[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2228 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2228

  To extend and improve agricultural programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 24, 2007

 Mr. Lugar (for himself, Mr. Lautenberg, Mr. Menendez, Mr. Cardin, Mr. 
   Whitehouse, Mr. Reed, Mr. Hatch, and Ms. Collins) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To extend and improve agricultural programs, 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 ``Farm, Ranch, 
Equity, Stewardship, and Health Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                        TITLE I--RISK MANAGEMENT

               Subtitle A--Federal Crop Insurance Program

Sec. 1001. Controlling crop insurance program costs.
Sec. 1002. Supplemental deductible coverage.
Sec. 1003. Revenue-based safety net.
Sec. 1004. Whole farm insurance.
Sec. 1005. Crop insurance education assistance.
Sec. 1006. Agricultural management assistance program.
                  Subtitle B--Risk Management Accounts

Sec. 1101. Definitions.
Sec. 1102. Risk management account contracts.
Sec. 1103. Treatment of risk management account accounts on transfer.
Sec. 1104. Administration.
Sec. 1105. Commodity programs.
                         TITLE II--CONSERVATION

                    Subtitle A--Conservation Reserve

Sec. 2001. Conservation reserve program.
                  Subtitle B--Wetlands Reserve Program

Sec. 2101. Wetlands reserve program.
               Subtitle C--Conservation Security Program

Sec. 2201. Conservation security program.
          Subtitle D--Environmental Quality Incentives Program

Sec. 2301. Environmental quality incentives program.
                 Subtitle E--Grassland Reserve Program

Sec. 2401. Grassland reserve program.
      Subtitle F--Cooperative Conservation Partnership Initiative

Sec. 2501. Cooperative conservation partnership initiative.
Sec. 2502. Minimum base allocation to States in funding of certain 
                            Department of Agriculture conservation 
                            programs.
                Subtitle G--Other Conservation Programs

Sec. 2601. Pilot program for comprehensive conservation planning.
Sec. 2602. Pilot program for nutrient reduction and sediment control in 
                            the Chesapeake Bay watershed.
                 Subtitle H--Funding and Administration

Sec. 2701. Funding and administration.
Sec. 2702. Conservation application process.
Sec. 2703. Exclusion of payments under Department of Agriculture 
                            conservation programs from adjusted gross 
                            income limitation.
                       TITLE III--SPECIALTY CROPS

                         Subtitle A--Marketing

Sec. 3001. Grants to States to enhance competitiveness of specialty 
                            crops.
Sec. 3002. Fruit and vegetable nutrition promotion program.
Sec. 3003. Farmers' market promotion program.
Sec. 3004. National organic certification and transition cost share 
                            program.
                           Subtitle B--Trade

Sec. 3101. Technical assistance for specialty crops.
                         Subtitle C--Nutrition

Sec. 3201. Expansion of fresh fruit and vegetable program.
Sec. 3202. Authorization level for farm-to-cafeteria activities.
Sec. 3203. WIC farmers' market nutrition program.
Sec. 3204. Seniors farmers' market nutrition program.
Sec. 3205. Use of ``Dietary Guidelines for Americans'' in special 
                            nutrition programs and school lunch 
                            programs.
Sec. 3206. Food stamp fruit and vegetable electronic benefit transfer 
                            pilot project.
Sec. 3207. Purchases of locally produced foods.
Sec. 3208. Assistance for community food projects.
Sec. 3209. Increased purchases of fruits and vegetables.
                          Subtitle D--Research

Sec. 3301. National specialty crops development initiative grant 
                            program.
Sec. 3302. Organic agriculture research and extension initiative.
Sec. 3303. National Aquaculture Act of 1980.
Sec. 3304. National Agricultural Research, Extension, and Teaching 
                            Policy Act Amendments of 1985.
        Subtitle E--Invasive Pest Research and Disease Response

Sec. 3401. Threat identification and mitigation program.
Sec. 3402. Clean plant network.
Sec. 3403. Office of Pest Management Policy.
Sec. 3404. Food safety initiatives.
                       Subtitle F--Miscellaneous

Sec. 3501. Transportation infrastructure cost reduction grant program.
Sec. 3502. Census of specialty crops.
                            TITLE IV--TRADE

Sec. 4001. McGovern-Dole International Food for Education and Child 
                            Nutrition Program.
                           TITLE V--NUTRITION

                     Subtitle A--Food Stamp Program

Sec. 5001. Exclusion of combat-related military pay from countable 
                            income.
Sec. 5002. Ending benefit erosion.
Sec. 5003. Supporting working families with child care expenses.
Sec. 5004. Retirement and education savings exclusion.
Sec. 5005. Food stamp eligibility for unemployed adults.
Sec. 5006. Availability of commodities for the emergency food 
                            assistance program.
  Subtitle B--Food Service Industry Job Training for Low-Income Adults

Sec. 5101. Short title.
Sec. 5102. Definitions.
Sec. 5103. Food employment empowerment and development program.
Sec. 5104. Hunger-free communities.
                       Subtitle C--Other Programs

Sec. 5201. Summer food service program for children.
Sec. 5202. Joint nutrition monitoring and related research activities.
                      TITLE VI--RURAL DEVELOPMENT

Sec. 6001. Rural collaborative investment program.
                          TITLE VII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 7001. Community forest land program.
          Subtitle B--Healthy Forests Restoration Act of 2003

Sec. 7101. Healthy forests reserve program.
                           TITLE VIII--ENERGY

Sec. 8001. Federal procurement of biobased products.
Sec. 8002. Biorefinery development grants.
Sec. 8003. Rural energy innovation program.
Sec. 8004. Rural Energy for America Program.
Sec. 8005. Biomass research and development.
             TITLE IX--USE OF SAVINGS FOR DEFICIT REDUCTION

Sec. 9001. Sense of Congress regarding use of savings for deficit 
                            reduction.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

                        TITLE I--RISK MANAGEMENT

               Subtitle A--Federal Crop Insurance Program

SEC. 1001. CONTROLLING CROP INSURANCE PROGRAM COSTS.

    (a) Administrative Fee for Catastrophic Risk Protection.--Section 
508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is 
amended by striking subparagraph (A) and inserting the following:
                    ``(A) Basic fee.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), each producer shall pay an 
                        administrative fee for catastrophic risk 
                        protection in an amount that is, as determined 
                        by the Corporation, equal to 25 percent of the 
                        premium amount for catastrophic risk protection 
                        established under subsection (d)(2)(A) per crop 
                        per county.
                            ``(ii) Maximum amount.--The total amount of 
                        administrative fees for catastrophic risk 
                        protection payable by a producer under clause 
                        (i) shall not exceed $5,000 for all crops in 
                        all counties.''.
    (b) Share of Risk.--Section 508(k)(3) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(k)(3)) is amended by striking paragraph (3) and 
inserting the following:
            ``(3) Share of risk.--The reinsurance agreements of the 
        Corporation with a reinsured company shall require the 
        reinsured company to provide to the Corporation 30 percent of 
        the cumulative underwriting gain or loss of the reinsured 
        company.''.
    (c) Reimbursement Rate.--Section 508(k)(4)(A) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(k)(4)(A)) is amended by striking clause 
(ii) and inserting the following:
                            ``(ii) for each of the 2008 and subsequent 
                        reinsurance years, 15 percent of the premium 
                        used to define loss ratio.''.

SEC. 1002. SUPPLEMENTAL DEDUCTIBLE COVERAGE.

    (a) In General.--Section 508(c)(4) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(c)(4) is amended--
            (1) by striking ``The level of coverage'' and inserting the 
        following:
                    ``(A) Basic coverage.--The level of coverage''; and
            (2) by adding at the end the following:
                    ``(B) Supplemental coverage.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (3) and subparagraph (A), the 
                        Corporation may offer supplemental coverage, 
                        based on an area yield and loss basis, to cover 
                        that portion of a crop loss not covered under 
                        the individual yield and loss basis plan of 
                        insurance of a producer, including any revenue 
                        plan of insurance with coverage based in part 
                        on individual yield and loss.
                            ``(ii) Limitation.--The sum of the 
                        indemnity paid to the producer under the 
                        individual yield and loss plan of insurance and 
                        the supplemental coverage may not exceed 100 
                        percent of the loss incurred by the producer 
                        for the crop.''
                            ``(iii) Administrative and operating 
                        expense reimbursement.--Notwithstanding 
                        subsection (k)(4), the reimbursement rate for 
                        approved insurance providers for the 
                        supplemental coverage shall equal 6 percent of 
                        the premium used to define the loss ratio.
                            ``(iv) Direct coverage.--If the Corporation 
                        determines that it is in the best interests of 
                        producers, the Corporation may offer 
                        supplemental coverage as a Corporation 
                        endorsement to existing plans and policies of 
                        crop insurance authorized under this title.
                            ``(v) Payment of portion of premium by 
                        corporation.--Notwithstanding subsection (e), 
                        the amount of the premium to be paid by the 
                        Corporation for supplemental coverage offered 
                        pursuant to this subparagraph shall be 
                        determined by the Corporation, but may not 
                        exceed the sum of--
                                    ``(I) 50 percent of the amount of 
                                premium established under subsection 
                                (d)(2)(C)(i); and
                                    ``(II) the amount determined under 
                                subsection (d)(2)(C)(ii) for the 
                                coverage level selected to cover 
                                operating and administrative 
                                expenses.''.
    (b) Conforming Amendments.--Section 508(d)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(2)) is amended--
            (1) by striking ``additional coverage'' the first place it 
        appears and inserting ``additional and supplemental 
        coverages''; and
            (2) by adding at the end the following:
                    ``(C) Supplemental coverage.--In the case of 
                supplemental coverage offered under subsection 
                (c)(4)(B), the amount of the premium shall--
                            ``(i) be sufficient to cover anticipated 
                        losses and a reasonable reserve; and
                            ``(ii) include an amount for operating and 
                        administrative expenses, as determined by the 
                        Corporation on an industry-wide basis as a 
                        percentage of the amount of the premium used to 
                        define loss ratio.''.

SEC. 1003. REVENUE-BASED SAFETY NET.

    (a) Establishment.--Section 508(c) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(c)) is amended by adding at the end the following:
            ``(11) Group risk income protection and group risk 
        protection.--The Corporation shall offer, at no cost to a 
        producer, revenue and yield coverage plans that allow producers 
        in a county to qualify for an indemnity if the actual revenue 
        or yield per acre in the county in which the producer is 
        located is below 85 percent of the average revenue or yield per 
        acre for the county, for--
                    ``(A) a producer with an average adjusted gross 
                income (as defined in section 1001D(a) of the Food 
                Security Act of 1985 (7 U.S.C. 1308-3a(a))) of less 
                than $250,000; and
                    ``(B) each agricultural commodity for which a 
                futures price is available, to the extent the coverage 
                is actuarially sound.''.
    (b) Premiums.--Section 508(e)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)(2)) is amended by adding at the end the following:
                    ``(H) In the case of a group risk income protection 
                and group risk protection offered under subsection 
                (c)(11) beginning in fiscal year 2009, and the whole 
                farm insurance plan offered under subsection (c)(12) 
                beginning in fiscal year 2010, the entire amount of the 
                premium for the plan shall be paid by the 
                Corporation.''.

SEC. 1004. WHOLE FARM INSURANCE.

    (a) Establishment.--Section 508(c) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(c)) (as amended by section 1003(a)) is amended by 
adding at the end the following:
            ``(12) Whole farm insurance plan.--The Corporation shall 
        offer, at no cost to a producer described in paragraph (11), a 
        whole farm insurance plan that allows the producer to qualify 
        for an indemnity if actual gross farm revenue is below 80 
        percent of the average gross farm revenue of the producer.''.
    (b) Adjusted Gross Revenue Insurance Pilot Program.--Section 523(e) 
of the Federal Crop Insurance Act (7 U.S.C. 1523(e)) is amended--
            (1) in paragraph (1), by striking ``2004'' and inserting 
        ``2014'';
            (2) in paragraph (2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--In addition to counties 
                otherwise included in the pilot program, the 
                Corporation shall include in the pilot program for each 
                of the 2010 through 2014 reinsurance years all States 
                and counties that meet the criteria for selection 
                (pending required rating), as determined by the 
                Corporation.''; and
            (3) by adding at the end the following:
            ``(3) Eligible producers.--The Corporation shall permit the 
        producer of any type of agricultural commodity (including a 
        producer of specialty crops, floricultural, ornamental nursery, 
        and Christmas tree crops, turfgrass sod, seed crops, 
        aquacultural products (including ornamental fish), sea grass 
        and sea oats, and industrial crops) to participate in a pilot 
        program established under this subsection.''.
    (c) Prevention of Duplication.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) (as amended by subsection (a)) is 
amended by adding at the end the following:
            ``(13) Prevention of duplication.--The Administrator of the 
        Risk Management Agency and Administrator of the Farm Service 
        Agency shall cooperate to ensure, to the maximum extent 
        practicable, that producers on a farm are not compensated 
        through the revenue counter-cyclical payment program and under 
        this title for the same loss, including by reducing crop 
        insurance indemnity payments by the amount of the revenue 
        counter-cyclical payments.''.

SEC. 1005. CROP INSURANCE EDUCATION ASSISTANCE.

    (a) Partnerships for Risk Management Education.--Section 524(a)(3) 
of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)) is amended--
            (1) in subparagraph (B), by striking ``A grant'' and 
        inserting ``Subject to subparagraph (E), a grant''; and
            (2) by adding at the end the following:
                    ``(E) Allocation to states.--The Secretary shall 
                allocate funds made available to carry out this 
                subsection for each fiscal year in a manner that 
                ensures that grants are provided to eligible entities 
                in States based on the ratio that the value of 
                agricultural production of each State bears to the 
                total value of agricultural production in all States, 
                as determined by the Secretary.''.
    (b) Funding.--Section 524(a)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1524(a)(4)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) for the partnerships for risk management 
                education program established under paragraph (3)--
                            ``(i) $20,000,000 for fiscal year 2008, of 
                        which not less than $15,000,000 shall be used 
                        to provide educational assistance with respect 
                        to whole farm and adjusted gross revenue 
                        insurance plans;
                            ``(ii) $15,000,000 for fiscal year 2009, of 
                        which not less than $10,000,000 shall be used 
                        to provide educational assistance described in 
                        clause (i);
                            ``(iii) $10,000,000 for fiscal year 2010, 
                        of which not less than $5,000,000 shall be used 
                        to provide educational assistance described in 
                        clause (i); and
                            ``(iv) $5,000,000 for fiscal year 2011 and 
                        each fiscal year thereafter.''.

SEC. 1006. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

    Section 524(b)(4)(B)) of the Federal Crop Insurance Act (7 U.S.C. 
1524(b)(4)(B)) is amended--
            (1) in clause (ii), by striking ``fiscal years 2003 through 
        2007'' and inserting ``fiscal years 2008 through 2014''; and
            (2) in clause (iii)--
                    (A) by striking ``fiscal years 2004 through 2007'' 
                and inserting ``fiscal years 2008 through 2014'';
                    (B) in subclause (I), by striking ``$14,000,000'' 
                and inserting ``$9,500,000''; and
                    (C) in subclause (III), by striking ``$5,000,000'' 
                and inserting ``$9,500,000''.

                  Subtitle B--Risk Management Accounts

SEC. 1101. DEFINITIONS.

    In this subtitle:
            (1) Adjusted gross revenue.--The term ``adjusted gross 
        revenue'', with respect to a farm of an operator or producer, 
        means the adjusted gross income of the farm, as determined by 
        the Secretary, from the sale or transfer of eligible 
        commodities of the farm, as calculated--
                    (A) taking into consideration the gross receipts 
                (including insurance indemnities) from each sale;
                    (B) including all farm payments received by the 
                operator or producer from any Federal, State, or local 
                government agency relating to the eligible commodities;
                    (C) by deducting the cost or basis of any eligible 
                livestock or other item purchased for resale, such as 
                feeder livestock, by the farm;
                    (D) excluding any revenue that does not arise from 
                the sale of eligible commodities of the farm, such as 
                revenue associated with the packaging, merchandising, 
                marketing, or reprocessing beyond what is typically 
                carried out by a producer of the eligible commodity, as 
                determined by the Secretary; and
                    (E) using such adjustments, additions, and 
                additional documentation as the Secretary determines to 
                be appropriate, as presented on--
                            (i) a schedule F form of the Federal income 
                        tax returns of the operator or producer; or
                            (ii) a comparable tax form relating to the 
                        farm, as approved by the Secretary.
            (2) Applicable year.--The term ``applicable year'' means a 
        fiscal year covered by a risk management account contract.
            (3) Average adjusted gross revenue.--The term ``average 
        adjusted gross revenue'' means--
                    (A) the rolling average of the adjusted gross 
                revenue of an operator or producer for each of the 5 
                preceding taxable years; or
                    (B) in the case of a beginning farmer or rancher, 
                or another agricultural operation that does not have 
                adjusted gross revenue for each of the 5 preceding 
                taxable years, the estimated income of the operation 
                for the applicable year, as determined by the 
                Secretary.
            (4) Eligible commodity.--The term ``eligible commodity'' 
        means any annual or perennial crop raised or produced by an 
        operator or producer.
            (5) Farm.--
                    (A) In general.--The term ``farm'' means any parcel 
                of land used for the raising or production of an 
                eligible commodity that is considered to be a separate 
                operation, as determined by the Secretary.
                    (B) Inclusions.--The term ``farm'' includes--
                            (i) any parcel of land and related 
                        agricultural production facilities on which an 
                        operator or producer has more than de minimis 
                        operational control; and
                            (ii) any parcel of land subject to more 
                        than de minimis common ownership, as determined 
                        by the Secretary, unless the common owners of 
                        the parcel--
                                    (I) except with respect to a 
                                conservation condition established in 
                                an applicable rental agreement, do not 
                                have operational control regarding any 
                                portion of the parcel; and
                                    (II) do not share in the proceeds 
                                of the parcel, other than cash rent.
                    (C) Exclusion.--The term ``farm'' does not include 
                a parcel that is not a portion of a farm subject to a 
                risk management account contract.
                    (D) Applicability of cfr.--Except as otherwise 
                provided in this subtitle or by the Secretary, by 
                regulation, part 718 of title 7, Code of Federal 
                Regulations (or successor regulations), shall apply to 
                the definition, constitution, and reconstitution of a 
                farm for purposes of this paragraph.
            (6) Operator.--The term ``operator'' means a producer who 
        controls an agricultural operation on a farm, as determined by 
        the Secretary.
            (7) Producer.--The term ``producer'' means a person that, 
        as determined by the Secretary, for an applicable year--
                    (A) shares in the risk of producing, or provides a 
                material contribution in producing, an eligible 
                commodity;
                    (B) has a substantial beneficial interest in the 
                farm on which the eligible commodity is produced;
                    (C)(i) for each of the 5 preceding taxable years, 
                has filed--
                            (I) a schedule F form of the Federal income 
                        tax return relating to the eligible commodity; 
                        or
                            (II) a comparable tax form related to the 
                        eligible commodity, as approved by the 
                        Secretary; or
                    (ii) is a beginning farmer or rancher, or another 
                producer that does not have adjusted gross revenue for 
                each of the 5 preceding taxable years, as determined by 
                the Secretary; and
                    (D)(i) during the 5 preceding taxable years, has 
                earned at least $10,000 in average adjusted gross 
                revenue;
                    (ii) is a limited resource farmer or rancher, as 
                determined by the Secretary; or
                    (iii) in the case of a beginning farmer or rancher, 
                or another producer that does not have adjusted gross 
                revenue for each of the 5 preceding taxable years, has 
                at least $10,000 in estimated income from all farms for 
                the applicable year, as determined by the Secretary.
            (8) Risk management account.--The term ``risk management 
        account'' means a farm income stabilization assistance account 
        maintained at a qualified financial institution in accordance 
        with such terms as the Secretary may establish.

SEC. 1102. RISK MANAGEMENT ACCOUNT CONTRACTS.

