1.Short
title; table of contents
(a)This Act may be cited
as the Beginning Farmer and Rancher
Opportunity Act of 2011
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Conservation
Subtitle A—Conservation reserve program
Sec. 101. Extension of conservation reserve
program.
Sec. 102. Contracts.
Subtitle B—Farmland protection program
Sec. 111. Farmland protection program.
Subtitle C—Environmental quality incentives
program
Sec. 121. Establishment and administration of environmental
quality incentives program.
Sec. 122. Conservation innovation grants and
payments.
Subtitle D—Funding and administration
Sec. 131. Funding of conservation programs under Food Security
Act of 1985.
Sec. 132. Assistance to certain farmers or ranchers for
conservation access.
Sec. 133. Comprehensive conservation planning.
TITLE II—Credit
Subtitle A—Farm ownership loans
Sec. 201. Direct farm ownership experience
requirement.
Sec. 202. Conservation loan and loan guarantee
program.
Sec. 203. Loan terms for down payment loan program.
Sec. 204. Definition of qualified beginning farmer or
rancher.
Subtitle B—Operating loans
Sec. 211. Young beginning farmer or rancher
microloans.
Subtitle C—Administrative provisions
Sec. 221. Beginning farmer and rancher individual development
accounts pilot program.
Sec. 222. Transition to private commercial or other sources of
credit.
Sec. 223. Loan authorization levels.
Sec. 224. Direct loans for beginning farmers and
ranchers.
Sec. 225. Borrower training.
TITLE III—Rural development
Sec. 301. Value-added producer grants.
Sec. 302. Use of loans and grants for entrepreneurial farm
enterprises.
TITLE IV—Research, education, and extension
Sec. 401. Beginning farmer and rancher development
program.
Sec. 402. Agriculture and Food Research Initiative.
TITLE V—Crop insurance
Sec. 501. Sense of Congress on beginning farmer and rancher
access to crop and revenue insurance.
Sec. 502. Risk management partnership programs.
TITLE VI—Miscellaneous
Sec. 601. Small and beginning farmer and rancher
coordinators.
Sec. 602. Military Veterans Agricultural Liaison.
Sec. 603. Budgetary effects.
Sec. 604. Effective date.
<enum>I</enum><header>Conservation</header>
<subtitle id="id88997038DEC34DBC84C17141D06B788B"><enum>A</enum><header>Conservation
reserve program</header>
<section id="id7AE5828592B44F1380B42E0F804E3E9B" section-type="subsequent-section"><enum>101.</enum><header>Extension of
conservation reserve program</header>
<subsection id="HDE971A3056544554B216FA817DB6EF2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1231(a) of
the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection commented="no" id="HE3F9534FB8A34B38BF293142FDD0EA47"><enum>(b)</enum><header>Land eligible
for enrollment in conservation reserve</header><text display-inline="yes-display-inline">Section 1231(b)(1)(B) of the Food Security
Act of 1985 (16 U.S.C. 3831(b)(1)(B)) is amended by striking <quote>Food,
Conservation, and Energy Act of 2008</quote> and inserting <quote><short-title>Beginning Farmer and Rancher Opportunity Act of
2011</short-title></quote>.</text>
</subsection><subsection id="H6ADC738868E44EFF91FFD45528BF1ED1"><enum>(c)</enum><header>Maximum
enrollment of acreage in conservation reserve</header><text display-inline="yes-display-inline">Section 1231(d) of the Food Security Act of
1985 (16 U.S.C. 3831(d)) is amended—</text>
<paragraph id="id42F7BAE26C2B4092AAEEF4E69EE86DCF"><enum>(1)</enum><text>by striking the
first sentence; and</text>
</paragraph><paragraph id="H3B672D29CA874F178DF17EFB00E1EE25"><enum>(2)</enum><text>in the second
sentence, by striking <quote>2010, 2011, and 2012</quote> and inserting
<quote>2010 through 2017</quote>.</text>
</paragraph></subsection><subsection id="H83A28E06851D41F6BBCF328DA683164D"><enum>(d)</enum><header>Pilot program
for enrollment of wetland and buffer acreage in conservation
reserve</header><text display-inline="yes-display-inline">Section 1231B of the
Food Security Act of 1985 (16 U.S.C. 3831b) is amended—</text>
<paragraph id="idCBD05CE220B14BCE9788694D96F68BF7"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking
<quote>2012</quote> and inserting <quote>2017</quote>; and</text>
</paragraph><paragraph commented="no" id="idE485BE4692A64A64B4103DCE134CA2D1"><enum>(2)</enum><text>in subsection
(b)(1)(C), by striking <quote>2002 through 2007</quote> and inserting
<quote>2008 through 2012</quote>.</text>
</paragraph></subsection></section><section id="idFED043A66A51477F9940F46AC9FEBF03" section-type="subsequent-section"><enum>102.</enum><header>Contracts</header><text display-inline="no-display-inline">Section 1235 of the Food Security Act of
1985 (16 U.S.C. 3835) is amended—</text>
<paragraph id="id1B2CB8C9549A40DD9B80F9670DB98E14"><enum>(1)</enum><text>in subsection
(c)(1)(B), by striking clause (iii) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id794F5160E045411E89D2E2494A0597E6" style="OLC">
<clause id="ID1f28d82a538a4677ba8db20e9ad050fc"><enum>(iii)</enum><text>to facilitate a
transition of land subject to the contract from a retired or retiring owner or
operator to a beginning farmer or rancher, socially disadvantaged farmer or
rancher, or limited resource farmer or rancher who is or will be actively
engaged in farming or ranching with respect to the land transferred under this
subsection for the purpose of returning some or all of the land into production
using sustainable grazing or crop production methods that meet or exceed the
resource management system quality criteria for erosion, soil quality, water
quality, and fish and wildlife; or</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id058D4039134844BD91CA8B79FCAA5889"><enum>(2)</enum><text>in subsection
(f)(1)—</text>
<subparagraph id="id6389E24B3A64456E8D4CF5757BF0B9B1"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>or socially disadvantaged farmer
or rancher</quote> and inserting <quote>socially disadvantaged farmer or
rancher, or limited resource farmer or rancher who is or will be actively
engaged in farming or ranching with respect to the land transferred under this
subsection</quote>; and</text>
</subparagraph><subparagraph id="id4032E0EC3A124F598735D999865314D0"><enum>(B)</enum><text>by striking
subparagraphs (C), (D), and (E) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idE3BA536628FE49AEA85811E0339AB016" style="OLC">
<subparagraph id="ID5ec03243e4cd4d2e82472e960b76a751"><enum>(C)</enum><text>require the
covered farmer or rancher to develop and implement a comprehensive conservation
plan that addresses all resource concerns and meets such sustainability
criteria as the Secretary may establish;</text>
</subparagraph><subparagraph id="ID86bcd30cc5b74ed190bc2155fef7dd74"><enum>(D)</enum><text>provide to the
covered farmer or rancher an opportunity to enroll in the conservation
stewardship program or the environmental quality incentives program at any time
beginning on the date that is 1 year before the date of termination of the
contract, including technical and financial assistance in the development of a
comprehensive conservation plan;</text>
</subparagraph><subparagraph id="IDc3c6115849b14c0a9ef29747e226bda1"><enum>(E)</enum><text>if the land
transferred under this subsection remains in grass cover, provide to the
