and designated as 
                condition class 2 under the report of the Forest 
                Service entitled `Protecting People and Sustainable 
                Resources in Fire-Adapted Ecosystems', dated October 
                13, 2000, or that is designated as condition class 3 
                under that report) that the Secretary determines poses 
                a substantial present or potential hazard to the safety 
                of--
                            (i) a forest ecosystem;
                            (ii) wildlife; or
                            (iii) in the case of wildfire, human, 
                        community, or firefighter safety, in a year in 
                        which drought conditions are present.
                    (B) Exclusion.--The term ``hazardous fuel'' does 
                not include forest biomass.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (6) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Agriculture (or a designee), 
                with respect to National Forest System land and private 
                land in the United States; and
                    (B) the Secretary of the Interior (or a designee) 
                with respect to Federal land under the jurisdiction of 
                the Secretary of the Interior or an Indian tribe.
    (c) Hazardous Fuel Grant Program.--
            (1) Grants.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary may make grants to 
                persons that operate biomass-to-energy facilities to 
                offset the costs incurred by those persons in 
                purchasing hazardous fuels derived from public and 
                private forest land adjacent to eligible communities.
                    (B) Selection criteria.--The Secretary shall select 
                recipients for grants under subparagraph (A) based on--
                            (i) planned purchases by the recipients of 
                        hazardous fuels, as demonstrated by the 
                        recipient through the submission to the 
                        Secretary of such assurances as the Secretary 
                        may require; and
                            (ii) the level of anticipated benefits of 
                        those purchases in reducing the risk of 
                        wildfires.
            (2) Grant amounts.--
                    (A) In general.--A grant under this subsection 
                shall--
                            (i) be based on--
                                    (I) the distance required to 
                                transport hazardous fuels to a biomass-
                                to-energy facility; and
                                    (II) the cost of removal of 
                                hazardous fuels; and
                            (ii) be in an amount that is at least equal 
                        to the product obtained by multiplying--
                                    (I) the number of tons of hazardous 
                                fuels delivered to a grant recipient; 
                                by
                                    (II) an amount that is at least $5 
                                but not more than $10 per ton of 
                                hazardous fuels, as determined by the 
                                Secretary taking into consideration the 
                                factors described in clause (i).
                    (B) Limitation on individual grants.--
                            (i) In general.--Except as provided in 
                        clause (ii), a grant under subparagraph (A) 
                        shall not exceed $1,500,000 for any biomass-to-
                        energy facility for any year.
                            (ii) Small biomass-to-energy facilities.--A 
                        biomass-to-energy facility that has an annual 
                        production of 5 megawatts or less shall not be 
                        subject to the limitation under clause (i).
            (3) Monitoring of grant recipient activities.--
                    (A) In general.--As a condition of receipt of a 
                grant under this subsection, a grant recipient shall 
                keep such records as the Secretary may require, 
                including records that--
                            (i) completely and accurately disclose the 
                        use of grant funds; and
                            (ii) describe all transactions involved in 
                        the purchase of hazardous fuels derived from 
                        forest land.
                    (B) Access.--On notice by the Secretary, the 
                operator of a biomass-to-energy facility that purchases 
                hazardous fuels, or uses hazardous fuels purchased, 
                with funds from a grant under this subsection shall 
                provide the Secretary with--
                            (i) reasonable access to the biomass-to-
                        facility; and
                            (ii) an opportunity to examine the 
                        inventory and records of the biomass-to-energy 
                        facility.
            (4) Monitoring of effect of treatments.--The Secretary 
        shall monitor Federal land from which hazardous fuels are 
        removed and sold to a biomass-to-energy facility under this 
        subsection to determine and document the reduction in fire 
        hazards on that land.
            (5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        each fiscal year.
    (d) Long-Term Forest Stewardship Contracts for Hazardous Fuels 
Removal.--
            (1) Annual assessment of treatment acreage.--
                    (A) In general.--Subject to the availability of 
                appropriations, not later than March 1 of each of 
                fiscal years 2002 through 2006, the Secretary shall 
                submit to Congress an assessment of the number of acres 
                of Federal forest land recommended to be treated during 
                the subsequent fiscal year using stewardship end result 
                contracts authorized by paragraph (3).
                    (B) Components.--The assessment shall--
                            (i) be based on the treatment schedules 
                        contained in the report entitled `Protecting 
                        People and Sustaining Resources in Fire-Adapted 
                        Ecosystems', dated October 13, 2000 and 
                        incorporated into the National Fire Plan;
                            (ii) identify the acreage by condition 
                        class, type of treatment, and treatment year to 
                        achieve the restoration goals outlined in the 
                        report within 10-, 15-, and 20-year time 
                        periods;
                            (iii) give priority to condition class 3 
                        areas (as described in subsection (a)(4)(A)), 
                        include modifications in the restoration goals 
                        based on the effects of--
                                    (I) fire;
                                    (II) hazardous fuel treatments 
                                under the National Fire Plan; or
                                    (III) updates in data;
                            (iv) provide information relating to the 
                        type of material and estimated quantities and 
                        range of sizes of material that shall be 
                        included in the treatments;
                            (v) describe the land allocation categories 
                        in which the contract authorities shall be 
                        used; and
                            (vi) give priority to areas described in 
                        subsection (a)(4)(A).
            (2) Funding recommendation.--The Secretary shall include in 
        the annual assessment under paragraph (1) a request for funds 
        sufficient to implement the recommendations contained in the 
        assessment using stewardship end result contracts described in 
        paragraph (3) in any case in which the Secretary determines 
        that the objectives of the National Fire Plan would best be 
        accomplished through forest stewardship end result contracting.
            (3) Stewardship end result contracting.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary may enter into 
                stewardship end result contracts to implement the 
                National Fire Plan on National Forest System land based 
                on the stewardship treatment schedules provided in the 
                annual assessments conducted under paragraph (1).
                    (B) Period of contracts.--The contracting goals and 
                authorities described in subsections (b) through (g) of 
                section 347 of the Department of the Interior and 
                Related Agencies Appropriations Act, 1999 (commonly 
                known as the `Stewardship End Result Contracting 
                Demonstration Project') (16 U.S.C. 2104 note; Public 
                Law 105-277), shall apply to contracts entered into 
                under this paragraph, except that the period of each 
                such contract shall be 10 years.
                    (C) Status report.--Beginning with the assessment 
                required under paragraph (1) for fiscal year 2003, the 
                Secretary shall include in the annual assessment under 
                paragraph (1) a status report of the stewardship end 
                result contracts entered into under this paragraph.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.
    (e) Termination of Authority.--The authority provided under this 
section shall terminate on September 30, 2006.