    (a) Establishment of Program.--The Secretary shall establish and 
carry out a program under which the Secretary shall offer to enter into 
contracts with eligible operators and producers in accordance with this 
section--
            (1) to provide to the operators and producers a reserve to 
        assist in the stabilization of farm income during low-revenue 
        years;
            (2) to assist operators and producers to invest in value-
        added farms; and
            (3) to recognize high levels of environmental stewardship.
    (b) Eligibility.--
            (1) In general.--Any operator that has participated in a 
        commodity program under title I of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 7901 et seq.), and that 
        otherwise meets each eligibility requirement under this 
        subtitle, shall be eligible to enter into a risk management 
        account contract for agricultural production during each of 
        fiscal years 2008 through 2014.
            (2) Other producers.--A producer that is not an operator 
        described in paragraph (1) shall be eligible to enter into a 
        risk management account contract for agricultural production 
        during each of fiscal years 2008 through 2014.
            (3) Limitations.--
                    (A) In general.--No farm or portion of a farm shall 
                be subject to more than 1 risk management account 
                contract during any fiscal year.
                    (B) Multiple risk management account contracts.--
                            (i) In general.--Except as provided in 
                        clause (ii), no operator or producer shall 
                        participate or have a beneficial interest in 
                        more than 1 risk management account contract 
                        during any fiscal year.
                            (ii) Exception.--Notwithstanding clause 
                        (i), an operator that is eligible to receive a 
                        transition payment during a fiscal year, and 
                        that participates or has a beneficial interest 
                        in a risk management account contract during 
                        that fiscal year, may enter into an additional 
                        risk management account contract during the 
                        fiscal year if--
                                    (I) the additional risk management 
                                account contract is entered into solely 
                                for the purpose of receiving the 
                                transition payment; and
                                    (II) the operator is not otherwise 
                                eligible to participate or have a 
                                beneficial interest in the additional 
                                risk management account contract.
    (c) Risk Management Accounts.--
            (1) In general.--Each risk management account contract 
        entered into under this section shall establish, in the name of 
        the farm of the operator or producer, as applicable, in an 
        appropriate financial institution and subject to such 
        investment rules and other procedures as the Secretary, on 
        approval of the Secretary of the Treasury, determines to be 
        necessary to provide reasonable assurance of the viability and 
        stability of the account, a risk management account, to consist 
        of--
                    (A) such amounts as are transferred to the risk 
                management account by the Secretary during an 
                applicable year in accordance with paragraph (2) 
                (including the amendments made by that paragraph); and
                    (B) such amounts as are voluntarily contributed by 
                the operator or producer during the applicable year in 
                accordance with paragraph (6).
            (2) Transfers.--Section 1103 of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 7913) is amended by adding at 
        the end the following:
    ``(e) Risk Management Accounts.--Of the total amount of direct 
payments made to producers, payments in excess of $10,000 for a crop 
year shall be deposited into risk management accounts established under 
section 1102 of the Farm, Ranch, Equity, Stewardship, and Health Act of 
2007.''.
            (3) Operator and producer contributions.--During any 
        applicable year, an operator or producer may voluntarily 
        contribute to the risk management account of the operator or 
        producer.
            (4) Withdrawals.--
                    (A) In general.--An operator or producer may 
                withdraw amounts in the risk management account of the 
                operator or producer only--
                            (i) for an applicable year during which the 
                        adjusted gross revenue of the operator or 
                        producer is equal to less than 95 percent of 
                        the average adjusted gross revenue of the 
                        operator or producer, in an amount that is 
                        equal to the lesser of--
                                    (I) the difference between--
                                            (aa) the average adjusted 
                                        gross revenue of the operator 
                                        or producer; and
                                            (bb) the adjusted gross 
                                        revenue of the operator or 
                                        producer; and
                                    (II) the amount of coverage that 
                                could be purchased under an adjusted 
                                gross revenue product available to the 
                                operator or producer through the 
                                Federal crop insurance program;
                            (ii) for investment in a value-added 
                        agricultural operation that contributes to the 
                        agricultural economy, as determined by the 
                        Secretary, and is not farmland or equipment 
                        used to produce raw agricultural products, an 
                        amount equal to the product obtained by 
                        multiplying--
                                    (I) the total amount in the risk 
                                management account of the operator or 
                                producer on September 30 of the 
                                preceding applicable year; and
                                    (II) 10 percent;
                            (iii) as the Secretary determines to be 
                        necessary to protect the solvency of a farm of 
                        the operator or producer; or
                            (iv) to purchase revenue insurance or crop 
                        insurance.
                    (B) Transfer to ira account.--In any calendar year, 
                an individual operator or producer aged 65 years or 
                older who is the holder of a risk management account in 
                existence for at least 5 years may elect to rollover 
                not more than 15 percent of the balance of the risk 
                management account into an individual retirement 
                account pursuant to section 408 of the Internal Revenue 
                Code of 1986.
            (5) Limitations.--
                    (A) Attribution requirement.--The Secretary shall 
                ensure that each payment transferred to a risk 
                management account under this subsection is attributed 
                to an individual operator or producer that is a party 
                to the applicable risk management account contract.
                    (B) No individual benefit.--
                            (i) In general.--The Secretary shall ensure 
                        that no individual operator or producer 
                        receives a direct benefit from more than 1 risk 
                        management account.
                            (ii) Proportional reduction.--The Secretary 
                        shall reduce the amount of a standard payment 
                        under this subsection in an amount equal to the 
                        proportion that--
                                    (I) the amount of each direct or 
                                indirect benefit received by the 
                                applicable individual operator or 
                                producer under the applicable risk 
                                management account contract; bears to
                                    (II) the amount of any direct or 
                                indirect benefit received by the 
                                individual operator or producer under 
                                any other risk management account 
                                contract under which a standard payment 
                                is transferred to a risk management 
                                account.
            (6) Conservation compliance.--Each operator, and each 
        holder of a beneficial interest in a farm subject to a risk 
        management account contract, shall comply with--
                    (A) applicable highly erodible land conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.); and
                    (B) applicable wetland conservation requirements 
                under subtitle C of title XII of that Act (16 U.S.C. 
                3821 et seq.).
            (7) Regulations.--The Secretary shall promulgate such 
        regulations as the Secretary determines to be necessary to 
        carry out this subsection.

SEC. 1103. TREATMENT OF RISK MANAGEMENT ACCOUNT ACCOUNTS ON TRANSFER.

    (a) In General.--In transferring, by sale or other means, any 
interest in a farm subject to a risk management account, an operator or 
producer may elect--
            (1) to transfer the risk management account to another farm 
        in which the operator or producer--
                    (A) has a controlling ownership interest; or
                    (B) not later than 2 years after the date of the 
                transfer, will acquire a controlling ownership 
                interest;
            (2) to transfer the risk management account to the 
        purchaser of the interest in the farm, if the purchaser is not 
        already a holder of a risk management account; or
            (3)(A) if the operator or producer is an individual, to 
        rollover amounts in the risk management account into an 
        individual retirement account of the operator or producer 
        pursuant to section 408 of the Internal Revenue Code of 1986; 
        or
            (B) if the operator or producer is not an individual, to 
        transfer amounts in the risk management account into an account 
        of any individual who has a substantial beneficial interest in 
        the farm (including a substantial beneficiary of a trust that 
        holds at least a 50 percent ownership interest in the farm).
    (b) Transfer or Acquisition of Land or Portion of Operation.--The 
Secretary shall promulgate such regulations as the Secretary determines 
to be appropriate to require reformulation, reaffirmation, or 
abandonment of a risk management account contract--
            (1) on transfer of all or part of a farm under this 
        section; or
            (2) on any other major change to the farm, as determined by 
        the Secretary.

SEC. 1104. ADMINISTRATION.

    (a) Implementation.--The Secretary shall carry out this subtitle 
through the Farm Service Agency.
    (b) Compliance.--The Secretary shall conduct random audits of 
operators and producers subject to risk management account contracts 
under this subtitle as the Secretary determines to be necessary to 
ensure compliance with the risk management account contracts.
    (c) Violations.--If the Secretary determines that an operator or 
producer is in violation of the terms of an applicable risk management 
account contract--
            (1) the operator or producer shall refund to the Secretary 
        an amount equal to the amount transferred by the Secretary 
        under section 1103(e) of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 7913(e)) to the affected risk management 
        account during the applicable year in which the violation 
        occurred; and
            (2) for a serious or deliberate violation, as determined by 
        the Secretary--
                    (A) the risk management account contract shall be 
                terminated; and
                    (B) amounts remaining in each applicable risk 
                management account as the result of a transfer by the 
                Secretary under section 1103(e) of that Act shall be 
                refunded to the Secretary.
    (d) Regulations.--The Secretary shall promulgate such regulations 
as the Secretary determines to be necessary to carry out this subtitle.
    (e) Adjusted Gross Income Limitation.--The adjusted gross income 
limitation under section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a) shall apply to participation in the farm income 
stabilization assistance program under this subtitle.
    (f) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this subtitle.

SEC. 1105. COMMODITY PROGRAMS.

    (a) Repeals.--Subtitles A through C of title I of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) (other than 
sections 1001, 1101, 1102, 1103, 1104, and 1106) are repealed.
    (b) Base Acres and Payment Acres.--Section 1101 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7911) is amended--
            (1) in subsections (a)(1) and (e)(2), by striking ``and 
        counter-cyclical payments'' each place it appears; and
            (2) by adding at the end the following:
    ``(i) Production of Fruits or Vegetables for Processing.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        producers on a farm, with the consent of the owner of and any 
        other producers on the farm, may reduce the base acres for a 
        covered commodity for the farm if the reduced acres are used 
        for the planting and production of fruits or vegetables for 
        processing.
            ``(2) Reversion to base acres for covered commodity.--Any 
        reduced acres on a farm devoted to the planting and production 
        of fruits or vegetables during a crop year under paragraph (1) 
        shall be included in base acres for the covered commodity for 
        the subsequent crop year, unless the producers on the farm make 
        the election described in paragraph (1) for the subsequent crop 
        year.
            ``(3) Recalculation of base acres.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the Secretary recalculates base acres for a farm, the 
                planting and production of fruits or vegetables for 
                processing under paragraph (1) shall be considered to 
                be the same as the planting, prevented planting, or 
                production of the covered commodity.
                    ``(B) Authority.--Nothing in this subsection 
                provides authority for the Secretary to recalculate 
                base acres for a farm.''.
    (c) Payment Yields.--Section 1102 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7912) is amended--
            (1) in subsection (a), by striking ``and counter-cyclical 
        payments'';
            (2) in subsection (b), by striking ``2007'' and inserting 
        ``2014'';
            (3) in subsection (c), by striking ``, but before'' and all 
        that follows through ``subsection (e)''; and
            (4) by striking subsection (e).
    (d) Sugar.--Section 156(j) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272(j)) is amended by striking 
``2007'' and inserting ``2014''.
    (e) Recourse Loan Program.--Subtitle F of title I of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7991 et seq.) is 
amended by adding at the end the following:

``SEC. 1619. RECOURSE LOAN PROGRAM.

    ``For each of the 2008 through 2014 crop years, the Secretary shall 
establish a recourse loan program for each loan commodity at a rate of 
interest to be determined by the Secretary.''.
    (f) Administration.--
            (1) Suspension of permanent price support authority.--
        Section 1602 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 7992) is amended by striking ``2007'' each place 
        it appears and inserting ``2014''.
            (2) Adjusted gross income limitation.--Section 1001D(e) of 
        the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is amended 
        by striking ``2007'' and inserting ``2014''.
    (g) Availability of Counter-Cyclical Payments.--Section 1104 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7914) is 
amended--
            (1) by striking ``2007'' each place it appears (other than 
        paragraphs (3)(B) and (4)(B) of subsection (f)) and inserting 
        ``2008''; and
            (2) in subsection (f)--
                    (A) in paragraph (3)(B)--
                            (i) in the subparagraph heading, by 
                        striking ``2007 crop year'' and inserting 
                        ``2007 and 2008 crop years''; and
                            (ii) by striking ``the 2007 crop year'' and 
                        inserting ``each of the 2007 and 2008 crop 
                        years''; and
                    (B) in paragraph (4)(B)--
                            (i) in the subparagraph heading, by 
                        striking ``2007 crop year'' and inserting 
                        ``2007 and 2008 crop years''; and
                            (ii) by striking ``the 2007 crop year'' 
                        each place it appears and inserting ``each of 
                        the 2007 and 2008 crop years''.
    (h) Availability of Direct Payments.--Section 1103 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7913) is amended--
            (1) in subsection (a), by striking ``For each of the 2002 
        through 2007'' and inserting ``For each of the 2008 through 
        2014''; and
            (2) in subsection (c), by adding at the end the following:
            ``(4)(A) In each of crop years 2008 through 2011, 25 
        percent.
            ``(B) In each of crop years 2012 and 2013, 20 percent.
            ``(C) In crop year 2014, 0 percent.''.

                         TITLE II--CONSERVATION

                    Subtitle A--Conservation Reserve

SEC. 2001. CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (2) in paragraph (1) (as designated by paragraph (1)), by 
        striking ``2007'' and inserting ``2014''; and
            (3) by adding at the end the following:
            ``(2) Enrollment goals.--For the period beginning on the 
        date of enactment of this paragraph and ending on December 31, 
        2014, the Secretary shall establish a goal to enroll not less 
        than 7,000,000 acres of eligible land through the continuous 
        enrollment program and the conservation reserve enhancement 
        program.''.
    (c) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231(h)(1)(A) of the Food Security Act 
of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking ``2007'' and 
inserting ``2014''.

                  Subtitle B--Wetlands Reserve Program

SEC. 2101. WETLANDS RESERVE PROGRAM.

    (a) In General.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Maximum Enrollment.--Section 1237(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking ``2,275,000 
acres'' and inserting ``3,605,000 acres''.
    (c) Wetland Easement Conservation Plan.--Section 1237A(b)(3) of the 
Food Security Act of 1985(16 U.S.C. 3837a(b)(3)) is amended by 
inserting before the semicolon at the end the following: ``and 
activities necessary to maintain hydrologic, habitat, and other 
functional values of the wetlands''.
    (d) Cost-Share and Management Assistance.--Section 1237C of the 
Food Security Act of 1985 (16 U.S.C. 3837c) is amended--
            (1) in subsection (a)(1), by inserting ``including 
        necessary hydrologic and habitat maintenance activities,'' 
        after ``values,''; and
            (2) in subsection (b), by adding at the end the following:
            ``(4) Management costs.--The Secretary may make payments to 
        owners in an amount of up to the full actual cost of 
        undertaking any ongoing or periodic management activities 
        necessary to maintain the functional values of wetland enrolled 
        in the wetlands reserve program.''.

               Subtitle C--Conservation Security Program

SEC. 2201. CONSERVATION SECURITY PROGRAM.

    (a) In General.--Section 1238A(a) of the Food Security Act of 1985 
(16 U.S.C. 3838a(a)) is amended by striking ``2011'' and inserting 
``2012''.
    (b) Technical Assistance.--Section 1238C(g) of the Food Security 
Act of 1985 (16 U.S.C. 3838c(g)) is amended by striking ``2007'' and 
inserting ``2012''.

          Subtitle D--Environmental Quality Incentives Program

SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Purposes.--Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended--
            (1) in paragraph (2), by inserting ``, conserving energy,'' 
        after ``resources''; and
            (2) in paragraph (3), by inserting ``and conserve energy,'' 
        after ``wildlife''.
    (b) Extension.--Section 1240B(a)(1) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2010'' and 
inserting ``2014''.
    (c) Bidding Down.--Section 1240B of the Food Security Act of 1985 
(16 U.S.C. 3839aa-2) is amended by striking subsection (c) and 
inserting the following:
    ``(c) Bidding Down.--
            ``(1) In general.--The Secretary shall not assign a higher 
        priority to any application because the applicant is willing to 
        accept a lower cost-share or incentive payment than the 
        applicant would otherwise be entitled to receive.
            ``(2) Cost-effectiveness.--Nothing in this subsection 
        relieves the Secretary of the obligation, when evaluating 
        applications for cost-share payments and incentive payments--
                    ``(A) to evaluate the cost-effectiveness of the 
                proposed conservation practices, systems, and 
                approaches described in the applications; and
                    ``(B) to prioritize the most cost-effective 
                applications in accordance with section 1240C(1).''.
    (d) Cost-Share Payment Exception.--Section 1240B(d)(2) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking 
subparagraph (A) and inserting the following:
                    ``(A) Limited resource and beginning farmers.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may increase the amount provided 
                        to a producer under paragraph (1) to not more 
                        than 90 percent if the producer is a limited 
                        resource or beginning farmer or rancher, as 
                        determined by the Secretary.
                            ``(ii) Limitation.--A cost-share payment 
                        under this paragraph shall not be less than 115 
                        percent of the amount of the payment that the 
                        Secretary may determine under paragraph (1).''.
    (e) Allocation of Funding.--Section 1240B(g) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended by striking ``2007'' and 
inserting ``2014''.
    (f) Evaluation of Applications for Cost-Share Payments and 
Incentive Payments.--Section 1240C of the Food Security Act of 1985 (16 
U.S.C. 3839aa-3) is amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST-SHARE PAYMENTS AND 
              INCENTIVE PAYMENTS.

    ``In evaluating applications for cost-share payments and incentive 
payments, the Secretary shall--
            ``(1) prioritize applications based on the overall level of 
        cost-effectiveness of the applications to ensure, to the 
        maximum extent practicable, that the proposed conservation 
        practices, systems, and approaches are the most efficient means 
        of achieving the anticipated environmental benefits of the 
        project;
            ``(2) prioritize applications based on how effectively and 
        comprehensively the projects address the 1 or more designated 
        resource concerns;
            ``(3) reward higher levels of environmental performance, 
        such as advanced levels of management within land management 
        practices;
            ``(4) develop criteria for evaluating applications that 
        will ensure that national, State, and local conservation 
        priorities are effectively addressed; and
            ``(5) prioritize applications that will improve 
        environmental performance on existing operations.''.
    (g) Conservation Innovation Grants.--
            (1) In general.--Section 1240H of the Food Security Act of 
        1985 (16 U.S.C. 3839aa-8) is amended by striking subsection (a) 
        and inserting the following:
    ``(a) In General.--The Secretary may pay the cost of competitive 
grants that leverage Federal investment in environmental enhancement 
and protection through the program by stimulating the development of 
innovative technologies and transferring those technologies to 
agricultural and nonindustrial private forest land in production.''.
            (2) Use.--Section 1240H(b) of the Food Security Act of 1985 
        (16 U.S.C. 3839aa-8(b)) is amended by striking paragraph (2) 
        and inserting the following:
            ``(2)(A) implement innovative conservation technologies, 
        such as market systems for pollution reduction and practices 
        for the storing of carbon in the soil; and
            ``(B) provide a mechanism for transferring those 
        technologies to agricultural and nonindustrial private forest 
        land in production; and''.
    (h) Ground and Surface Water Conservation.--Section 1240I(c)(1)(C) 
of the Food Security Act of 1985 (16 U.S.C. 3839aa-9(c)(1)(C)) is 
amended by striking ``2007'' and inserting ``2014''.
    (i) Performance Incentives for States.--Chapter 4 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
is amended by adding at the end the following:

``SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES.

    ``(a) High Level of Performance Bonus.--For each of fiscal years 
2008 through 2014, 10 percent of the funds made available to carry out 
this chapter shall be reserved by the Secretary for bonus allocations 
to States that demonstrate a high level of performance in implementing 
the environmental quality incentives program, as determined by the 
Secretary in accordance with subsection (b).
    ``(b) Special Considerations.--In evaluating State performance 
under subsection (a), the Secretary shall reward States that--
            ``(1) consistently meet the requirements of section 1240C 
        in evaluating offers and payments;
            ``(2) dedicate a portion of the annual environmental 
        quality incentives program allocation of the States to 
        multiproducer cooperative efforts to address specific resource 
        concerns;
            ``(3) collaborate with other Federal and State agencies, 
        local governments, educational institutions, and for-profit and 
        nonprofit organizations to monitor and evaluate the 
        environmental outcomes associated with implementation of the 
        environmental quality incentives program;
            ``(4) demonstrate effective and efficient program delivery, 
        including the provision of adequate technical assistance to all 
        program participants through--
                    ``(A) appropriate staffing; and
                    ``(B) cooperation with other Federal, State, 
                tribal, and local agencies, for-profit and nonprofit 
                organizations, and individuals with demonstrated 
                expertise in the planning and implementation of 
                conservation practices, systems, and approaches;
            ``(5) support and encourage innovative approaches to 
        addressing resource concerns;
            ``(6) effectively leverage Federal funding with local and 
        State matching funds; and
            ``(7) demonstrate effective outreach and innovative 
        approaches to reaching and serving beginning farmers and 
        ranchers, limited-resource producers, and operators with lower 
        rates of historical participation in Federal farm and 
        conservation programs.''.

                 Subtitle E--Grassland Reserve Program

SEC. 2401. GRASSLAND RESERVE PROGRAM.

    Section 1238N(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3838N(b)(1)) is amended by striking ``2,000,000 acres'' and inserting 
``3,340,000 acres''.