covered farmer or rancher an opportunity to enroll in a long-term or permanent
easement under the grassland reserve program or farmland protection program at
any time beginning on the date that is 1 year before the date of termination of
the contact; and</text>
</subparagraph><subparagraph id="ID18d2e33782304ce9af418a70eec2e2cd"><enum>(F)</enum><text>continue to make
annual payments to the retired or retiring owner or operator for not more than
an additional 2 years after the date of termination of the contract, except
that, in the case of a retired or retiring owner or operator who is a family
member (as defined in section 1001) of the covered farmer or rancher, the
additional payments shall be made only if title to the land is sold or
transferred to the covered farmer or rancher on termination of the
contract.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section></subtitle><subtitle id="idB2F289EEDBED411491950B4E44D3CC90"><enum>B</enum><header>Farmland
protection program</header>
<section id="ID412b66ef5b76435186e2a702ea6f02dd"><enum>111.</enum><header>Farmland
protection program</header><text display-inline="no-display-inline">Section
1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is amended—</text>
<paragraph id="idE733DD7DF3604B01BE0BBDE98DD2BD89"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b), by inserting <quote>to
promote farm viability for future generations</quote> before the period at the
end; and</text>
</paragraph><paragraph id="id11D75310A03A492EA0CB7F7F487B655F"><enum>(2)</enum><text>in subsection
(g)(4)—</text>
<subparagraph id="ID038c82750a6f4421bfefd557ad00ec6e"><enum>(A)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="ID5f53dc8921ed4d82be11bf7fb1fb9ed1"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (D); and</text>
</subparagraph><subparagraph id="ID695116dfd08447208b9484c3931ec03c"><enum>(C)</enum><text>by inserting
after subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="idF5BED1C5C221487380C4C470D7A38235" style="OLC">
<subparagraph id="id2DDCF0364D534E50A0DF98739220C54F"><enum>(C)</enum><text>provide a funding
priority, to the maximum extent practicable, for—</text>
<clause id="ID77c6cc09a5e94cb68fcc57cce57d4de2"><enum>(i)</enum><text>eligible land for
which there exists a farm or ranch succession plan or similar plan established
to create opportunities for beginning farmers and ranchers and encourage farm
viability for future generations;</text>
</clause><clause id="ID257c09aeaa034e9bb43a898d709386e0"><enum>(ii)</enum><text>easements that
exercise an option to purchase at a price that is equal to the agricultural use
value;</text>
</clause><clause id="ID76f116af857a4e8ea86df5e21d7dd82c"><enum>(iii)</enum><text>qualified
beginning farmers or ranchers with contracts to purchase the land to be
protected;</text>
</clause><clause id="ID87fef401adc1468fb16d735a7d5d2900"><enum>(iv)</enum><text>land owned by a
nongovernmental organization that will be sold to a qualified beginning farmer
or rancher;</text>
</clause><clause id="IDd3f16a349cac401e9cc4368a06541648"><enum>(v)</enum><text>contemporaneous
farm transfers of eligible land to qualified beginning farmers and ranchers
that may not occur without the financial assistance of the program; and</text>
</clause><clause id="ID3fd1024158944e1bb6a61ca90cf059b3"><enum>(vi)</enum><text>other similar
mechanisms to maintain the affordability of farm and ranch land for successive
generations of farmers and ranchers;
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section></subtitle><subtitle id="idAF09B1F901B34B8CBB64F5423FA06698"><enum>C</enum><header>Environmental
quality incentives program</header>
<section id="H6EC5190BFF094A3F8EBE7400040179C5"><enum>121.</enum><header>Establishment
and administration of environmental quality incentives program</header><text display-inline="no-display-inline">Section 1240B of the Food Security Act of
1985 (16 U.S.C. 3839aa–2) is amended—</text>
<paragraph id="id3F2FA1A4E59943ED85CEF48A5E531B41"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>2012</quote> and inserting <quote>2017</quote>;</text>
</paragraph><paragraph id="idB7F53624C7D443A9A40B3FE7C209123B"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)(4)(B), by striking
<quote>30 percent</quote> and inserting <quote>50 percent</quote>; and</text>
</paragraph><paragraph id="id450B1E737A88470E9BAB3FFBCE9C9376"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (f), by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</paragraph></section><section id="H0B228BAD66EA4AAB920074F573CEF723"><enum>122.</enum><header>Conservation
innovation grants and payments</header><text display-inline="no-display-inline">Section 1240H of the Food Security Act of
1985 (16 U.S.C. 3839aa–8) is amended—</text>
<paragraph id="id53526A357D3B45F7A690019781174B9F"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(2)—</text>
<subparagraph id="id63C0B61345BF48BAA93FFB1AE7F88C5D"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking <quote>;
and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="id61BE3BF097D4462192818EE462FFDC58"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking the period
at the end and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="id9C12B72C0F49420EA89B3E3BB934BC21"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB5D3C644B76249CBAC6926B63C985F30" style="OLC">
<subparagraph id="id08E844C80D824B54A7D2039EB500F579"><enum>(E)</enum><text display-inline="yes-display-inline">provide environmental and resource
conservation benefits through increased participation by beginning farmers and
ranchers and socially disadvantaged farmers and
ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id4391F70FC1714C68B6B97FF8E2794F42"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</paragraph></section></subtitle><subtitle id="idAC4E595DD3804BD788E58294E7EFDD9B"><enum>D</enum><header>Funding and
administration</header>
<section commented="no" display-inline="no-display-inline" id="HEAB4A89958094C0CBF539C24ACB3A1F5" section-type="subsequent-section"><enum>131.</enum><header>Funding of
conservation programs under Food Security Act of 1985</header>
<subsection id="id398AF8490758440C8A41A4445287C052"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="id2F62818215664B8DBF2DBB52517AE560"><enum>(b)</enum><header>Conservation
reserve program</header><text display-inline="yes-display-inline">Section
1241(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(1)) is amended
by striking <quote>2012</quote> each place it appears and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="H4ACE64CA888E4B948B8DA1E9FB3C2185"><enum>(c)</enum><header>Environmental
quality incentives program</header><text>Section 1241(a)(6)(E) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)(6)(E)) is amended by striking
<quote>fiscal year 2012</quote> and inserting <quote>each of fiscal years 2012
through 2017</quote>.</text>
</subsection></section><section id="H1842CBAF4E4D4ECB9224FD00308F3676"><enum>132.</enum><header>Assistance to
certain farmers or ranchers for conservation access</header><text display-inline="no-display-inline">Section 1241(g) of the Food Security Act of
1985 (16 U.S.C. 3841(g)) is amended—</text>