SEC. 807. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.

    It is the sense of Congress to reaffirm the importance of Public 
Law 87-88 (16 U.S.C. 582a et seq.), commonly known as the McIntire-
Stennis Cooperative Forestry Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

SEC. 901. ELIGIBILITY.

    (a) Loss.--Subject to the limitation in subsection (b), the 
Secretary of Agriculture shall provide assistance, as specified in 
section 902, to eligible orchardists that planted trees for commercial 
purposes but lost such trees as a result of a natural disaster, as 
determined by the Secretary.
    (b) Limitation.--An eligible orchardist shall qualify for 
assistance under subsection (a) only if such orchardist's tree 
mortality, as a result of the natural disaster, exceeds 15 percent 
(adjusted for normal mortality).

SEC. 902. ASSISTANCE.

    The assistance provided by the Secretary of Agriculture to eligible 
orchardists for losses described in section 901 shall consist of 
either--
            (1) reimbursement of 75 percent of the cost of replanting 
        trees lost due to a natural disaster, as determined by the 
        Secretary, in excess of 15 percent mortality (adjusted for 
        normal mortality); or
            (2) at the discretion of the Secretary, sufficient 
        seedlings to reestablish the stand.

SEC. 903. LIMITATION ON ASSISTANCE.

    (a) Limitation.--The total amount of payments that a person shall 
be entitled to receive under this subtitle may not exceed $50,000, or 
an equivalent value in tree seedlings.
    (b) Regulations.--The Secretary of Agriculture shall issue 
regulations--
            (1) defining the term ``person'' for the purposes of this 
        subtitle, which shall conform, to the extent practicable, to 
        the regulations defining the term ``person'' issued under 
        section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
        and the Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); 
        and
            (2) prescribing such rules as the Secretary determines 
        necessary to ensure a fair and reasonable application of the 
        limitation established under this section.

SEC. 904. DEFINITIONS.