      Subtitle F--Cooperative Conservation Partnership Initiative

SEC. 2501. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) In General.--Subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the 
following:

      ``CHAPTER 6--COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE

``SEC. 1240S. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible conservation program.--The term `eligible 
        conservation program' means--
                    ``(A) the continuous signup portion of the 
                conservation reserve program established under 
                subchapter B of chapter 1;
                    ``(B) a special conservation reserve enhancement 
                program described in section 1234(f)(4);
                    ``(C) the environmental quality incentives program 
                established under chapter 4, including the ground and 
                surface water conservation program under section 1240I;
                    ``(D) the farmland protection program established 
                under subchapter B of chapter 2;
                    ``(E) the grassland reserve program established 
                under subchapter C of chapter 2;
                    ``(F) the wetlands reserve program established 
                under subchapter C of chapter 1; and
                    ``(G) the wildlife habitat incentive program 
                established under section 1240N.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State, including an agency of a State;
                    ``(B) a political subdivision of a State, including 
                a State-sponsored conservation district;
                    ``(C) an Indian tribe; and
                    ``(D) a nongovernmental organization or 
                association, including--
                            ``(i) a producer association;
                            ``(ii) a farmer cooperative;
                            ``(iii) an extension association; and
                            ``(iv) a conservation organization with a 
                        history of working cooperatively with producers 
                        to effectively address resource concerns 
                        related to agricultural production, as 
                        determined by the Secretary.
    ``(b) Grants and Agreements.--
            ``(1) In general.--The Secretary shall make grants and 
        enter into agreements with eligible entities to preferentially 
        enroll producers in 1 or more of eligible conservation programs 
        to carry out special projects and initiatives through which 
        multiple producers and other interested persons cooperate to 
        address specific resources of concern relating to agricultural 
        production on a local, State, or regional scale.
            ``(2) Term.--Grants and agreements described in paragraph 
        (1) shall have a term of--
                    ``(A) not less than 2 years; and
                    ``(B) not more than 5 years.
    ``(c) Applications.--
            ``(1) Competitive process.--The Secretary shall establish a 
        competitive process for considering applications for grants or 
        agreements under this section consistent with the evaluation 
        criteria described in subsection (d).
            ``(2) Program allocation.--An application for a grant or 
        agreement under this section shall include--
                    ``(A) specification of the amount of funding or 
                quantity of acres, or both, of 1 or more eligible 
                conservation programs proposed to be allocated to carry 
                out the special project or initiative; and
                    ``(B) a schedule for use of funding or acres over 
                the life of the proposed project or initiative.
    ``(d) Evaluation Criteria.--In evaluating applications for grants 
or agreements under this section, the Secretary shall consider the 
extent to which--
            ``(1) preferential enrollment in the eligible conservation 
        program specified in the application will effectively address 
        the environmental objectives established for the special 
        project or initiative; and
            ``(2) the special project or initiative covered by the 
        application--
                    ``(A) enjoys broad local and regional support from 
                producers and other interested persons, including 
                governmental and nongovernmental organizations with 
                appropriate expertise on the issues the project or 
                initiative seeks to address;
                    ``(B) includes clear environmental objectives and a 
                high likelihood of success;
                    ``(C) includes a well-defined project or initiative 
                plan that identifies sensitive areas requiring 
                treatment and prioritizes conservation systems, 
                practices, and activities needed to achieve 
                environmental objectives;
                    ``(D) promises adequate and coordinated 
                participation to achieve the objectives of the project 
                or initiative;
                    ``(E) coordinates integration of Federal, State, 
                and local efforts to make the best use of available 
                resources and maximize cost-effective investments;
                    ``(F) leverages financial and technical resources 
                from sources other than the conservation programs 
                authorized by this subtitle, including financial and 
                technical resources provided by Federal and State 
                agencies, local governments, nongovernmental 
                organizations and associations, and other private 
                sector entities;
                    ``(G) describes how all necessary technical 
                assistance will be provided to each producer 
                participating in the project or initiative, including 
                cost estimates for technical assistance and whether 
                such assistance will be provided by technical service 
                providers;
                    ``(H) describes how the administrative costs of the 
                project or initiative will be minimized;
                    ``(I) addresses 1 or more local, State, regional, 
                or national environmental priorities, with particular 
                emphasis on any priority for which there is an existing 
                State or federally-approved plan in place for 
                addressing that priority;
                    ``(J) includes a plan to evaluate progress and 
                measure results; and
                    ``(K) clearly demonstrates that enrollment of 
                producers in eligible conservation programs will be 
                consistent with the purposes and policies of each 
                eligible conservation program, as established in law 
                (including rules, regulations, and program guidance 
                promulgated by implementing agencies).
    ``(e) Priorities.--To the maximum extent practicable, consistent 
with subsections (c) and (d), the Secretary shall ensure that, for each 
fiscal year, grants are awarded and agreements are entered into under 
this section to support projects and initiatives that collectively 
address the resource concerns facing producers, ranchers, and small 
private forest landowners, specifically including projects and 
initiatives that are designed--
            ``(1) to achieve improvements in water quality in 
        watersheds impacted by agriculture, particularly by increasing 
        the participation of producers in implementing best management 
        practices in a watershed or developing environmentally and 
        economically viable alternative uses for manure and litter;
            ``(2) to achieve improvements in air quality in a 
        geographical area in which agricultural operations impact air 
        quality, especially an area that, as determined by the 
        Administrator of the Environmental Protection Agency, is a 
        nonattainment area with respect to any of the national primary 
        and secondary ambient air quality standards promulgated by the 
        Administrator under section 109 of the Clean Air Act (42 U.S.C. 
        7409);
            ``(3) to conserve water for environmental purposes, such as 
        enhanced stream flows or aquifer recharge in regions, States, 
        or local areas in which water quantity is a concern;
            ``(4) to assist in the recovery of Federal or State-listed 
        endangered species or species of special concern or to further 
        the goals and objectives of the comprehensive wildlife 
        conservation plan of a State through the cooperative efforts of 
        multiple producers;
            ``(5) to control invasive species on rangeland or other 
        agricultural land through the cooperative efforts of multiple 
        producers in a geographical area;
            ``(6) to address 1 or more specific resources of concern on 
        private, non-industrial forest land;
            ``(7) to reduce losses of pesticides to the environment by 
        engaging multiple producers in a geographic area in adoption of 
        integrated pest management practices and approaches; and
            ``(8) to keep in production farms and ranches facing 
        development pressures in agricultural use.
    ``(f) Cost Share.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall not require more than 25 percent of the cost of 
        a project or initiative supported under a grant or agreement 
        entered into under this section to be derived from non-Federal 
        sources.
            ``(2) Exception.--The Secretary may give greater priority 
        to projects or initiatives that offer to provide a higher 
        percentage of the cost of the project or initiative from non-
        Federal sources.
            ``(3) In-kind contributions.--If the Secretary establishes 
        a cost-share requirement for a project or initiative, the 
        Secretary shall allow the use of in-kind contributions to 
        fulfill that requirement.
    ``(g) Funding.--
            ``(1) In general.--Of the funds made available for each 
        fiscal year to carry out the eligible conservation programs, to 
        provide funding for grants and agreements entered into under 
        this section, the Secretary shall reserve--
                    ``(A) 5 percent for fiscal year 2008;
                    ``(B) 10 percent for fiscal year 2009;
                    ``(C) 15 percent for fiscal year 2010; and
                    ``(D) 20 percent for each of fiscal years 2011 
                through 2014.
            ``(2) Allocation to states.--Using the method of allocation 
        for States under each eligible conservation program, the 
        Secretary shall allocate to States 75 percent of the funds 
        reserved under paragraph (1) for each fiscal year to allow 
        State Conservationists of the Natural Resources Conservation 
        Service, with the advice of State technical committees, to 
        select projects and initiatives for funding under this section 
        at the State level.''.
    (b) Conforming Amendment.--Section 1243 of the Food Security Act of 
1985 (16 U.S.C. 3843) is amended by striking subsection (f).

SEC. 2502. MINIMUM BASE ALLOCATION TO STATES IN FUNDING OF CERTAIN 
              DEPARTMENT OF AGRICULTURE CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Minimum Base Allocation to States for Certain Conservation 
Programs.--
            ``(1) In general.--In allocating funds to States to 
        implement the conservation programs under subtitle D (excluding 
        the conservation reserve program under subchapter B of chapter 
        1, the wetlands reserve program under subchapter C of chapter 
        1, the conservation security program under subchapter A of 
        chapter 2, and the grassland reserve program under subchapter C 
        of chapter 2), the Secretary shall ensure that each State 
        receives, at a minimum, $18,000,000 for each of fiscal years 
        2007 through 2014.
            ``(2) Exception.--The Secretary shall ensure that any funds 
        made available under chapter 6 of subtitle D to carry out a 
        project in or adjacent to a State are over and above the 
        minimum base allocation in paragraph (1).''.

                Subtitle G--Other Conservation Programs

SEC. 2601. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the 
following:

``SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    ``(a) Pilot Program Required.--The Secretary shall establish a 
pilot program to evaluate the feasibility of assisting producers, 
before a producer applies for assistance under any conservation program 
under this subtitle D, by making a comprehensive assessment of the 
resource concerns, needs, and alternative solutions for the entire 
operation of the producer, as determined by the Secretary, following 
the procedures in the conservation planning manual of the Natural 
Resources Conservation Service.
    ``(b) Locations.--The pilot program shall be undertaken in the 
following locations:
            ``(1) The Chesapeake Bay watershed.
            ``(2) The Great Lakes Basin.
            ``(3) The Connecticut River watershed.
            ``(4) The Highlands Region, as defined in section 3 of the 
        Highlands Conservation Act (Public Law 108-421; 118 Stat. 
        2375).
            ``(5) The Upper Mississippi River Basin.
    ``(c) Provision of Assistance.--
            ``(1) In general.--The assistance to producers shall be 
        provided--
                    ``(A) by the Secretary directly or through third-
                party providers certified by the Secretary; and
                    ``(B) without charge to the producer.
            ``(2) Results.--The results of the comprehensive 
        conservation planning shall be provided to the producer to 
        enable informed choices on the type of financial assistance 
        available through conservation programs administered by the 
        Secretary that would most effectively address the resource 
        needs of the operation of the producer consistent with the 
        environmental goals for the area in which the operation is 
        located.
    ``(d) Assessment and Report.--During the second and fifth years of 
the pilot program, the Secretary shall--
            ``(1) conduct an assessment of the effectiveness of the 
        pilot program established under this section; and
            ``(2) publish a report, to be available to the public, of 
        the results of the assessment.
    ``(e) Funding.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $40,000,000 for each of fiscal years 
        2008 through 2014.
            ``(2) Allocation.--The Secretary shall, to the maximum 
        extent practicable, equally allocate the amount of funds made 
        available under paragraph (1) for each fiscal year between each 
        of the 5 pilot program locations established under subsection 
        (b).''.

SEC. 2602. PILOT PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT CONTROL IN 
              THE CHESAPEAKE BAY WATERSHED.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (as amended by section 2601) is amended by inserting after section 
1240Q the following:

``SEC. 1240R. PILOT PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT CONTROL 
              IN THE CHESAPEAKE BAY WATERSHED.

    ``(a) Definitions.--In this section:
            ``(1) Chesapeake bay watershed.--The term `Chesapeake Bay 
        watershed' means the tributaries, backwaters, and side channels 
        that drain into the Chesapeake Bay, including associated 
        watersheds.
            ``(2) Chesapeake 2000 agreement.--The term `Chesapeake 2000 
        agreement' means the voluntary comprehensive restoration 
        agreement signed in June 2000 by the members of the Chesapeake 
        Executive Council.
    ``(b) Restoration Enhancement and Preservation Projects.--
            ``(1) In general.--The Secretary shall use funds made 
        available under this section to pay the Federal share of 
        carrying out agricultural restoration enhancement and 
        preservation projects for the Chesapeake Bay watershed.
            ``(2) Administration.--The Secretary shall carry out the 
        projects--
                    ``(A) in cooperation with appropriate Federal and 
                State agencies; and
                    ``(B) in a manner consistent with the tributary 
                strategies developed pursuant to the Chesapeake 2000 
                agreement.
    ``(c) Water Quality.--In carrying out projects and activities under 
this section, the Secretary shall take into account the protection of 
water quality by considering applicable State water quality standards.
    ``(d) Coordination.--The Secretary shall integrate and coordinate 
projects and activities carried out under this section with other 
Federal and State programs, projects, and activities.
    ``(e) Cost Sharing.--
            ``(1) Federal share.--The Federal share of the cost of 
        carrying out any individual project under this section shall 
        not exceed $5,000,000.
            ``(2) Non-federal share.--Subject to paragraph (1), the 
        non-Federal share of the cost of projects and activities 
        carried out under this section shall be not less than 25 
        percent.
            ``(3) Non-federal responsibilities.--The operation, 
        maintenance, rehabilitation, and replacement of projects 
        carried out under this section shall be a non-Federal 
        responsibility.
    ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out projects 
        under this section $50,000,000 for each of fiscal years 2008 
        through 2012.
            ``(2) Additional funding.--Funds made available under this 
        section shall be in addition to any other funds that are 
        provided under this title.''.

                 Subtitle H--Funding and Administration

SEC. 2701. FUNDING AND ADMINISTRATION.

    (a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1) by 
striking ``2007'' and inserting ``2014''.
    (b) Conservation Security Program.--Section 1241(a)(3) of the Food 
Security Act of 1985 (16 U.S.C. 3841(a)(3)) is amended--
            (1) in subparagraph (A), by striking ``$1,954,000,000'' and 
        inserting ``$2,194,000,000''; and
            (2) in subparagraph (B) by striking ``$5,650,000,000'' and 
        inserting ``$6,050,000,000''.
    (c) Farm and Ranchland Protection Program.--Section 1241(a) of the 
Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 
paragraph (4) and inserting the following:
            ``(4) The farm and ranchland protection program under 
        subchapter B of chapter 2, using, to the maximum extent 
        practicable--
                    ``(A) $125,000,000 in fiscal year 2008;
                    ``(B) $150,000,000 in fiscal year 2009;
                    ``(C) $200,000,000 in fiscal year 2010;
                    ``(D) $240,000,000 in fiscal year 2011; and
                    ``(E) $280,000,000 in each of fiscal years 2012 
                through 2014.''.
    (d) Grassland Reserve Program.--Section 1241(a)(5) of the Food 
Security Act of 1986 (16 U.S.C. 3841(a)(5)) is amended by striking 
``2007'' and inserting ``2014''.
    (e) Environmental Quality Incentives Program.--Section 1241(a) of 
the Food Security Act of 1986 (16 U.S.C. 3841(a)) is amended by 
striking paragraph (6) and inserting the following:
            ``(6) The environmental quality incentives program under 
        chapter 4, using, to the maximum extent practicable--
                    ``(A) $1,250,000,000 in fiscal year 2008;
                    ``(B) $1,600,000,000 in fiscal year 2009;
                    ``(C) $1,700,000,000 in fiscal year 2010;
                    ``(D) $1,800,000,000 in fiscal year 2011; and
                    ``(E) $2,000,000,000 in each of fiscal years 2012 
                through 2014.''.
    (f) Wildlife Habitat Incentives Program.--Section 1241(a) of the 
Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 
paragraph (7) and inserting the following:
            ``(7) The wildlife habitat incentives program under section 
        1240N, using, to the maximum extent practicable--
                    ``(A) $85,000,000 in fiscal year 2008;
                    ``(B) $100,000,000 in fiscal year 2009;
                    ``(C) $140,000,000 in fiscal year 2010; and
                    ``(D) $150,000,000 in each of fiscal years 2011 
                through 2014.''.

SEC. 2702. CONSERVATION APPLICATION PROCESS.

    Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is 
amended by adding at the end the following:
    ``(c) Conservation Application Process.--
            ``(1) Initial application.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall establish a single, simplified application for 
                eligible entities to use in initially requesting 
                assistance under any conservation program administered 
                by the Natural Resources Conservation Service (referred 
                to in this subsection as the `initial application').
                    ``(B) Requirements.--To the maximum extent 
                practicable, the Secretary shall ensure that--
                            ``(i) a conservation program applicant is 
                        not required to provide information that is 
                        duplicative of information or resources already 
                        available to the Secretary for that applicant 
                        and the specific operation of the applicant; 
                        and
                            ``(ii) the initial application process is 
                        streamlined to minimize complexity and 
                        redundancy.
            ``(2) Review of application process.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall review the application process for each 
                conservation program administered by the Natural 
                Resources Conservation Service, including the forms and 
                processes used to receive assistance requests from 
                eligible program participants.
                    ``(B) Requirements.--In carrying out the review, 
                the Secretary shall determine what information the 
                participant is required to submit during the 
                application process, including--
                            ``(i) identification information for the 
                        applicant;
                            ``(ii) identification and location 
                        information for the land parcel or tract of 
                        concern;
                            ``(iii) a general statement of the need or 
                        resource concern of the applicant for the land 
                        parcel or tract; and
                            ``(iv) the minimum amount of other 
                        information the Secretary considers to be 
                        essential for the applicant to provide 
                        personally.
            ``(3) Revision and streamline.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall carry out a revision of the application forms and 
                processes for each conservation program administered by 
                the Natural Resources Conservation Service to enable 
                use of information technology to incorporate 
                appropriate data and information concerning the 
                conservation needs and solutions appropriate for the 
                land area identified by the applicant.
                    ``(B) Goal.--The goal of the revision shall be to 
                streamline the application process to minimize the 
                burden placed on applicants.
            ``(4) Conservation program application.--
                    ``(A) In general.--Once the needs of an applicant 
                have been adequately assessed by the Secretary, or a 
                third party provider under section 1242, based on the 
                initial application, in order to determine the 1 or 
                more programs under this title that best match the 
                needs of the applicant, with the approval of the 
                applicant, the Secretary may convert the initial 
                application into the specific application for 
                assistance for the relevant conservation program.
                    ``(B) Secretarial burden.--To the maximum extent 
                practicable, the Secretary shall--
                            ``(i) complete the specific application for 
                        conservation program assistance for each 
                        applicant; and
                            ``(ii) request only that specific further 
                        information from the applicant that is not 
                        already available to the Secretary.
            ``(5) Implementation and notification.--Not later than 1 
        year after the date of enactment of this subsection, 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 written notification that 
        the Secretary has fulfilled the requirements of this 
        subsection.''.

SEC. 2703. EXCLUSION OF PAYMENTS UNDER DEPARTMENT OF AGRICULTURE 
              CONSERVATION PROGRAMS FROM ADJUSTED GROSS INCOME 
              LIMITATION.

    (a) Exclusion.--Section 1001D(b)(2) of the Food Security Act of 
1985 (7 U.S.C. 1308-3a(b)(2)) is amended by striking subparagraph (C).
    (b) Effective Period.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a) is amended by striking subsection (e).

                       TITLE III--SPECIALTY CROPS

                         Subtitle A--Marketing

SEC. 3001. GRANTS TO STATES TO ENHANCE COMPETITIVENESS OF SPECIALTY 
              CROPS.

    (a) Definition of Specialty Crop.--In this section, the term 
``specialty crop'' includes aquacultural product (including ornamental 
fish), sea grass, and sea oats.
    (b) Availability and Purpose of Grants.--
            (1) In general.--For each of fiscal years 2008 through 
        2014, the Secretary shall make a grant under this section to 
        each State that submits an application for a grant for that 
        fiscal year in accordance with the terms and conditions 
        established under paragraph (4).
            (2) Use of grant funds.--The grant funds shall be used by 
        the State department of agriculture solely to enhance the 
        competitiveness of United States specialty crops.
            (3) Maintenance of effort.--The State shall provide 
        assurances to the Secretary that funds provided to the State 
        under this section will be used only to supplement, not to 
        supplant, the amount of Federal, State, and local funds 
        otherwise expended in support of specialty crops and specialty 
        crop producers in the State.
            (4) Terms and conditions.--Not later than 180 days after 
        the date of enactment of this Act for fiscal year 2007 and 
        before commencement of each of fiscal years 2008 through 2014, 
        the Secretary shall establish terms and conditions for the 
        submission of grant applications for that fiscal year.
    (c) Amount.--
            (1) In general.--Subject to paragraph (2), the amount of 
        the grant for a fiscal year to a State under this section shall 
        bear the same ratio to the total amount made available under 
        subsection (e) for that fiscal year as--
                    (A) the value of specialty crop production in the 
                State during the preceding calendar year; bears to
                    (B) the value of specialty crop production during 
                that calendar year in all those States submitting 
                applications for a grant for that fiscal year.
            (2) Minimum grant amount.--At a minimum, each eligible 
        State shall receive $3,000,000 per fiscal year as a grant under 
        this section.
            (3) Availability of funds.--
                    (A) In general.--Any funds remaining after 
                allocations are made under paragraph (2) shall be 
                available on a competitive basis to any State 
                department of agriculture that submits an application 
                to the Secretary.
                    (B) Criteria.--The Secretary shall--
                            (i) establish criteria for review of 
                        applications submitted under subparagraph (A); 
                        and
                            (ii) award funds to applicants that best 
                        fulfill the criteria.
    (d) Grant Expenditure Priorities.--
            (1) In general.--It is the intent of Congress that 
        specialty crop producers, organizations, and commissions should 
        benefit from the disposition of grant funds under this section.
            (2) Eligibility.--To be eligible to receive a grant under 
        this section, a State department of agriculture shall conduct 
        at least 1 public hearing, or provide some other method for 
        public comment, to obtain the advice and opinion of specialty 
        crop producers, organizations, and commissions in the State 
        regarding the use of grant funds.
            (3) Consideration.--The Secretary shall ensure that a State 
        department of agriculture considers the advice and opinions 
        received under paragraph (2) when making decisions about the 
        use of grant funds.
    (e) Use of Commodity Credit Corporation.--Of funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out this section 
$100,000,000 for each of fiscal years 2008 through 2014.

SEC. 3002. FRUIT AND VEGETABLE NUTRITION PROMOTION PROGRAM.

    (a) In General.--The Secretary, 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 subsection (c) to increase the consumption of fruits and vegetables 
in the United States to meet Federal health guidelines.
    (b) Requirements for Participation.--To be eligible for assistance 
under this section, an organization shall--
            (1) be an eligible trade organization;
            (2) 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
            (3) meet any other requirements established by the 
        Administrator.
    (c) Eligible Trade Organizations.--An eligible trade organization 
under this section shall be--
            (1) a nonprofit fruit and vegetable trade organizations in 
        the United States;
            (2) a nonprofit State or regional fruit and vegetable 
        organization;
            (3) a fruit and vegetable agricultural cooperative in the 
        United States;
            (4) a commodity board or commission in the United States; 
        or
            (5) a small business engaged in the fruit and vegetable 
        industry in the United States.
    (d) Matching Funds.--Assistance provided under this section shall 
not exceed--
            (1) in the case of an organization described in paragraphs 
        (1) through (4) of subsection (c), 90 percent of the cost of 
        the plan to increase the consumption of fruits and vegetables 
        in the United States submitted under subsection (b)(2); and
            (2) in the case of an organization described in subsection 
        (c)(5), 50 percent of the cost of the plan to increase the 
        consumption of fruits and vegetables in the United States 
        submitted under subsection (b)(2).
    (e) Funding.--Of the funds available to the Commodity Credit 
Corporation, the Administrator of the Agricultural Marketing Service 
shall use $15,000,000 in each of fiscal years 2008 through 2014 to 
carry out this section.

