[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2720 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2720

 To amend the Farm Security and Rural Investment Act of 2002 to reform 
commodity programs and to increase nutrition, conservation, and energy 
   programs of the Department of Agriculture, to reduce the national 
                budget deficit, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 14, 2007

   Mr. Kind (for himself, Mr. Flake, Mr. Crowley, Mr. Reichert, Ms. 
 Berkley, Mr. Blumenauer, Mr. Kirk, Mr. McDermott, Mr. Petri, Mr. Ryan 
 of Wisconsin, Mr. Shays, and Mr. Smith of Washington) introduced the 
following bill; which was referred to the Committee on Agriculture, and 
in addition to the Committees on Education and Labor, Foreign Affairs, 
 and Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Farm Security and Rural Investment Act of 2002 to reform 
commodity programs and to increase nutrition, conservation, and energy 
   programs of the Department of Agriculture, to reduce the national 
                budget deficit, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Food and 
Agriculture Risk Management for the 21st Century Act of 2007'' or the 
``FARM 21 Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--RISK MANAGEMENT ACCOUNTS

Sec. 101. Adjusted gross income limitation.
Sec. 102. Risk management accounts.
Sec. 103. Direct payments.
Sec. 104. Counter-cyclical payments.
Sec. 105. Dairy.
Sec. 106. Repeal of other commodity programs.
Sec. 107. Recourse loan program.
Sec. 108. Crop insurance reimbursement rate.
                        TITLE II--REALLOCATIONS

                        Subtitle A--Conservation

Sec. 201. Conservation.
                       Subtitle B--Healthy Foods

Sec. 221. Domestic Nutrition and Health.
                       Subtitle C--McGovern-Dole

Sec. 231. Reauthorization of McGovern-Dole International Food for 
                            Education and Child Nutrition Program.
                      Subtitle D--Renewable Energy

Sec. 241. Energy.
                     Subtitle E--Rural Development

Sec. 251. Rural development.
Sec. 252. Rural entrepreneur and microenterprise assistance program.
Sec. 253. Enhancing rural infrastructure.
                         Subtitle F--Nutrition

Sec. 261. Exclusion of combat-related military pay from countable 
                            income.
Sec. 262. Strengthening the food purchasing power of low-income 
                            Americans.
Sec. 263. Supporting working families with child care expenses.
Sec. 264. Increasing the minimum benefit.
Sec. 265. Exclusion of retirement accounts from countable financial 
                            resources.
Sec. 266. Facilitating simplified reporting.
Sec. 267. Reauthorization of food stamp program and food distribution 
                            program on Indian reservations, and the 
                            commodity supplemental food program.
Sec. 268. Outreach grants.
Sec. 269. Funds to States for improving and innovating program access 
                            and integrity.
Sec. 270. Supporting State efforts during natural disasters.
Sec. 271. Community food grants.
Sec. 272. Expanding the use of food stamps at farmers' markets.
Sec. 273. Commodities for the emergency food assistance program.
Sec. 274. Community food assistance and food bank infrastructure grants 
                            under the Food Stamp Act.
Sec. 275. Food for the hungry transportation grant program.
                     Subtitle G--Deficit Reduction

Sec. 281. Deficit reduction.

                   TITLE I--RISK MANAGEMENT ACCOUNTS

SEC. 101. ADJUSTED GROSS INCOME LIMITATION.

    Section 1001D(b) of the Farm Security Act of 1985 is amended by 
adding at the end the following new paragraph:
            ``(3) Further limitations on payments.--After 2007, 
        notwithstanding any other provision of law, an individual or 
        entity shall not be eligible to receive any direct, counter-
        cyclical or transition payment under any provision of law 
        administered by the Department of Agriculture if the average 
        adjusted gross income of the individual or entity exceeds 
        $200,000. For purposes of this paragraph,''.

SEC. 102. RISK MANAGEMENT ACCOUNTS.

    (a) Accounts Required.--The Secretary shall offer to enter into a 
risk management account contract with an operator of a farm.
    (b) Operator.--For the purposes of this section, an operator means 
an individual or entity that--
            (1) either--
                    (A) during each of the preceding 5 taxable years, 
                filed a schedule F of the Federal income tax returns or 
                a comparable tax form related to the agricultural 
                operations of the individual or entity, as approved by 
                the Secretary; or
                    (B) is a beginning farmer or rancher, as determined 
                by the Secretary; and
            (2) earned--
                    (A) at least $10,000 in average adjusted gross 
                revenue for the preceding 5 taxable years;
                    (B) less than such amount, but is a limited 
                resource farmer or rancher, as determined by the 
                Secretary; or
                    (C) at least $10,000 in estimated income from all 
                agricultural operations for the applicable year, as 
                determined by the Secretary, and is a beginning farmer 
                or rancher under paragraph (1)(B).
    (c) Farm.--For the purposes of this section, a farm is land used 
for production of crops, livestock and other agricultural products of 
which the operator has more than de-minimis control or ownership.
    (d) Adjusted Gross Revenue.--In this section, the term ``adjusted 
gross revenue'' means the adjusted gross income as determined by the 
Secretary, from the sale of agricultural crops grown, dairy products 
produced, and livestock raised as part of an agricultural operation--
            (1) by taking into account gross receipts from the sale of 
        agricultural crops, eligible livestock and dairy products on 
        the agricultural operation, including insurance indemnities;
            (2) by including all farm payments paid by the Secretary or 
        any other government entity for the agricultural operation 
        related to agricultural crops, eligible livestock and dairy 
        products;
            (3) by deducting the cost or basis of livestock or other 
        items purchased for resale, such as feeder livestock, on the 
        agricultural operation;
            (4) by excluding revenues that do not arise from the sale 
        of crops grown, dairy products produced or livestock raised on 
        an agricultural operation, such as revenues associated with the 
        packaging, merchandising, marketing and reprocessing of the 
        agricultural product beyond that typically undertaken by a 
        producer of the crop, dairy products or livestock as determined 
        by the Secretary;
            (5) by using with such adjustments, additions and 
        additional documentation as the Secretary determines is 
        appropriate, information presented on--
                    (A) a schedule F of the Federal income tax returns 
                of the producer; or
                    (B) a comparable tax form related to the 
                agricultural operations of the producer, as approved by 
                the Secretary.
    (e) Average Adjusted Gross Revenue.--In this section, the term 
``average adjusted gross revenue'' means--
            (1) the rolling average of the adjusted gross revenue of a 
        producer for each of the preceding 5 taxable years; or
            (2) in the case of a beginning farmer or rancher or other 
        agricultural operation that does not have adjusted gross 
        revenue for each of the preceding 5 taxable years, the 
        estimated income of the agricultural operation for the 
        applicable year, as determined by the Secretary.
    (f) Establishment.--Any operator of a farm may establish a risk 
management account in the name of the farm to be jointly administered 
by the Secretary and the Federal Retirement Thrift Investment Board.
    (g) Voluntary Contributions.--An operator of a farm may make 
voluntary contributions up to the limits specified in section 
219(b)(5)(A) of the Internal Revenue Code of 1986.
    (h) Withdrawals.--An operator who establishes an account may 
withdraw funds under following conditions and amounts:
            (1) In a year when the farm's adjusted gross revenue is 
        less than 95 percent of the five-year average adjusted gross 
        revenue, the producer may withdraw funds up to the amount of 
        the difference.
            (2) Up to 10 percent of the account balance for investments 
        in rural enterprises that contribute to the agricultural 
        economy, as defined by the Secretary, no more than once in any 
        five-year period.
            (3) When withdrawals are necessary to protect the solvency 
        of the farm, as determined by the Secretary.
            (4) To purchase revenue or crop insurance.
    (i) Limitation.--Payments to an account created under this section 
shall be made in the interest of the farm.
    (j) Tax Treatment.--Contributions shall not be subject to Federal 
income tax, except that withdrawals will be counted toward the gross 
income of the producer in the year withdrawn.
    (k) Violations.--If an operator fails to meet the conditions 
established for a contribution to an account, the operator shall refund 
to the Secretary an amount equal to the contribution in any fiscal year 
in which a violation occurred.
    (l) Sale or Transfer.--If an operator sells or transfers a farm, 
the operator may elect to--
            (1) transfer all or a portion of the account to another 
        farm in which the operator has a controlling ownership interest 
        or acquires a controlling ownership interest within two years 
        of the sale or transfer of the original agricultural operation;
            (2) transfer the account to the purchaser of the farm if 
        the operator is not already a holder of a account; or
            (3) rollover the account into an Individual Retirement 
        Account pursuant to section 408 of the Internal Revenue Code of 
        1986 of the operator, if the operator is a natural person, or, 
        if the operator is an entity, into the accounts of any natural 
        person who has a substantial beneficial interest in the farm 
        that is the subject of the account.
    (m) Conservation Compliance.--Any operator and any holder of a 
beneficial interest in a farm subject to an account shall--
            (1) 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
            (2) comply with applicable wetland conservation 
        requirements under subtitle C of title XII of that Act (16 
        U.S.C. 3821 et seq.).