    In this subtitle:
            (1) Eligible orchardist.--The term ``eligible orchardist'' 
        means a person who produces annual crops from trees for 
        commercial purposes and owns 500 acres or less of such trees.
            (2) Natural disaster.--The term ``natural disaster'' 
        includes plant disease, insect infestation, drought, fire, 
        freeze, flood, earthquake, and other occurrences, as determined 
        by the Secretary.
            (3) Tree.--The term ``tree'' includes trees, bushes, and 
        vines.

                       Subtitle B--Other Matters

SEC. 921. BIOENERGY PROGRAM.

    Notwithstanding any limitations in the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714 et seq.) or part 1424 of title 7, Code of 
Federal Regulations, the Commodity Credit Corporation shall designate 
animal fats, agricultural byproducts, and oils as eligible agricultural 
commodities for use in the Bioenergy Program to promote industrial 
consumption of agricultural commodities for the production of ethanol 
and biodiesel fuels.

SEC. 922. AVAILABILITY OF SECTION 32 FUNDS.

    The 2d undesignated paragraph of section 32 of the Act of August 
24, 1935 (Public Law 320; 49 Stat. 774; 7 U.S.C. 612c), is amended by 
striking ``$300,000,000'' and inserting ``$500,000,000''.

SEC. 923. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    (a) Establishment.--For each of the fiscal years 2002 through 2011, 
the Secretary of Agriculture shall use $15,000,000 of the funds 
available to the Commodity Credit Corporation to carry out and expand a 
seniors farmers' market nutrition program.
    (b) Program Purposes.-- The purposes of the seniors farmers' market 
nutrition program are--
            (1) to provide resources in the form of fresh, nutritious, 
        unprepared, locally grown fruits, vegetables, and herbs from 
        farmers' markets, roadside stands and community supported 
        agriculture programs to low-income seniors;
            (2) to increase the domestic consumption of agricultural 
        commodities by expanding or aiding in the expansion of domestic 
        farmers' markets, roadside stands, and community supported 
        agriculture programs; and
            (3) to develop or aid in the development of new and 
        additional farmers' markets, roadside stands, and community 
        supported agriculture programs.
    (c) Regulations.--The Secretary may issue such regulations as the 
Secretary considers necessary to carry out the seniors farmers' market 
nutrition program.

SEC. 924. DEPARTMENT OF AGRICULTURE AUTHORITIES REGARDING CANEBERRIES.

    (a) Authority for Marketing Order and Research and Promotion 
Order.--Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 
reenacted with amendments by the Agricultural Marketing Agreement Act 
of 1937, is amended--
            (1) in subsection (2)--
                    (A) in paragraph (A), by inserting ``caneberries 
                (including raspberries, blackberries, and 
                logenberries),'' after ``other than pears, olives, 
                grapefruit,''; and
                    (B) in the second sentence, by inserting 
                ``caneberries (including raspberries, blackberries, and 
                logenberries),'' after ``effective as to cherries, 
                apples,''; and
            (2) in subsection (6)(I), by inserting ``caneberries 
        (including raspberries, blackberries, and logenberries)'' after 
        ``tomatoes,''.
    (b) Authority With Respect to Imports.--Section 8e(a) of such Act 
(7 U.S.C. 608e-1(a)) is amended by inserting ``caneberries (including 
raspberries, blackberries, and logenberries),'' after ``pistachios,''.

SEC. 925. NATIONAL APPEALS DIVISION.

    Section 278 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6998) is amended by adding at the end the following new 
subsection:
    ``(f) Finality of Certain Appeal Decisions.--If an appellant 
prevails at the regional level in an administrative appeal of a 
decision by the Division, the agency may not pursue an administrative 
appeal of that decision to the national level.''.

SEC. 926. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
              AND RANCHERS.