SEC. 3003. 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 for funding 
        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 to carry out this section $20,000,000 for each 
of fiscal years 2008 through 2014, of which not less than $5,000,000 
shall be used for each fiscal year to support the use of electronic 
benefit transfers at farmers' markets.''.

SEC. 3004. NATIONAL ORGANIC CERTIFICATION AND TRANSITION COST SHARE 
              PROGRAM.

    Section 10606 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 6523) is amended to read as follows:

``SEC. 10606. NATIONAL ORGANIC CERTIFICATION AND TRANSITION COST SHARE 
              PROGRAM.

    ``(a) In General.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture (acting through the Natural 
Resources Conservation Service) shall use $10,000,000 for each of 
fiscal years 2008 through 2014 to establish a national organic 
certification and transition cost-share program to assist producers and 
handlers of agricultural products in obtaining certification under the 
national organic production program established under the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et seq.) and to assist producers 
and handlers in making the transition to organic production under the 
such program.
    ``(b) Certification Costs.--
            ``(1) In general.--The Secretary shall pay under this 
        section up to 75 percent of the costs incurred by a producer or 
        handler in obtaining certification under the national organic 
        production program, as certified to and approved by the 
        Secretary.
            ``(2) Maximum amount.--The maximum amount of a payment made 
        to a producer or handler for certification under this section 
        shall be $750 per year.
    ``(c) Accreditation and Enforcement Costs.--Of the funds made 
available under subsection (a), the Secretary (acting through the 
Agricultural Marketing Service) shall fund the accreditation and 
enforcement programs operated by the National Organic Program to 
implement the accreditation and enforcement provisions of the Organic 
Foods Production Act of 1990.
    ``(d) Reimbursements for Infrastructure Necessary To Implement 
Organic Practice Standards.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of the enactment of this Act, the Secretary shall 
        establish a program to reimburse producers and handlers for the 
        costs of transition to organic production.
            ``(2) Program.--Under the program established under 
        paragraph (1), the Secretary (acting through the Natural 
        Resources Conservation Service) shall assist producers and 
        handlers developing and implementing infrastructure and 
        practices necessary to transition land and animals to meet the 
        requirements of the Organic Food Production Act of 1990.
            ``(3) Plan submission.--The Secretary may only reimburse a 
        producer or handler under this section if the producer or 
        handler submits to the Secretary an organic transition plan 
        that provides--
                    ``(A) the expected costs for infrastructure and 
                practices;
                    ``(B) the environmental and economic benefits 
                derived from the infrastructure or implementing organic 
                practice standards; and
                    ``(C) a demonstration of the existence of a market 
                or the reasonable expectation of a future market for 
                the products to be produced or handled.
            ``(4) Appropriate infrastructure and practice standards.--
        The Secretary shall only reimburse producers and handlers under 
        this subsection for the costs of the following:
                    ``(A) Organic practices and activities during 
                transition to certified organic production consistent 
                with an approved plan to transition to certified 
                organic production.
                    ``(B) Farm infrastructure necessary to implement 
                organic practice standards, including livestock 
                watering facilities and fencing, so long as such 
                infrastructure is consistent with an approved plan to 
                transition to certified organic production.
                    ``(C) Organic livestock welfare measures, so long 
                as such infrastructure or practices and activities are 
                necessary to implement an organic practice standard and 
                are consistent with an approved plan to transition to 
                certified organic production.
                    ``(D) Advanced organic practices consistent with 
                approved certified organic production.
                    ``(E) Technical assistance, including the costs of 
                developing an approved transition plan under this 
                section.
                    ``(F) Other measures the Secretary, after 
                consultation with the National Organic Standards Board, 
                determines are appropriate.
            ``(5) Organic transition technical advice.--The Secretary 
        shall consult with the National Organic Standards Board 
        regarding the elements of an approved organic transition plan 
        and to identify and recommend ways that the Secretary may 
        generally use the resources provided for programs under 
        subtitle D of title XII of the Food Security Act of 1985 (16 
        U.S.C. 3830 et seq.) to facilitate transition to organic 
        production, including the resources provided by the 
        environmental quality incentives program and the conservation 
        security program.
            ``(6) Maximum amount for transition reimbursement.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the maximum amount of 
                reimbursement paid to a producer or handler for 
                transition to organic production under this section 
                shall be $10,000 per fiscal year.
                    ``(B) Specialty crops.--In the case of an 
                individual or entity who annually produces 3 or more 
                types of specialty crops, the individual or entity may 
                not receive, directly or indirectly, cost-share or 
                incentive payments under this section that, in the 
                aggregate, exceed $20,000 per year, for a period not to 
                exceed 4 years.
                    ``(C) Dairy.--In the case of an individual or 
                entity whose principal farming enterprise is dairy, the 
                individual or entity may not receive, directly or 
                indirectly, cost-share or incentive payments under this 
                section that, in the aggregate, exceed $20,000 per 
                year, for a period not to exceed 4 years.
            ``(7) Eligible fiscal years.--A producer or handler may 
        only receive payments--
                    ``(A) for 4 fiscal years; and
                    ``(B) after the first payment, for the fiscal year 
                during which the payment is made and the 3 subsequent 
                fiscal years.
            ``(8) Transition reimbursements.--A certified organic 
        producer or handler under the national organic production 
        program shall be eligible for reimbursements to make the 
        transition to organic production for new lands and livestock.
            ``(9) Suspension authority.--To ensure orderly and 
        continued growth in organic farming--
                    ``(A) prior to each fiscal year and not later than 
                October 1st of each year, the Secretary shall publish 
                organic commodity specific assessments analyzing the 
                domestic production and consumption, and the import and 
                export organic market demand and growth potential, for 
                each organic commodity and the anticipated number and 
                total amount of new reimbursements for the following 
                year affecting each commodity; and
                    ``(B) the Secretary shall not enroll new producers 
                under this subsection if, for any particular 
                agricultural commodity, any new producers would produce 
                an increased amount of that agricultural commodity that 
                the Secretary finds is reasonably anticipated to affect 
                the continuing economic viability of agricultural 
                producers currently certified under the national 
                organic production program or would create unreasonable 
                geographic disparities in the distribution of 
                reimbursements provided under this section.
            ``(10) Appeals.--An applicant seeking transition assistance 
        under this section has the right to appeal an adverse decision 
        by Secretary with regard to an application for assistance, as 
        provided in section 275 of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6995).
    ``(e) Technical and Educational Assistance.--Of the funds made 
available under subsection (a) for a fiscal year, the Secretary shall 
provide technical and educational assistance to producers and handlers 
to carry out this section, including entering into cooperative 
agreements with qualified entities to implement the transition to 
organic production.
    ``(f) Reporting.--Not later than March 1 of each year, the 
Secretary shall submit to Congress and the National Organic Standards 
Board a report detailing State-by-State expenditures on certification, 
including the number of producers and handlers served by the program, 
and State-by-State expenditures on transition assistance, including the 
number of producers and handlers served by the program, the practices 
implemented, an assessment of the impacts of the program on organic 
production, and recommended reforms, if any.''.

                           Subtitle B--Trade

SEC. 3101. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Petition.--A participant in the program may petition the 
Secretary for an extension of a project carried out under this section 
that exceeds, or will exceed, applicable time restrictions.
    ``(e) Funding.--
            ``(1) In general.--The Secretary shall make available of 
        funds of, or an equal value of commodities owned by, the 
        Commodity Credit Corporation--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $6,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010; and
                    ``(D) $10,000,000 for each of fiscal years 2011 
                through 2014.
            ``(2) Carryover of unobligated funds.--In a case in which 
        the total amount of funds or commodities made available under 
        paragraph (1) for a fiscal year is not obligated in that fiscal 
        year, the Secretary shall make available in the subsequent 
        fiscal year an amount equal to--
                    ``(A) the amount made available for the fiscal year 
                under paragraph (1); plus
                    ``(B) the amount not obligated in the previous 
                fiscal year.''.

                         Subtitle C--Nutrition

SEC. 3201. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``July 2004'' and inserting 
                        ``July 2007''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) 100 elementary schools or secondary schools 
                in each State;
                    ``(B) additional elementary schools or secondary 
                schools in each State, in accordance with the 
                proportion that--
                            ``(i) the total student population of the 
                        State; bears to
                            ``(ii) the total student population of all 
                        States; and'';
                    (B) in paragraph (3)(A), by striking ``paragraph 
                (1)(B)'' and inserting ``paragraph (1)'';
                    (C) in subparagraphs (A) and (B) of paragraph (5) 
                by striking ``2008'' each place it appears and 
                inserting ``2014''; and
                    (D) in paragraph (6)(B)--
                            (i) in clause (i)--
                                    (I) by striking ``October 1, 2004'' 
                                and inserting ``October 1, 2007''; and
                                    (II) by striking ``$9,000,000'' and 
                                inserting ``$200,000,000''; and
                            (ii) by adding at the end the following:
                            ``(iii) Administrative expenses.--For 
                        fiscal year 2008 and each fiscal year 
                        thereafter, of amounts made available to carry 
                        out this subsection, the Secretary may use not 
                        more than 1 percent for administrative expenses 
                        of carrying out this subsection.
                            ``(iv) State administrative costs.--
                                    ``(I) In general.--Subject to 
                                subclause (II), for fiscal year 2008 
                                and each fiscal year thereafter, of 
                                amounts made available to a State to 
                                carry out this subsection, the State 
                                may use not more than 5 percent for 
                                administrative expenses of carrying out 
                                this subsection.
                                    ``(II) Requirement.--To be eligible 
                                to use funds under subclause (I), a 
                                State shall submit to the Secretary a 
                                plan indicating the manner in which the 
                                State intends to use the funds.
                            ``(v) Federal requirements.--Not later than 
                        1 year after the date of enactment of this 
                        clause, and periodically thereafter as the 
                        Secretary determines to be appropriate, the 
                        Secretary shall establish requirements for 
                        States in administering this subsection.''; and
            (2) 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 $20,000,000 for 
        each of fiscal years 2008 through 2014.''.

SEC. 3202. AUTHORIZATION LEVEL FOR FARM-TO-CAFETERIA ACTIVITIES.

    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 $20,000,000 for each of fiscal 
years 2008 through 2014.''.

SEC. 3203. WIC FARMERS' MARKET NUTRITION PROGRAM.

    Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)(A)) is amended--
            (1) in clause (i), by striking ``2009'' and inserting 
        ``2014''; and
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) Mandatory funding.--Of the funds of 
                        the Commodity Credit Corporation, the Secretary 
                        shall make available to carry out this 
                        subsection, to remain available until 
                        expended--
                                    ``(I) $20,000,000 for fiscal year 
                                2008;
                                    ``(II) $30,000,000 for fiscal year 
                                2009;
                                    ``(III) $45,000,000 for fiscal year 
                                2010;
                                    ``(IV) $60,000,000 for fiscal year 
                                2011; and
                                    ``(V) not less than $75,000,000 for 
                                fiscal year 2012 and each fiscal year 
                                thereafter.''.

SEC. 3204. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Establishment.--Of funds available to the Commodity Credit 
Corporation, the Secretary of Agriculture (referred to in this section 
as the `Secretary') shall use to carry out and expand a seniors 
farmers' market nutrition program--
            ``(1) $20,000,000 for fiscal year 2008;
            ``(2) $30,000,000 for fiscal year 2009;
            ``(3) $45,000,000 for fiscal year 2010;
            ``(4) $60,000,000 for fiscal year 2011; and
            ``(5) not less than $75,000,000 for fiscal year 2012 and 
        each fiscal year thereafter.'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) to promote the transition to organic and other 
        environmentally beneficial food production systems.'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting after subsection (b) the following:
    ``(c) Eligible Participants; Benefits Levels.--Regulations issued 
pursuant to subsection (d)--
            ``(1) shall allow for participation by participants in 
        farmers' markets, roadside stands, and community supported 
        agriculture programs; and
            ``(2) shall not limit the ability of any State or regional 
        program to set benefit levels for individual seniors.''.

SEC. 3205. USE OF ``DIETARY GUIDELINES FOR AMERICANS'' IN SPECIAL 
              NUTRITION PROGRAMS AND SCHOOL LUNCH PROGRAMS.

    Section 9(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(a)) is amended by adding at the end the following:
            ``(5) Allocations to be based on dietary guidelines.--For 
        the school year beginning in July 2007 and each school year 
        thereafter, the Secretary shall ensure that allocations of food 
        and food ingredients offered in school nutrition programs under 
        this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.) are based on the most recent Dietary Guidelines for 
        Americans.''.

SEC. 3206. FOOD STAMP FRUIT AND VEGETABLE ELECTRONIC BENEFIT TRANSFER 
              PILOT PROJECT.

    (a) Finding.--Congress finds that increased consumption of fruits 
and vegetables by participants in the food stamp program will 
significantly improve the overall dietary habits of the participants.
    (b) Pilot Project.--The Secretary shall establish and carry out a 
pilot project that will provide to each participant in the food stamp 
program who receives benefits in the form of an electronic benefit 
transfer, financial incentives for each dollar of those benefits 
expended by the recipient to facilitate the purchase of fresh fruits 
and vegetables.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated $10,000,000 for each of fiscal years 2008 through 2014 to 
carry out this section.

SEC. 3207. PURCHASES OF LOCALLY PRODUCED FOODS.

    (a) Findings.--Congress finds that--
            (1) locally produced agricultural products, as compared to 
        products transported from distant sources--
                    (A)(i) are often harvested closer to full ripeness; 
                and
                    (ii) can provide higher nutritional quality;
                    (B) can provide improved ripeness, taste, and 
                selection, which can increase rates of consumption of 
                agricultural products; and
                    (C) are more efficient to store, distribute, and 
                package; and
            (2) use of local produce to carry out nutrition programs--
                    (A) reduces dependence on foreign oil by reducing 
                fuel consumption rates associated with the production 
                or transportation of agricultural products;
                    (B) can improve the ability of users of the 
                procurement system to provide education relating to 
                nutrition, farming, sustainability, energy efficiency, 
                and the importance of local purchases to the local 
                economy;
                    (C) helps to maintain a robust logistics network 
                for agricultural product procurement; and
                    (D) promotes farm, business, and economic 
                development by accessing local markets.
    (b) Program Improvements.--Section 9(j) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(j)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``In general'' and inserting 
                ``Purchases''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) allow institutions described in paragraph 
                (3)(A)--
                            ``(i) to purchase, in addition to other 
                        food purchases, locally produced foods for 
                        school meal programs, to the maximum extent 
                        practicable and appropriate; and
                            ``(ii) to establish, in compliance with 
                        Federal and State procurement laws (including 
                        regulations), preapproved suppliers and product 
                        lists that require a comprehensive competitive 
                        evaluation before a supplier or product is 
                        included on the list;'';
            (2) by redesignating paragraph (2) as paragraph (6);
            (3) by inserting after paragraph (1) the following:
            ``(2) Department of defense.--Notwithstanding any other 
        provision of law, the Secretary of Defense may elect to use a 
        geographic preference to purchase locally produced agricultural 
        products for--
                    ``(A) the Defense Supply Center Philadelphia;
                    ``(B) the Department of Defense Farm to School 
                Program;
                    ``(C) the Department of Defense Fresh Fruit and 
                Vegetable Program;
                    ``(D) the service academies of the Department of 
                Defense;
                    ``(E) Department of Defense domestic dependent 
                schools;
                    ``(F) other Department of Defense schools under 
                chapter 108 of title 10, United States Code;
                    ``(G) commissary and exchange stores of the 
                Department of Defense; and
                    ``(H) morale, welfare, and recreation facilities 
                operated by the Department of Defense.
            ``(3) Department of agriculture and related entities.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the Secretary or the head of any 
                school, local educational agency, or other entity, as 
                applicable, may elect to use a geographic preference to 
                purchase locally produced agricultural products for--
                            ``(i) the school breakfast program 
                        established by section 4 of the Child Nutrition 
                        Act of 1966 (42 U.S.C. 1773);
                            ``(ii) the school lunch program established 
                        under this Act;
                            ``(iii) the summer food service program for 
                        children established under section 13; and
                            ``(iv) the child and adult care food 
                        program established under section 17.
                    ``(B) Report.--The head of any school, local 
                educational agency, or other entity participating in a 
                program described in subparagraph (A) that makes an 
                election under that subparagraph shall submit to the 
                Secretary a report describing any case in which the 
                school, local educational agency, or other entity pays 
                an amount in excess of an amount equal to 10 percent 
                more than the lowest applicable bid to purchase locally 
                produced agricultural products.
            ``(4) Treatment of certain bids.--
                    ``(A) In general.--On making an election under 
                paragraph (2) or (3), the Secretary, the Secretary of 
                Defense, or the head of any school, local educational 
                agency, or other entity participating in a program 
                described in paragraph (3)(A) may--
                            ``(i) include in the text of any bid a 
                        description of the election;
                            ``(ii) select any bid involving a locally 
                        produced agricultural product, regardless of 
                        whether the bid is the lowest bid relating to 
                        the agricultural product; and
                            ``(iii) subject to subparagraph (B), 
                        acquire agricultural products from preapproved 
                        local and regional vendors and distributors 
                        authorized by the Secretary that have agreed to 
                        supply eligible products to the above 
                        referenced schools and service institutions.
                    ``(B) Requirements.--To be eligible to be 
                preapproved by the Secretary a vendor or distributor 
                described in subparagraph (A)(iii) shall--
                            ``(i) demonstrate an ability to supply 
                        agricultural products from local growers and 
                        processors;
                            ``(ii) comply with food safety standards 
                        developed by the Secretary; and
                            ``(iii) consistently provide agricultural 
                        products that meet standards of grade, size, 
                        freshness, and quality as required by the 
                        Secretary or local procurement officer.
                    ``(C) Relation to state procurement laws.--Nothing 
                in this paragraph precludes a school or service 
                institution described in subparagraph (A) from 
                purchasing agricultural products from potential local 
                farmers in compliance with applicable State procurement 
                laws.
            ``(5) Review.--The Secretary and the Secretary of Defense 
        shall periodically review each election to use a geographic 
        preference under this subsection to prevent fraud or abuse.''; 
        and
            (4) in paragraph (6)(A) (as redesignated by paragraph (2)), 
        by striking ``2009'' and inserting ``2014''.

SEC. 3208. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``From amounts 
                made available to carry out this Act, the Secretary 
                may'' and inserting ``The Secretary shall''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funding amounts.--From amounts made available to 
        carry out this Act, the Secretary shall use $30,000,000 for 
        each of fiscal years 2008 through 2014 to make grants under 
        this section, adjusted to reflect changes for the 12-month 
        period ending the preceding June 30 in the Consumer Price Index 
        for All Urban Consumers published by the Bureau of Labor 
        Statistics of the Department of Labor.'';
            (2) in subsection (d)--
                    (A) in paragraph (3), by striking ``or'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(5) serve special project needs in areas of--
                    ``(A) transportation and processing for expanding 
                institutional and emergency food service demand for 
                local food;
                    ``(B) retail access to healthy foods in underserved 
                markets;
                    ``(C) integration of urban and metro-area food 
                production in food projects; and
                    ``(D) technical assistance for youth, socially 
                disadvantaged individuals, and limited resource 
                groups.'';
            (3) in subsection (e)(1), by striking ``50'' and inserting 
        ``75'';
            (4) in subsection (f)(2), by striking ``3'' and inserting 
        ``5''; and
            (5) in subsection (h)(4)--
                    (A) by striking ``2007'' and inserting ``2014''; 
                and
                    (B) by striking ``$200,000'' and inserting 
                ``$500,000''.

SEC. 3209. INCREASED PURCHASES OF FRUITS AND VEGETABLES.

    Section 10603 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 612c-4) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Of the funds'' and inserting the 
                following:
            ``(1) In general.--Of the funds'';
                    (B) in paragraph (1) (as designated by paragraph 
                (1)), by striking ``shall use not'' and inserting 
                ``shall use, in addition to an amount equal to the 
                amount used for fiscal year 2001, not''; and
                    (C) by adding at the end the following:
            ``(2) No effect on other purchases.--The purchase of 
        additional fruits, vegetables, and other specialty food crops 
        under paragraph (1) shall not decrease, displace, or otherwise 
        affect any purchase by the Secretary.
            ``(3) Surplus removal waiver.--Notwithstanding any other 
        provision of law, the Secretary may waive the application of 
        any provision of section 32 of the Act of August 24, 1935 (7 
        U.S.C. 612c), in order to comply with this subsection.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Expansion of DoD Fresh Fruit and Vegetable Distribution 
Program.--Of the funds set aside under subsection (a)(1), the Secretary 
shall use to purchase fresh fruits and vegetables for distribution to 
schools and service institutions in accordance with section 6(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1755(a)), not 
less than--
            ``(1) $50,000,000 for fiscal year 2008;
            ``(2) $70,000,000 for the period of fiscal years 2009 
        through 2010;
            ``(3) $100,000,000 for fiscal year 2011; and
            ``(4) $125,000,000 for each of fiscal years 2012 through 
        2014.''.