SEC. 103. DIRECT PAYMENTS.

    (a) In General.--Section 1103 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7913) is amended by striking ``2007'' 
each place it appears and inserting ``2012''.
    (b) Reduction in Direct Payment Amounts.--Notwithstanding 
subsection (c) of section 1103 of the Farm Security and Rural 
Investment Act of 2002, producers otherwise eligible for direct 
payments under such section shall receive--
            (1) 65 percent of their direct payment for fiscal year 
        2008;
            (2) 45 percent of their direct payment for fiscal year 
        2009;
            (3) 25 percent of their direct payment for fiscal year 
        2010;
            (4) 20 percent of their direct payment for fiscal year 
        2011; and
            (5) 10 percent of their direct payment for fiscal years 
        2012 through 2014.
    (c) Payment Limit.--Section 1001(b)(1) of the Food Security of 1985 
(7 U.S.C. 1308) is amended by striking ``$40,000'' and insert 
``$30,000''.
    (d) Planting Restrictions.--Section 1105(a)(1)(C) and section 1106 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
7915(a)(1)(C), 7916) are repealed.
    (e) Additional Eligibility Requirement.--Section 1103(a) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7913(a)) is 
amended by inserting at the end the following new sentence: ``To be 
eligible to receive a direct payment under this section, a producer 
must be actively engaged in agriculture on the land for which the 
direct payment is paid, as determined by the Secretary.''.
    (f) Contribution to Account.--Section 1103 of the Farm Security and 
Rural Investment Act of 2002 is amended by adding at the end the 
following new subsection:
    ``(d) Contributions to Risk Management Account.--50 percent of the 
direct payments of a producer in fiscal years 2008 and 2009 shall be 
deposited in the risk management account of the producer, 75 percent of 
the direct payments of a producer for fiscal years 2010 and 2011 shall 
be deposited in the risk management account of the producer, and 100 
percent of the direct payments of a producer for fiscal year 2012 shall 
be deposited in the risk management account of the producer.''.
    (g) Stewardship.--Section 1103 of Farm Security and Rural 
Investment Act of 2002 is amended by inserting after subsection (d), as 
added by subsection (f), the following new subsection:
    ``(e) Environmental Stewardship.--Direct payments shall be linked 
to environmental stewardship as follows:
            ``(1) The Secretary, acting through the Chief of the 
        Natural Resources Conservation Service, shall develop an index 
        of environmental performance, to be linked to management 
        intensity and significant resource concerns, for the each of 
        the crops provided a direct payment under this section.
            ``(2) To be eligible for a direct payment linked to 
        stewardship, an individual or entity shall develop a plan that 
        describes the level of stewardship to be achieved and the 
        conversation practices or measures to be implemented. The 
        individual or entity shall certify environmental performance 
        through a qualified third-party.
            ``(3) Subject to the percentage restrictions on direct 
        payment amounts imposed by section 102(b) of the Food and 
        Agriculture Risk Management for the 21st Century Act of 2007, 
        85 percent of the available direct payment shall be provided so 
        long as the agricultural producer meets the conservation 
        requirements of subtitles B and C of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3811 et seq.).
            ``(4) Subject to the percentage restrictions on direct 
        payment amounts imposed by section 102(b) of the Food and 
        Agriculture Risk Management for the 21st Century Act of 2007, 
        90 percent of the available direct payment shall be provided so 
        long as the agricultural producers meet the first level of 
        environmental performance, as determined by the index of 
        environmental performance.
            ``(5) Subject to the percentage restrictions on direct 
        payment amounts imposed by section 102(b) of the Food and 
        Agriculture Risk Management for the 21st Century Act of 2007, 
        95 percent of the available direct payment shall be provided so 
        long as the agricultural producers meet the second level of 
        environmental performance, as determined by the index of 
        environmental performance.
            ``(6) Subject to the percentage restrictions on direct 
        payment amounts imposed by section 102(b) of the Food and 
        Agriculture Risk Management for the 21st Century Act of 2007, 
        100 percent of the available direct payment shall be provided 
        so long as the agricultural producers meet the third level of 
        environmental performance, as determined by the index of 
        environmental performance.''.

SEC. 104. COUNTER-CYCLICAL PAYMENTS.

    (a) One-Year Extension.--Section 1104 of the Farm Security and 
Rural Investment Act of 2002 is amended by striking ``2007'' each place 
it appears and inserting ``2008''.
    (b) Relation to Other Changes Made by This Act.--Counter-cyclical 
payments described in section 1104 of the Farm Security and Rural 
Investment Act of 2002 for the 2007 and 2008 crop years are to be 
calculated under such section without regard to the changes made by 
section 103 with regard to direct payments or the repeal of other 
commodity programs under section 106. Under no circumstances may 
counter-cyclical payments be made for the 2011 or subsequent crop 
years.

SEC. 105. DAIRY.

    (a) Milk Price Support Program.--Section 1501 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 7981) is repealed.
    (b) MILC Program.--Section 1502 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7982) is amended to read as follows:

``SEC. 1502. SUPPORT FOR MILK PRODUCERS.

    ``Dairy operators shall receive equal annual payments in each of 
the fiscal years 2008 through 2012, cumulatively equal to 90 percent of 
the milk income loss contract payments the operator received in fiscal 
years 2003 through 2007. One half of the annual payment shall be 
immediately available to the producer, and one half of the payment 
shall be placed in the risk management account of the operator''.

SEC. 106. REPEAL OF OTHER COMMODITY PROGRAMS.

    (a) Repeal of Commodity Programs.--Except as otherwise provided by 
this Act, all commodity programs set forth in subtitles A, B, C, and D 
of title I of the Farm Security and Rural Investment Act of 2002 and 
sections 1501 and 1502 of such Act are repealed.
    (b) Repeal of Suspended Authorities.--The provisions of law that 
were suspended by section 1602 of the Farm Security and Rural 
Investment Act of 2002 pursuant to paragraphs (1), (2), (3), and (4) of 
subsection (a), paragraphs (1) through (12) of subsection (b), and 
subsection (c) are repealed.
    (c) Repeal of Sugar Tariff Rate Quota.--The existing sugar tariff 
rate quota is repealed.

SEC. 107. RECOURSE LOAN PROGRAM.

    The Secretary of Agriculture shall establish a recourse loan 
program for all commodities, including sugar, for which marketing loans 
were available under the terms of title I of the Farm Security and 
Rural Investment Act of 2002 at a rate of interest determined by the 
Secretary.

SEC. 108. CROP INSURANCE REIMBURSEMENT RATE.

    Section 508(k)(4)(A)(ii) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)(4)(A)(ii)) is amended by striking ``24.5'' and inserting 
``23.2''.

                        TITLE II--REALLOCATIONS

                        Subtitle A--Conservation

SEC. 201. CONSERVATION.