    Subsection (a) of section 2501 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended to read 
as follows:
    ``(a) Outreach and Assistance.--
            ``(1) In general.--The Secretary of Agriculture (in this 
        section referred to as the `Secretary') shall provide outreach 
        and technical assistance programs specifically to encourage and 
        assist socially disadvantaged farmers and ranchers to own and 
        operate farms and ranches and to participate equitably in the 
        full range of agricultural programs. This assistance, which 
        should enhance coordination and make more effective the 
        outreach, technical assistance, and education efforts 
        authorized in specific agriculture programs, shall include 
        information and assistance on commodity, conservation, credit, 
        rural, and business development programs, application and 
        bidding procedures, farm and risk management, marketing, and 
        other essential information to participate in agricultural and 
        other programs of the Department.
            ``(2) Grants and contracts.--The Secretary may make grants 
        and enter into contracts and other agreements in the 
        furtherance of this section with the following entities:
                    ``(A) Any community-based organization, network, or 
                coalition of community-based organizations that--
                            ``(i) has demonstrated experience in 
                        providing agricultural education or other 
                        agriculturally related services to socially 
                        disadvantaged farmers and ranchers;
                            ``(ii) provides documentary evidence of its 
                        past experience of working with socially 
                        disadvantaged farmers and ranchers during the 2 
                        years preceding its application for assistance 
                        under this section; and
                            ``(iii) does not engage in activities 
                        prohibited under section 501(c)(3) of the 
                        Internal Revenue Code of 1986.
                    ``(B) 1890 Land-Grant Colleges, including Tuskegee 
                Institute, Indian tribal community colleges and Alaska 
                native cooperative colleges, Hispanic serving post-
                secondary educational institutions, and other post-
                secondary educational institutions with demonstrated 
                experience in providing agriculture education or other 
                agriculturally related services to socially 
                disadvantaged family farmers and ranchers in their 
                region.
                    ``(C) Federally recognized tribes and national 
                tribal organizations with demonstrated experience in 
                providing agriculture education or other agriculturally 
                related services to socially disadvantaged family 
                farmers and ranchers in their region.
            ``(3) Funding.--There are authorized to be appropriated 
        $25,000,000 for each fiscal year to make grants and enter into 
        contracts and other agreements with the entities described in 
        paragraph (2) and to otherwise carry out the purposes of this 
        subsection.''.

SEC. 927. EQUAL TREATMENT OF POTATOES AND SWEET POTATOES.

    Section 508(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(a)(2)) is amended by striking ``and potatoes'' and inserting ``, 
potatoes, and sweet potatoes''.

SEC. 928. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS COVERED BY 
              NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    Section 196(a)(2)(B) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by inserting 
``sea grass and sea oats,'' after ``fish),''.

SEC. 929. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE.

    (a) Competition.--Section 921 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is amended--
            (1) in subsection (c)--
                    (A) by striking ``Under'' and inserting the 
                following:
            ``(1) Educational, training, and professional development 
        activities.--Under''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Competition.--The Graduate School may not enter into 
        a contract or agreement with a Federal agency to provide 
        services or conduct activities described in paragraph (1) 
        unless, before the awarding of the contract or agreement, the 
        contract or agreement was subject to competition that was open 
        to individuals and entities of the private sector.''; and
            (2) in subsection (i), by striking ``The'' and inserting 
        ``Subject to subsection (c)(2), the''.
    (b) Audits of Records.--Such section is further amended by adding 
at the end the following new subsection:
    ``(k) Audits of Records.--The financial records of the Graduate 
School relating to contracts and agreements for services or activities 
described in subsection (c)(1) shall be made available to the 
Comptroller General for purposes of conducting an audit.''.
    (c) Conforming Repeal.--Section 1669 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5922) is repealed.

SEC. 930. ASSISTANCE FOR LIVESTOCK PRODUCERS.

    (a) Availability of Assistance.--In such amounts as are provided in 
advance in appropriation Acts, the Secretary may provide assistance to 
dairy and other livestock producers to cover economic losses incurred 
by such producers in connection with the production of livestock.
    (b) Types of Assistance.--The assistance provided to livestock 
producers may be in the form of--
            (1) indemnity payments to livestock producers who incur 
        livestock mortality losses;
            (2) livestock feed assistance to livestock producers 
        affected by shortages of feed;
            (3) compensation for sudden increases in production costs; 
        and
            (4) such other assistance, and for such other economic 
        losses, as the Secretary considers appropriate.
    (c) Limitations.--Notwithstanding section 181(a), the Secretary may 
not use the funds of the Commodity Credit Corporation to provide 
assistance under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.

SEC. 931. COMPLIANCE WITH BUY AMERICAN ACT AND SENSE OF CONGRESS 
              REGARDING PURCHASE OF AMERICAN-MADE EQUIPMENT, PRODUCTS, 
              AND SERVICES USING FUNDS PROVIDED UNDER THIS ACT.