                          Subtitle D--Research

SEC. 3301. NATIONAL SPECIALTY CROPS DEVELOPMENT INITIATIVE GRANT 
              PROGRAM.

    (a) Establishment.--The Secretary shall establish a program to 
award grants to eligible entities to improve the efficiency and 
competitiveness of United States specialty crop producers.
    (b) Eligible Entities.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall determine eligibility standards for grants under this 
        section.
            (2) Inclusions.--Eligible entities shall include--
                    (A) nonprofit United States specialty crop trade 
                organizations and foundations;
                    (B) nonprofit State and regional specialty crop 
                organizations;
                    (C) Federal agencies;
                    (D) United States specialty crop agricultural 
                cooperatives;
                    (E) agricultural commodity boards and commissions; 
                and
                    (F) research and extension programs of institutions 
                of higher education focusing on the specialty crop 
                industry.
    (c) Use of Funds.--As a condition of receiving a grant under this 
section, an eligible entity shall agree to use funds from grants for--
            (1) research that addresses the short-term, intermediate, 
        and long-term needs of the United States specialty crop 
        industry, including production technology (such as plant 
        breeding, pest and disease management, production, physiology, 
        food science), mechanization, marketing, product development, 
        health and nutrition, food security, and food safety to improve 
        the competitiveness of the United States specialty crop 
        industry; or
            (2) development and implementation of industry-specific 
        strategic plans to prioritize research and develop United 
        States specialty crop industry and research collaboration.
    (d) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall use to carry out this section--
            (1) $50,000,000 for each of fiscal years 2008 and 2009;
            (2) $75,000,000 for each of fiscal years 2010 through 2012; 
        and
            (3) $100,000,000 for each of fiscal years 2013 and 2014.

SEC. 3302. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925b(e)) is amended to read as follows:
    ``(e) Funding.--Of the funds available to the Commodity Credit 
Corporation, the Secretary shall use $15,000,000 for each of fiscal 
years 2008 through 2014 to carry out this section.''.

SEC. 3303. NATIONAL AQUACULTURE ACT OF 1980.

    Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) 
is amended by striking ``2007'' each place it appears and inserting 
``2014''.

SEC. 3304. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT AMENDMENTS OF 1985.

    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 ``2007'' and inserting ``2014''.

        Subtitle E--Invasive Pest Research and Disease Response

SEC. 3401. THREAT IDENTIFICATION AND MITIGATION PROGRAM.

    (a) Establishment.--The Secretary, acting through the Administrator 
of the Animal and Plant Health Inspection Service, shall establish a 
program to determine and prioritize foreign threats to domestic 
production of specialty crops, including threats of bioterrorism.
    (b) Program.--In conducting the program established under 
subsection (a), the Secretary shall--
            (1) consult with the Director of the Center for Plant 
        Health Science and Technology;
            (2) conduct in partnership with States, early pest 
        detection and surveillance activities associated with the 
        Cooperative Agricultural Pest Survey;
            (3) develop risk assessments of the potential threat to the 
        specialty crop industry in the United States from foreign 
        threats;
            (4) collaborate with the National Plant Board--
                    (A) to prioritize foreign threats to the specialty 
                crop industry; and
                    (B) in consultation with State departments of 
                agriculture and other State or regional resource 
                partnerships, develop action plans that effectively 
                address the foreign threats, including pathway 
                analysis, offshore mitigation measures, and 
                comprehensive exclusion measures at ports of entry and 
                other key distribution centers in addition to 
                strategies to employ if the foreign pest or disease is 
                introduced;
            (5) implement action plans developed under paragraph (4)(B) 
        as soon as the action plans developed to test the effectiveness 
        of the action plans and help prevent new foreign and domestic 
        pest and disease threats from being introduced or widely 
        disseminated in the United States;
            (6) as appropriate, consult with the Administrator of the 
        Agricultural Research Service and use the expertise of the 
        Agricultural Research Service in the development of pest and 
        disease detection and control or eradication strategies; and
            (7) after prioritizing foreign threats and developing 
        action plans under paragraph (4), consult with the United 
        States Trade Representative to ensure that future trade 
        agreements include measures to mitigate the threats.
    (c) Reports.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter, the Secretary shall update and 
submit to Congress the priority list and action plans described in 
subsection (b)(4), including an accounting of funds expended on the 
action plans.
    (d) Funding.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $40,000,000 for each of fiscal years 2008 through 2014.
            (2) Prohibition.--The Secretary may not use funds made 
        available under paragraph (1) to carry out eradication efforts 
        that enhance import opportunities into the United States.

SEC. 3402. CLEAN PLANT NETWORK.

    (a) In General.--The Secretary shall establish a program to be 
known as the ``National Clean Plant Network'' (referred to in this 
section as the ``Program'').
    (b) Requirements.--Under the Program, the Secretary shall establish 
a network of clean plant centers for diagnostic and pathogen 
elimination services to--
            (1) produce clean propagative plant material; and
            (2) maintain blocks of pathogen-tested plant material in 
        sites located throughout the United States.
    (c) Availability of Clean Plant Source Material.--Clean plant 
source material may be made available to--
            (1) a State for a certified plant program of the State; and
            (2) private nurseries and growers.
    (d) Consultation and Collaboration.--In carrying out the Program, 
the Secretary shall--
            (1) consult with State departments of agriculture and land 
        grant universities; and
            (2) to the extent practicable and with input from the 
        appropriate State officials and industry representatives, use 
        existing Federal or State facilities to serve as clean plant 
        centers.
    (e) Funding.--The Secretary shall use $5,000,000 each year of funds 
of the Commodity Credit Corporation to carry out the Program.

SEC. 3403. OFFICE OF PEST MANAGEMENT POLICY.

    (a) Purpose.--The purpose of this section is to establish an Office 
of Pest Management Policy in the Department to provide for the 
effective coordination of agricultural policies and activities related 
to pesticides and the development and use of pest management tools, 
taking into account the effects of regulatory actions of government 
agencies.
    (b) Establishment of Office.--
            (1) In general.--The Secretary shall establish in the 
        Department an Office of Pest Management Policy (referred to in 
        this section as the ``Office'').
            (2) Director.--The head of the Office shall be a Director 
        (referred to in this section as the ``Director'') who shall--
                    (A) be appointed by the Secretary; and
                    (B) report directly to the Secretary or a designee 
                of the Secretary.
    (c) Duties.--The Director shall--
            (1) develop and coordinate Department policy on pest 
        management and pesticides;
            (2) coordinate activities and services of the Department 
        (including research, extension, and education activities) 
        regarding the development, availability, and use of 
        economically- and environmentally-sound pest management tools 
        and practices;
            (3) assist other agencies of the Department in fulfilling 
        the responsibilities of the agencies related to pest management 
        or pesticides under--
                    (A) the Food Quality Protection Act of 1996 (7 
                U.S.C. 136 note; Public Law 104-170);
                    (B) the Federal Insecticide, Fungicide, and 
                Rodenticide Act (7 U.S.C. 136 et seq.);
                    (C) the Federal Food, Drug, and Cosmetic Act (21 
                U.S.C. 301 et seq.); and
                    (D) other applicable laws; and
            (4) carry out such other functions as may be required by 
        law or prescribed by the Secretary.
    (d) Interagency Coordination.--In carrying out the responsibilities 
of the Office, the Director shall provide leadership, to the maximum 
extent practicable, to ensure coordination of interagency activities 
with--
            (1) the Environmental Protection Agency;
            (2) the Food and Drug Administration; and
            (3) other applicable Federal and State agencies.
    (e) Outreach.--As necessary to carry out the responsibilities of 
the Office, the Director shall consult with agricultural producers that 
may be affected by pest management or pesticide-related activities or 
actions of the Department or other agencies.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 2008 through 2014.

SEC. 3404. FOOD SAFETY INITIATIVES.

    (a) Initiative Authorized.--The Secretary may carry out a food 
safety education program to educate the public and persons in the fresh 
produce industry about--
            (1) scientifically proven practices for reducing microbial 
        pathogens on fresh produce; and
            (2) methods of reducing the threat of cross-contamination 
        of fresh produce through unsanitary handling practices.
    (b) Cooperation.--The Secretary may carry out the education program 
in cooperation with public and private partners.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $1,000,000.

                       Subtitle F--Miscellaneous

SEC. 3501. TRANSPORTATION INFRASTRUCTURE COST REDUCTION GRANT PROGRAM.

    (a) In General.--The Secretary, acting through the Transportation 
Services Branch of the Agricultural Marketing Service, may make grants 
under this section to an eligible entity described in subsection (b)--
            (1) to expand and improve transportation infrastructure to 
        improve the cost-effective movement of specialty crops to 
        markets inside or outside the United States; and
            (2) to address regional intermodal transportation 
        deficiencies that adversely affect the movement of specialty 
        crops to markets inside or outside the United States.
    (b) Eligible Grant Recipients.--Grants may be made under this 
section to--
            (1) State and local governments;
            (2) grower cooperatives;
            (3) individual specialty crop producers or groups of 
        producers;
            (4) individual shippers; and
            (5) State and regional producer and shipper organizations.
    (c) Matching Funds.--To be eligible for a grant under this section, 
the recipient of a grant under this section shall contribute an amount 
of non-Federal funds to carry out the project for which the grant is 
provided that is at least equal to the amount of grant funds received 
by the recipient under this section.
    (d) Funding.--For each of fiscal years 2008 through 2014, the 
Secretary shall use $75,000,000 of funds of the Commodity Credit 
Corporation to make grants under this section.

SEC. 3502. CENSUS OF SPECIALTY CROPS.

    (a) Establishment.--Not later than September 30, 2008, and each 5 
years thereafter, the Secretary shall conduct a census of specialty 
crops to assist in the regular development and dissemination of 
information relative to specialty crops.
    (b) Relation to Other Census.--The Secretary may include the census 
of speciality crops in the census on agriculture.

                            TITLE IV--TRADE

SEC. 4001. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
              NUTRITION PROGRAM.

    (a) Administration.--Section 3107 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
            (1) in subsections (b), (c)(2)(B), (f)(1), (h), and (i), by 
        striking ``President'' each place it appears and inserting 
        ``Secretary'';
            (2) 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''; 
        and
            (3) in subsection (f)(2), in the matter preceding 
        subparagraph (A), by striking ``implementing agency'' 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 not less than, to remain 
        available until expended--
                    ``(A) $140,000,000 for fiscal year 2008;
                    ``(B) $180,000,000 for fiscal year 2009;
                    ``(C) $220,000,000 for fiscal year 2010;
                    ``(D) $260,000,000 for fiscal year 2011; and
                    ``(E) $300,000,000 for each of fiscal years 2012 
                through 2014.'';
            (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''.

                           TITLE V--NUTRITION

                     Subtitle A--Food Stamp Program

SEC. 5001. EXCLUSION OF COMBAT-RELATED MILITARY PAY FROM COUNTABLE 
              INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (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 (or as an 
        allotment to or transfer from) a member of the United States 
        Armed Forces deployed to a designated combat zone for the 
        duration of the deployment to or service in a combat zone of 
        the member if the additional pay was not received immediately 
        prior to serving in that or another combat zone''.

SEC. 5002. ENDING BENEFIT EROSION.

    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 through the period at the end and 
        inserting ``not less than--
                                    ``(I) $147, $251, $207, and $129, 
                                respectively; and
                                    ``(II) for fiscal year 2009 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount that 
                                applies to the previous fiscal year 
                                adjusted to the nearest lower dollar 
                                increment to reflect changes for the 
                                12-month period ending on the preceding 
                                June 30 in the Consumer Price Index for 
                                All Urban Consumers published by the 
                                Bureau of Labor Statistics of the 
                                Department of Labor, for items other 
                                than food.''; and
            (2) in subparagraph (B)(ii), by striking ``not less than 
        $269'' and all that follows through the period at the end and 
        inserting ``not less than--
                                    ``(I) $295; and
                                    ``(II) for fiscal year 2009 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount that 
                                applies to the previous fiscal year 
                                adjusted to the nearest lower dollar 
                                increment to reflect changes for the 
                                12-month period ending on the preceding 
                                June 30 in the Consumer Price Index for 
                                All Urban Consumers published by the 
                                Bureau of Labor Statistics of the 
                                Department of Labor, for items other 
                                than food.''.

SEC. 5003. 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. 5004. RETIREMENT AND EDUCATION SAVINGS EXCLUSION.

    (a) Allowable Financial Resources.--Section 5(g) of the Food Stamp 
Act of 1977 (7 U.S.C. 2014(g)) is amended--
            (1) by striking ``(g)(1) The Secretary'' and inserting the 
        following:
    ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                    ``(A) In general.--The Secretary'';
            (2) in subparagraph (A) (as designated by paragraph (1)--
                    (A) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$2,000''; and
                    (B) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$3,000''; and
            (3) by adding at the end the following:
                    ``(B) Adjustment for inflation.--
                            ``(i) In general.--Beginning on October 1, 
                        2007, and each October 1 thereafter, the 
                        amounts in subparagraph (A) shall be adjusted 
                        to the nearest $100 increment to reflect 
                        changes for the 12-month period ending the 
                        preceding June in the Consumer Price Index for 
                        All Urban Consumers published by the Bureau of 
                        Labor Statistics of the Department of Labor.
                            ``(ii) Requirement.--Each adjustment under 
                        clause (i) shall be based on the unrounded 
                        amount for the prior 12-month period.''.
    (b) Exclusion of Retirement Accounts From Countable Financial 
Resources.--
            (1) In general.--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''.
            (2) 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, by 
                regulation).''.
    (c) Exclusion of Education Accounts From Countable Financial 
Resources.--Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(g)) (as amended by subsection (b)) is amended by adding at the end 
the following:
            ``(8) Exclusion of education 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 qualified tuition program 
                described in section 529 of the Internal Revenue Code 
                of 1986 or in a Coverdell education savings account 
                under section 530 of that Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other education programs, contracts, 
                or accounts (as determined by the Secretary through 
                regulation).''.

SEC. 5005. FOOD STAMP ELIGIBILITY FOR UNEMPLOYED ADULTS.

    Section 6(o)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)(2)) 
is amended in the matter preceding subparagraph (A)--
            (1) by striking ``36-month'' and replacing it with ``24-
        month''; and
            (2) by striking ``3'' and replacing it with ``6''.

SEC. 5006. AVAILABILITY OF 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 ``through 2007'' and inserting the 
        following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--Subject to paragraph (2), for each of 
        fiscal years 2008 through 2012''; and
            (2) by striking ``$140,000,000 of''; and
            (3) by adding at the end the following:
            ``(2) Amounts.--The Secretary shall use to carry out this 
        subsection $250,000,000 for fiscal year 2008.''.

  Subtitle B--Food Service Industry Job Training for Low-Income Adults

SEC. 5101. SHORT TITLE.

    This subtitle may be cited as the ``Food Employment Empowerment and 
Development Program Act of 2007'' or the ``FEED Act of 2007''.

SEC. 5102. DEFINITIONS.

    In this subtitle:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity that meets the requirements of section 4013(b).
            (2) Vulnerable subpopulation.--
                    (A) In general.--The term ``vulnerable 
                subpopulation'' means low-income individuals, 
                unemployed individuals, and other subpopulations 
                identified by the Secretary as being likely to 
                experience special risks from hunger or a special need 
                for job training.
                    (B) Inclusions.--The term ``vulnerable 
                subpopulation'' includes--
                            (i) addicts (as defined in section 102 of 
                        the Controlled Substances Act (21 U.S.C. 802));
                            (ii) at-risk youths (as defined in section 
                        1432 of the Elementary and Secondary Education 
                        Act of 1965 (20 U.S.C. 6472));
                            (iii) individuals that are basic skills 
                        deficient (as defined in section 101 of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2801));
                            (iv) homeless individuals (as defined in 
                        section 17(b) of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1786(b));
                            (v) homeless youths (as defined in section 
                        387 of the Runaway and Homeless Youth Act (42 
                        U.S.C. 5732a));
                            (vi) individuals with disabilities (as 
                        defined in section 3 of the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 12102));
                            (vii) low-income individuals (as defined in 
                        section 101 of the Workforce Investment Act of 
                        1998 (29 U.S.C. 2801)); and
                            (viii) older individuals (as defined in 
                        section 102 of the Older Americans Act of 1965 
                        (42 U.S.C. 3002)).

SEC. 5103. FOOD EMPLOYMENT EMPOWERMENT AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a food employment 
empowerment and development program under which the Secretary shall 
make grants to eligible entities to encourage the effective use of 
community resources to combat hunger and the root causes of hunger by 
creating opportunity through food recovery and job training.
    (b) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be a public agency, or private nonprofit 
institution, that conducts, or will conduct, 2 or more of the following 
activities as an integral part of the normal operation of the entity:
            (1) Recovery of donated food from area restaurants, 
        caterers, hotels, cafeterias, farms, or other food service 
        businesses.
            (2) Distribution of meals or recovered food to--
                    (A) nonprofit organizations described in section 
                501(c)(3) of the Internal Revenue Code of 1986;
                    (B) entities that feed vulnerable subpopulations; 
                and
                    (C) other agencies considered appropriate by the 
                Secretary.
            (3) Training of unemployed and underemployed adults for 
        careers in the food service industry.
            (4) Carrying out of a welfare-to-work job training program 
        in combination with--
                    (A) production of school meals, such as school 
                meals served under the Richard B. Russell National 
                School Lunch Act (42 U.S.C. 1751 et seq.) or the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
                    (B) support for after-school programs, such as 
                programs conducted by community learning centers (as 
                defined in section 4201(b) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7171(b))).
    (c) Use of Funds.--An eligible entity may use a grant awarded under 
this section for--
            (1) capital investments related to the operation of the 
        eligible entity;
            (2) support services for clients, including staff, of the 
        eligible entity and individuals enrolled in job training 
        programs;
            (3) purchase of equipment and supplies related to the 
        operation of the eligible entity or that improve or directly 
        affect service delivery;
            (4) building and kitchen renovations that improve or 
        directly affect service delivery;
            (5) educational material and services;
            (6) administrative costs, in accordance with guidelines 
        established by the Secretary; and
            (7) additional activities determined appropriate by the 
        Secretary.
    (d) Preferences.--In awarding grants under this section, the 
Secretary shall give preference to eligible entities that perform, or 
will perform, any of the following activities:
            (1) Carrying out food recovery programs that are integrated 
        with--
                    (A) culinary worker training programs, such as 
                programs conducted by a food service management 
                institute under section 21 of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1769b-1);
                    (B) school education programs; or
                    (C) programs of service-learning (as defined in 
                section 101 of the National and Community Service Act 
                of 1990 (42 U.S.C. 12511)).
            (2) Providing job skills training, life skills training, 
        and case management support to vulnerable subpopulations.
            (3) Integrating recovery and distribution of food with a 
        job training program.
            (4) Maximizing the use of an established school, community, 
        or private food service facility or resource in meal 
        preparation and culinary skills training.
            (5) Providing job skills training, life skills training, 
        and case management support to vulnerable subpopulations.
    (e) Eligibility for Job Training.--To be eligible to receive job 
training assistance from an eligible entity using a grant made 
available under this section, an individual shall be a member of a 
vulnerable subpopulation.
    (f) Performance Indicators.--The Secretary shall establish, for 
each year of the program, performance indicators and expected levels of 
performance for meal and food distribution and job training for 
eligible entities to continue to receive and use grants under this 
section.
    (g) Technical Assistance.--
            (1) In general.--The Secretary shall provide technical 
        assistance to eligible entities that receive grants under this 
        section to assist the eligible entities in carrying out 
        programs under this section using the grants.
            (2) Form.--Technical assistance for a program provided 
        under this subsection includes--
                    (A) maintenance of a website, newsletters, email 
                communications, and other tools to promote shared 
                communications, expertise, and best practices;
                    (B) hosting of an annual meeting or other forums to 
                provide education and outreach to all programs 
                participants;
                    (C) collection of data for each program to ensure 
                that the performance indicators and purposes of the 
                program are met or exceeded;
                    (D) intervention (if necessary) to assist an 
                eligible entity to carry out the program in a manner 
                that meets or exceeds the performance indicators and 
                purposes of the program;
                    (E) consultation and assistance to an eligible 
                entity to assist the eligible entity in providing the 
                best services practicable to the community served by 
                the eligible entity, including consultation and 
                assistance related to--
                            (i) strategic plans;
                            (ii) board development;
                            (iii) fund development;
                            (iv) mission development; and
                            (v) other activities considered appropriate 
                        by the Secretary;
                    (F) assistance considered appropriate by the 
                Secretary regarding--
                            (i) the status of program participants;
                            (ii) the demographic characteristics of 
                        program participants that affect program 
                        services;
                            (iii) any new idea that could be integrated 
                        into the program; and
                            (iv) the review of grant proposals; and
                    (G) any other forms of technical assistance the 
                Secretary considers appropriate.
    (h) Relationship to Other Law.--
            (1) Bill emerson good samaritan food donation act.--An 
        action taken by an eligible entity using a grant provided under 
        this section shall be covered by the Bill Emerson Good 
        Samaritan Food Donation Act (42 U.S.C. 1791).
            (2) Food handling guidelines.--In using a grant provided 
        under this section, an eligible entity shall comply with any 
        applicable food handling guideline established by a State or 
        local authority.
            (3) Inspections.--An eligible entity using a grant provided 
        under this section shall be exempt from inspection under 
        sections 303.1(d)(2)(iii) and 381.10(d)(2)(iii) of volume 9, 
        Code of Federal Regulations (or a successor regulation), if the 
        eligible entity--
                    (A) has a hazard analysis and critical control 
                point (HACCP) plan;
                    (B) has a sanitation standard operating procedure 
                (SSOP); and
                    (C) otherwise complies with the Federal Meat 
                Inspection Act (21 U.S.C. 601 et seq.) and the Poultry 
                Products Inspection Act (21 U.S.C. 451 et seq.).
    (i) Maximum Amount of Grant.--The amount of a grant provided to an 
eligible entity for a fiscal year under this section shall not exceed 
$200,000.
    (j) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $20,000,000 for each of fiscal years 
        2008 through 2014.
            (2) Technical assistance.--Of the amount of funds that are 
        made available for a fiscal year under paragraph (1), the 
        Secretary shall use to provide technical assistance under 
        subsection (g) not more than the greater of--
                    (A) 5 percent of the amount of funds that are made 
                available for the fiscal year under paragraph (1); or
                    (B) $1,000,000.