    (a) Extension of Environmental Quality Incentives Program.--Section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended 
by striking paragraph (6) and inserting the following new paragraph:
            ``(6) The environmental quality incentives program under 
        chapter 4, using, to the maximum extent practicable--
                    ``(A) $1,550,000,000 in fiscal year 2008;
                    ``(B) $1,700,000,000 in fiscal year 2009;
                    ``(C) $1,800,000,000 in fiscal year 2010;
                    ``(D) $1,900,000,000 in fiscal year 2011; and
                    ``(E) $2,000,000,000 in fiscal year 2012.''.
    (b) Extension of Conservation Innovation Grants Program.--Section 
1240H of such Act (16 U.S.C. 3839aa-8) is amended by adding at the end 
the following:
    ``(d) Funding.--Of the funds made available under section 
1241(a)(6), the Secretary shall use funds of the Commodity Credit 
Corporation to carry out this section in the following amounts:
            ``(1) $40,000,000 for fiscal year 2008.
            ``(2) $50,000,000 for fiscal year 2009.
            ``(3) $60,000,000 for fiscal year 2010.
            ``(4) $75,000,000 for each of fiscal years 2011 through 
        2012.''.
    (c) Extension of Wetlands Reserve Program.--
            (1) Funding extension.--Section 1241(a)(2) of the Food 
        Security Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by 
        striking ``The'' and inserting ``For each of fiscal years 2002 
        through 2012, the''.
            (2) Conforming amendment.--Section 1237(c) of such Act (16 
        U.S.C. 3837(c)) is amended by striking ``2007'' and inserting 
        ``2012''.
    (d) Maximum and Yearly Enrollment.--Section 1237(b)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended--
            (1) by striking ``2,275,000 acres'' and inserting 
        ``3,350,000 acres''; and
            (2) by striking ``250,000'' and inserting ``250,000 acres 
        in 2008 and 2009, 275,000 acres in 2010 and 2011, and 300,000 
        acres in 2012.''.
    (e) Extension of Grasslands Reserve Program.--
            (1) Extension and funding.--Section 1241(a) of the Food 
        Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 
        paragraph (5) and inserting the following new paragraph:
            ``(5) For each of fiscal years 2002 through 2012, the 
        grassland reserve program under subchapter C of chapter 2.''.
            (2) Enrollment goals.--Section 1238N(b) of such Act (16 
        U.S.C. 3838N(b)) is amended in paragraph (1), by striking 
        ``2,000,000 acres'' and inserting ``500,000 acres in each of 
        fiscal years 2008 through 2012''.
    (f) Extension of Wildlife Habitat Incentives Program.--Section 
1241(a)(7) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(7)) is 
amended by striking subparagraphs (A) through (D) and inserting the 
following new subparagraphs:
                    ``(A) $80,000,000 in fiscal years 2008 and 2009;
                    ``(B) $100,000,000 in fiscal years 2010 and 2011; 
                and
                    ``(C) $150,000,000 in fiscal year 2012.''.
    (g) Extension of Farm and Ranchland Protection Program.--Paragraph 
(4) of subsection (a) of section 1241 of the Food Security Act of 1985 
(16 U.S.C. 3841) is amended to read as follows:
            ``(4) The farmland protection program under subchapter B of 
        chapter 2, using $100,000,000 in each of fiscal years 2008 
        through 2012.''.
    (h) Healthy Forests Reserve Program.--Section 508 of the Food 
Security Act of 1985 (16 U.S.C. 6578) is amended to read as follows:

``SEC. 508 FUNDING FOR HEALTHY FORESTS RESERVE PROGRAM.

    ``For each of fiscal years 2008 through 2012, the Secretary shall 
use the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out the healthy forests reserve program, including 
the provision of technical assistance under the program, in an amount 
not to exceed $50,000,000 each fiscal year.''.

                       Subtitle B--Healthy Foods

SEC. 221. DOMESTIC NUTRITION AND HEALTH.

    (a) Fruit and Vegetable Snack Program.--Section 18 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1769) is amended in 
subsection (g)--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``July 2004'' and inserting ``July 2007''; and
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:
                    ``(A) 100 elementary or secondary schools in each 
                State;
                    ``(B) additional elementary or secondary schools in 
                each State in proportion to the student population of 
                the State; and'';
            (2) in paragraph (3)(A), by striking ``paragraph (1)(B)'' 
        and inserting ``paragraph (1)'';
            (3) in paragraph (5), in each of subparagraphs (A) and (B), 
        by striking ``2008'' and inserting ``2011''; and
            (4) in paragraph (6)(B)(i)--
                    (A) by striking ``October 1, 2004,'' and inserting 
                ``October 1, 2007,''; and
                    (B) by striking ``$9,000,000'' and inserting 
                ``$9,000,000 in fiscal year 2008, $12,000,000 in fiscal 
                year 2009, and $75,000,000 in each of fiscal years 2010 
                through 2012''.
    (b) Farm to School Program.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended in subsection 
(i)(2) by striking ``such sums as are necessary'' and all that follows 
through the period at the end and inserting ``to carry out this 
subsection $5,000,000 for each of fiscal years 2008 and 2009, 
$8,000,000 for each of fiscal years 2010 through 2012.''.
    (c) Farmers Market Promotion Program.--Section 6 of the Farmer-to-
Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended by 
striking subsections (d) and (e) and inserting the following:
    ``(d) Criteria and Guidelines.--
            ``(1) In general.--The Secretary shall establish criteria 
        and guidelines for the submission, evaluation, and funding of 
        proposed projects under the Program.
            ``(2) Priority.--The Secretary shall prioritize the funding 
        of projects that will support, encourage, or promote the 
        transition to organic and other environmentally beneficial 
        forms of agricultural production.
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use $25,000,000 for each of the fiscal years 2008 
through 2012 to carry out this section, of which $5,000,000 shall be 
used to support the use of electronic benefit transfers at farmers' 
markets.''.
    (d) Fruit and Vegetable Nutrition Promotion Program.--
            (1) In general.--The Secretary of Agriculture, acting 
        through the Administrator of the Agricultural Marketing 
        Service, shall establish and carry out a program to provide 
        assistance to eligible trade organizations described in 
        paragraph (3) to increase the consumption of fruits and 
        vegetables in the United States to meet Federal health 
        guidelines.
            (2) Requirements for participation.--To be eligible for 
        assistance under this section, an eligible trade organization 
        shall--
                    (A) prepare and submit a plan to increase the 
                consumption of fruits and vegetables in the United 
                States to the Administrator of the Agricultural 
                Marketing Service that meets any guidelines governing 
                such plans established by the Administrator; and
                    (B) meet any other requirements established by the 
                Administrator.
            (3) Eligible trade organizations.--An eligible trade 
        organization referred to in paragraph (1) means any of the 
        following:
                    (A) A nonprofit fruit and vegetable trade 
                organizations in the United States.
                    (B) A nonprofit State or regional fruit and 
                vegetable organization.
                    (C) A fruit and vegetable agricultural cooperative 
                in the United States.
                    (D) A commodity board or commission in the United 
                States.
                    (E) A small business engaged in the fruit and 
                vegetable industry in the United States.
            (4) Matching funds.--Assistance provided under this section 
        shall not exceed--
                    (A) in the case of an organization described in 
                subparagraphs (A) through (D) of paragraph (3), 90 
                percent of the cost of the plan to increase the 
                consumption of fruits and vegetables in the United 
                States submitted under paragraph (2)(A); and
                    (B) in the case of an organization described in 
                paragraph (3)(E), 50 percent of the cost of the plan to 
                increase the consumption of fruits and vegetables in 
                the United States submitted under paragraph (2)(A).
            (5) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Administrator of the Agricultural Marketing 
        Service shall use $10,000,000 in each of fiscal years 2008 
        through 2012 to carry out this section.

                       Subtitle C--McGovern-Dole

SEC. 231. REAUTHORIZATION OF MCGOVERN-DOLE INTERNATIONAL FOOD FOR 
              EDUCATION AND CHILD NUTRITION PROGRAM.