<paragraph id="id6CAF542501614173B0DFF29252434DED"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph id="id0B5B227CA6944E4DA51CD5FB1DC79103"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>2012</quote> and
inserting <quote>2017</quote>; and</text>
</subparagraph><subparagraph id="id377508F0A8A8448D87A46BF8D26A54E8"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>5 percent</quote> each
place it appears and inserting <quote>10 percent</quote>;</text>
</subparagraph></paragraph><paragraph id="id2FC303D34E5F4286A8DBCF66D59894DF"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>(but not earlier than 120 days after the date that funding
for the fiscal year is allocated to the States)</quote> after
<quote>Secretary</quote>;</text>
</paragraph><paragraph id="id25D24F7CA8FD4D7AB326146F57DCC174"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>(but not earlier than 120 days after the date that acres
for the fiscal year are allocated to the States)</quote> after
<quote>Secretary</quote>; and</text>
</paragraph><paragraph id="id3EEE1FB7D76B4FC38B501886120E5903"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id15883F590ACA484A8588A5B9CB7620B8" style="OLC">
<paragraph id="ID37a4320635984e7a8b949dedd95d8ddc"><enum>(4)</enum><header>Participation
by beginning and socially disadvantaged farmers and
ranchers</header><text>Nothing in this subsection prohibits beginning or
socially disadvantaged farmers or ranchers from participating in programs and
receiving funding available under this title that is not reserved under
paragraph (1).</text>
</paragraph><paragraph id="ID20f008b2919a41179024829daa6e4b81"><enum>(5)</enum><header>Technical
assistance</header><text>Within the funds reserved under paragraph (1), the
Secretary shall allocate to the Natural Resources Conservation Service funding
for technical assistance at a rate that is not more than 10 percent higher than
the rate that would otherwise apply to allow the Service to provide additional
technical assistance to beginning farmers or ranchers and socially
disadvantaged farmers or ranchers to establish conservation
plans.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id415D9D1DA6244AE4A80F2A2740881B4F"><enum>133.</enum><header>Comprehensive
conservation planning</header><text display-inline="no-display-inline">Section
1244(a) of the Food Security Act of 1985 (16 U.S.C. 3844(a)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id506386C62BE245B79AB597E8005A217B" style="OLC">
<paragraph id="ID0d82cd816a1844829bb50ef3b655af68"><enum>(3)</enum><header>Comprehensive
conservation planning</header><text>In carrying out this subsection, the
Secretary shall provide technical and financial assistance using resources
available under the environmental quality incentives program, conservation
stewardship program, or such other programs as the Secretary may determine to
covered persons who request the assistance to develop a comprehensive
conservation plan for the farming or ranching operation of the covered
person.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>II</enum><header>Credit</header>
<subtitle id="id8EBF00F033C2429FB02ED451381E43FE"><enum>A</enum><header>Farm ownership
loans</header>
<section id="id01CC7748F00F49FE9057D661E47395C5"><enum>201.</enum><header>Direct farm
ownership experience requirement</header><text display-inline="no-display-inline">Section 302(b)(1) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1922(b)) is amended by striking <quote>3
years</quote> and inserting <quote>2 years</quote>.</text>
</section><section id="HA70B2B97DB234438988300A9E5818070"><enum>202.</enum><header>Conservation
loan and loan guarantee program</header><text display-inline="no-display-inline">Section 304 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1924) is amended—</text>
<paragraph id="id8617E983071A46EAB27158CDBCDEBA85"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(2)—</text>
<subparagraph id="idD56E22AE71AD4F22AA7882E72E8BA999"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>shall meet</quote> and
inserting “shall—</text>
<quoted-block display-inline="no-display-inline" id="id59078B3931FC4BFCB70431343454333D" style="OLC">
<subparagraph id="idCB2050ED7FCB4D5CAC2AA0FA9B4A7FD3"><enum>(A)</enum><text display-inline="yes-display-inline">meet</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id10622E29D3154A5998EF54AB2838FA14"><enum>(B)</enum><text>in subparagraph
(A) (as so designated), by striking the period at the end and inserting
<quote>; and</quote>; and</text>
</subparagraph><subparagraph id="id4A5D88C90A0C4BA1BDA0D7572A9511B7"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA9B91D7992CF46A1A80873FC815C2916" style="OLC">
<subparagraph id="id01FFB04255294191B5005A0318978956"><enum>(B)</enum><text>be the owner or
operator of not larger than a family
farm.</text>
</subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id072C4B9413404E7C926E533115241709"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<subparagraph id="id0E0608023F6F4EF79986CBA708D95F83"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The portion</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id976BB4EF70EA436099F7E19524691676" style="OLC">
<paragraph id="idEDF6A125E06B49D3B1411E63C069C3B7"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the
portion</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idA4D2BA2774204117883D2E7E71A06E8C"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE83DE406AAF74F6B9C56ACFAD0287097" style="OLC">
<paragraph id="ID39392005106f4db0a731b02e27af0c87"><enum>(2)</enum><header>Beginning and
socially disadvantaged farmers and ranchers</header><text>In the case of
beginning farmers or ranchers and socially disadvantaged farmers or ranchers,
the portion of the loan the Secretary may guarantee under this section shall be
95 percent of the principal amount of the
loan.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id24E56F4DFB11448AA47515781C03DDB1"><enum>(3)</enum><text>by striking
subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC76F8DB31C834134A8F5EF15D1651C07" style="OLC">
<subsection id="IDfadf9183509c49afa97e3b0948185774"><enum>(h)</enum><header>Funding</header>
<paragraph id="id625F0095B48D435F912F5968EF6B2B11"><enum>(1)</enum><header>In
general</header><text>The Secretary may make or guarantee loans under this
section for not more than $250,000,000 for each of fiscal years 2013 through
2017, of which, for each fiscal year, not more than <fraction>1/2</fraction>
shall be used for direct loans and not more than <fraction>1/2</fraction> shall
be used for guaranteed loans.</text>
</paragraph><paragraph id="ID58c6e36b164e4d61a1993ae81a354986"><enum>(2)</enum><header>Qualified
beginning farmers and ranchers</header>
<subparagraph id="id369ADFF424464AC2B559E85FAE95058F"><enum>(A)</enum><header>Direct
loans</header><text>Of the amount made available for direct loans for a fiscal
year under paragraph (1), the Secretary shall reserve for qualified beginning
farmers and ranchers until April 1 of the fiscal year not less than 50 percent
of the amount.</text>
</subparagraph><subparagraph id="IDb5ef3bb8958a4369a369e749c3d736cd"><enum>(B)</enum><header>Guaranteed
loans</header><text>Of the amount made available for guaranteed loans for a
fiscal year under paragraph (1), the Secretary shall reserve for qualified
beginning farmers and ranchers until April 1 of the fiscal year not less than