    (a) Compliance With Buy American Act.--No funds made available 
under this Act, whether directly using funds of the Commodity Credit 
Corporation or pursuant to an authorization of appropriations contained 
in this Act, may be provided to a producer or other person or entity 
unless the producer, person, or entity agrees to comply with the Buy 
American Act (41 U.S.C. 10a-10c) in the expenditure of the funds.
    (b) Sense of Congress.--In the case of any equipment, products, or 
services that may be authorized to be purchased using funds provided 
under this Act, it is the sense of Congress that producers and other 
recipients of such funds should, in expending the funds, purchase only 
American-made equipment, products, and services.
    (c) Notice to Recipients of Funds.--In providing payments or other 
assistance under this Act, the Secretary of Agriculture shall provide 
to each recipient of the funds a notice describing the requirements of 
subsection (a) and the statement made in subsection (b) by Congress.

SEC. 932. REPORT REGARDING GENETICALLY ENGINEERED FOODS.

    (a) In General.--Not later than 1 year after funds are made 
available to carry out this section, the Secretary of Agriculture, 
acting through the National Academy of Sciences, shall complete and 
transmit to Congress a report that includes recommendations for the 
following:
            (1) Data and tests.--The type of data and tests that are 
        needed to sufficiently assess and evaluate human health risks 
        from the consumption of genetically engineered foods.
            (2) Monitoring system.--The type of Federal monitoring 
        system that should be created to assess any future human health 
        consequences from long-term consumption of genetically 
        engineered foods.
            (3) Regulations.--A Federal regulatory structure to approve 
        genetically engineered foods that are safe for human 
        consumption.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Agriculture $500,000 to carry out this 
section.

SEC. 933. MARKET NAME FOR PANGASIUS FISH SPECIES.

    The term ``catfish'' may not be considered to be a common or usual 
name (or part thereof) for the fish Pangasius bocourti, or for any 
other fish not classified within the family Ictalariidae, for purposes 
of section 403 of the Federal Food, Drug, and Cosmetic Act, including 
with respect to the importation of such fish pursuant to section 801 of 
such Act.

SEC. 934. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN 
              PRODUCING FOOD FOR HUMAN CONSUMPTION.

    (a) Public Information Campaign.--Not later than 1 year after the 
date of the enactment of this Act, the Secretary of Agriculture shall 
develop and implement a program to communicate with the public 
regarding the use of biotechnology in producing food for human 
consumption. The information provided under the program shall include 
the following:
            (1) Science-based evidence on the safety of foods produced 
        with biotechnology.
            (2) Scientific data on the human outcomes of the use of 
        biotechnology to produce food for human consumption.
    (b) Authorization of Appropriations.--For each of fiscal years 2002 
through 2011 there are authorized to be appropriated such sums as may 
be necessary to carry out this section.

SEC. 935. GAO STUDY.

    (a) In General.--The Comptroller General shall conduct a study and 
make findings and recommendations with respect to determining how 
producer income would be affected by updating yield bases, including--
            (1) whether crop yields have increased over the past 20 
        years for both program crops and oilseeds;
            (2) whether program payments would be disbursed differently 
        in this Act if yield bases were updated;
            (3) what impact this Act's target prices with updated yield 
        bases would have on producer income; and
            (4) what impact lower target prices with updated yield 
        bases would have on producer income compared to this Act.
    (b) Report.--The Comptroller General shall submit a report to 
Congress on the study, findings, and recommendations required by 
subsection (a), not later than 6 months after the date of the enactment 
of this Act.

SEC. 936. INTERAGENCY TASK FORCE ON AGRICULTURAL COMPETITION.