    (a) Administration of Program.--Section 3107 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
            (1) in subsection (d), in the matter preceding paragraph 
        (1), by striking ``The President shall designate 1 or more 
        Federal agencies to'' and inserting ``The Secretary shall'';
            (2) in subsection (f)(2), in the matter preceding 
        subparagraph (A), by striking ``implementing agency'' and 
        inserting ``Secretary''; and
            (3) in subsections (c)(2)(B), (f)(1), (h)(1) and (2), and 
        (i), by striking ``President'' each place it appears and 
        inserting ``Secretary''.
    (b) Funding.--Section 3107(l) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o-1(l)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Use of commodity credit corporation funds.--Of the 
        funds of the Commodity Credit Corporation, the Secretary shall 
        use to carry out this section--
                    ``(A) not less than $50,000,000 for fiscal year 
                2008;
                    ``(B) not less than $50,000,000 for fiscal year 
                2009;
                    ``(C) not less than $100,000,000 for fiscal year 
                2010;
                    ``(D) not less than $150,000,000 for fiscal year 
                2011; and
                    ``(E) not less than $150,000,000 for fiscal year 
                2012.'';
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (2) (as redesignated by paragraph (2)), by 
        striking ``any Federal agency implementing or assisting'' and 
        inserting ``the Department of Agriculture or any other Federal 
        agency assisting''.

                      Subtitle D--Renewable Energy

SEC. 241. ENERGY.

    (a) Extension of Biorefeinery Grants and Loans.--
            (1) Assistance methods.--Subsection (c) of section 9003 of 
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8103) to read as follows:
    ``(c) Assistance.--The Secretary shall award grants and make loans 
and loan guarantees to eligible entities to assist in covering the cost 
of development and construction of biorefineries or for the 
construction or deployment of methane digesters used to capture the 
methane gas from livestock manure for use as a fuel source for biofuel 
production to carry out projects to demonstrate the commercial 
viability of one or more processes for converting biomass to fuels or 
chemicals.''.
            (2) Environmental goals.--Subsection (e)(2)(A) of such 
        section is amended--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by redesignating clause (ii) as clause (iii); 
                and
                    (C) by inserting after clause (i) the following new 
                clause:
                            ``(ii) shall select projects based on the 
                        extent to which the projects meet environmental 
                        goals for feed stocks and refineries, including 
                        goals related to reductions in greenhouse gas 
                        emissions and improvement in water quality and 
                        wildlife habitat, developed by the Secretary in 
                        consultation with the Secretary of the 
                        Interior, the Secretary of Energy, and the 
                        National Academy of Sciences; and''.
            (3) Funding.--Subsection (i) of such section, as amended by 
        subsection (d)(1), is amended to read as follows:
    ``(i) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available $50,000,000 for each of fiscal years 
2008 and 2009 and $75,000,000 for each of the fiscal years 2010 through 
2012 to carry out this section.''.
            (4) Conforming amendments.--Such section is further 
        amended--
                    (A) in the heading, by striking ``grants'' and 
                inserting ``assistance'';
                    (B) in subsection (c)--
                            (i) in the heading, by striking ``Grants'' 
                        and inserting ``Grants, Loans, and Loan 
                        Guarantees''; and
                            (ii) by striking ``grants'' and inserting 
                        ``grants and make loans and loan guarantees''; 
                        and
                    (C) in subsection (e)--
                            (i) in paragraph (1), by striking 
                        ``grants'' and inserting ``grants and make 
                        loans and loan guarantees''; and
                            (ii) in paragraph (2)(A), by striking 
                        ``grants'' and inserting ``grants, loans, and 
                        loan guarantees''.
    (b) Extension of Renewable Energy Systems and Energy Efficiency 
Improvements Program.--
            (1) Priorities.--Section 9006 of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 8106) is amended--
                    (A) by redesignating subsections (c), (d), (e), and 
                (f) as subsections (d), (e), (f), and (g), 
                respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Priority.--The Secretary shall prioritize for the awarding of 
a grant, loan, or loan guarantee under this section projects that--
            ``(1) will produce environmental benefits, including 
        reductions in greenhouse gas emissions, other improvements in 
        air quality, and improvements in water quality; and
            ``(2) foster community or cooperative approaches to 
        renewable energy development.''.
            (2) Funding.--Subsection (g) of such section, as 
        redesignated by paragraph (1)(A), is amended to read as 
        follows:
    ``(g) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section--
                    ``(A) $75,000,000 for fiscal year 2008;
                    ``(B) $75,000,000 for fiscal year 2009;
                    ``(C) $75,000,000 for fiscal year 2010;
                    ``(D) $75,000,000 for fiscal year 2011; and
                    ``(E) $100,000,000 for fiscal year 2012.
            ``(2) Availability.--Funds made available under paragraph 
        (1) shall remain available until expended.''.
    (c) Reauthorization of and Increased Funding for Biomass Research 
and Development.--Section 310 of the Biomass Research and Development 
Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) is amended to read 
as follows:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this title $75,000,000 for 
each of fiscal years 2008 through 2012.
    ``(b) Authorization of Appropriations.--In addition to amounts 
transferred under subsection (a), there are authorized to be 
appropriated to carry out this title $200,000,000 for each of fiscal 
years 2008 through 2012.
    ``(c) Availability of Funds.--Amounts made available under 
subsection (a) or appropriated pursuant to the authorization of 
appropriations in subsection (b) shall remain available until 
expended.''.

                     Subtitle E--Rural Development

SEC. 251. RURAL DEVELOPMENT.

    (a) Targeting of Rural Development Funding to Low-Income Rural 
Areas.--Subtitle D of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1981-2008r) is amended by inserting after section 364 the 
following:

``SEC. 365. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS FOR 
              RURAL DEVELOPMENT PROJECTS.

    ``The Secretary shall not approve an application which is submitted 
under any program authorized or modified by, or funded pursuant to, an 
amendment made by title VI of the Farm Security and Rural Investment 
Act of 2002, and which proposes to serve a rural area (as defined by 
the applicable law), unless--
            ``(1)(A) the median family income in the area is not more 
        than 85 percent of the median household income in the State in 
        which the area is located; and
            ``(B) the area is not--
                    ``(i) included within the boundaries of any city, 
                town, borough, or village, whether incorporated or 
                unincorporated, with a population of more than 20,000 
                inhabitants;
                    ``(ii) included within the boundaries of an 
                urbanized area or urban cluster; or
                    ``(iii) within 10 miles of the boundary of any such 
                city, village, borough, town, urbanized area, or urban 
                cluster;
            ``(2) the area--
                    ``(A) is in a county designated as Non-metro by the 
                Economic Research Service of the Department of 
                Agriculture; and
                    ``(B) has experienced net population out-migration 
                over the last 5 years; or
            ``(3) the area is in a county designated a Non-metro 
        Persistent Poverty County by the Economic Research Service of 
        the Department of Agriculture.''.
    (b) Value-Added Producer Grant Program.--Section 231(b) of the 
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public 
Law 106-224) is amended--
            (1) in paragraph (4)--
                    (A) by striking ``2002'' and inserting ``2008''; 
                and
                    (B) by striking ``2006'' and inserting ``2012''; 
                and
            (2) by adding at the end the following:
            ``(5) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to proposals that are most likely 
        to increase the profitability and viability of small- and 
        medium-sized farms and ranches.
            ``(6) Set-aside for beginning farmers and ranchers.--Not 
        less than 10 percent and not more than 15 percent of the 
        amounts made available for grants under this section for a 
        fiscal year shall be available for grants to qualified 
        beginning farmers or ranchers (as defined in section 343(a)(11) 
        of the Consolidated Farm and Rural Development Act).
            ``(7) Set-aside for socially disadvantaged farmer and 
        ranchers.--Not less than 10 percent and not more than 15 
        percent of the amounts made available for grants under this 
        section for a fiscal year shall be available for grants to 
        socially disadvantaged farmers or ranchers (as defined in 
        section 355(e) of the Consolidated Farm and Rural Development 
        Act).''.
    (c) Rural Broadband Access.--Section 601(j) of the Rural 
Electrification Act of 1936 (7 U.S.C. 950bb(j)) is amended by striking 
``--'' and all that follows and inserting ``$10,000,000 for each of 
fiscal years 2008 through 2012, to remain available until expended.''.
    (d) 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 ``2007'' and inserting ``2012''.
    (e) Farmworker Training Grant Program.--Section 379C(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(c)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 252. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r), as amended by section 251(a) of this Act, is 
amended by inserting after section 365 the following::

