II 110th CONGRESS 1st Session S. 1904 IN THE SENATE OF THE UNITED STATES July 31, 2007 Mr. Salazar (for himself and Mr. Nelson of Nebraska) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to ensure that only producers receive commodity program payments.

1.

Establishment of base acres and payment acres for a farm

Section 1101 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911) is amended by striking subsection (h) and inserting the following: (h)

Permanent reduction in base acres

(1)

Reduction at option of owner

(A)

In general

The owner of a farm may reduce, at any time, the base acres for any covered commodity for the farm. (B)

Effect of reduction

A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary. (2)

Required reduction by Secretary

The Secretary shall permanently reduce base acres for land that— (A)has been developed for commercial or industrial use; (B)has been subdivided and developed into multiple residential units or other nonfarming uses; or (C)is otherwise no longer intended to be used in conjunction with a farming operation. .

2.

Producer agreement required as condition of provision of direct payments and counter-cyclical payments

Section 1105 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7915) is amended— (1)in subsection (a)(1)— (A)by inserting and in the case of subparagraph (D), the Farm Service Agency shall certify, after shall agree,; and (B)by striking subparagraph (D) and inserting the following: (D)(i)that the producers meet the definition of a producer under section 1001; and (ii)to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for peanuts for the farm under subtitle C for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary; and ; and (C)by adding at the end the following: (f)

Audit and report

Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall— (1)conduct an audit of direct payments, counter-cyclical payments, and base acreage; and (2)submit to Congress a report that describes the results of that audit. .