    (a) Appointment.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall establish an 
Interagency Task Force on Agricultural Competition (in this section 
referred to as the ``Task Force'') and, after consultation with the 
Attorney General, shall appoint as members of the Task Force such nine 
employees of the Department of Agriculture and the Department of 
Justice as the Secretary considers to be appropriate. The Secretary 
shall designate one member of the Task Force to serve as chairperson of 
the Task Force.
    (b) Hearings.--The Task Force shall conduct hearings to review the 
lessening of competition among purchasers of livestock, poultry, and 
unprocessed agricultural commodities in the United States and shall 
include in such hearings review of the following matters:
            (1) The enforcement of particular Federal laws relating to 
        competition.
            (2) The concentration and vertical integration of the 
        business operations of such purchasers.
            (3) Discrimination and transparency in prices paid by such 
        purchasers to producers of livestock, poultry, and unprocessed 
        agricultural commodities in the United States.
            (4) The economic protection and bargaining rights of 
        producers who raise livestock and poultry under contracts.
            (5) Marketing innovations and alternatives available to 
        producers of livestock, poultry, and unprocessed agricultural 
        commodities in the United States.
    (c) Report.--Not later than 1 year after the last member of the 
Task Force is appointed, the Task Force shall submit, to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate, a report containing 
the findings and recommendations of the Task Force for appropriate 
administrative and legislative action.

SEC. 937. AUTHORIZATION FOR ADDITIONAL STAFF AND FUNDING FOR THE GRAIN 
              INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION.

    There are authorized to be appropriated such sums as are necessary 
to enhance the capability of the Grain Inspection, Packers and 
Stockyards Administration to monitor, investigate, and pursue the 
competitive implications of structural changes in the meat packing 
industry. Sums are specifically earmarked to hire litigating attorneys 
to allow the Grain Inspection, Packers and Stockyards Administration to 
more comprehensively and effectively pursue its enforcement activities.

SEC. 938. ENFORCEMENT OF THE HUMANE METHODS OF SLAUGHTER ACT OF 1958.

    (a) Findings.--Congress finds as follows:
            (1) Public demand for passage of Public Law 85-765 (7 
        U.S.C. 1901 et seq.; commonly known as the ``Humane Methods of 
        Slaughter Act of 1958'') was so great that when President 
        Eisenhower was asked at a press conference if he would sign the 
        bill, he replied, ``If I went by mail, I'd think no one was 
        interested in anything but humane slaughter''.
            (2) The Humane Methods of Slaughter Act of 1958 requires 
        that animals be rendered insensible to pain when they are 
        slaughtered.
            (3) Scientific evidence indicates that treating animals 
        humanely results in tangible economic benefits.
            (4) The United States Animal Health Association passed a 
        resolution at a meeting in October 1998 to encourage strong 
        enforcement of the Humane Methods of Slaughter Act of 1958 and 
        reiterated support for the resolution at a meeting in 2000.
            (5) The Secretary of Agriculture is responsible for fully 
        enforcing the Act, including monitoring compliance by the 
        slaughtering industry.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Agriculture should fully enforce Public Law 85-765 (7 
U.S.C. 1901 et seq.; commonly known as the ``Humane Methods of 
Slaughter Act of 1958'') by ensuring that humane methods in the 
slaughter of livestock--
            (1) prevent needless suffering;
            (2) result in safer and better working conditions for 
        persons engaged in the slaughtering industry;
            (3) bring about improvement of products and economies in 
        slaughtering operations; and
            (4) produce other benefits for producers, processors, and 
        consumers that tend to expedite an orderly flow of livestock 
        and livestock products in interstate and foreign commerce.
    (c) Policy of the United States.--It is the policy of the United 
States that the slaughtering of livestock and the handling of livestock 
in connection with slaughter shall be carried out only by humane 
methods, as provided by Public Law 85-765 (7 U.S.C. 1901 et seq.; 
commonly known as the ``Humane Methods of Slaughter Act of 1958'').

SEC. 939. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL 
              WELFARE ACT.

    (a) Penalties and Foreign Commerce Provisions of the Animal Welfare 
Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is amended--
            (1) in subsection (e)--
                    (A) by inserting ``Penalties.--'' after ``(e)'';
                    (B) by striking ``$5,000'' and inserting 
                ``$15,000''; and
                    (C) by striking ``1 year'' and inserting ``2 
                years''; and
            (2) in subsection (g)(2)(B), by inserting at the end before 
        the semicolon the following: ``or from any State into any 
        foreign country''.
    (b) Effective Date.--The amendments made by this section take 
effect 30 days after the date of the enactment of this Act.

SEC. 940. IMPROVE ADMINISTRATION OF ANIMAL AND PLANT HEALTH INSPECTION 
              SERVICE.