``SEC. 366. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Economically disadvantaged microentrepreneur.--The 
        term `economically disadvantaged microentrepreneur' means an 
        owner, majority owner, or developer of a microenterprise that 
        has the ability to compete in the private sector but has been 
        impaired because of diminished capital and credit 
        opportunities, as compared to other microentrepreneurs in the 
        industry.
            ``(2) 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).
            ``(3) Intermediary.--The term `intermediary' means a 
        private, nonprofit entity that provides assistance--
                    ``(A) to a microenterprise development 
                organization; or
                    ``(B) for a microenterprise development program.
            ``(4) Low-income individual.--The term low-income 
        individual means an individual with an income (adjusted for 
        family size) of not more than the greatest of--
                    ``(A) 80 percent of median income of an area;
                    ``(B) 80 percent of the statewide non-metropolitan 
                area median income; or
                    ``(C) 80 percent of the national median income.
            ``(5) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $50,000 that is 
        provided to a rural entrepreneur.
            ``(6) Microenterprise.--The term `microenterprise' means--
                    ``(A) a sole proprietorship; or
                    ``(B) a business entity with not more than 10 full-
                time-equivalent employees.
            ``(7) Microenterprise development organization.--
                    ``(A) In general.--The term `microenterprise 
                development organization' means a private, nonprofit 
                entity that--
                            ``(i) provides training and technical 
                        assistance to rural entrepreneurs; and
                            ``(ii) facilitates access to capital or 
                        another service described in subsection (b) for 
                        rural entrepreneurs.
                    ``(B) Inclusions.--The term `microenterprise 
                development organization' includes an organization 
                described in subparagraph (A) with a demonstrated 
                record of delivering services to economically 
                disadvantaged microentrepreneurs, or an effective plan 
                to develop a program to deliver microenterprise 
                services to rural entrepreneurs effectively, as 
                determined by the Secretary.
            ``(8) Microenterprise development program.--The term 
        `microenterprise development organization' means a program 
        administered by an organization serving a rural area.
            ``(9) Microentrepreneur.--The term `microentrepreneur' 
        means the owner, operator, or developer of a microenterprise.
            ``(10) Program.--The term `program' means the rural 
        entrepreneur and microenterprise program established under 
        subsection (b)(1).
            ``(11) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) a microenterprise development organization or 
                microenterprise development program that has a 
                demonstrated record of delivering microenterprise 
                services to rural entrepreneurs, or an effective plan 
                to develop a program to deliver microenterprise 
                services to rural entrepreneurs effectively, as 
                determined by the Secretary.
                    ``(B) an intermediary that has a demonstrated 
                record of delivery assistance to microenterprise 
                development organizations or microenterprise 
                development programs;
                    ``(C) a microenterprise development organization or 
                microenterprise development program that serves rural 
                entrepreneurs;
                    ``(D) an Indian tribe, the tribal government of 
                which certifies to the Secretary that no 
                microenterprise development organization or 
                microenterprise development program exists under the 
                jurisdiction of the Indian tribe;
                    ``(E) a group of 2 or more organizations or Indian 
                tribes described in any of subparagraphs (A) through 
                (D) that agree to act jointly as a qualified 
                organization under this section; or
                    ``(F) for purposes of subsection (b), a public 
                college or university.
            ``(12) Rural area.--The term `rural area' means any 
        community that is rural in character and has a population of 
        not more than 25,000 individuals.
            ``(13) Rural capacity building service.--The term `rural 
        capacity building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization or 
                microenterprise development program; and
                    ``(B) serves rural areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other related 
                services to rural entrepreneurs.
            ``(14) Rural entrepreneur.--The term `rural entrepreneur' 
        means a microentrepreneur, or prospective microentrepreneur--
                    ``(A) the principal place of business of which is 
                in a rural area; and
                    ``(B) that is unable to obtain sufficient training, 
                technical assistance, or microcredit elsewhere, as 
                determined by the Secretary.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Rural Business-Cooperative 
        Service.
            ``(16) Tribal government.--The term `tribal government' 
        means the governing body of an Indian tribe.
    ``(b) Rural Entrepreneurship and Microenterprise Program.--
            ``(1) Establishment.--The Secretary shall establish a rural 
        entrepreneurship and microenterprise program.
            ``(2) Purpose.--The purpose of the program shall be to 
        provide low-income individuals and moderate-income individuals 
        with--
                    ``(A) the skills necessary to establish new small 
                businesses in rural areas; and
                    ``(B) continuing technical and financial assistance 
                as individuals and business starting or operating small 
                businesses.
            ``(3) Grants.--
                    ``(A) In general.--The Secretary may make a grant 
                under the program to a qualified organization--
                            ``(i) to provide training, operational 
                        support, or a rural capacity building service 
                        to a qualified organization to assist the 
                        qualified organization in developing 
                        microenterprise training, technical assistance, 
                        market development assistance, and other 
                        related services, primarily for business with 5 
                        or fewer full-time-equivalent employees;
                            ``(ii) to assist in researching and 
                        developing the best practices in delivering 
                        training, technical assistance, and microcredit 
                        to rural entrepreneurs; and
                            ``(iii) to carry out such other projects 
                        and activities as the Secretary determines to 
                        be consistent with the purposes of this 
                        section.
                    ``(B) Subgrants.--Subject to such regulations as 
                the Secretary may promulgate, a qualified organization 
                that receives a grant under this paragraph may use the 
                grant to provide assistance to other qualified 
                organizations, such as small or emerging qualified 
                organizations.
                    ``(C) Diversity.--In making grants under this 
                paragraph, the Secretary shall ensure, to the maximum 
                extent practicable, that grant recipients include 
                qualified organizations--
                            ``(i) of varying sizes; and
                            ``(ii) that serve racially- and ethnically-
                        diverse populations.
                    ``(D) Cost sharing.--
                            ``(i) Federal share.--The Federal share of 
                        the cost of a project carried out using funds 
                        from a grant made under this paragraph shall be 
                        75 percent.
                            ``(ii) Form of non-federal share.--The non-
                        Federal share of the cost of a project 
                        described in clause (i) may be provided--
                                    ``(I) in cash (including through 
                                fees, grants (including community 
                                development block grants), and gifts); 
                                or
                                    ``(II) in kind.
            ``(4) Rural microloan program.--
                    ``(A) Establishment.--In carrying out the program, 
                the Secretary may carry out a rural microloan program.
                    ``(B) Purpose.--The purpose of the rural microloan 
                program shall be to provide technical and financial 
                assistance to sole proprietorships and small businesses 
                located in rural areas with a particular focus on those 
                businesses with 5 or fewer full-time equivalent 
                employees.
                    ``(C) Authority of secretary.--In carrying out the 
                rural microloan program, the Secretary may--
                            ``(i) make direct loans to qualified 
                        organizations for the purpose of making short-
                        term, fixed interest rate microloans to 
                        startup, newly established, and growing rural 
                        microbusiness concerns; and
                            ``(ii) in conjunction with those loans, 
                        provide grants in accordance with subparagraph 
                        (E) to those qualified organizations for the 
                        purpose of providing intensive marketing, 
                        management, and technical assistance to small 
                        business concerns that are borrowers under this 
                        paragraph.
                    ``(D) Loan duration; interest rates; conditions.--
                            ``(i) Loan duration.--A loan made by the 
                        Secretary under this paragraph shall be for a 
                        term of 20 years.
                            ``(ii) Applicable interest rates.--A loan 
                        made by the Secretary under this paragraph to a 
                        qualified organization shall bear an annual 
                        interest rate of at least 1 percent.
                            ``(iii) Deferral of interest and 
                        principal.--The Secretary may permit the 
                        deferral of payments, for principal and 
                        interest, on a loan made under this paragraph 
                        for a period of not more than 2 years, 
                        beginning on the date on which the loan was 
                        made.
                    ``(E) Grant amounts.--
                            ``(i) In general.--Except as otherwise 
                        provided in this section, each qualified 
                        organization that receives a loan under this 
                        paragraph shall be eligible to receive a grant 
                        to provide marketing, management, and technical 
                        assistance to small business concerns that are 
                        borrowers or potential borrowers under this 
                        subsection.
                            ``(ii) Maximum amount of grant for 
                        microenterprise development organizations.--
                        Each microenterprise development organization 
                        that receives a loan under this paragraph shall 
                        receive an annual grant in an amount equal to 
                        not more than 25 percent of the total 
                        outstanding balance of loans made to the 
                        microenterprise development organization under 
                        this paragraph, as of the date of provision of 
                        the grant.
                            ``(iii) Matching requirement.--
                                    ``(I) In general.--As a condition 
                                of any grant made to a qualified 
                                organization under this subparagraph, 
                                the Secretary shall require the 
                                qualified organization to match not 
                                less than 15 percent of the total 
                                amount of the grant.
                                    ``(II) Sources.--In addition to 
                                cash from non-Federal sources, a 
                                matching share provided by the 
                                qualified organization may include 
                                indirect costs or in-kind contributions 
                                funded under non-Federal programs.
    ``(c) Administrative Expenses.--Not more than 10 percent of 
assistance received by a qualified organization for a fiscal year under 
this section may be used to pay administrative expenses.
    ``(d) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and on October 1, 2008, and each October 
        1 thereafter through October 1, 2012, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        section $50,000,000, to remain available until expended.
            ``(2) Allocation of funds.--Of the amount made available by 
        paragraph (1) for each fiscal year--
                    ``(A) not less than $30,000,000 shall be available 
                for use in carrying out subsection (b)(3); and
                    ``(B) not less than $20,000,000 shall be available 
                for use in carrying out subsection (b)(4), of which not 
                more than $7,000,000 shall be used to support direct 
                loans.
                    ``(C) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this section the funds transferred under 
                paragraph (1), without further appropriation.''.