SEC. 5104. HUNGER-FREE COMMUNITIES.

    (a) Definitions.--In this section:
            (1) Domestic hunger goal.--The term ``domestic hunger 
        goal'' means--
                    (A) the goal of reducing hunger in the United 
                States to at or below 2 percent by calendar year 2010; 
                or
                    (B) the goal of reducing food insecurity in the 
                United States to at or below 6 percent by calendar year 
                2010.
            (2) Emergency feeding organization.--The term ``emergency 
        feeding organization'' has the meaning given the term in 
        section 201A of the Emergency Food Assistance Act of 1983 (7 
        U.S.C. 7501).
            (3) Food security.--The term ``food security'' means the 
        state in which an individual has access to enough food for an 
        active, healthy life.
            (4) Hunger-free community goal.--The term ``hunger-free 
        community goal'' means any of the 14 goals described in the H. 
        Con. Res. 302 (102nd Congress), including a goal of a community 
        of--
                    (A) having a community-based emergency food 
                delivery network that coordinates the services of 
                programs such as food pantries, food banks, and 
                congregate meals facilities;
                    (B) assessing food insecurity problems and 
                evaluating existing services in the community to 
                determine necessary strategies for responding to unmet 
                needs;
                    (C) establishing a group of individuals, including 
                low-income participants, to develop and implement 
                policies and programs to combat food insecurity, 
                monitor responsiveness of existing services, and 
                address underlying causes and factors relating to 
                hunger;
                    (D) participating in federally-assisted nutrition 
                programs that should be easily accessible to targeted 
                populations, such as Federal programs that provide 
                school breakfast, school lunch, summer food, child care 
                food, and food for homeless and older individuals;
                    (E) effectively integrating public and private 
                resources, including local businesses, to alleviate 
                food insecurity;
                    (F) having an education program concerning food 
                needs of the community and the need for increased local 
                citizen participation in activities to alleviate food 
                insecurity;
                    (G) having available information and referral 
                services for accessing both public and private programs 
                and services;
                    (H) having initiatives for alleviating food 
                shopping constraints through the development of 
                creative food resources such as community gardens, 
                buying clubs, food cooperatives, community-owned and 
                operated grocery stores, and farmers' markets;
                    (I) carrying out activities to identify and target 
                food services to high-risk populations;
                    (J) having adequate transport and distribution of 
                food from all resources;
                    (K) coordinating food services with park and 
                recreation programs and other community-based outlets 
                to which residents of the area would have easy access;
                    (L) improving public transportation, human service 
                agencies, and food resources;
                    (M) having nutrition education programs for low-
                income citizens to enhance good food-purchasing and 
                food-preparation skills and to heighten awareness of 
                the connection between diet and health; and
                    (N) having a program for collecting and 
                distributing nutritious food, either agricultural 
                commodities in the fields of agricultural producers or 
                foods that have already been prepared, that would 
                otherwise be wasted.
    (b) Hunger Reports.--
            (1) Study.--
                    (A) Timeline.--
                            (i) In general.--Not later than 1 year 
                        after the date of enactment of this Act, the 
                        Secretary shall conduct a study of major 
                        matters relating to the problem of hunger in 
                        the United States, as determined by the 
                        Secretary.
                            (ii) Update.--Not later than 5 years after 
                        the date on which the study under clause (i) is 
                        conducted, the Secretary shall update the 
                        study.
                    (B) Matters to be assessed.--The matters to be 
                assessed by the Secretary in the study and update under 
                this paragraph shall include--
                            (i) data on hunger and food insecurity in 
                        the United States;
                            (ii) measures carried out during the 
                        previous year by Federal, State, and local 
                        governments to achieve domestic hunger goals 
                        and hunger-free community goals;
                            (iii) measures that could be carried out by 
                        the Federal Government and State and local 
                        governments to achieve domestic hunger goals 
                        and hunger-free community goals; and
                            (iv) the impact of hunger and household 
                        food insecurity on obesity, in the context of 
                        poverty and food assistance programs.
            (2) Recommendations.--The Secretary shall develop 
        recommendations on--
                    (A) removing obstacles to achieving domestic hunger 
                goals and hunger-free community goals; and
                    (B) otherwise reducing domestic hunger.
            (3) Report.--The Secretary shall submit to the President 
        and Congress--
                    (A) not later than 1 year after the date of 
                enactment of this Act, a report that contains--
                            (i) a detailed statement of the results of 
                        the study, or the most recent update to the 
                        study, conducted under paragraph (1)(A); and
                            (ii) the most recent recommendations of the 
                        Secretary under paragraph (2); and
                    (B) not later than 5 years after the date of 
                submission of the report under subparagraph (A), an 
                update of the report.
    (c) Hunger-Free Community Collaborative Grants.--
            (1) Definition of eligible entity.--In this subsection, the 
        term ``eligible entity'' means a public food program service 
        provider or a nonprofit organization (including an emergency 
        feeding organization) that demonstrates the organization has 
        collaborated, or will collaborate, with 1 or more local partner 
        organizations to achieve at least 1 hunger-free community goal.
            (2) Program authorized.--
                    (A) In general.--The Secretary shall use not more 
                than 55 percent of any funds made available for a 
                fiscal year under subsection (f) to make grants to 
                eligible entities to pay the Federal share of the costs 
                of carrying out an activity described in paragraph (4).
                    (B) Federal share.--The Federal share of the cost 
                of carrying out an activity under this subsection shall 
                not exceed 80 percent, as determined by the Secretary.
                    (C) Non-federal share.--
                            (i) Calculation.--The non-Federal share of 
                        the cost of an activity under this subsection 
                        may be provided in cash or in kind, fairly 
                        evaluated, including facilities, equipment, or 
                        services.
                            (ii) Sources.--Any entity may provide the 
                        non-Federal share of the cost of an activity 
                        under this subsection through a State 
                        government, local government, or private 
                        source.
            (3) Application.--
                    (A) In general.--To receive a grant under this 
                subsection, an eligible entity shall submit an 
                application to the Secretary at such time, in such 
                manner, and accompanied by such information as the 
                Secretary may require.
                    (B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            (i) identify any activity described in 
                        paragraph (4) that the grant will be used to 
                        fund;
                            (ii) describe the means by which an 
                        activity identified under clause (i) will 
                        reduce hunger in the community of the eligible 
                        entity;
                            (iii) list any partner organizations of the 
                        eligible entity that will participate in an 
                        activity funded by the grant;
                            (iv) describe any agreement between a 
                        partner organization and the eligible entity 
                        necessary to carry out an activity funded by 
                        the grant; and
                            (v) if an assessment described in paragraph 
                        (4)(A) has been performed, include--
                                    (I) a summary of that assessment; 
                                and
                                    (II) information regarding the 
                                means by which the grant will help 
                                reduce hunger in the community of the 
                                eligible entity.
                    (C) Priority.--In making grants under this 
                subsection, the Secretary shall give priority to 
                eligible entities that--
                            (i) demonstrate in the application of the 
                        eligible entity that the eligible entity is 
                        making collaborative efforts to reduce hunger 
                        in the community of the eligible entity; and
                            (ii)(I) serve a predominantly rural and 
                        geographically underserved area;
                            (II) serve communities in which the rates 
                        of food insecurity, hunger, poverty, or 
                        unemployment are demonstrably higher than 
                        national average rates;
                            (III) provide evidence of long-term efforts 
                        to reduce hunger in the community;
                            (IV) provide evidence of public support for 
                        the efforts of the eligible entity; or
                            (V) demonstrate in the application of the 
                        eligible entity a commitment to achieving more 
                        than 1 hunger-free community goal.
            (4) Use of funds.--
                    (A) Assessment of hunger in the community.--
                            (i) In general.--An eligible entity in a 
                        community that has not performed an assessment 
                        described in clause (ii) may use a grant 
                        received under this subsection to perform the 
                        assessment for the community.
                            (ii) Assessment.--The assessment referred 
                        to in clause (ii) shall include--
                                    (I) an analysis of the problem of 
                                hunger in the community served by the 
                                eligible entity;
                                    (II) an evaluation of any facility 
                                and any equipment used to achieve a 
                                hunger-free community goal in the 
                                community;
                                    (III) an analysis of the 
                                effectiveness and extent of service of 
                                existing nutrition programs and 
                                emergency feeding organizations; and
                                    (IV) a plan to achieve any other 
                                hunger-free community goal in the 
                                community.
                    (B) Activities.--An eligible entity in a community 
                that has submitted an assessment described in 
                subparagraph (A) to the Secretary shall use a grant 
                received under this subsection for any fiscal year to 
                carry out activities of the eligible entity, 
                including--
                            (i) meeting the immediate needs of people 
                        in the community served by the eligible entity 
                        who experience hunger by--
                                    (I) distributing food;
                                    (II) providing community outreach; 
                                or
                                    (III) improving access to food as 
                                part of a comprehensive service;
                            (ii) developing new resources and 
                        strategies to help reduce hunger in the 
                        community;
                            (iii) establishing a program to achieve a 
                        hunger-free community goal in the community, 
                        including--
                                    (I) a program to prevent, monitor, 
                                and treat children in the community 
                                experiencing hunger or poor nutrition; 
                                or
                                    (II) a program to provide 
                                information to people in the community 
                                on hunger, domestic hunger goals, and 
                                hunger-free community goals; and
                            (iv) establishing a program to provide food 
                        and nutrition services as part of a coordinated 
                        community-based comprehensive service.
    (d) Hunger-Free Community Infrastructure Grants.--
            (1) Definition of eligible entity.--In this subsection, the 
        term ``eligible entity'' means an emergency feeding 
        organization (as defined in section 201A of the Emergency Food 
        Assistance Act of 1983 (7 U.S.C. 7501)).
            (2) Program authorized.--
                    (A) In general.--The Secretary shall use not more 
                than 45 percent of any funds made available for a 
                fiscal year under subsection (f) to make grants to 
                eligible entities to pay the Federal share of the costs 
                of an activity described in paragraph (4).
                    (B) Federal share.--The Federal share of the cost 
                of carrying out an activity under this subsection shall 
                not exceed 80 percent, as determined by the Secretary.
            (3) Application.--
                    (A) In general.--To receive a grant under this 
                subsection, an eligible entity shall submit an 
                application to the Secretary at such time, in such 
                manner, and accompanied by such information as the 
                Secretary may require.
                    (B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            (i) identify any activity described in 
                        paragraph (4) that the grant will be used to 
                        fund; and
                            (ii) describe the means by which an 
                        activity identified under clause (i) will 
                        reduce hunger in the community of the eligible 
                        entity.
                    (C) Priority.--In making grants under this 
                subsection, the Secretary shall give priority to 
                eligible entities the applications of which demonstrate 
                2 or more of the following:
                            (i) The eligible entity serves a 
                        predominantly rural and geographically 
                        underserved area.
                            (ii) The eligible entity serves a community 
                        in which the rates of food insecurity, hunger, 
                        poverty, or unemployment are demonstrably 
                        higher than national average rates.
                            (iii) The eligible entity serves a 
                        community that has carried out long-term 
                        efforts to reduce hunger in the community.
                            (iv) The eligible entity serves a community 
                        that provides public support for the efforts of 
                        the eligible entity.
                            (v) The eligible entity is committed to 
                        achieving more than 1 hunger-free community 
                        goal.
            (4) Use of funds.--An eligible entity shall use a grant 
        received under this subsection for any fiscal year to carry out 
        activities of the eligible entity, including--
                    (A) constructing, expanding, or repairing a 
                facility or equipment to support hunger relief agencies 
                in the community;
                    (B) assisting an emergency feeding organization in 
                the community in obtaining locally-produced produce and 
                protein products; and
                    (C) assisting an emergency feeding organization in 
                the community to process and serve wild game.
    (e) Report.--Not later than September 30, 2013, the Secretary shall 
submit to Congress a report describing--
            (1) each grant made under this section, including--
                    (A) a description of any activity funded by such a 
                grant; and
                    (B) the degree of success of each activity funded 
                by such a grant in achieving hunger-free community 
                goals; and
            (2) the degree of success of all activities funded by 
        grants under this section in achieving domestic hunger goals.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2008 through 2013.

                       Subtitle C--Other Programs

SEC. 5201. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Payments to Service Institutions.--Section 13(b) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1761(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (A);
                    (B) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (A) through (C), respectively;
                    (C) in subparagraph (A) (as redesignated by 
                subparagraph (B)), by striking ``(A)'' and all that 
                follows through ``shall not exceed--'' and inserting 
                the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                addition to amounts made available under paragraph (3), 
                payments to service institutions shall be--'';
                    (D) in subparagraph (B) (as redesignated by 
                subparagraph (B)), by striking ``subparagraph (B)'' and 
                inserting ``subparagraph (A)''; and
                    (E) in subparagraph (C) (as redesignated by 
                subparagraph (B)), by striking ``(A), (B), and (C)'' 
                and inserting ``(A) and (B)''; and
            (2) in the second sentence of paragraph (3), by striking 
        ``full amount of State approved'' and all that follows through 
        ``maximum allowable''.
    (b) Conforming Amendments.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) through (k) as 
        subsections (f) through (j), respectively.
    (c) Effective Date.--The amendments made by this section take 
effect on January 1 of the first full calendar year following the date 
of enactment of this Act.

SEC. 5202. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.

    The Secretary and the Secretary of Health and Human Services shall 
continue to provide jointly for national nutrition monitoring and 
related research activities carried out as of the date of enactment of 
this Act--
            (1) to collect continuous data relating to diet, health, 
        physical activity, and knowledge about diet and health, using a 
        nationally-representative sample;
            (2) to periodically collect data described in paragraph (1) 
        on special at-risk populations, as identified by the 
        Secretaries;
            (3) to distribute information on health, nutrition, the 
        environment, and physical activity to the public in a timely 
        manner;
            (4) to analyze new data as the data becomes available;
            (5) to continuously update food composition tables; and
            (6) to research and develop data collection methods and 
        standards.

                      TITLE VI--RURAL DEVELOPMENT

SEC. 6001. RURAL COLLABORATIVE INVESTMENT PROGRAM.

    Subtitle I of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009dd et seq.) is amended to read as follows:

          ``Subtitle I--Rural Collaborative Investment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to establish a regional rural 
collaborative investment program--
            ``(1) to provide rural regions with a flexible investment 
        vehicle, allowing for local control with Federal oversight, 
        assistance and accountability;
            ``(2) to provide rural regions with incentives and 
        resources to develop and implement comprehensive strategies for 
        achieving regional competitiveness, innovation, and prosperity;
            ``(3) to foster multi-sector community and economic 
        development collaborations that will optimize the asset-based 
        competitive advantages of rural regions, with particular 
        emphasis on innovation and entrepreneurship;
            ``(4) to foster collaborations necessary to provide the 
        professional technical expertise, institutional capacity, 
        infrastructure, financing, and economies of scale that are 
        essential for the long-term competitiveness of rural regions; 
        and
            ``(5) to better use Department of Agriculture and other 
        Federal, State, and local governmental resources, and to 
        leverage those resources with private, nonprofit, and 
        philanthropic investments, to achieve measurable community and 
        economic prosperity, growth, and sustainability.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
            ``(1) Benchmark.--The term `benchmark' means an annual set 
        of goals and performance measures established for the purpose 
        of assessing performance of a regional investment strategy of a 
        Regional Board.
            ``(2) Competitive advantage.--The term `competitive 
        advantage' means a combination of socioeconomic, demographic, 
        geopolitical, environmental, and organizational conditions in a 
        region, including unique assets and industry or industrial 
        sets, that can be exploited by businesses in the region to 
        emerge and grow more successfully than in alternative locations 
        in order to secure an edge in global markets.
            ``(3) National board.--The term `National Board' means the 
        National Rural Investment Board established under section 
        385C(c).
            ``(4) Regional board.--The term `Regional Board' means a 
        Regional Rural Investment Board described in section 385D(b).
            ``(5) Regional competitiveness.--The term `regional 
        competitiveness' means the ability of the businesses, 
        governments, and communities in a region to use all available 
        assets to build critical mass at a regional level, to exploit 
        the inherent economic strengths of the region, and to spur 
        ongoing innovation in the region, in order to achieve sustained 
        improvements in prosperity and quality of life, through 
        successful engagement in the global economy.
            ``(6) Regional innovation grant.--The term `regional 
        innovation grant' means a grant made by the Secretary to a 
        certified Regional Board under section 385G.
            ``(7) Regional investment strategy grant.--The term 
        `regional investment strategy grant' means a grant made by the 
        Secretary to a certified Regional Board under section 385F.
            ``(8) Small-area collaborative partnership.--The term 
        `small-area collaborative partnership' means a partnership 
        that, as determined by the Secretary--
                    ``(A) consists of 5 or more municipalities and 
                other units of government;
                    ``(B) is involved in activities that serve a 
                combined population of at least 5,000 individuals but 
                not more than 25,000 individuals;
                    ``(C) collaborates--
                            ``(i) to generate and retain wealth through 
                        entrepreneurship and microenterprise 
                        development;
                            ``(ii) to engage youths;
                            ``(iii) to develop strong leadership;
                            ``(iv) to create genuine economic 
                        opportunity; and
                            ``(v) to attract and retain residents; and
                    ``(D) serves an economically distressed area.
            ``(9) Urban area.--The term `urban area' means an urbanized 
        area (as that term is used in section 343(a)(13)(A)).