50 percent of the
amount.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id750D31E88D1440AEBC14E68801ADDCCB"><enum>203.</enum><header>Loan terms for
down payment loan program</header><text display-inline="no-display-inline">Section 310E(b)(1)(C) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by striking
<quote>$500,000</quote> and inserting <quote>$667,000</quote>.</text>
</section><section id="IDf8fb80cdad6b4987bbc29a8e300a6e2c"><enum>204.</enum><header>Definition of
qualified beginning farmer or rancher</header><text display-inline="no-display-inline">Section 343(a)(11)(F) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking
<quote>median</quote> and inserting <quote>average</quote>.</text>
</section></subtitle><subtitle id="idEB0A40DF0DFE479E95B76C752A67679F"><enum>B</enum><header>Operating
loans</header>
<section id="idC6438C9DD3A04449975C292A8C817C0F"><enum>211.</enum><header>Young
beginning farmer or rancher microloans</header><text display-inline="no-display-inline">Section 311 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id13B03EC840F24762B4ED785F8D78D010" style="OLC">
<subsection id="ID9f05ccacc15643f180b4428e82f0ad15"><enum>(d)</enum><header>Young beginning
farmer or rancher microloans</header>
<paragraph id="ID6b6f6b1cfcab4813b1c9767d8b0127ec"><enum>(1)</enum><header>In
general</header><text>The Secretary may make microloans under this subtitle to
beginning farmers or ranchers who are not less than 19 and not more than 35
years of age to enable the beginning farmers or ranchers to obtain flexible
capital to finance operations.</text>
</paragraph><paragraph id="IDed84a18825674a0da87f2d7e07b92472"><enum>(2)</enum><header>Liability</header><text>In
the case of a microloan under this subsection, the Secretary may accept the
personal liability of a cosigner of the promissory note in addition to the
personal liability of the borrower.</text>
</paragraph><paragraph id="ID53fbb3ff70ee4b41926cab736c8c9c72"><enum>(3)</enum><header>Principal
balance</header><text>The principal balance for a microloan made under this
subsection shall not exceed $35,000.</text>
</paragraph><paragraph id="ID006d5764ff45425e959f734a08d651e6"><enum>(4)</enum><header>Term</header><text>Loan
repayment under this subsection shall be required in not less than 1 and not
more than 7 years.</text>
</paragraph><paragraph id="ID42b023047d6b4a8e8b4d27706c5e5ee8"><enum>(5)</enum><header>Interest
rate</header><text>The interest rate on a loan made under this subsection shall
not exceed the maximum interest rate that may be charged low income, limited
resource borrowers under section 316(a)(2).</text>
</paragraph><paragraph id="ID917bab2c60764035b6533934baf3e5a7"><enum>(6)</enum><header>Borrower
training</header>
<subparagraph id="idC9F613D59C454DBEA9C069E145E62F3C"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), to be eligible for a
microloan under this subsection, the borrower shall have successfully
completed, or will complete within 1 year, borrower training described in
section 359.</text>
</subparagraph><subparagraph id="id368A2D6184AB4709B67031D9DB876965"><enum>(B)</enum><header>Waivers</header><text>In
carrying out subparagraph (A), the Secretary shall not grant a waiver described
in section 359(f) except in the case of a borrower who successfully completed,
or will complete within 1 year, an equivalent training program, including
programs established under section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f), as determined by the
Secretary.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="idBD7A9483E19A422BB87E01C617C700B9"><enum>C</enum><header>Administrative
provisions</header>
<section id="H8B6BAA0134864104BBCB00D1E4843B24"><enum>221.</enum><header>Beginning
farmer and rancher individual development accounts pilot program</header><text display-inline="no-display-inline">Section 333B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1983b) is amended by striking subsection (h)
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id7D1E2A3CA264442787500C47B2F88D4A" style="OLC">
<subsection id="ID7d81c32fd1ab4f8f920ce561afbdb488"><enum>(h)</enum><header>Funding</header><text>On
October 1, 2012, and on each October 1 thereafter through October 1, 2016, of
the funds of the Commodity Credit Corporation, the Secretary shall use to carry
out this section $5,000,000, to remain available until
expended.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idEA9512399B8B4EAE8426953DE31B09DB"><enum>222.</enum><header>Transition to
private commercial or other sources of credit</header>
<subsection id="id01506312001047AF9EBDC7DDE6708A04"><enum>(a)</enum><header>Conditions for
direct loans</header><text display-inline="yes-display-inline">Section 311(c)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is
amended—</text>
<paragraph id="IDb87b4250532149a684b59a60b7498fd2"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="IDda05e8fa309547f5b3a0f212baf76e3e"><enum>(A)</enum><text>in subparagraph
(A), by striking the semicolon at the end and inserting <quote>;
and</quote>;</text>
</subparagraph><subparagraph id="ID5ff8139215384bbaaa425bf744e63a73"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>; or</quote> at the end and inserting a period;
and</text>
</subparagraph><subparagraph id="IDd9790928a66042b3b5954aaa72617e46"><enum>(C)</enum><text>by striking
subparagraph (C); and</text>
</subparagraph></paragraph><paragraph id="ID976ab2d8654e43c09d59b61f50277764"><enum>(2)</enum><text>by striking
paragraphs (3) and (4) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idEF9AEC4BC71344BFA94ACAA57F2D2339" style="OLC">
<paragraph id="IDc48cc3e3055d4796afd194940c9e323c"><enum>(3)</enum><header>Term
limits</header><text>Subject to paragraph (4), if a farmer or rancher has
received a direct operating loan pursuant to this section in each of 9
consecutive years, the farmer or rancher may not receive a direct operating
loan from the Secretary under this section for the next year.</text>
</paragraph><paragraph id="ID4b18950e5bf341bbbedb849527863876"><enum>(4)</enum><header>Waivers for
farm and ranch operations on tribal land</header><text>The Secretary shall
waive the limitation under paragraph (3) for a direct loan made under this
subtitle to a farmer or rancher whose farm or ranch land is subject to the
jurisdiction of an Indian tribe and whose loan is secured by 1 or more security
instruments that are subject to the jurisdiction of an Indian tribe if the
Secretary determines that commercial credit is not generally available for the
farm or ranch
operations.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID00cb83c6c0544da2999eafd863a6c48f"><enum>(b)</enum><header>Limitation on
period borrowers are eligible for guaranteed assistance</header><text>Section
319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1949) is
amended by striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id78FABF8573A142679C065971E24C23E5" style="OLC">
<subsection id="ID1d3a694fea6b40f184b98d61d3ee74b9"><enum>(b)</enum><header>Limitation on
period borrowers are eligible for guaranteed assistance</header><text>If a
borrower has received a guaranteed loan under this subtitle in each of 15
consecutive years, the borrower may not receive a loan guaranteed by the