SEC. 253. ENHANCING RURAL INFRASTRUCTURE.

    (a) Use of Funds.--The Secretary of Agriculture shall use funds 
made available under subsection (d) to provide funds for applications 
that are pending on the date of enactment of this Act for--
            (1) water or waste disposal grants or direct loans under 
        paragraph (1) or (2) of section 306(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a));
            (2) emergency community water assistance grants under 
        section 306A of that Act (7 U.S.C. 1926a);
            (3) community facilities grants and direct loans under 
        paragraphs (1), (19), (20), (21) of section 306(a) of that Act 
        (7 U.S.C. 1926(a)) that support projects that assist rural 
        first responders, as defined by the Secretary of Agriculture;
            (4) broadband access loans under title VI of the Rural 
        Electrification Act (7 U.S.C. 950bb et seq.); and
            (5) distance learning and telemedicine grants under chapter 
        1 of subtitle D of title XXII of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa et seq.).
    (b) Limitations.--
            (1) Appropriated amounts.--Funds made available under this 
        section shall be available to the Secretary of Agriculture to 
        provide funds for applications for loans and grants described 
        in subsection (a) that are pending on the date of enactment of 
        this Act only to the extent that funds for the loans and grants 
        appropriated in the annual appropriations Act for fiscal years 
        2008 and 2009, as appropriate, have been exhausted.
            (2) Program requirements.--The Secretary of Agriculture may 
        use funds made available under this section to provide funds 
        for a pending application for a loan or grant described in 
        subsection (a) only if the Secretary of Agriculture processes, 
        reviews, and approves the application in accordance with 
        regulations in effect on the date of enactment of this Act.
    (c) Exclusion of Certain Pending Applications.--In this section, 
the term ``application'' does not include an application for a loan or 
grant that, as of the date of enactment of this Act, is in the 
preapplication phase of consideration under regulations of the 
Secretary of Agriculture in effect on the date of enactment of this 
Act.
    (d) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary of Agriculture shall make available to carry out this section 
$50,000,000 in fiscal year 2008, $75,000,000 in fiscal year 2009, 
$100,000,000 in fiscal years 2010 and 2011, and $75,000,000 in fiscal 
year 2012.

                         Subtitle F--Nutrition

SEC. 261. EXCLUSION OF COMBAT-RELATED MILITARY PAY FROM COUNTABLE 
              INCOME.

    Section 5(d) of the food stamp act of 2007 (7 U.S.C. 2014(d)) is 
amended--
            (1) by striking ``and (18)'' and inserting ``(18)''; and
            (2) by inserting before the period at the end the 
        following:
``, and (19) any additional payment received under chapter 5 of title 
37, United States Code, by a member of the United States Armed Forces 
deployed to a designated combat zone for the duration of the members 
deployment if the additional pay is the result of deployment to or 
while serving in a combat zone, and it was not received immediately 
prior to serving in the combat zone''.

SEC. 262. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME 
              AMERICANS.

    Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) 
is amended--
            (1) in subparagraph (A)(ii) by striking ``not less than 
        $134'' and all that follows to the end of the clause and 
        inserting the following:
                        ``not less than $149, $255, $210, and $131, 
                        respectively. For October 1, 2008 and each 
                        fiscal year thereafter, such amounts shall be 
                        adjusted to the nearest lower dollar increment 
                        to reflect changes in the Consumer Price Index 
                        for all urban consumers published by the Bureau 
                        of Labor Statistics, for items other than food, 
                        for the twelve months ending the preceding June 
                        30.''; and
            (2) in subparagraph (B)(ii) by striking ``not less than 
        $269.'' and inserting the following:
                        ``not less than $299. For October 1, 2008 and 
                        each fiscal year thereafter, such amount shall 
                        be adjusted to the nearest lower dollar 
                        increment to reflect changes in the Consumer 
                        Price Index for all urban consumers published 
                        by the Bureau of Labor Statistics, for items 
                        other than food, for the twelve months ending 
                        the preceding June 30.''.

SEC. 263. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.

    Section 5(e)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level 
of which shall be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent,''.

SEC. 264. INCREASING THE MINIMUM BENEFIT.

    Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is 
amended by striking ``$10 per month.'' and inserting--
            ``(1) for fiscal year 2008 through 2011, 10 percent of the 
        thrifty food plan for a household containing one member, as 
        determined by the Secretary under section 3(o);
            ``(2) for fiscal year 2012 and each fiscal year thereafter, 
        15 percent of the thrifty food plan for a household containing 
        one member, as determined by the Secretary under section 
        3(o).''.

SEC. 265. EXCLUSION OF RETIREMENT ACCOUNTS FROM COUNTABLE FINANCIAL 
              RESOURCES.

    (a) Accounts.--Section 5(g)(2)(B)(v) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking ``or retirement 
account (including an individual account)'' and inserting ``account''.
    (b) Mandatory and Discretionary Exclusions.--Section 5(g) of the 
Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the 
end the following:
            ``(7) Exclusion of retirement accounts from countable 
        financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of any funds in a plan, contract, or account, 
                described in sections 401(a), 403(a), 403(b), 408, 
                408A, 457(b), and 501(c)(18) of the Internal Revenue 
                Code of 1986 and the value of funds in a Federal Thrift 
                Savings Plan account as provided in section 8439 of 
                title 5, United States Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other retirement plans, contracts, or 
                accounts (as determined by the Secretary through 
                regulation).''.

SEC. 266. FACILITATING SIMPLIFIED REPORTING.

    Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is 
amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``reporting by'' and inserting 
                ``reporting'';
                    (B) in clause (i) by inserting ``for periods 
                shorter than 4 months by'' before ``migrant'';
                    (C) in clause (ii), by inserting ``for periods 
                shorter than 4 months by'' before ``households''; and
                    (D) in clause (iii), by inserting ``by'' before 
                ``households''; and
            (2) in paragraph (3), by--
                    (A) in the third sentence--
                            (i) by striking ``Reports required to be 
                        filed monthly under paragraph (1)'' and 
                        inserting ``Except as provided in paragraph 
                        (1)(D)(ii), periodic reports filed under 
                        paragraph (1)''; and
                            (ii) by striking ``subject matter included 
                        in such reports'' and inserting ``the 
                        households required to make the reports''; and
                    (B) by inserting after the third sentence the 
                following: ``The State agency shall not be required to 
                act on information about a household described in the 
                preceding sentence received from any source between the 
                periodic reports unless the information clearly 
                indicated that the household is not eligible, subject 
                to standards established by the Secretary, or the 
                household requested an increase in benefits.''.