``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL COLLABORATIVE 
              INVESTMENT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a Rural 
Collaborative Investment Program to support comprehensive regional 
investment strategies for achieving rural regional competitiveness.
    ``(b) Duties of the Secretary.--In carrying out this subtitle, the 
Secretary shall--
            ``(1) appoint and provide administrative and program 
        support to the National Board;
            ``(2) work with the National Board to develop a national 
        rural investment plan; and
            ``(3) encourage the organization of Regional Boards.
    ``(c) National Rural Investment Board.--The Secretary shall 
establish within the Department of Agriculture an advisory board to be 
known as the `National Rural Investment Board' to develop and execute 
the Rural Collaborative Investment Program in consultation with the 
Secretary.
    ``(d) Duties of the National Board.--The National Board shall--
            ``(1) not later than 180 days after the date of the 
        establishment of the National Board, develop rules relating to 
        the operation of the National Board, the provisions of grants, 
        and other appropriate matters to recommend to the Secretary;
            ``(2) certify a Regional Board seeking to apply for a 
        regional investment strategy grant or regional innovation grant 
        if the Regional Board has sufficient organizational capacity 
        and expertise--
                    ``(A) to fulfill the fiduciary responsibility of 
                managing Federal funds; and
                    ``(B) to execute a regional investment strategy to 
                fulfill the purposes of the Rural Collaborative 
                Investment Program;
            ``(3) provide grants for Regional Boards to develop and 
        implement regional investment strategies;
            ``(4) provide technical assistance to Regional Boards on 
        issues, best practices, and emerging trends relating to rural 
        development;
            ``(5) establish a national institute to provide technical 
        assistance to the Secretary and National Board regarding 
        regional competitiveness and rural entrepreneurship, 
        including--
                    ``(A) development of rigorous analytic programs to 
                assist Regional Boards in determining the challenges 
                and opportunities that need to be addressed to receive 
                the greatest regional competitive advantage;
                    ``(B) oversight and coordination of any technical 
                assistance centers established to assist in supporting 
                Regional Boards;
                    ``(C) providing assistance with development of the 
                national rural investment plan, and other consultations 
                requested by the Secretary or National Board;
                    ``(D) providing support for best practices 
                developed by the Regional Boards;
                    ``(E) establishment of programs to support the 
                development of appropriate governance and leadership 
                skills in the applicable regions; and
                    ``(F) providing assistance to the Secretary and 
                National Board in submission of an annual report on the 
                performance of Regional Boards and the Rural 
                Collaborative Investment Program to--
                            ``(i) the Committee on Agriculture of the 
                        House of Representatives;
                            ``(ii) the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate; and
                            ``(iii) the Secretary; and
            ``(6) evaluate the progress of each Regional Board funded 
        in achieving benchmarks set in a regional investment strategy.
    ``(e) Membership.--
            ``(1) In general.--The National Board shall consist of 14 
        members appointed by the Secretary not later than 180 days 
        after the date of enactment of the Farm, Ranch, Equity, 
        Stewardship, and Health Act of 2007.
            ``(2) Supervision.--The National Board shall be subject to 
        the general supervision and direction of the Secretary.
            ``(3) Sectors represented.--The National Board shall 
        consist of representatives from each of--
                    ``(A) nationally recognized entrepreneurship 
                organizations;
                    ``(B) regional strategy and development 
                organizations;
                    ``(C) community-based organizations;
                    ``(D) elected members of county and municipal 
                governments;
                    ``(E) elected members of State legislatures;
                    ``(F) primary, secondary, and higher education, job 
                skills training, and workforce development 
                institutions;
                    ``(G) the rural philanthropic community;
                    ``(H) financial, lending, venture capital, 
                entrepreneurship, and other related institutions;
                    ``(I) private sector business organizations, 
                including chambers of commerce and other for-profit 
                business interests;
                    ``(J) Indian tribes (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)); and
                    ``(K) cooperative organizations.
            ``(4) Selection of members.--
                    ``(A) In general.--In selecting members of the 
                National Board, the Secretary shall consider 
                recommendations made by--
                            ``(i) the chairman and ranking member of 
                        each of the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate;
                            ``(ii) the majority and minority leaders of 
                        the Senate; and
                            ``(iii) the Speaker and minority leader of 
                        the House of Representatives.
                    ``(B) Ex-officio members.--In consultation with the 
                chairman and ranking member of each of the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate, the Secretary may appoint not more than 3 
                other officers or employees of the Executive Branch to 
                serve as ex-officio, non-voting members of the National 
                Board.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term of office of a member of the National Board 
                appointed under paragraph (1) shall be not more than 4 
                years.
                    ``(B) Staggered terms.--The members of the National 
                Board shall be appointed to serve staggered terms.
            ``(6) Initial appointments.--Not later than 90 days after 
        the date of enactment of the Farm, Ranch, Equity, Stewardship, 
        and Health Act of 2007, the Secretary shall appoint the initial 
        members of the National Board under paragraph (1).
            ``(7) Vacancies.--A vacancy on the National Board shall be 
        filled in the same manner as the original appointment.
            ``(8) Compensation.--A member of the National Board shall 
        receive no compensation for service on the National Board, but 
        shall be reimbursed for related travel and other expenses 
        incurred in carrying out the duties of the member of the 
        National Board in accordance with sections 5702 and 5703 of 
        title 5, United States Code.
            ``(9) Chairperson.--The National Board shall select a 
        chairperson from among the members of the National Board.
            ``(10) Meetings.--
                    ``(A) Time and place.--The National Board shall 
                meet at the call of the chairperson.
                    ``(B) Quorum.--A quorum of the National Board shall 
                consist of a majority of the members.
                    ``(C) Majority vote.--A decision of the National 
                Board shall be made by majority vote.
            ``(11) Federal status.--For purposes of Federal law, a 
        member of the National Board shall be considered a special 
        Government employee (as defined in section 202(a) of title 18, 
        United States Code).
            ``(12) Conflict of interest.--
                    ``(A) In general.--No member of the National Board 
                shall vote on any matter respecting any application for 
                a grant or other particular matter pending before the 
                National Board in which, to the knowledge of the 
                member, the member, spouse, or child of the member, 
                partner, or organization in which the member is serving 
                as officer, director, trustee, partner, or employee, or 
                any person or organization with whom the member is 
                negotiating or has any arrangement concerning 
                prospective employment, has a financial interest.
                    ``(B) Violations.--A violation of subparagraph (A) 
                by a member of the National Board shall be cause for 
                removal of the member, but shall not impair or 
                otherwise affect the validity of any otherwise lawful 
                action by the National Board in which the member 
                participated.
    ``(f) Administrative Support.--The Secretary, on a reimbursable 
basis from funds made available under section 385E(b)(3), may provide 
such administrative support to the National Board as the Secretary 
determines is necessary to carry out the duties of the National Board.

``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

    ``(a) In General.--The National Board may provide to Regional 
Boards regional investment strategy grants and regional innovation 
grants for use in promoting investment in rural areas.
    ``(b) Regional Board Requirements.--
            ``(1) In general.--A Regional Rural Investment Board is a 
        multijurisdictional and multisectoral group that represents the 
        long-term economic, community, and cultural interests of a 
        region and that--
                    ``(A) is certified by the Secretary to establish a 
                rural investment strategy and compete for regional 
                innovation grants;
                    ``(B) is composed of residents of a region that is 
                broadly representative of diverse public, nonprofit, 
                and private sector interests in investment in the 
                region, including (to the maximum extent practicable) 
                representatives of--
                            ``(i) units of local government (including 
                        multijurisdictional units of local government);
                            ``(ii) nonprofit community-based 
                        development organizations, including community 
                        development financial institutions and 
                        community development corporations;
                            ``(iii) agricultural, natural resource, and 
                        other asset-based related industries;
                            ``(iv) in the case of regions with Indian 
                        populations, Indian tribes (as defined in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 450b));
                            ``(v) regional development organizations;
                            ``(vi) private business organizations, 
                        including chambers of commerce;
                            ``(vii)(I) institutions of higher education 
                        (as defined in section 101(a) of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001(a)));
                            ``(II) tribally controlled colleges or 
                        universities (as defined in section 2(a) of 
                        Tribally Controlled College or University 
                        Assistance Act of 1978 (25 U.S.C. 1801(a))); 
                        and
                            ``(III) tribal technical institutions;
                            ``(viii) workforce and job training 
                        organizations;
                            ``(ix) cooperatives;
                            ``(x) other entities and organizations, as 
                        determined by the Regional Board; and
                            ``(xi) consortia of entities and 
                        organizations described in clauses (i) through 
                        (x);
                    ``(C) represents a region inhabited by--
                            ``(i)(I) more than 25,000 individuals, as 
                        determined in the latest available decennial 
                        census conducted under section 141(a) of title 
                        13, United States Code; or
                            ``(II) in the case of a region with a 
                        population density of less than 2 individuals 
                        per square mile, at least 10,000 individuals, 
                        as determined in that latest available 
                        decennial census;
                    ``(D) has a membership of which not less than 25 
                percent, nor more than 40 percent, represents--
                            ``(i) units of local government and Indian 
                        tribes described in clauses (i) and (iv) of 
                        subparagraph (B);
                            ``(ii) nonprofit community and economic 
                        development organizations and institutions of 
                        higher education described in clauses (ii) and 
                        (vii) of subparagraph (B); or
                            ``(iii) private business (including 
                        chambers of commerce and cooperatives) and 
                        agricultural, natural resource, and other 
                        asset-based related industries described in 
                        clauses (iii) and (vi) of subparagraph (B);
                    ``(E) has a membership that may include an officer 
                or employee of a Federal or State agency, serving as an 
                ex-officio, non-voting member of the Regional Board to 
                represent the agency; and
                    ``(F) has organizational documents that demonstrate 
                that the Regional Board shall--
                            ``(i) create a collaborative, inclusive 
                        public-private strategy process;
                            ``(ii) develop, and submit to the National 
                        Board for approval, a regional investment 
                        strategy that meets the requirements of section 
                        385F, with benchmarks--
                                    ``(I) to promote investment in 
                                rural areas through the use of grants 
                                made available under this subtitle; and
                                    ``(II) to provide financial and 
                                technical assistance to promote a 
                                broad-based community development 
                                program aimed at increasing and 
                                diversifying economic growth, improved 
                                community facilities, and improved 
                                quality of life;
                            ``(iii) implement the approved regional 
                        investment strategy;
                            ``(iv) provide annual reports to the 
                        Secretary and the National Board on progress 
                        made in achieving the benchmarks of the 
                        regional investment strategy, including an 
                        annual financial statement; and
                            ``(v) select a non-Federal organization 
                        (such as a regional development organization) 
                        in the local area served by the Regional Board 
                        that has previous experience in the management 
                        of Federal funds to serve as fiscal manager of 
                        any funds of the Regional Board.
            ``(2) Urban areas.--A resident of an urban area may serve 
        as an ex-officio member of a Regional Board.
    ``(c) Duties.--A Regional Board shall--
            ``(1) create a collaborative and inclusive planning process 
        for public-private investment within a region;
            ``(2) develop, and submit to the Secretary for approval, a 
        regional investment strategy;
            ``(3) develop approaches that will create stable resources 
        for philanthropic donations in the region, to the maximum 
        extent practicable;
            ``(4) implement an approved regional investment strategy; 
        and
            ``(5) provide annual reports to the Secretary and the 
        National Board on progress made in achieving the benchmarks of 
        the regional investment strategy, including an annual financial 
        statement.

``SEC. 385E. RURAL COLLABORATIVE INVESTMENT PROGRAM FUNDING.

    ``(a) In General.--If the Secretary approves a national strategy 
submitted by the National Board, of the funds of the Commodity Credit 
Corporation, the Secretary shall transfer to the National Board 
$100,000,000, to remain available until expended, for the Board to use 
to make strategy grants and innovation grants to Regional Boards and to 
otherwise carry out this subtitle.
    ``(b) Use by National Board.--Of the amount transferred by the 
Secretary to the National Board under subsection (a), the National 
Board shall use--
            ``(1) not more than $10,000,000 to provide strategy grants 
        to Regional Boards under section 385F;
            ``(2) not less than $72,000,000 to provide innovation 
        grants to Regional Boards under section 385G and long-term 
        loans under section 385I;
            ``(3) not more than $2,000,000 for each fiscal year to 
        administer the duties of the National Board; and
            ``(4) not more than $2,000,000 for each fiscal year to 
        administer the national institute on regional rural 
        competitiveness established under section 385C(d)(5).
    ``(c) Authorization of Appropriations.--In addition to funds 
otherwise made available to carry out this subtitle, there are 
authorized to be appropriated to the National Board such sums as are 
necessary to carry out this subtitle.

``SEC. 385F. REGIONAL INVESTMENT STRATEGY GRANTS.

    ``(a) In General.--Using such criteria for approval of grants as 
shall be established by the National Board, the National Board shall 
use amounts made available under section 385E(b)(1) to make strategy 
grant awards to Regional Boards for use in developing, maintaining, 
evaluating, implementing, and reporting progress on regional investment 
strategies in accordance with section 385D and this section.
    ``(b) Regional Investment Strategy.--A regional investment strategy 
of a Regional Board shall--
            ``(1) be maintained and updated every 3 years; and
            ``(2) provide--
                    ``(A) an assessment of the competitive advantages 
                of the region, including--
                            ``(i) an analysis of the economic 
                        conditions of the region;
                            ``(ii) an assessment of the current 
                        economic performance of the region;
                            ``(iii) a background overview of the 
                        population, geography, workforce, 
                        transportation system, resources, environment 
                        and infrastructure needs of the region; and
                            ``(iv) such other pertinent information as 
                        the Secretary or National Board may request;
                    ``(B) an analysis of regional economic and 
                community development challenges and opportunities, 
                including--
                            ``(i) incorporation of relevant material 
                        from other government-sponsored or supported 
                        strategies and consistency with applicable 
                        State, regional, and local workforce investment 
                        strategies and other comprehensive economic 
                        development strategies; and
                            ``(ii) an identification of past, present, 
                        and projected Federal and State economic and 
                        community development investments in the 
                        region;
                    ``(C) a section describing goals and objectives 
                necessary to solve regional competitiveness challenges, 
                and meet the potential, of the region;
                    ``(D) an overview for use in--
                            ``(i) establishing regional goals and 
                        objectives;
                            ``(ii) developing and implementing a 
                        regional action strategy;
                            ``(iii) identifying investment priorities 
                        and funding sources; and
                            ``(iv) identifying lead organizations to 
                        execute portions of the strategy;
                    ``(E) a discussion of the current state of 
                collaborative public, private, and nonprofit 
                participation and investment, and of the strategic 
                roles of public, private, and nonprofit entities, in 
                the development and implementation of the regional 
                investment strategy;
                    ``(F) a section identifying and prioritizing vital 
                projects, programs, and activities for consideration by 
                the National Board and other potential funders and 
                partners, including--
                            ``(i) the identification of sources of 
                        funding; and
                            ``(ii) recommendations for leveraging past 
                        and potential investments;
                    ``(G) a plan of action to implement the goals and 
                objectives of the regional investment strategy 
                (including promoting public, private, and nonprofit 
                participation and investment) to the maximum extent 
                practicable, which may include--
                            ``(i) the number and quality of jobs, 
                        including self-employment, to be created during 
                        implementation of the regional investment 
                        strategy;
                            ``(ii) the number and types of investments 
                        to be made in the region;
                            ``(iii) the growth in public, private, and 
                        nonprofit investment in the human, community, 
                        and economic assets of the region;
                            ``(iv) changes in per capita income and the 
                        rate of unemployment; and
                            ``(v) other projected changes in the 
                        economic environment of the region;
                    ``(H) a plan of action to implement the goals and 
                objectives of the regional investment strategy;
                    ``(I) a list of performance measures to be used to 
                evaluate the implementation of the regional investment 
                strategy, including--
                            ``(i) the number and quality of jobs 
                        (including self-employed positions) created 
                        after implementation of the regional investment 
                        strategy;
                            ``(ii) the number and types of investments 
                        undertaken in the region;
                            ``(iii) the growth in public, private, and 
                        nonprofit investment in the human, community, 
                        and economic assets of the region;
                            ``(iv) changes in per capita income; and
                            ``(v) changes in the economic environment 
                        of the region;
                    ``(J) a section outlining the methodology for use 
                in cooperating with, and integrating the regional 
                investment strategy with the economic priorities of, 
                the State;
                    ``(K) recommendations for enhancing and protecting 
                the environment and balancing resources through sound 
                management of physical development; and
                    ``(L) such other information as the National Board 
                and the Secretary determine to be appropriate.
    ``(c) Acceptability of Certain Strategies.--In determining whether 
a regional investment strategy prepared without the use of funds from a 
grant provided by the National Board is acceptable, the National Board 
may determine that the regional investment strategy is acceptable 
regardless of whether the regional investment strategy meets all 
requirements in accordance with standards established by the National 
Board under this section.
    ``(d) Public Participation.--In applying for and using any strategy 
grant under this section, a Regional Board shall actively seek to 
receive a broad range of opinion from a wide variety of constituencies 
within a region.
    ``(e) Maximum Amount of Grant.--The Federal share of a grant award 
provided to a Regional Board under this section shall not exceed 
$200,000.
    ``(f) Cost Sharing.--
            ``(1) In general.--Subject to paragraph (2), of the share 
        of the costs of developing, maintaining, evaluating, 
        implementing, and reporting with respect to a regional 
        investment strategy funded by a grant under this section--
                    ``(A) not more than 25 percent may be paid using 
                funds from the grant; and
                    ``(B) the remaining share shall be provided by the 
                applicable Regional Board or other eligible grantee.
            ``(2) Form.--A Regional Board or other eligible grantee 
        shall pay the share described in paragraph (1)(B) in the form 
        of cash, services, materials, or other in-kind contributions, 
        on the condition that not more than 50 percent of that share is 
        provided in the form of services, materials, and other in-kind 
        contributions.

``SEC. 385G. REGIONAL INNOVATION GRANTS.

    ``(a) Grants.--
            ``(1) In general.--The National Board shall provide, on a 
        competitive basis, regional innovation grants to Regional 
        Boards for use in implementing projects and initiatives that 
        are identified in a regional investment strategy approved under 
        section 385F.
            ``(2) Timing.--Beginning 18 months after the date of 
        enactment of the Farm, Ranch, Equity, Stewardship, and Health 
        Act of 2007, the National Board shall provide awards under this 
        section on a quarterly funding cycle.
    ``(b) Eligibility.--For a Regional Board to receive an innovation 
grant, the National Board shall determine that--
            ``(1) the regional investment strategy of a Regional Board 
        is approved by the National Board;
            ``(2) the management and organizational structure of the 
        Regional Board is sufficient to oversee grant projects, 
        including management of Federal funds; and
            ``(3) the Regional Board has outlined a strategy to 
        achieve, to the maximum extent practicable, the performance-
        based benchmarks of the project in the regional investment 
        strategy of the Regional Board.
    ``(c) Selection.--Subject to subsection (d), in providing 
innovation grants under this section, the National Board shall, to the 
maximum extent practicable, ensure that not more than 10 percent of 
funds made available to carry out this section for a fiscal year is 
provided to eligible Regional Boards any 1 State.
    ``(d) Preferences.--In providing innovation grants under this 
section, the National Board shall give--
            ``(1) a high priority to strategies that demonstrate 
        significant leverage of capital and quality job creation; and
            ``(2) a preference to an application proposing projects and 
        initiatives that would--
                    ``(A) advance the overall regional competitiveness 
                of a region;
                    ``(B) address the priorities of a regional rural 
                investment strategy, including priorities that--
                            ``(i) promote cross-sector collaboration, 
                        public-private partnerships, or provision of 
                        collaborative gap financing or seed capital for 
                        program implementation;
                            ``(ii) exhibit collaborative innovation and 
                        entrepreneurship, particularly within a public-
                        private partnership; and
                            ``(iii) represent a broad coalition of 
                        interests described in section 385D(b)(1)(A);
                    ``(C) include a strategy to leverage public non-
                Federal and private funds and existing assets, 
                including agricultural assets, natural assets, and 
                public infrastructure, with substantial emphasis placed 
                on the existence of real financial commitments to 
                leverage the available funds;
                    ``(D) create quality jobs;
                    ``(E) enhance the role, relevance, and leveraging 
                potential of community and regional foundations in 
                support of regional investment strategies;
                    ``(F) demonstrate a history, or involve 
                organizations with a history, of successful leveraging 
                of capital for economic development and public 
                purposes;
                    ``(G) address gaps in existing basic services, 
                including technology, within a region;
                    ``(H) address economic diversification, including 
                agricultural and non-agriculturally based economies, 
                within a regional framework;
                    ``(I) improve the overall quality of life in the 
                region (including with respect to education, health 
                care, housing, recreation, and arts and culture);
                    ``(J) achieve or facilitate the achievement of 
                multijurisdictional regional investment strategy and 
                development;
                    ``(K) enhance the potential to expand economic 
                development successes across diverse stakeholder groups 
                within the region;
                    ``(L) include an effective working relationship 
                with 1 or more institutions of higher education, 
                tribally controlled colleges or universities, or tribal 
                technical institutions; and
                    ``(M) help to meet the other regional 
                competitiveness needs identified by a Regional Board.
    ``(e) Uses.--
            ``(1) Leverage.--A Regional Board shall prioritize projects 
        and initiatives carried out using funds from an innovation 
        grant provided under this section, based in part on the degree 
        to which members of the Regional Board are able to leverage 
        additional funds for the implementation of the projects.
            ``(2) Purposes.--A Regional Board may use an innovation 
        grant--
                    ``(A) to support the development of critical 
                infrastructure (including technology deployment and 
                services) necessary to facilitate the competitiveness 
                of a region;
                    ``(B) to provide assistance to entities within the 
                region that provide essential public and community 
                services;
                    ``(C) to enhance the value-added production, 
                marketing, and use of agricultural and natural 
                resources within the region, including activities 
                relating to renewable and alternative energy production 
                and usage;
                    ``(D) to assist with entrepreneurship, job 
                training, workforce development, housing, educational, 
                or other quality of life services or needs, relating to 
                the development and maintenance of strong local and 
                regional economies;
                    ``(E) to assist in the development of unique new 
                collaborations that link public, private, and 
                philanthropic resources, including community 
                foundations;
                    ``(F) to provide support for business and 
                entrepreneurial investment, strategy, expansion, and 
                development, including feasibility strategies, 
                technical assistance, peer networks, and business 
                development funds;
                    ``(G) to carry out other broad activities relating 
                to strengthening the economic competitiveness of the 
                region; and
                    ``(H) to provide matching funds to enable community 
                foundations located within the region to build 
                endowments that provide stable philanthropic resources 
                to implement a regional investment strategy.
            ``(3) Availability of funds.--The funds made available to a 
        Regional Board or any other eligible grantee through an 
        innovation grant shall remain available for the 7-year period 
        beginning on the date on which the award is provided, on the 
        condition that the Regional Board or other grantee continues to 
        be certified by the National Board as making adequate progress 
        toward achieving established benchmarks.
    ``(f) Cost Sharing.--
            ``(1) In general.--Subject to paragraph (2), of the costs 
        of a project funded by an innovation grant under this section--
                    ``(A) not more than 50 percent may be paid using 
                funds from the award, as determined by the Regional 
                Board, by regulation; and
                    ``(B) the remaining share shall be provided by the 
                project applicant in the form of cash (including loans 
                that will be repaid) or services, materials, or other 
                in-kind contributions.
            ``(2) Waiver of grantee share.--The National Board may 
        waive the remaining share required to be paid under paragraph 
        (1)(B) if the National Board determines that such a waiver is 
        appropriate, including with respect to special circumstances 
        within tribal regions, in the event an area experiences--
                    ``(A) a sudden or severe economic dislocation;
                    ``(B) significant chronic unemployment or poverty;
                    ``(C) a natural disaster; or
                    ``(D) other severe economic, social, or cultural 
                duress.
            ``(3) Other federal programs.--For the purpose of 
        determining cost-sharing requirements for any other Federal 
        program, funds provided as an innovation grant under this 
        section shall be considered to be non-Federal funds.
    ``(g) Negotiation.--The National Board may--
            ``(1) negotiate with a Regional Board with respect to the 
        substance, size, and scope of a regional investment strategy; 
        and
            ``(2) approve an innovation grant in an amount that is 
        lower than the amount requested by a Regional Board.
    ``(h) Noncompliance.--If a Regional Board or other eligible grantee 
fails to comply with any requirement relating to the use of funds 
provided under this section, the National Board may--
            ``(1) take such actions as are necessary to obtain 
        reimbursement of unused grant funds; and
            ``(2) reprogram the recaptured funds for purposes relating 
        to implementation of this subtitle.
    ``(i) Amount of Award.--
            ``(1) Maximum amount.--During any 5-year period, a regional 
        rural collaborative investment council may receive not more 
        than $2,500,000 in innovation grants under this section.
            ``(2) Determination of amount.--The National Board shall 
        determine the amount of an innovation grant based on--
                    ``(A) the needs of the region being addressed by 
                the applicable regional investment strategy; and
                    ``(B) the size of the geographical area of the 
                region.
    ``(j) Priority to Areas With Awards and Approved Strategies.--
            ``(1) In general.--Subject to paragraph (3), in providing 
        rural development assistance under other Federal programs, the 
        Secretary shall give a high priority to areas that receive 
        innovation grants under this section.
            ``(2) Consultation.--The Secretary shall consult with the 
        heads of other Federal agencies to promote the development of 
        priorities similar to those described in paragraph (1).
            ``(3) Exclusion of certain programs.--Paragraph (1) shall 
        not apply to the provision of rural development assistance 
        under any Federal program relating to basic health, safety, or 
        infrastructure, including broadband deployment or minimum 
        environmental needs.
    ``(k) Acceptability of Certain Strategies.--
            ``(1) In general.--In determining whether a regional 
        investment strategy prepared without the use of funds from a 
        grant provided under this subtitle is acceptable, the National 
        Board may determine the strategy is acceptable regardless of 
        whether the strategy meets all requirements under this section.
            ``(2) Considerations.--In making a determination under 
        paragraph (1), the National Board shall consider the 
        circumstances surrounding any application for an innovation 
        grant under section 385G relating to any project or initiative 
        under the strategy, including emergencies and natural 
        disasters.
            ``(3) Consistency and coordination.--To the maximum extent 
        practicable, a regional investment strategy shall be consistent 
        and coordinated with any existing comprehensive regional 
        economic development strategy for the region.