Secretary for the next
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H8E59C6A2FB534495B72F3726A09C0028"><enum>223.</enum><header>Loan
authorization levels</header><text display-inline="no-display-inline">Section
346(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1994(b)(1)) is amended—</text>
<paragraph display-inline="no-display-inline" id="id920B6BB097B84510A42E4ACD3CA90172"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by striking <quote>$4,226,000,000 for each of fiscal years 2008 through
2012</quote> and inserting <quote>$5,000,000,000 for each of fiscal years 2013
through 2017</quote>;</text>
</paragraph><paragraph display-inline="no-display-inline" id="idC1D5870FCF5D4B79A5F8BCBE2E375728"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph display-inline="no-display-inline" id="id7702A6012B8D4173AA71D67DF2526CC1"><enum>(A)</enum><text>in the matter
preceding clause (i), by striking <quote>$1,200,000,000</quote> and inserting
<quote>$2,000,000,000</quote>;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="idD180E34F2C3E4BA18E01615E9C9F416F"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>$350,000,000</quote> and inserting <quote>$750,000,000</quote>;
and</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id89ABE896FA2545FB88C48AE8E49F39E3"><enum>(C)</enum><text>in clause (ii),
by striking <quote>$850,000,000</quote> and inserting
<quote>$1,250,000,000</quote>; and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id15BCE967A4594AB4B5D13658BFED7816"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subparagraph display-inline="no-display-inline" id="idE3FD0AFA51C54E5AA8861AFA4598ABB3"><enum>(A)</enum><text>in the matter
preceding clause (i), by striking <quote>$3,026,000,000</quote> and inserting
<quote>$3,000,000,000</quote>;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id232B66B37BF749F08BA008114240A204"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>$1,000,000,000</quote> and inserting <quote>$1,500,000,000</quote>;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC81993F1167B4227BF5CC0145679AB6A"><enum>(C)</enum><text>in clause (ii),
by striking <quote>$2,026,000,000</quote> and inserting
<quote>$1,500,000,000</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="idDC5AB0942A6D4A58B7B5F746504FBE25"><enum>224.</enum><header>Direct loans
for beginning farmers and ranchers</header><text display-inline="no-display-inline">Section 346(b)(2)(A) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1994(b)(2)(A)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8294E7111FF4420E9A3EF5D0F61869F3"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i), by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idB66E785724084295B36D11E0B94D28AD" style="OLC">
<subclause id="IDd90b133f7fb44bea9aaf5bf267eee468"><enum>(III)</enum><header>Priority</header><text>In
order to maximize the number of borrowers served under this clause, the
Secretary—</text>
<item id="id2F3C7F61569A460A94A72EDCD1054073"><enum>(aa)</enum><text>shall give
priority to borrowers who apply under the down payment loan program under
section 310E or joint financing arrangements under section 307(a)(3)(D);
and</text>
</item><item id="idFE05D3644B10466796F1449951681CCC"><enum>(bb)</enum><text>may offer other
financing options only if the Secretary determines that down payment or other
participation loan options are not a viable approach for a particular
borrower.</text>
</item></subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id827D7AA955694BFEA44AD9A60A3DCD29"><enum>(2)</enum><text>in clause
(ii)(III), by striking <quote>each of fiscal years 2008 through 2012</quote>
and inserting <quote>fiscal year 2008 and each fiscal year
thereafter</quote>.</text>
</paragraph></section><section id="H9BFCB2074412450E8EF1E0C78B18DA4"><enum>225.</enum><header>Borrower
training</header><text display-inline="no-display-inline">Section 359 of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006a) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4582E5583CC54022BE54EE2E563099AD" style="OLC">
<subsection id="IDf4beb3b28da14b32a14e534f14f54ab4"><enum>(g)</enum><header>Coordination</header><text>The
Secretary shall coordinate the borrower training program under this section
with the beginning farmer and rancher development program established under
section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3319f) to ensure, to the maximum extent practicable, that financial management
training programs funded under the beginning farmer and rancher development
program are designed in such a way that the financial management training
programs will—</text>
<paragraph id="id33B3FF2E470F4D6081C77CB604FD9851"><enum>(1)</enum><text>meet borrower
training requirements under this section; and</text>
</paragraph><paragraph id="idAF386D4EB92648E89CDAF4CE58017FD7"><enum>(2)</enum><text>qualify as
beginning farmer and rancher development program projects covered by contracts
under subsection
(b).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>III</enum><header>Rural
development</header>
<section id="idEE2A55CB632840E089E7796A787B3BE4"><enum>301.</enum><header>Value-added
producer grants</header><text display-inline="no-display-inline">Section 231(b)
of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1632a(b)) is
amended—</text>
<paragraph id="id3F9176DCA92041138B0391F6FCA0D9C7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (6) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idC93017D531114C75B4709B2484150591" style="OLC">
<paragraph id="ID30d55b4217a945409a9e8c9dee40cd0d"><enum>(6)</enum><header>Priority</header>
<subparagraph id="IDdb7f1d3c157747e3978b5b05a80efa83"><enum>(A)</enum><header>In
general</header><text>In awarding grants under this subsection, the Secretary
shall give priority to projects that—</text>
<clause id="ID3bf166275c304060bf0c71eace149a9d"><enum>(i)</enum><text>contribute to
increasing opportunities for operators of small- and medium-sized farms and
ranches that are structured as a family farm; or</text>
</clause><clause id="IDeb63fd1505ef41288f5d216881325416"><enum>(ii)</enum><text>have applicants
at least <fraction>1/4</fraction> of whom are beginning farmers or ranchers or
socially disadvantaged farmers or ranchers.</text>
</clause></subparagraph><subparagraph id="IDf253b72458604f5fa8c2c2547b239366"><enum>(B)</enum><header>Ranking</header><text>In
evaluating and ranking proposals under this subsection, the Secretary shall
provide very substantial weight to the priorities described in subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4A7BB17E0DDE443CB72E28F59955C122"><enum>(2)</enum><text>in paragraph
(7)—</text>
<subparagraph id="id21B33B6E73F84B6297E667046551C353"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="idA6AC9E22640B4D99BAB9785FC3F207C7"><enum>(i)</enum><text>by
striking <quote>October 1, 2008</quote> and inserting <quote>October 1, 2012,
and each October 1 thereafter through October 1, 2016</quote>; and</text>
</clause><clause id="idC39AEB6A9D0741F2908C67BABCEB9B4F"><enum>(ii)</enum><text>by
striking <quote>$15,000,000</quote> and inserting
<quote>$30,000,000</quote>;</text>
</clause></subparagraph><subparagraph id="id622123650CB043799F551508B47C738A"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>2012</quote> and inserting <quote>2017</quote>;