SEC. 267. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS, AND THE COMMODITY 
              SUPPLEMENTAL FOOD PROGRAM.

    (a) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``2007'' and inserting ``2012''; and
            (2) in subparagraph (B)(ii) by striking ``2007'' and 
        inserting ``2012''.
    (b) 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 ``2007'' and inserting ``2012''.
    (c) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the first 
sentence by striking ``2003 through 2007'' and inserting ``2008 through 
2012''.
    (d) Consolidated Block Grants for Puerto Rico and American Samoa.--
Section 19(a)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(2)) is 
amended in subparagraph (A)(ii) by striking ``2007'' and inserting 
``2012''.
    (e) Commodity Distribution Program.--Section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended in the first sentence by striking ``2007'' 
and inserting ``2012''.

SEC. 268. OUTREACH GRANTS.

    Section 11(t) of the Food Stamp Act of 2007 (7 U.S.C. 2020(t)) is 
amended--
            (1) in paragraph (1) by striking ``For each of fiscal 
        years'' and all that follows through $5,000,000, and inserting 
        ``For each of fiscal years 2008 through 2012, the Secretary 
        shall use not more than amounts specified in paragraph (2) 
        out'';
            (2) by redesignating paragraphs (2), (3), (4), and (5) as 
        paragraphs (3), (4), (5), and (6) respectively; and
            (3) by inserting after paragraph (1) the following::
            ``(2) Amounts.--The amounts to be expended under paragraph 
        (1) shall be--
                    ``(A) for fiscal year 2008, 15,000,000; and
                    ``(B) for fiscal year 2009 and each fiscal year 
                thereafter, the amount specified in subparagraph (A), 
                as adjusted to reflect changes in the Consumer Price 
                Index for all urban consumers published by the Bureau 
                of Labor Statistics for the twelve months ending the 
                preceding June 30.''.

SEC. 269. FUNDS TO STATES FOR IMPROVING AND INNOVATING PROGRAM ACCESS 
              AND INTEGRITY.

    Section 16 of the Food Stamp Act of 2007 (7 U.S.C. 2025), as 
amended by [section 304,] is amended by adding at the end the 
following:
    ``(m) Funds to States for Improving and Innovating Program Access 
and Integrity.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary shall provide that with respect to administrative 
        expenditures described in paragraph (2) the percent specified 
        in (a) shall be increased to such percentage as the Secretary 
        specifies.
            ``(2) Administrative expenditures described.--The 
        administrative expenditures described in this paragraph are 
        expenditures described in (a) that a State demonstrates to the 
        satisfaction of the Secretary are attributable to a program 
        innovation that--
                    ``(A) improves access to the food stamp program;
                    ``(B) improves the efficiency and effectiveness of 
                program operations; or
                    ``(C) improves program integrity.
            ``(3) Limitations.--The total amount of additional Federal 
        funds that are made available under this subsection shall not 
        exceed $10,000,000 in each of the fiscal years 2008 through 
        2012. In applying this paragraph, the Secretary shall use 
        discretion in determining the State innovations that have the 
        greatest likelihood of meeting the goals described in paragraph 
        (2). The Secretary shall only make funds available under 
        paragraph (2) that will result in new activities or 
        operations.''.

SEC. 270. SUPPORTING STATE EFFORTS DURING NATURAL DISASTERS.

    Section 5(h) of the Food Stamp Act of 1977 (7 U.S.C. 2014(h)) is 
amended by adding at the end the following:
    ``(4) In lieu of the payments section 16(a) would otherwise 
require, the Secretary shall pay each State agency an amount equal to 
90 percent of administrative costs allowable under section 16(a) for 
costs related to planning and operating disaster food stamp programs 
under this subsection.''.

SEC. 271. COMMUNITY FOOD GRANTS.

    Section 25(b) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)) is 
amended--
            (1) in paragraph (1) by striking ``From amounts made 
        available to carry out this Act, the Secretary may'' and 
        inserting ``The Secretary shall''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Funding amounts.--From amounts made available to 
        carry out this Act, the Secretary shall use $25,000,000 for 
        fiscal year 2008, and $30 million for each of the fiscal years 
        2009 through 2012, to make grants under this section.''.

SEC. 272. EXPANDING THE USE OF FOOD STAMPS AT FARMERS' MARKETS.

    Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is amended 
by adding at the end:
    ``(i) Grants to Expand the Number of Farmers' Markets That Accept 
Food Stamp Benefits.--
            ``(1) In general.--For fiscal year 2008, the Secretary 
        shall use not more than $5 million of funds made available 
        under section 18(a)(1) to make grants to pay 100 percent of the 
        costs of eligible entities approved by the Secretary to carry 
        out projects to expand the number of farmer' markets that 
        accept food stamp benefits by--
                    ``(A) providing equipment and training necessary 
                for markets to accept food stamp benefits;
                    ``(B) educating and providing technical assistance 
                to farmers and farmers' market operators about the 
                process and benefits of accepting food stamp benefits; 
                or
                    ``(C) other activities deemed appropriate by the 
                Secretary.
            ``(2) Limitation.--A grant made under this subsection shall 
        not be made for the cost of the on-going cost of carrying out 
        any project.
            ``(3) Eligible entities.--To be eligible to receive a grant 
        under this subsection, an entity shall be--
                    ``(A) a State agency administering the food stamp 
                program;
                    ``(B) a State or local government; or
                    ``(C) a private nonprofit entity that coordinates 
                farmers' markets in or within a State and that operates 
                in cooperation with State or local government.
            ``(4) Selection of eligible entities.--The Secretary--
                    ``(A) shall develop criteria for the selection of 
                eligible entities to receive grants under this 
                subsection; and
                    ``(B) may give preference to any eligible entity 
                that consists of a partnership between a government 
                entity and a nongovernmental entity.''.

SEC. 273. COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM.

    Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is 
amended--
            (1) by striking ``(a) purchase of commodities'' and all 
        that follows through ``2007'' and inserting the following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--As provided in paragraph (2), for each 
        of fiscal years 2008 through 2012'';
            (2) by striking ``$140,000,000 of''; and
            (3) by inserting at the end:
            ``(2) Amounts.--The following amounts are made available to 
        carry out this subsection:
                    ``(A) for fiscal year 2008, $220,000,000;
                    ``(B) for fiscal year 2009, $230,000,000;
                    ``(C) for fiscal year 2010, $240,000,000;
                    ``(D) for fiscal year 2011, $245,000,000; and
                    ``(E) for fiscal year 2012 and each fiscal year 
                thereafter, the dollar amount of commodities available 
                in the immediately preceding fiscal year adjusted by 
                the percentage by which the thrifty food plan has been 
                adjusted under section 3(o)(4) between June 30, 2007 
                and June 30 of the immediately preceding fiscal 
                year.''.

SEC. 274. COMMUNITY FOOD ASSISTANCE AND FOOD BANK INFRASTRUCTURE GRANTS 
              UNDER THE FOOD STAMP ACT.