``SEC. 385H. SMALL-AREA COLLABORATIVE PARTNERSHIP GRANTS.

    ``(a) Grants.--Using such criteria for the approval of grants as 
the National Board shall establish based on the criteria for innovation 
grants, the National Board shall use not more than 5 percent of the 
amounts made available for each fiscal year under section 385E(a) to 
provide, on a competitive basis, small-area collaborative partnership 
grants to small-area collaborative partnerships.
    ``(b) Use of Funds.--A small-area collaborative partnership that 
receives a grant under this section shall use the grant--
            ``(1) to provide educational and technical assistance to 
        energize microenterprise and small business development and 
        entrepreneurship that create quality jobs and opportunities for 
        self-employment;
            ``(2) to provide technical assistance to facilitate small 
        business transfer from retiring to new owners;
            ``(3) to facilitate collaborative initiatives to enable 
        microenterprises to jointly access and secure non-local markets 
        for products and services;
            ``(4) to develop the leadership abilities of community 
        members (including youths) to enhance the capacity of the 
        community for development;
            ``(5) to attract and retain residents;
            ``(6) to undertake initiatives to use access to natural 
        space, and other natural resource-based strategies--
                    ``(A) to attract residents; and
                    ``(B) to provide the basis for tourism-related 
                businesses;
            ``(7) to build community endowments to support programs--
                    ``(A) to generate and retain wealth;
                    ``(B) to energize microenterprise and small 
                business development;
                    ``(C) to develop leadership capacity; and
                    ``(D) to engage youths and attract and retain 
                residents;
            ``(8) to foster revitalization of historical, cultural, and 
        heritage assets to enhance community revitalization; and
            ``(9) to achieve such other purposes as the National Board 
        determines to be consistent with the purposes of this section.
    ``(c) Availability and Maximum Amount of Grants.--A grant provided 
to a small-area collaborative partnership under this section--
            ``(1) shall not exceed $150,000; and
            ``(2) shall be available for not more the 3-year period 
        beginning on the date on which the grant is provided.
    ``(d) Matching Funds.--A small-area collaborative partnership that 
receives a grant under this section shall provide a matching share 
equal to at least 25 percent of the amount of the grant.
    ``(e) Administration.--In carrying out this section, the National 
Board--
            ``(1) shall provide grants to small-area collaborative 
        partnerships that the National Board determines would best 
        assist in achieving the purposes of this section (other than 
        areas for which an innovation grant is received under section 
        385G);
            ``(2) shall ensure, to the maximum extent practicable, that 
        the recipients of those grants include small-area collaborative 
        partnerships representing communities composed of racially- and 
        ethnically-diverse populations; and
            ``(3) may use not more than 5 percent of the amounts made 
        available to carry out this section to provide assistance to 
        nonprofit organizations, educational institutions, and units of 
        government for use in--
                    ``(A) conducting outreach to communities 
                participating in the grant program under this section; 
                and
                    ``(B) providing technical assistance in developing 
                proposals for the use of grant funds.

``SEC. 385I. RURAL ENDOWMENT GRANTS PROGRAM.

    ``(a) In General.--The Secretary or National Board, as appropriate, 
may provide long-term loans to eligible community foundations to assist 
in the implementation of regional investment strategies.
    ``(b) Eligible Community Foundations.--To be eligible to receive a 
loan under this section, a community foundation shall--
            ``(1) be located in an area that is covered by a regional 
        investment strategy;
            ``(2) match the amount of the loan with an amount that is 
        at least 250 percent of the amount of the loan; and
            ``(3) use the loan and the matching amount to carry out the 
        regional investment strategy, including through the development 
        of a community endowment through a community foundation 
        targeted to community economic development.
    ``(c) Terms.--A loan made under this section shall--
            ``(1) have a term of not less than 10, nor more than 20, 
        years;
            ``(2) bear an interest rate of 1 percent per annum; and
            ``(3) be subject to such other terms and conditions as are 
        determined appropriate by the Secretary.
    ``(d) Funding.--
            ``(1) In general.--The National Board shall use not more 
        than 5 percent of the amounts received from the Secretary under 
        section 385E(b) to make loans under this section.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this section such sums as are necessary for each of fiscal 
        years 2008 through 2013.''.

                          TITLE VII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 7001. COMMUNITY FOREST LAND PROGRAM.

    Section 7 of the Cooperative Forestry Assistance Act of 1978 (7 
U.S.C. 2103c) is amended--
            (1) in subsection (l)(2)(A), by striking ``subsection (m)'' 
        and inserting ``subsection (n)'';
            (2) by redesignating subsection (m) as subsection (n); and
            (3) by inserting after subsection (l) the following:
    ``(m) Community Forest Land Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Community forest land.--The term `community 
                forest land' means any parcel of land that is--
                            ``(i) forested; and
                            ``(ii) located, as determined by the 
                        Secretary, within, or in close proximity to a 
                        population center.
                    ``(B) Unit of local government.--The term `unit of 
                local government' means--
                            ``(i) a town or city government entity; and
                            ``(ii) any other local government entity.
            ``(2) Purposes.--The purposes of this subsection are--
                    ``(A) to protect environmentally important 
                community forest land;
                    ``(B) to facilitate land use planning by units of 
                local government; and
                    ``(C) to facilitate the donation, acceptance, and 
                enforcement of conservation easements on community 
                forest land.
            ``(3) Establishment.--The Secretary, in coordination with 
        the States, shall offer to units of local government in 
        priority areas (as determined by the Secretary)--
                    ``(A) financial assistance to purchase, and to 
                facilitate the donation, acceptance, and enforcement 
                of, conservation easements on, or to otherwise acquire, 
                community forest land; and
                    ``(B) technical assistance to facilitate--
                            ``(i) improved conservation and management 
                        of community forest land;
                            ``(ii) training activities relating to that 
                        conservation and management; and
                            ``(iii) other appropriate forest 
                        conservation activities, as determined by the 
                        Secretary.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $65,000,000 for 
        each of fiscal years 2008 through 2012.''.

          Subtitle B--Healthy Forests Restoration Act of 2003

SEC. 7101. HEALTHY FORESTS RESERVE PROGRAM.

    (a) Enrollment of Land in Program.--Section 502 of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6572) is amended--
            (1) by striking subsection (e);
            (2) in subsection (f)(1), by striking subparagraph (C) and 
        inserting the following:
                    ``(C) a permanent easement.''; and
            (3) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.
    (b) Funding.--Section 508 of the Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6578) is amended to read as follows:

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

    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this title $25,000,000 for each of 
fiscal years 2008 through 2014, to remain available until expended.
    ``(b) Section 11 Cap.--The use of Commodity Credit Corporation 
funds under subsection (a) to provide technical assistance under the 
healthy forests reserve program shall not be considered an allotment or 
fund transfer from the Commodity Credit Corporation for purposes of the 
limitation on expenditures for technical assistance imposed by section 
11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).''.

                           TITLE VIII--ENERGY

SEC. 8001. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    Section 9002(k)(2)(A) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(k)(2)(A)) is amended by striking ``2007'' and 
inserting ``2014''.

SEC. 8002. BIOREFINERY DEVELOPMENT GRANTS.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended--
            (1) in the section heading, by striking ``grants'';
            (2) by striking subsection (c) and inserting the following:
    ``(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 the cost of 
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 1 or more processes for converting biomass to fuels or 
chemicals.'';
            (3) in subsection (d), by striking ``a grant'' and 
        inserting ``assistance'';
            (4) in subsection (e)--
                    (A) by striking ``grants'' each place it appears 
                and inserting ``assistance''; and
                    (B) in paragraph (2)(A)--
                            (i) in clause (i), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (ii) as clause 
                        (iii); and
                            (iii) by inserting after clause (i) the 
                        following:
                            ``(ii) shall select projects based on the 
                        extent to which the projects meet environmental 
                        goals for feedstocks and biorefineries, 
                        including goals relating 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''; and
            (5) by striking subsection (h) and inserting the following:
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section, to remain available 
until expended--
            ``(1) $50,000,000 for each of fiscal years 2008 and 2009; 
        and
            ``(2) $75,000,000 for each of fiscal years 2010 through 
        2014.''.

SEC. 8003. RURAL ENERGY INNOVATION PROGRAM.

    Section 9005 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8105) is amended--
            (1) by striking the section heading and inserting ``rural 
        energy innovation program.'';
            (2) in subsection (a), by striking ``a program'' and 
        inserting ``an energy technical assistance program'';
            (3) in subsection (b), by striking paragraphs (5) and (6) 
        and inserting the following:
            ``(5) a nonprofit organization (including an agricultural 
        trade association, resource conservation and development 
        district, and energy service provider);
            ``(6) a State environmental quality department; and
            ``(7) any other entity, as determined by the Secretary.'';
            (4) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Selection criteria.--In reviewing applications of 
        eligible entities to receive grants under subsection (a), the 
        Secretary shall consider--
                    ``(A) the ability and expertise of the eligible 
                entity in providing professional energy efficiency 
                audits, renewable energy assessments, environmental 
                management system plans, and assessments of fertilizer, 
                pesticide, or diesel use efficiency;
                    ``(B) the geographical scope of the program 
                proposed by the eligible entity;
                    ``(C) the percentage of farmers, ranchers, and 
                rural small businesses to be assisted by the program in 
                the service territory covered by the eligible entity;
                    ``(D) the potential for energy savings and 
                environmental and public health benefits resulting from 
                the program;
                    ``(E) the plan of the eligible entity for providing 
                information to farmers, ranchers, and rural small 
                businesses on the benefits of energy efficiency and 
                renewable energy development;
                    ``(F) demonstration of multistakeholder 
                collaborations;
                    ``(G) demonstration of matching funds; and
                    ``(H) clear performance metrics.'';
            (5) by striking subsection (d) and inserting the following:
    ``(d) Use of Grant Funds.--
            ``(1) Required uses.--A recipient of a grant under 
        subsection (a) shall use the grant funds--
                    ``(A) to conduct and promote--
                            ``(i) energy audits;
                            ``(ii) assessments of fertilizer, 
                        pesticide, or diesel use efficiency;
                            ``(iii) renewable energy assessments; or
                            ``(iv) environmental management system 
                        planning;
                    ``(B) to make farmers, ranchers, and rural small 
                businesses aware of and able to apply for and ensure 
                access to--
                            ``(i) financial assistance under section 
                        9006; and
                            ``(ii) other Federal, State, and local 
                        financial assistance programs for which 
                        farmers, ranchers, and rural small businesses 
                        may be eligible; or
                    ``(C) to employ staff that--
                            ``(i) serve as central points of contact 
                        for farmers, ranchers and rural businesses 
                        seeking to evaluate energy practices and 
                        technologies; and
                            ``(ii) are properly trained to collect data 
                        for audits and renewable energy assessments.
            ``(2) Permitted uses.--A recipient of a grant may use funds 
        to finance--
                    ``(A) in partnership with the private sector, 
                agricultural demonstrations to demonstrate cost-
                effective high efficiency equipment and energy 
                management practices such as precision agriculture, 
                proper tire tractor inflation, and conservation 
                tillage; and
                    ``(B) educational workshops on different clean 
                energy technologies and techniques.'';
            (6) in subsection (e)--
                    (A) by striking ``an energy audit'' and inserting 
                ``energy technical assistance'';
                    (B) by striking ``the energy audit'' and inserting 
                ``the energy technical assistance''; and
                    (C) by striking ``the audit'' and inserting ``the 
                technical assistance'';
            (7) in subsection (h), by striking ``this Act'' and 
        inserting ``Farm, Ranch, Equity, Stewardship, and Health Act of 
        2007''; and
            (8) by striking subsection (i) and inserting the following:
    ``(i) Limitation.--A recipient of a grant under subsection (a) may 
receive no more than $250,000 in any 1 grant cycle.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $5,000,000 for fiscal year 2008;
                    ``(B) $10,000,000 for fiscal year 2009;
                    ``(C) $15,000,000 for fiscal year 2010;
                    ``(D) $20,000,000 for fiscal year 2011; and
                    ``(E) $25,000,000 for each of fiscal years 2012 
                through 2014.
            ``(2) Use of certain funds.--The Secretary may use not more 
        than 10 percent of amounts made available under paragraph (1) 
        to--
                    ``(A) increase or modify energy technical 
                assistance programs funded under this section; or
                    ``(B) develop training programs that enable 
                administrators of existing technical assistance 
                programs to help other eligible entities establish 
                technical assistance programs.''.

SEC. 8004. RURAL ENERGY FOR AMERICA PROGRAM.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106)) is amended--
            (1) by striking the section enumerator and heading and 
        inserting the following:

``SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.'';

            (2) in subsection (a)--
                    (A) by inserting ``, and issue rebates,'' after 
                ``grants''; and
                    (B) by inserting ``rural school districts,'' after 
                ``ranchers,'';
            (3) by striking subsection (f);
            (4) by redesignating subsection (e) as subsection (h);
            (5) by inserting after subsection (d) the following:
    ``(e) Production-Based Incentive in Lieu of Grant.--
            ``(1) In general.--In addition to the authority under 
        subsection (a), to encourage the production of electricity from 
        renewable energy systems, the Secretary shall, on the request 
        of an eligible applicant under this section, make production-
        based payments to the applicant in lieu of a grant.
            ``(2) Contingency.--Payments under paragraph (1) shall be 
        contingent on documented energy production and sales from the 
        renewable energy system to a third party.
            ``(3) Limitation.--The total net present value of a 
        production-based incentive may not exceed the lower of--
                    ``(A) 25 percent of the eligible project costs; and
                    ``(B) any other limits that the Secretary 
                establishes by rule or guidance.
    ``(f) Feasibility Studies.--
            ``(1) In general.--The Secretary may provide assistance to 
        eligible applicants to conduct feasibility studies of projects 
        for which assistance may be provided under this section.
            ``(2) Limitation.--The Secretary shall use not more than 10 
        percent of funds made available to carry out this section to 
        provide assistance described in paragraph (1).
            ``(3) Criteria.--The Secretary shall, by regulation, 
        establish criteria for the receipt of assistance under this 
        subsection.
            ``(4) Avoidance of duplicative assistance.--An applicant 
        that receives assistance to carry out a feasibility study for a 
        project under this subsection shall not be eligible for 
        assistance to carry out a feasibility study for the project 
        under any other provision of Federal law.
            ``(5) Matching funds.--To be eligible for assistance under 
        this subsection, a recipient of funds under this subsection 
        shall contribute an amount of non-Federal funds that is equal 
        to at least 75 percent of the amount of Federal funds received.
    ``(g) Rebate Program.--
            ``(1) In general.--The Secretary shall make competitive 
        grants to eligible entities to provide rebates for farmers, 
        ranchers, rural school districts, and rural small businesses to 
        purchase renewable energy systems and make energy efficiency 
        improvements.
            ``(2) Eligible entities.--To be eligible to receive a grant 
        under paragraph (1), an entity shall be--
                    ``(A) a State energy or agricultural office;
                    ``(B) a nonprofit State-based energy efficiency or 
                renewable energy organization that uses public funds 
                provided directly or under contract with a State 
                agency;
                    ``(C) any other nonprofit organization with a 
                demonstrated ability to administer a State-wide energy 
                efficiency or renewable energy rebate program; or
                    ``(D) a consortium of entities described in 
                subparagraphs (A) through (C).
            ``(3) Merit review.--
                    ``(A) In general.--The Secretary shall establish a 
                merit review process to review applications for grants 
                under paragraph (1) that uses the expertise of the 
                Department of Agriculture, other Federal and State 
                agencies, and nongovernmental organizations.
                    ``(B) Requirements.--In reviewing the application 
                of an eligible entity to receive a grant under 
                paragraph (1), the Secretary shall consider--
                            ``(i) the experience and expertise of the 
                        entity in establishing and administering a 
                        statewide clean energy rebate program;
                            ``(ii) the annual projected energy savings 
                        or production increases resulting from the 
                        proposed program;
                            ``(iii) the environmental benefits 
                        resulting from the proposed program; and
                            ``(iv) other appropriate factors, as 
                        determined by the Secretary.
            ``(4) Maintenance of effort.--An entity that receives a 
        grant under paragraph (1) shall provide assurances to the 
        Secretary that funds provided to the entity under this 
        subsection will be used to supplement, not to supplant, the 
        amount of Federal, State, and local funds otherwise expended 
        for rebate programs.
            ``(5) Rebate amount.--The amount of a rebate provided from 
        a grant under this subsection shall not exceed the lower of--
                    ``(A) $10,000; or
                    ``(B) 50 percent of the cost incurred to purchase a 
                renewable energy system or an energy efficiency 
                improvement, as determined by the Secretary.''; and
            (6) by adding at the end the following:
    ``(i) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section, to remain 
available until expended--
            ``(1) $60,000,000 for fiscal year 2008, of which not more 
        than $12,000,000 shall be used to carry out subsection (g);
            ``(2) $90,000,000 for fiscal year 2009, of which not more 
        than $18,000,000 shall be used to carry out subsection (g);
            ``(3) $130,000,000 for fiscal year 2010, of which not more 
        than $26,000,000 shall be used to carry out subsection (g);
            ``(4) $180,000,000 for fiscal year 2011, of which not more 
        than $36,000,000 shall be used to carry out subsection (g); and
            ``(5) $200,000,000 for each of fiscal years 2012 through 
        2014, of which not more than $50,000,000 shall be used to carry 
        out subsection (g).''.

SEC. 8005. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Distribution of Funding by and Within Each Technical Area.--
Section 307(g) of the Biomass Research and Development Act of 2000 (7 
U.S.C. 8606(g)) is amended in paragraphs (2) and (3) by striking 
``2010'' each place it appears and inserting ``2014''.
    (b) Funding.--Section 310 of the Biomass Research and Development 
Act of 2000 (7 U.S.C. 8609) is amended to read as follows:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section, to remain available 
until expended--
            ``(1) $100,000,000 for each of fiscal years 2008 through 
        2012; and
            ``(2) $200,000,000 for each of fiscal years 2013 through 
        2014.
    ``(b) Authorization of Appropriations.--In addition to amounts 
transferred under subsection (a), there is authorized to be 
appropriated to carry out this title $200,000,000 for each of fiscal 
years 2006 through 2015, to remain available until expended.''.

             TITLE IX--USE OF SAVINGS FOR DEFICIT REDUCTION

SEC. 9001. SENSE OF CONGRESS REGARDING USE OF SAVINGS FOR DEFICIT 
              REDUCTION.

    It is the sense of Congress that any budgetary savings created 
through the implementation of this Act should be used to reduce the 
Federal budget deficit and not be used to offset other Federal 
spending.
                                 <all>