and</text>
</subparagraph><subparagraph id="id70FA4F5BF90A44FBB23C49FC9E2E324E"><enum>(C)</enum><text>in subparagraph
(C)—</text>
<clause id="idC444C5674AC04DADB9CE6540116547A3"><enum>(i)</enum><text>in
clause (i), by striking <quote>benefit</quote> and inserting <quote>have
applicants at least <fraction>1/4</fraction> of whom are</quote>; and</text>
</clause><clause id="id21211BB425F24A5F930B27869A7BA160"><enum>(ii)</enum><text>in
clause (iii), by striking <quote>June 30 of the fiscal year</quote> and
inserting <quote>the close of the annual proposal review
process</quote>.</text>
</clause></subparagraph></paragraph></section><section id="id1B571F4D12CE4BE8A7F0BDD14C930E40"><enum>302.</enum><header>Use of loans
and grants for entrepreneurial farm enterprises</header><text display-inline="no-display-inline">Subtitle D of the Consolidated Farm and
Rural Development Act is amended by inserting after section 365 (7 U.S.C. 2008)
the following:</text>
<quoted-block display-inline="no-display-inline" id="id802AE088BAA746AEB964A12D72AE148D" style="OLC">
<section id="ID612dc70884da4c99b05324553c72b509"><enum>366.</enum><header>Use of loans
and grants for entrepreneurial farm enterprises</header>
<subsection id="id8801572CB9FE4BFEBF6A36A1E1227622"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
approve grants and loans under any rural development program established under
this title to support farm and farm-related business enterprises that—</text>
<paragraph id="id7B64E528485F4E7285B6FFD0406885B1"><enum>(1)</enum><text display-inline="yes-display-inline">create new entrepreneurial employment
opportunities for beginning farmers and ranchers;</text>
</paragraph><paragraph id="id83520AFB82284DFC9A72889CA1D77B18"><enum>(2)</enum><text display-inline="yes-display-inline">have the effect of—</text>
<subparagraph id="id6A264CCA4CDD4AEDA0E3CB1128A0F932"><enum>(A)</enum><text display-inline="yes-display-inline">creating new small- and medium-size family
farms;</text>
</subparagraph><subparagraph id="id1E4FA6BAB4694AE39EA9D6C5B34D4B3E"><enum>(B)</enum><text display-inline="yes-display-inline">enhancing local and regional food
systems;</text>
</subparagraph><subparagraph id="idB3976A711E5C43719FDEC8E25BC6C5EC"><enum>(C)</enum><text display-inline="yes-display-inline">increasing value-added production and new
markets;</text>
</subparagraph><subparagraph id="id496E65D195924B0DBB327B40C9AA185D"><enum>(D)</enum><text display-inline="yes-display-inline">preserving farmland and rural heritage;
and</text>
</subparagraph><subparagraph id="id230F5071063D46E8A93EA8FC9360607B"><enum>(E)</enum><text display-inline="yes-display-inline">developing strong rural economies;
and</text>
</subparagraph></paragraph><paragraph id="id61CB855DB8AA46F189DC6A97B54B2D35"><enum>(3)</enum><text>are consistent
with the purposes of the program.</text>
</paragraph></subsection><subsection id="idE299EA9B2A4349C7BC5913F19043F34D"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">Loans or grants made under this section
shall not be available for annual agricultural production
purposes.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header>Research,
education, and extension</header>
<section id="idA887D990AFCD449A9B7B93E358EE667E"><enum>401.</enum><header>Beginning
farmer and rancher development program</header><text display-inline="no-display-inline">Section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f) is amended—</text>
<paragraph id="id2C133F95B9F64347A7CE5D86B4DAE14F"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="idCB9EE1A17A1141D595E696C0E91B6D73"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="idAA7E07B88A36476F99CA1F98B5B3109B"><enum>(i)</enum><text>in
subparagraph (Q), by striking <quote>and</quote> after the semicolon at the
end;</text>
</clause><clause id="idC8A597E40B054188A3E78857CD671CEF"><enum>(ii)</enum><text>by
redesignating subparagraph (R) as subparagraph (S); and</text>
</clause><clause id="idCAA5DF1C77FD421D8F26A2FDB370DD0F"><enum>(iii)</enum><text>by inserting
after subparagraph (Q) the following:</text>
<quoted-block display-inline="no-display-inline" id="id76F7C5FC9F314E08842C8868C4F5BF45" style="OLC">
<subparagraph id="IDf2741c9d550244a98a46ef190d47d45d"><enum>(R)</enum><text>agricultural
rehabilitation and vocational training for veterans;
and</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="idC29441586B944AF9AB7488809600D9B5"><enum>(B)</enum><text>in paragraph
(4)—</text>
<clause id="idC9C2CD2F2C86422B82290CBDE70C8856"><enum>(i)</enum><text>by
striking <quote>To be eligible</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id24D2777391AB4D9EB325A1D8A1E7A31B" style="OLC">
<subparagraph id="id16405CB806B9482CB3BD434406A1893E"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), to be
eligible</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="idEAFC0A97736B46C9814ADC6BC634E25C"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF5A697E29845476EB6175029AFC30DFD" style="OLC">
<subparagraph id="ID5c07baae3f3a4e6bbfaf5194526d1301"><enum>(B)</enum><header>Exceptions</header><text>The
Secretary may waive or modify the matching requirement in subparagraph (A) if
the Secretary determines a waiver or modification is necessary to effectively
reach an underserved area or
population.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id4C200656BD1B4DE183F85BB617BFE920"><enum>(C)</enum><text>in paragraph
(8)—</text>
<clause id="id03EEB51A57D944B0A138B8955B9D928B"><enum>(i)</enum><text>in
subparagraph (B), by striking <quote>and</quote> after the semicolon at the
end;</text>
</clause><clause id="idB6879C436E2E4D10B350AD3C6796B2CC"><enum>(ii)</enum><text>in
subparagraph (C), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="idD1AB56E0C41740DCB569BA53BDC73C90"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2C4FCF08DDB8429C9D1FCEBC93FFF3FB" style="OLC">
<subparagraph id="ID927aa9ef5de1420f9da9527f95cae035"><enum>(D)</enum><text>military veteran
beginning farmers and ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id922214F0107748C086A8EF16FBEEECF5"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1214DEB3D9214904808C4A8CE156DB94" style="OLC">
<paragraph id="ID300e803868724546bf261f55df5f329d"><enum>(11)</enum><header>Indirect
costs</header><text>To help facilitate participation in the program under this
subsection by nongovernmental and community-based nonprofit organizations, the
Secretary shall provide for an optional 10 percent indirect cost option in lieu
of a higher negotiated rate.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id890065707264474C9ECFEF4CFE970193"><enum>(2)</enum><text>in subsection
(h)—</text>
<subparagraph id="id5BABC42B88974E2A99EF263435500DFF"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>section—</quote> and all that follows through the period at
the end and inserting <quote>$25,000,000 for each of fiscal years 2013 through
2017.</quote>; and</text>
</subparagraph><subparagraph id="idA76E79FBC34944598773D6FBEEA162A2"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>2008 through 2012</quote> and inserting <quote>2013 through
2017</quote>.</text>
</subparagraph></paragraph></section><section id="id41C5AA5E309E4C91B9BA07DECAC9F290"><enum>402.</enum><header>Agriculture