    (a) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Administrator of the 
        Service.
            (2) Service.--The term ``Service'' means the Animal and 
        Plant Health Inspection Service of the Department of 
        Agriculture.
    (b) Exemption.--Notwithstanding any other provision of law, any 
migratory bird management carried out by the Secretary shall be exempt 
from the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) (including regulations).
    (c) Permits; Management.--An agent, officer, or employee of the 
Service that carries out any activity relating to migratory bird 
management may, under the Migratory Bird Treaty Act (16 U.S.C. 703 et 
seq.)--
            (1) issue a depredation permit to a stakeholder or 
        cooperator of the Service; and
            (2) manage and take migratory birds.

SEC. 941. RENEWABLE ENERGY RESOURCES.

    (a) Environmental Quality Incentives Program.--Section 1240 of the 
Food Security Act of 1985 (16 U.S.C. 3839aa), as amended by section 231 
of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4); and
            (3) by adding at the end the following:
            ``(5) assistance to farmers and ranchers for the assessment 
        and development of their on-farm renewable resources, including 
        biomass for the production of power and fuels, wind, and 
        solar.''.
    (b) Cooperative State Research, Education, and Extension Service.--
The Secretary of Agriculture, through the Cooperative State Research, 
Education, and Extension Service and, to the extent practicable, in 
collaboration with the Natural Resources Conservation Service, regional 
biomass programs under the Department of Energy, and other appropriate 
entities, may provide education and technical assistance to farmers and 
ranchers for the development and marketing of renewable energy 
resources, including biomass for the production of power and fuels, 
wind, solar, and geothermal.

SEC. 942. USE OF AMOUNTS PROVIDED FOR FIXED, DECOUPLED PAYMENTS TO 
              PROVIDE NECESSARY FUNDS FOR RURAL DEVELOPMENT PROGRAMS.

    Notwithstanding section 104 of this Act, in each of fiscal years 
2002 through 2011, the Secretary of Agriculture shall--
            (1) reduce the total amount payable under section 104 of 
        this Act, on a pro rata basis, so that the total amount of such 
        reductions equals $100,000,000; and
            (2) expend--
                    (A) $45,000,000 for grants under 306A of the 
                Consolidated Farm and Rural Development Act (relating 
                to the community water assistance grant program);
                    (B) $45,000,000 for grants under 613 of this Act 
                (relating to the pilot program for development and 
                implementation of strategic regional development 
                plans); and
                    (C) $10,000,000 for grants under section 231(a)(1) 
                of the Agricultural Risk Protection Act of 2000 
                (relating to value-added agricultural product market 
                development grants).

SEC. 943. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY 
              LIVESTOCK.

    Title III of the Packers and Stockyards Act, 1921, (7 U.S.C. 201 et 
seq.) is amended by adding at the end the following:

``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY 
              LIVESTOCK.

    ``(a) Definitions.--In this section:
            ``(1) Humanely euthanize.--The term `humanely euthanize' 
        means to kill an animal by mechanical, chemical, or other means 
        that immediately render the animal unconscious, with this state 
        remaining until the animal's death.
            ``(2) Nonambulatory livestock.--The term `nonambulatory 
        livestock' means any livestock that is unable to stand and walk 
        unassisted.
    ``(b) Unlawful Practices.--
            ``(1) In general.--Except as provided in paragraph (2), it 
        shall be unlawful for any stockyard owner, market agency, or 
        dealer to buy, sell, give, receive, transfer, market, hold, or 
        drag any nonambulatory livestock unless the nonambulatory 
        livestock has been humanely euthanized.
            ``(2) Exceptions.--
                    ``(A) Non-gipsa farms.--Paragraph (1) shall not 
                apply to any farm the animal care practices of which 
                are not subject to the authority of the Grain 
                Inspection, Packers, and Stockyards Administration.
                    ``(B) Veterinary care.--Paragraph (1) shall not 
                apply in a case in which nonambulatory livestock 
                receive veterinary care intended to render the 
                livestock ambulatory.
    ``(c) Application of Prohibition.--Subsection (b) shall apply 
beginning one year after the date of the enactment of the Farm Security 
Act of 2001. By the end of such period, the Secretary shall promulgate 
regulations to carry out this section.''.

SEC. 944. ANNUAL REPORT ON IMPORTS OF BEEF AND PORK.

    The Secretary shall submit to the Congress an annual report on the 
amount of beef and pork that is imported into the United States each 
calendar year.
                                 <all>