    The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by 
adding at the end the following:

``SEC. 28. COMMUNITY FOOD ASSISTANCE AND FOOD BANK INFRASTRUCTURE 
              COMPETITIVE GRANTS.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means an emergency feeding organization (as defined 
in section 201A(4) of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7501(4)).
    ``(b) Program Authorized.--To carry out this section, there are 
authorized to be appropriated $5,000,000 for each of fiscal years 2008 
through 2012.
    ``(c) Application.--
            ``(1) In general.--To receive a grant under this section, 
        an eligible entity shall submit an application to the Secretary 
        at the time and manner and accompanied by any information the 
        Secretary may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) identify the activity described in subsection 
                (d) that the grant will be used to fund; and
                    ``(B) describe the means by which an activity 
                identified under subparagraph (A) will reduce hunger in 
                the community or support the efforts of food banks or 
                other nonprofit emergency feeding organizations as 
                defined in subsection (a) to reduce hunger or food 
                insecurity in their communities.
            ``(3) Priority.--In making grants under this section, the 
        Secretary shall give priority to eligible entities the 
        applications of which demonstrate 2 of the following criteria:
                    ``(A) The eligible entity serves a predominantly 
                rural and geographically underserved area.
                    ``(B) The eligible entity serves a community in 
                which the rates of food insecurity, very low food 
                insecurity, hunger, poverty, or unemployment are 
                demonstrably higher than national average rates.
                    ``(C) The eligible entity serves a community that 
                provides demonstrable public support for the efforts of 
                the eligible entity through the direct provision of 
                private sector food assistance to low-income 
                individuals.
                    ``(D) The eligible entity can show that the grant 
                will assist in the support of rural communities, small 
                or mid-size farms, and the consumption of locally 
                produced agricultural products by low-income people in 
                need of temporary food assistance.
    ``(d) Use of Funds.--An eligible entity shall use a grant received 
under this section for fiscal year to carry out activities of the 
eligible entity, including--
            ``(1) constructing, expanding, or repairing a facility or 
        equipment to support hunger relief agencies in the community;
            ``(2) assisting an emergency feeding organization in the 
        community in obtaining locally-grown or raised produce, dairy 
        or protein products; and
            ``(3) assisting an emergency feeding organization in the 
        community for the procurement, storage, handling and 
        distribution of locally produced agricultural products.''.

SEC. 275. FOOD FOR THE HUNGRY TRANSPORTATION GRANT PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to authorize the creation of the National Food For the 
        Hungry Transportation, Self-Help, and Job Training Fund to 
        facilitate the procurement and transportation of highly 
        perishable, healthy food to low-income individuals in the 
        United States;
            (2) to establish a competitive mechanism in the Department 
        of Agriculture by which appropriations made available from the 
        Fund would be allocated;
            (3) to ensure the direct involvement of the private carrier 
        trucking fleet of the United States in carrying out this 
        section;
            (4) to increase the quantity of nutritious food available 
        to low-income individuals in the United States by supporting 
        the procurement and distribution of highly perishable food, 
        such as fresh produce and protein products, to the low-income 
        individuals;
            (5) to offer job training and employment opportunities in 
        the food transportation and distribution systems;
            (6) to better identify potential providers of donated foods 
        and enhance the nonprofit food donation system; and
            (7) to provide adequate funding to carry out this section.
    (b) Definitions.--In this section:
            (1) Fund.--The term ``Fund'' means the National Food For 
        the Hungry Transportation, Self-Help, and Job Training Fund 
        established under subsection (c).
            (2) Nongovernmental organization.--The term 
        ``nongovernmental organization'' means a national nonprofit 
        charitable organization that--
                    (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986;
                    (B) is capable of, and has at least 10 years 
                experience in, procuring donated food and other 
                services from major domestic food manufacturers and 
                processors, grocery wholesalers and retailers, food 
                warehouse operations, agricultural producer 
                organizations, fishing interests commercial transport 
                providers (such as trucking companies), and Federal and 
                State food assistance agencies;
                    (C) is capable of, and has shown proficiency in, 
                the national distribution of highly perishable food 
                through contracts with member emergency feeding 
                organizations (as defined in section 201A of the 
                Emergency Food Assistance Act of 1983 (7 U.S.C. 7501));
                    (D) has at least 10 years experience in procuring 
                commercial freight for the distribution of time-
                sensitive food products through a network of emergency 
                food assistance organizations;
                    (E) has at least 10 years experience in working 
                with transport providers in creating, coordinating, and 
                maintaining transfer systems designed to assist, at the 
                national level, the delivery of time-sensitive food 
                products, for distribution to emergency food assistance 
                organizations in all 50 States and the District of 
                Columbia;
                    (F) does not operate any commercial, private, or 
                public subsidiary trucking or freight operations for 
                the purposes of transporting food; and
                    (G) agrees--
                            (i) to contribute in-kind resources to help 
                        carry out this section;
                            (ii) to provide to eligible emergency food 
                        assistance organizations services and 
                        information free of charge; and
                            (iii) to regularly certify and inspect any 
                        member emergency feeding organization with 
                        which the nongovernmental organization entered 
                        into a contract to carry out an activity 
                        described in subparagraph (B).
            (3) Primary nongovernmental organization.--The term 
        ``primary nongovernmental organization'' means a 
        nongovernmental organization selected by the Secretary on a 
        competitive basis from among nongovernmental organizations.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (5) Time-sensitive food product.--
                    (A) In general.--The term ``time-sensitive food 
                product'' means a fresh, raw, or processed food with a 
                short time limitation for safe and acceptable 
                consumption, as determined by the Secretary.
                    (B) Inclusions.--The term ``time-sensitive food 
                product'' includes fruits, vegetables, dairy products, 
                meat, fish, and poultry.
    (c) National Food for the Hungry Transportation Fund.--The 
Secretary shall offer to enter into a contract or grant agreement with 
a primary nongovernmental organization to establish the National Food 
for the Hungry Transportation Fund to track, collect, and deliver time-
sensitive food products.
    (d) Program Requirements.--The Secretary shall ensure that funds 
made available under this Act are used for
            (1) the development and maintenance of a computerized 
        system for the tracking of time-sensitive food products;
            (2) capital and operating costs associated with the 
        collection and transportation of time-sensitive food products;
            (3) capital and operating costs associated with the storage 
        and distribution of time-sensitive food products;
            (4) job training opportunities in trucking, food handling, 
        food recovery, and related industries;
            (5) improving the security and diversity of the food 
        distribution and recovery systems of the United States with the 
        use of--
                    (A) family-sized farms; and
                    (B) donations from entities of food products to 
                persons in need;
            (6) providing recovered healthy foods to non-profit 
        emergency food providers to reduce hunger in the United States; 
        and
            (7) improving the identification of--
                    (A) potential providers of donated foods;
                    (B) potential nonprofit emergency food providers; 
                and
                    (C) persons in need of emergency food assistance 
                throughout the United States.
    (e) Additional Nongovernmental Organizations.--
            (1) In general.--The primary nongovernmental organization 
        may enter into 1 or more contracts with, and provide funds to, 
        not more than 2 additional nongovernmental organizations that 
        the Secretary determines meet the requirements in paragraph (2) 
        to carry out some of the functions required by this section.
            (2) Requirements.--An additional nongovernmental 
        organization selected under paragraph (1) shall--
                    (A) have expertise in operating for several years a 
                national information clearinghouse relating to anti-
                hunger activities;
                    (B) have extensive experience in working with other 
                anti-hunger organizations throughout the United States;
                    (C) have significant experience in working with the 
                Department of Agriculture; and
                    (D) operate, at a national level, a hotline to 
                provide information about--
                            (i) access to food for low-income families;
                            (ii) programs in existence on the date of 
                        enactment of this Act that transport fresh 
                        produce to food pantries, homeless shelters, 
                        and soup kitchens that could serve as national 
                        models for replication in other areas; and
                            (iii) ways low-income individuals and 
                        families may become self-reliant.
    (f) Audits.--The Secretary shall establish fair and reasonable 
procedures to audit the expenditure of funds made available to carry 
out this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated, $5,000,000 for fiscal year 2008 and for each of fiscal 
years 2009 through 2012, the amount available in the immediately 
preceding fiscal year adjusted to reflect changes in the Consumer Price 
Index for All Urban Consumers published by the Bureau of Labor 
Statistics for the twelve months ending the preceding June 30.

                     Subtitle G--Deficit Reduction

SEC. 281. DEFICIT REDUCTION.

    Notwithstanding any other provisions of law, savings resulting from 
provisions of this Act, when compared with the Congressional Budget 
Office March 2008 baseline estimate, are to be applied direct towards 
deficit reduction and are not available for offsetting additional 
spending unrelated to this Act.
                                 <all>