and Food Research Initiative</header><text display-inline="no-display-inline">Subsection (b) of the Competitive, Special,
and Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended—</text>
<paragraph id="idE5759E13D0044E8B97EB23CD103009E9"><enum>(1)</enum><text>in paragraph
(2)(F)—</text>
<subparagraph id="id60975C01271745D39D99B1FE5E6EAE2A"><enum>(A)</enum><text>by redesignating
clauses (iii) through (vi) as clauses (iv) through (vii), respectively;
and</text>
</subparagraph><subparagraph id="idDFD639A0DC1A477683DB5F039FA55D44"><enum>(B)</enum><text>by inserting
after clause (ii) the following:</text>
<quoted-block display-inline="no-display-inline" id="id5A44FB3D8EC84981A9FF0314EDD28A05" style="OLC">
<clause id="IDb207f95bc29145cf9c47b832326d5a5b"><enum>(iii)</enum><text>new farming
opportunities, including young, beginning, socially disadvantaged, and
immigrant issues and farm transition, farm transfer, farm entry, and beginning
farmer profitability
issues;</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id3F7A842E24F44B5197E708FD0141B22D"><enum>(2)</enum><text>in paragraph (7),
in the matter preceding subparagraph (A), by inserting <quote>projects
(including integrated projects)</quote> after <quote>education</quote>;
and</text>
</paragraph><paragraph id="id48755BBF4CD04AB3A1749C68844FA078"><enum>(3)</enum><text>in paragraph
(11)(A)—</text>
<subparagraph id="id24DDBE8F05CA46C4A02D385DFD48A419"><enum>(A)</enum><text>in the matter
preceding clause (i), by striking <quote>2008 through 2012</quote> and
inserting <quote>2013 through 2017</quote>; and</text>
</subparagraph><subparagraph id="id42301C55814345DBA1AB03C988CAE5A5"><enum>(B)</enum><text>in clause (i), by
striking <quote>pursuant to</quote> and inserting <quote>under</quote>.</text>
</subparagraph></paragraph></section><enum>V</enum><header>Crop
insurance</header>
<section id="idFE9FDB58162E435FAD0CC186C20CD03B"><enum>501.</enum><header>Sense of
Congress on beginning farmer and rancher access to crop and revenue
insurance</header><text display-inline="no-display-inline">It is the sense of
Congress that the Secretary of Agriculture should, to the maximum extent
practicable, remove barriers and ensure effective access to crop and revenue
insurance by beginning farmers and ranchers on terms that are fair and assist
in the goal of increasing the number of new farming and ranching
opportunities.</text>
</section><section id="id59E30990A91A405FB61CA3BBCA3F3A19"><enum>502.</enum><header>Risk
management partnership programs</header><text display-inline="no-display-inline">Section 522 of the Federal Crop Insurance
Act (7 U.S.C. 1522) is amended—</text>
<paragraph id="id3CE519628B78439E93A0F9376FAEB737"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph id="idF9F0FCE267AB452999D638AA1F98867E"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="id05052904807F4358A6CA46672662AE14"><enum>(i)</enum><text>by
striking <quote>priority given to risk</quote> and inserting “priority given
to—</text>
<quoted-block display-inline="no-display-inline" id="idE05244A24E1344558383A29EF3D8CE19" style="OLC">
<subparagraph id="idB41DB2E0B61F487DAA8EF10068E35F65"><enum>(A)</enum><text>risk</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="id8AC5900F33A04701A11AF79C910E9D7B"><enum>(ii)</enum><text>by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</clause><clause id="id6A115218A43844B2B99F4B53FF1AA151"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4FAF53F40CD04DE8B64E69232D23DCC5" style="OLC">
<subparagraph id="ID6729f0c53dda4b479014fcbbbb986a2c"><enum>(B)</enum><text>underserved
producers, including beginning farmers and ranchers and socially disadvantaged
farmers and
ranchers.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id76F5D24CFFE44921A9BFD0786365F316"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="id57CB99C925E041D998525F5609D79A05"><enum>(i)</enum><text>by
striking <quote>options for producers</quote> and inserting “options
for—</text>
<quoted-block display-inline="no-display-inline" id="idA744E18A5E6E44E8B6D926D7C416D33A" style="OLC">
<subparagraph id="idDECF130F8AF84DC2831E470A072E0243"><enum>(A)</enum><text>producers</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="id701891EC710B4C769FC6FF174D6C632B"><enum>(ii)</enum><text>by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</clause><clause id="id61133DA7EBAF4E5EB09F49EAAA45BE95"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB64073B18A814FC7B4D76E5B980355C1" style="OLC">
<subparagraph id="ID65ef0f33301943fba0b706127891cf10"><enum>(B)</enum><text>underserved
producers, including beginning farmers and ranchers and socially disadvantaged
farmers and ranchers.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="idBBAB1C3E9D074F6C90D25C21124C8F9F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id04A13F737A7040D8AA2BEA5E5CC38F30" style="OLC">
<paragraph id="IDb8fe0750a7364636b936c6b7165a658b"><enum>(4)</enum><header>Requirements</header><text>In
carrying out the programs established under paragraphs (2) and (3), the
Secretary shall place special emphasis on risk management techniques, tools,
and programs that are specifically targeted at—</text>
<subparagraph id="ID367ab8fdd3aa45669883ebf188482278"><enum>(A)</enum><text>beginning farmers
or ranchers;</text>
</subparagraph><subparagraph id="IDc8d3d90777b24fb2aa80a1b8058af3eb"><enum>(B)</enum><text>legal immigrant
farmers or ranchers that are attempting to become established agricultural
producers in the United States;</text>
</subparagraph><subparagraph id="ID96b100887ab14f2ea4cd0e9ba965fa82"><enum>(C)</enum><text>socially
disadvantaged farmers or ranchers;</text>
</subparagraph><subparagraph id="ID5a15e8715cc248b8892ef5d35820acdc"><enum>(D)</enum><text>farmers or
ranchers that—</text>
<clause id="IDfdaa2710ff3f4b91b9eca36cbf3ced56"><enum>(i)</enum><text>are preparing to
retire; and</text>
</clause><clause id="ID31a5e6d2e5374d1a82a23c085504b2fb"><enum>(ii)</enum><text>are using
transition strategies to help new farmers or ranchers get started; and</text>
</clause></subparagraph><subparagraph id="IDa709c457c5fc4352a250a6becb83e191"><enum>(E)</enum><text>new or
established farmers or ranchers that are converting production and marketing
systems to pursue new markets.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id1947B5997ABC47019132C031C4271FA3"><enum>(2)</enum><text>in subsection
(e)(2)(A), by striking <quote>$12,500,000 for fiscal year 2008</quote> and
inserting <quote>$15,000,000 for fiscal year 2013</quote>.</text>
</paragraph></section><enum>VI</enum><header>Miscellaneous</header>
<section id="idEADF6272C11D44958D33095B4A6DE8E7"><enum>601.</enum><header>Small and
beginning farmer and rancher coordinators</header><text display-inline="no-display-inline">Section 226B of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6934) is amended—</text>
<paragraph id="id2877705F9C604823B5B1A70AA4FA0721"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(4), by inserting before
the semicolon at the end the following: <quote>, including review of
rulemakings to provide an assessment and make recommendations regarding the
impact of rules on small farms and ranches, beginning and socially
disadvantaged farmers and ranchers, and related matters relevant to the
structure of agriculture</quote>;</text>
</paragraph><paragraph id="idCD58493BE8DE4FB3A6B8175CED03662C"><enum>(2)</enum><text>in subsection
(e)(2)—</text>
<subparagraph id="id95078363868C4009A7A14BFC787FDB31"><enum>(A)</enum><text>by redesignating
subparagraph (D) as subparagraph (E); and</text>
</subparagraph><subparagraph id="id1CCCBB5BF6A543C3B88C3B29A6C7724B"><enum>(B)</enum><text>by inserting
after subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="idECE880B3B17A430D9D57F542E67CC04E" style="OLC">
<subparagraph id="ID7fb2b39f4041420f8646f8ac45a4562e"><enum>(D)</enum><header>State small and
beginning farmer and rancher coordinator</header>
<clause id="idB409C0CE46EF416FAF5B633209F0A847"><enum>(i)</enum><header>In
general</header><text>The Small Farms and Beginning Farmers and Ranchers Group
shall designate a State small and beginning farmer and rancher coordinator from
among the State office employees of the Farm Service Agency, the Natural
Resources Conservation Service, the Risk Management Agency, the Rural
Business-Cooperative Service, and the Rural Utilities Service.</text>
</clause><clause id="id661F7F253B444A1E8AD75664288078A7"><enum>(ii)</enum><header>Training</header><text>The
Small Farms and Beginning Farmers and Ranchers Group shall coordinate the
development of a training plan so that each State coordinator shall receive
sufficient training to have a general working knowledge of the programs and
services available from each agency of the Department to assist small and
beginning farmers and ranchers.</text>
</clause><clause id="id87FDE882C65D4CAB9B8E0A270C89B913"><enum>(iii)</enum><header>Duties</header><text>The
coordinator shall—</text>
<subclause id="ID1cb0621884f84eaf8d07b02cbc4e71d7"><enum>(I)</enum><text>coordinate
technical assistance at the State level to help small and beginning farmers and
ranchers gain access to programs of the Department;</text>
</subclause><subclause id="ID428ebb7e61e1412f86bfa9dd31c39986"><enum>(II)</enum><text>develop and
submit a State plan for approval by the Small Farms and Beginning Farmers and
Ranchers Group to provide coordination to ensure adequate services to small and
beginning farmers and ranchers at all county and area offices throughout the
State;</text>
</subclause><subclause id="IDe61f06d71a664657bf3ea204fe42057b"><enum>(III)</enum><text>oversee
implementation of the approved State plan; and</text>
</subclause><subclause id="ID4537ec1a8a004bd7bbac288f2d996f8e"><enum>(IV)</enum><text>work with
outreach coordinators in the State offices of the Farm Service Agency, the
Natural Resources Conservation Service, the Risk Management Agency, the Rural
Business-Cooperative Service, and the Rural Utilities Service to ensure
appropriate information about technical assistance is available at outreach
events and
activities.</text>
</subclause></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id9819DFB657B44051A548F1E55CE7CA25"><enum>(3)</enum><text>in subsection
(f), by striking paragraph (3); and</text>
</paragraph><paragraph id="id67961023DF1A476E84F2640956E641D3"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAA2E7C1E41C44B76B3CABA26CDD4CB98" style="OLC">
<subsection id="ID2b80f19feaf84e95b859c2df22912f07"><enum>(g)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section such sums as are necessary for each of fiscal years 2013
through
2017.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idA08E1C1D093E49CA8C1EFA86D07F4D84"><enum>602.</enum><header>Military
Veterans Agricultural Liaison</header>
<subsection id="id5BFDA40EB5AB4F18A78A01F1CCEC693A"><enum>(a)</enum><header>In
general</header><text>Subtitle A of the Department of Agriculture
Reorganization Act of 1994 is amended by inserting after section 218 (7 U.S.C.
6918) the following:</text>
<quoted-block display-inline="no-display-inline" id="idEDA5341B145B4005B5BA66CF0CB057D2" style="OLC">
<section id="idED9D397F265D424DBD1B98CB74002E8A"><enum>219.</enum><header>Military
Veterans Agricultural Liaison</header>
<subsection id="idE66C362D793B4BD48C723FF4C8A9ED56"><enum>(a)</enum><header>Authorization</header><text>The
Secretary shall establish in the Department the position of Military Veterans
Agricultural Liaison.</text>
</subsection><subsection id="idD49C12C6FD44450DBC9571237C5D4135"><enum>(b)</enum><header>Duties</header><text>The
Military Veterans Agricultural Liaison shall—</text>
<paragraph id="ID17283cfae9954b0db14ff5df5c7ccccb"><enum>(1)</enum><text>provide
information to returning veterans about, and connect returning veterans with,
beginning farmer training and agricultural vocational and rehabilitation
programs appropriate to the needs and interests of returning veterans,
including assisting veterans in using Federal veterans educational benefits for
purposes relating to beginning a farming or ranching career;</text>
</paragraph><paragraph id="IDf7ef1b2fd6e04315bf2e4943ea92b7f0"><enum>(2)</enum><text>provide
information to veterans concerning the availability of and eligibility
requirements for participation in agricultural programs, with particular
emphasis on beginning farmer and rancher programs;</text>
</paragraph><paragraph id="IDcd52ca926f7b437da5958095ae6e9ad7"><enum>(3)</enum><text>serving as a
resource for assisting veteran farmers and ranchers, and potential farmers and
ranchers, in applying for participation in agricultural programs; and</text>
</paragraph><paragraph id="ID74bdff83569d410d916b4b27cf4ef0cb"><enum>(4)</enum><text>advocating on
behalf of veterans in interactions with employees of the
Department.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idADCDC0E7D69C480DA10BE2056231273F"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 296(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended—</text>
<paragraph id="idEF4486E32C114A5192BB2D11213B4A22"><enum>(1)</enum><text>in paragraph (6),
by striking <quote>or</quote> after the semicolon at the end;</text>
</paragraph><paragraph id="id9A8AC6A44F514AC29E3B1276D90A87DA"><enum>(2)</enum><text>in paragraph (7),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="id63468E47C23A49E7AAE39C0A760FA572"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF56B94A6E38547BFA83707C673F4C1A7" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id163496ED0BDC48BEA9974B34E0AB847A"><enum>(8)</enum><text>the authority of
the Secretary to establish in the Department the position of Military Veterans
Agricultural Liaison in accordance with section
219.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id0B662CFB964F41CCBA5D10E88C9D71AD"><enum>603.</enum><header>Budgetary
effects</header><text display-inline="no-display-inline">The budgetary effects
of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act
of 2010, shall be determined by reference to the latest statement titled
<quote>Budgetary Effects of PAYGO Legislation</quote> for this Act, submitted
for printing in the Congressional Record by the Chairman of the Senate Budget
Committee, provided that such statement has been submitted prior to the vote on
passage.</text>
</section><section id="id888B6CDB058E40E5AFC6A0DF63850265"><enum>604.</enum><header>Effective
date</header><text display-inline="no-display-inline">This Act and the
amendments made by this Act take effect on October 1, 2012.</text>
</section>